• A forest fire burns near Vati village, on the island of Rhodes. AP
    A forest fire burns near Vati village, on the island of Rhodes. AP
  • Firefighters watch as a forest fire reignites in Spain's Caldera de Taburiente national park. EPA
    Firefighters watch as a forest fire reignites in Spain's Caldera de Taburiente national park. EPA
  • A man lifts a tile from underneath the frame of a burnt bed after a forest fire raced through the Tunisian town of Melloula. AFP
    A man lifts a tile from underneath the frame of a burnt bed after a forest fire raced through the Tunisian town of Melloula. AFP
  • A firefighter tries to extinguish a blaze near the village of Asklipieio, on the Greek island of Rhodes. Reuters
    A firefighter tries to extinguish a blaze near the village of Asklipieio, on the Greek island of Rhodes. Reuters
  • A plane dumps water over a wildfire on Ciovo island, Croatia. AP
    A plane dumps water over a wildfire on Ciovo island, Croatia. AP
  • Residents of Gennadi village stand near a forest fire raging on the island of Rhodes. AP
    Residents of Gennadi village stand near a forest fire raging on the island of Rhodes. AP
  • People are evacuated by boat as they flee a fire burning near the Greek town of Nea Anchialos. EPA
    People are evacuated by boat as they flee a fire burning near the Greek town of Nea Anchialos. EPA
  • A petrol station destroyed by a forest fire in the Italian town of Oliveri. AFP
    A petrol station destroyed by a forest fire in the Italian town of Oliveri. AFP
  • A man watches as a house burns in the Tono district of Messina, Sicily. AFP
    A man watches as a house burns in the Tono district of Messina, Sicily. AFP
  • The fire destroyed homes and cars in Oliveri. AFP
    The fire destroyed homes and cars in Oliveri. AFP
  • A firefighter is overwhelmed as he looks at the trail of destruction in Messina, Sicily. AFP
    A firefighter is overwhelmed as he looks at the trail of destruction in Messina, Sicily. AFP
  • A fire burns a forested area of Alto do Alvide, Portugal. EPA
    A fire burns a forested area of Alto do Alvide, Portugal. EPA
  • A forest fire burns in Valsequillo, Spain. EPA
    A forest fire burns in Valsequillo, Spain. EPA
  • Calves try to escape the fire in Sesklo village, Greece. EPA
    Calves try to escape the fire in Sesklo village, Greece. EPA
  • Farmers try to save their animals as the fire approaches Sesklo village. EPA
    Farmers try to save their animals as the fire approaches Sesklo village. EPA
  • A firefighter tackles a blaze outside the village of Vati, Greece. Getty
    A firefighter tackles a blaze outside the village of Vati, Greece. Getty
  • A woman salvages produce from a building gutted by a forest fire near the town of Melloula, Tunisia. AFP
    A woman salvages produce from a building gutted by a forest fire near the town of Melloula, Tunisia. AFP
  • Residents block a street as they demand the restoration water supplies in Melloula, following recent heatwaves and a forest fire in the area. AFP
    Residents block a street as they demand the restoration water supplies in Melloula, following recent heatwaves and a forest fire in the area. AFP
  • Algerians gather next to vehicles destroyed by wildfires in Bouira, 100km from the capital, Algiers. AP
    Algerians gather next to vehicles destroyed by wildfires in Bouira, 100km from the capital, Algiers. AP
  • A fire engine moves along a road as a forest fire rages near the Tunisian town of Melloula, close to the border with Algeria. AFP
    A fire engine moves along a road as a forest fire rages near the Tunisian town of Melloula, close to the border with Algeria. AFP
  • A man and his children inspect the damage to their house after a fire raced through the Algerian village of De Oeud Das. EPA
    A man and his children inspect the damage to their house after a fire raced through the Algerian village of De Oeud Das. EPA
  • Houses damaged by the forest fires in De Oeud Das village. EPA
    Houses damaged by the forest fires in De Oeud Das village. EPA
  • Residents try to extinguish a fire in Tunisia's coastal town of Tabarka amid a blistering heatwave. AFP
    Residents try to extinguish a fire in Tunisia's coastal town of Tabarka amid a blistering heatwave. AFP
  • A fireman holds a cat and two rabbits after rescuing them from a fire on the Greek island of Rhodes. AFP
    A fireman holds a cat and two rabbits after rescuing them from a fire on the Greek island of Rhodes. AFP
  • German tourists and local residents try to extinguish a fire near the seaside resort of Lindos. AP
    German tourists and local residents try to extinguish a fire near the seaside resort of Lindos. AP
  • Smoke rises on Corfu following a wildfire. Reuters
    Smoke rises on Corfu following a wildfire. Reuters
  • Tourists wait for departing planes at the airport on the island of Rhodes, after being evacuated. Reuters
    Tourists wait for departing planes at the airport on the island of Rhodes, after being evacuated. Reuters
  • A large forest fire on the Greek island of Rhodes has forced authorities to order an evacuation of four locations. AP
    A large forest fire on the Greek island of Rhodes has forced authorities to order an evacuation of four locations. AP
  • A man carries a child as they leave an area where a forest fire burns. AP
    A man carries a child as they leave an area where a forest fire burns. AP
  • A fire engine is parked in front of a blaze raging in New Peramos, near Athens. AFP
    A fire engine is parked in front of a blaze raging in New Peramos, near Athens. AFP
  • A helicopter works to extinguish a wildfire, in the area of Pico de las Nieves, on the Canary Island of Gran Canaria, Spain. Reuters
    A helicopter works to extinguish a wildfire, in the area of Pico de las Nieves, on the Canary Island of Gran Canaria, Spain. Reuters
  • A firefighters' operations room in Marseille, France. AFP
    A firefighters' operations room in Marseille, France. AFP
  • Smoke billows from a house on fire in the Aci Catena area, 20km from Catania. Getty
    Smoke billows from a house on fire in the Aci Catena area, 20km from Catania. Getty

