Iceland volcano eruption: President warns of 'daunting' period as lava destroys homes


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Iceland faces “a daunting period of upheaval" after homes were destroyed by lava emitted from a long-dormant volcanic system, President Gudni Johannesson said.

Molten lava flows reached the outskirts of Grindavik around noon on Sunday, setting three houses alight, although the town had been evacuated earlier and there was no immediate danger to people.

The volcano, which erupted in south-western Iceland for the second time in less than a month, appeared to be less active early on Monday.

Authorities built barriers of earth and rock in recent weeks to try to prevent lava from reaching the fishing town 40km south-west of the capital Reykjavik.

Mr Johannesson said in a televised address on Sunday night “a daunting period of upheaval has begun on the Reykjanes peninsula” and authorities were battling "tremendous forces of nature".

"We don’t yet know how this eruption will unfold but we must still take those actions that are within our power,” the President said.

“We continue to hope for as good an outcome as possible in the face of these tremendous forces of nature. We will carry on with our responsibilities and we will continue to stand together.”

Volcanic hotspot

It was the second volcanic eruption on the Reykjanes peninsula in south-western Iceland in less than one month and the fifth since 2021.

An eruption started in the Svartsengi volcanic system on December 18 after the complete evacuation of Grindavik's 4,000 residents and the closure of the Blue Lagoon geothermal spa, a popular tourist spot.

No one is known to have been killed in the eruptions but a workman is missing after reportedly falling into a crack opened by the volcano.

More than 100 Grindavik residents have returned in recent weeks before Saturday's renewed evacuation order, local authorities said.

  • A coastguard helicopter flies close to near magma flowing down a hill on Iceland's Reykjanes Peninsula on Monday night. AP
    A coastguard helicopter flies close to near magma flowing down a hill on Iceland's Reykjanes Peninsula on Monday night. AP
  • The volcano erupted on Monday night, turning the sky orange and prompting the country’s civil defence to be on high alert. Reuters
    The volcano erupted on Monday night, turning the sky orange and prompting the country’s civil defence to be on high alert. Reuters
  • The eruption was about 4km north-east of the town of Grindavik. EPA
    The eruption was about 4km north-east of the town of Grindavik. EPA
  • The volcano was hit by more than 1,000 earthquakes in just 24 hours on November 9, igniting fears of an imminent eruption. EPA
    The volcano was hit by more than 1,000 earthquakes in just 24 hours on November 9, igniting fears of an imminent eruption. EPA
  • An evacuation order for the population of Grindavik was issued last month following seismic activity and indications of considerable magma movement in the area. EPA
    An evacuation order for the population of Grindavik was issued last month following seismic activity and indications of considerable magma movement in the area. EPA
  • Smoke billows near the town of Keflavik, with the eruption turning the