July set to be hottest month on record as world enters era of 'global boiling'


Daniel Bardsley
  • English
  • Arabic

This month is set to be the hottest on record, with UN chief Antonio Guterres warning the rise in temperatures meant the world was on the brink of an "era of global boiling".

Mr Guterres pleaded for immediate radical action on climate change, on Thursday, warning record-shattering July temperatures prove Earth has passed from a warming phase into an "era of global boiling".

Speaking in New York, the secretary-general said the intense heat across the Northern Hemisphere was "terrifying," adding that "the era of global warming has ended; the era of global boiling has arrived."

July 6 was the hottest day ever and the first three weeks of this month were the hottest such period since records began, analysis by an EU-funded organisation indicates.

Exceptionally high sea surface temperatures have contributed to the record-breaking figures, Copernicus Climate Change Service (C3S) has revealed.

Drastic increase in temperatures

Records were broken as extreme heatwaves have affected many parts of the world, including the US and Mexico, China and Southern Europe. Wildfires have raged amid the sharply rising temperatures.

“Record-breaking temperatures are part of the trend of drastic increases in global temperatures. Anthropogenic emissions are ultimately the main driver of these rising temperatures," Dr Carlo Buontempo, director of C3S, said in a statement.

This month’s temperatures, which averaged about 17 °C globally, according to a graph released by C3S, look set to break the record for the hottest month set in July 2019.

"It is extremely likely that July 2023 will be the hottest July and also the hottest month on record, following on from the hottest June on record," C3S said.

The stark findings were supported by a second report released on Thursday, led by Dr Karsten Haustein, a research scientist at Leipzig University.

The study revealed that this month is the hottest since records began and possibly the hottest for more than 100,000 years.

"It’s quite a lot above the old record," said Dr Haustein.

"We have all the data we need to know it’s the hottest month … We are at least 0.2 °C warmer than the old record, for 2019.

"Even if it turns out to be a bit cooler than my fairly sophisticated forecast, we’re still in record territory. This is the warmest July ever. It’s also the warmest month in absolute terms."

This month is thought likely to have been the warmest since the end, about 115,000 years ago, of an interglacial period called the Eemian interglacial period.

  • A forest fire burns near Vati village, on the island of Rhodes. AP
    A forest fire burns near Vati village, on the island of Rhodes. AP
  • Firefighters watch as a forest fire reignites in Spain's Caldera de Taburiente national park. EPA
    Firefighters watch as a forest fire reignites in Spain's Caldera de Taburiente national park. EPA
  • A man lifts a tile from underneath the frame of a burnt bed after a forest fire raced through the Tunisian town of Melloula. AFP
    A man lifts a tile from underneath the frame of a burnt bed after a forest fire raced through the Tunisian town of Melloula. AFP
  • A firefighter tries to extinguish a blaze near the village of Asklipieio, on the Greek island of Rhodes. Reuters
    A firefighter tries to extinguish a blaze near the village of Asklipieio, on the Greek island of Rhodes. Reuters
  • A plane dumps water over a wildfire on Ciovo island, Croatia. AP
    A plane dumps water over a wildfire on Ciovo island, Croatia. AP
  • Residents of Gennadi village stand near a forest fire raging on the island of Rhodes. AP
    Residents of Gennadi village stand near a forest fire raging on the island of Rhodes. AP
  • People are evacuated by boat as they flee a fire burning near the Greek town of Nea Anchialos. EPA
    People are evacuated by boat as they flee a fire burning near the Greek town of Nea Anchialos. EPA
  • A petrol station destroyed by a forest fire in the Italian town of Oliveri. AFP
    A petrol station destroyed by a forest fire in the Italian town of Oliveri. AFP
  • A man watches as a house burns in the Tono district of Messina, Sicily. AFP
    A man watches as a house burns in the Tono district of Messina, Sicily. AFP
  • The fire destroyed homes and cars in Oliveri. AFP
    The fire destroyed homes and cars in Oliveri. AFP
  • A firefighter is overwhelmed as he looks at the trail of destruction in Messina, Sicily. AFP
    A firefighter is overwhelmed as he looks at the trail of destruction in Messina, Sicily. AFP
  • A fire burns a forested area of Alto do Alvide, Portugal. EPA
    A fire burns a forested area of Alto do Alvide, Portugal. EPA
  • A forest fire burns in Valsequillo, Spain. EPA
    A forest fire burns in Valsequillo, Spain. EPA
  • Calves try to escape the fire in Sesklo village, Greece. EPA
    Calves try to escape the fire in Sesklo village, Greece. EPA
  • Farmers try to save their animals as the fire approaches Sesklo village. EPA
    Farmers try to save their animals as the fire approaches Sesklo village. EPA
  • A firefighter tackles a blaze outside the village of Vati, Greece. Getty
    A firefighter tackles a blaze outside the village of Vati, Greece. Getty
  • A woman salvages produce from a building gutted by a forest fire near the town of Melloula, Tunisia. AFP
    A woman salvages produce from a building gutted by a forest fire near the town of Melloula, Tunisia. AFP
  • Residents block a street as they demand the restoration water supplies in Melloula, following recent heatwaves and a forest fire in the area. AFP
    Residents block a street as they demand the restoration water supplies in Melloula, following recent heatwaves and a forest fire in the area. AFP
  • Algerians gather next to vehicles destroyed by wildfires in Bouira, 100km from the capital, Algiers. AP
    Algerians gather next to vehicles destroyed by wildfires in Bouira, 100km from the capital, Algiers. AP
  • A fire engine moves along a road as a forest fire rages near the Tunisian town of Melloula, close to the border with Algeria. AFP
    A fire engine moves along a road as a forest fire rages near the Tunisian town of Melloula, close to the border with Algeria. AFP
  • A man and his children inspect the damage to their house after a fire raced through the Algerian village of De Oeud Das. EPA
    A man and his children inspect the damage to their house after a fire raced through the Algerian village of De Oeud Das. EPA
  • Houses damaged by the forest fires in De Oeud Das village. EPA
    Houses damaged by the forest fires in De Oeud Das village. EPA
  • Residents try to extinguish a fire in Tunisia's coastal town of Tabarka amid a blistering heatwave. AFP
    Residents try to extinguish a fire in Tunisia's coastal town of Tabarka amid a blistering heatwave. AFP
  • A fireman holds a cat and two rabbits after rescuing them from a fire on the Greek island of Rhodes. AFP
    A fireman holds a cat and two rabbits after rescuing them from a fire on the Greek island of Rhodes. AFP
  • German tourists and local residents try to extinguish a fire near the seaside resort of Lindos. AP
    German tourists and local residents try to extinguish a fire near the seaside resort of Lindos. AP
  • Smoke rises on Corfu following a wildfire. Reuters
    Smoke rises on Corfu following a wildfire. Reuters
  • Tourists wait for departing planes at the airport on the island of Rhodes, after being evacuated. Reuters
    Tourists wait for departing planes at the airport on the island of Rhodes, after being evacuated. Reuters
  • A large forest fire on the Greek island of Rhodes has forced authorities to order an evacuation of four locations. AP
    A large forest fire on the Greek island of Rhodes has forced authorities to order an evacuation of four locations. AP
  • A man carries a child as they leave an area where a forest fire burns. AP
    A man carries a child as they leave an area where a forest fire burns. AP
  • A fire engine is parked in front of a blaze raging in New Peramos, near Athens. AFP
    A fire engine is parked in front of a blaze raging in New Peramos, near Athens. AFP
  • A helicopter works to extinguish a wildfire, in the area of Pico de las Nieves, on the Canary Island of Gran Canaria, Spain. Reuters
    A helicopter works to extinguish a wildfire, in the area of Pico de las Nieves, on the Canary Island of Gran Canaria, Spain. Reuters
  • A firefighters' operations room in Marseille, France. AFP
    A firefighters' operations room in Marseille, France. AFP
  • Smoke billows from a house on fire in the Aci Catena area, 20km from Catania. Getty
    Smoke billows from a house on fire in the Aci Catena area, 20km from Catania. Getty

Dr Haustein based his conclusions on data from land and ocean weather stations, satellites and radiosondes, which are battery-powered devices carried up by balloon.

One factor causing temperatures to be particularly high at the moment is that the world is in an El Niño phase, which is associated with a warmer climate than the opposite La Niña system.

The La Niña system is associated with stronger east-to-west trade winds in the Pacific Ocean, which brings up colder water from the ocean depths and results in cooler temperatures.

On top of the effect of being in an El Niño phase are the effects of climate change, which have made the heatwaves of the kind experienced this month around the world, notably in the United States and Mexico, China and Southern Europe, much more likely.

"We have also seen extremely high rainfall in South Korea, in Brazil, in other parts of the world this July," said Dr Friederike Otto, a senior lecturer in climate science at the Grantham Institute for Climate Change and the Environment, part of Imperial College London, who was also involved in the analysis.

"It’s not by chance this is happening while we’re having this hottest July ever. These heatwaves we’re having are not rare events at all in today’s climate.

"They will be expected every five years or 10 years; not a really extreme event. Without heat-induced climate change, this would’ve been so rare it would’ve been the statistical equivalent of impossible."

Droughts have also been made more likely and more intense and are leading to yet higher temperatures, Dr Otto said.

'Harsh reality' of climate change

Meanwhile, the July 6 record for the hottest day exceeds that of August 2016. C3S said July 5 and July 7 were almost as hot as July 6.

Dr Buontempo said July’s record was "unlikely to remain isolated this year", because forecasts by C3S suggested temperatures over land areas were set to remain "well above average".

During the first and third weeks of this month, global mean temperatures were more than 1.5 °C higher than the average temperature of pre-industrial times, before humans began releasing large quantities of greenhouse gases into the atmosphere.

The key aim of the Paris Agreement of 2015 was to limit average global temperature rises to 1.5 °C above pre-industrial levels.

While the 1.5 °C threshold has been breached this month, it has happened only temporarily and global average temperatures have yet to reach the limit set by the Paris Agreement.

However, given the cuts in global carbon emissions set out in the deal have not been brought in by nations, it is thought highly likely that the threshold will be breached irreversibly.

“The extreme weather which has affected many millions of people in July is unfortunately the harsh reality of climate change and a foretaste of the future,” said Prof Petteri Taalas, secretary general of the World Meteorological Organisation (WMO).

“The need to reduce greenhouse-gas emissions is more urgent than ever before. Climate action is not a luxury but a must.”

Global heatwave - in pictures

  • An Iraqi man cool himself off in a spray of water during a sweltering hot day at the Al-Khilani square in central Baghdad, Iraq. EPA
    An Iraqi man cool himself off in a spray of water during a sweltering hot day at the Al-Khilani square in central Baghdad, Iraq. EPA
  • Children play on water jets at a public square on a very hot afternoon in Madrid, Spain. Getty Images
    Children play on water jets at a public square on a very hot afternoon in Madrid, Spain. Getty Images
  • A costumed spiderman drinks during a heat wave in New York. Bloomberg
    A costumed spiderman drinks during a heat wave in New York. Bloomberg
  • A pedestrian carries an umbrella during a heat wave in Miami, Florida, US. Bloomberg
    A pedestrian carries an umbrella during a heat wave in Miami, Florida, US. Bloomberg
  • A Palestinian, Mustafa Abdou, repairs fan in his shop amid a heatwave at Shati refugee camp in Gaza City. Reuters
    A Palestinian, Mustafa Abdou, repairs fan in his shop amid a heatwave at Shati refugee camp in Gaza City. Reuters
  • A man dives into a canal during a hot day in Larkana district of Sind province. AFP
    A man dives into a canal during a hot day in Larkana district of Sind province. AFP
  • A man cools himself with a fan while browsing his phone on a sweltering day in Beijing. AP
    A man cools himself with a fan while browsing his phone on a sweltering day in Beijing. AP
  • People drink coconut water at a market in Dubai to cope with the hot weather. AFP
    People drink coconut water at a market in Dubai to cope with the hot weather. AFP
  • A worker washes his face to cope with the hot weather in Dubai. AFP
    A worker washes his face to cope with the hot weather in Dubai. AFP
  • An Egyptian girl cools off in the water amid a heatwave, at a Red Sea resort in Hurghada Egypt. Reuters
    An Egyptian girl cools off in the water amid a heatwave, at a Red Sea resort in Hurghada Egypt. Reuters
  • Pedestrians hold umbrellas for protection from the sun during a heat wave in New York, US. Bloomberg
    Pedestrians hold umbrellas for protection from the sun during a heat wave in New York, US. Bloomberg
  • A homeless person holds an umbrella to block out the sun on a hot day in New York City. AFP
    A homeless person holds an umbrella to block out the sun on a hot day in New York City. AFP
  • Bottles of water being delivered on a hot summer day in Istanbul. AP
    Bottles of water being delivered on a hot summer day in Istanbul. AP
  • Diving into the Treska river near Skopje, as temperatures in North Macedonia soared. AFP
    Diving into the Treska river near Skopje, as temperatures in North Macedonia soared. AFP
  • A woman takes a photograph of the Acropolis in Athens in high temperatures. AFP
    A woman takes a photograph of the Acropolis in Athens in high temperatures. AFP
  • A woman shelters from the sun during a heatwave in Rome. Reuters
    A woman shelters from the sun during a heatwave in Rome. Reuters
  • Shelia Nunez, 40, cools her dog with ice while sitting under a shaded bus stop in Phoenix, Arizona. AFP
    Shelia Nunez, 40, cools her dog with ice while sitting under a shaded bus stop in Phoenix, Arizona. AFP
  • A lion eats an icy treat containing meat and ostrich eggs to cool down during a regional heatwave at the Safari Zoological Centre in Ramat Gan, Israel. Reuters
    A lion eats an icy treat containing meat and ostrich eggs to cool down during a regional heatwave at the Safari Zoological Centre in Ramat Gan, Israel. Reuters
  • Children play in a water fountain near the walls of Jerusalem's Old City. Reuters
    Children play in a water fountain near the walls of Jerusalem's Old City. Reuters
  • Traffic warden Rai Rogers works on his street corner under the hot sun in Las Vegas. AFP
    Traffic warden Rai Rogers works on his street corner under the hot sun in Las Vegas. AFP
  • A woman uses a fan amid an alert for a heatwave in Shanghai. Reuters
    A woman uses a fan amid an alert for a heatwave in Shanghai. Reuters
  • Andrea Washington pours water on herself in the Hungry Hill neighbourhood of Austin, Texas. Getty
    Andrea Washington pours water on herself in the Hungry Hill neighbourhood of Austin, Texas. Getty
  • A busy beach in Rabat, Morocco. EPA
    A busy beach in Rabat, Morocco. EPA
  • A person receives medical attention after collapsing in a shop in Phoenix, Arizona, in high heat. AFP
    A person receives medical attention after collapsing in a shop in Phoenix, Arizona, in high heat. AFP
  • An Iraqi dives into the Tigris to beat the heat in Baghdad. AP
    An Iraqi dives into the Tigris to beat the heat in Baghdad. AP
  • Youths play in a fountain at a park in the Syrian capital Damascus, as temperatures exceed 35°C. AFP
    Youths play in a fountain at a park in the Syrian capital Damascus, as temperatures exceed 35°C. AFP

According to WMO predictions, there is a 98 per cent chance that one of the next five years will be the warmest on record.

Also, the WMO says there is roughly a two-thirds chance that one of the next five years will have an average temperature more than 1.5 °C above that of the pre-industrial benchmark period of 1850 to 1900.

Statistics from OurWorldinData indicate that six billion tonnes of carbon dioxide, the key greenhouse gas, were emitted globally by fossil-fuel burning and industry in 1990, a figure that had more than quadrupled, to above 25 billion tonnes, by 2000. Two decades later, in 2020, the figure had risen to more than 35 billion tonnes a year.

Global carbon emissions are continuing to increase, although growth has slowed, in part thanks to some governments investing heavily in renewable energy technology, such as solar and wind power.

Some analysis suggests that global carbon emissions could peak as soon as 2025, but to prevent the worst effects of climate change, scientists have said steep reductions must be introduced this decade.

C3S, which released the data about this month’s record-breaking temperatures, is part of the European Centre for Medium-Range Weather Forecasts, which works on behalf of the European Commission.

Key facilities
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  • Premier League-standard football pitch
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  • Specialist robotics and science laboratories
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Tips for taking the metro

- set out well ahead of time

- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines

- enter the right cabin. The train may be too busy to move between carriages once you're on

- don't carry too much luggage and tuck it under a seat to make room for fellow passengers

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Roll of honour

Who has won what so far in the West Asia Premiership season?

Western Clubs Champions League - Winners: Abu Dhabi Harlequins; Runners up: Bahrain

Dubai Rugby Sevens - Winners: Dubai Exiles; Runners up: Jebel Ali Dragons

West Asia Premiership - Winners: Jebel Ali Dragons; Runners up: Abu Dhabi Harlequins

UAE Premiership Cup - Winners: Abu Dhabi Harlequins; Runners up: Dubai Exiles

West Asia Cup - Winners: Bahrain; Runners up: Dubai Exiles

West Asia Trophy - Winners: Dubai Hurricanes; Runners up: DSC Eagles

Final West Asia Premiership standings - 1. Jebel Ali Dragons; 2. Abu Dhabi Harlequins; 3. Bahrain; 4. Dubai Exiles; 5. Dubai Hurricanes; 6. DSC Eagles; 7. Abu Dhabi Saracens

Fixture (UAE Premiership final) - Friday, April 13, Al Ain – Dubai Exiles v Abu Dhabi Harlequins

Seemar’s top six for the Dubai World Cup Carnival:

1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition

Cry Macho

Director: Clint Eastwood

Stars: Clint Eastwood, Dwight Yoakam

Rating:**

T10 Cricket League
Sharjah Cricket Stadium
December 14- 17
6pm, Opening ceremony, followed by:
Bengal Tigers v Kerala Kings 
Maratha Arabians v Pakhtoons
Tickets available online at q-tickets.com/t10

Tesalam Aleik

Abdullah Al Ruwaished

(Rotana)

Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

The specs

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

Specs

Engine: 51.5kW electric motor

Range: 400km

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Updated: August 03, 2023, 12:56 PM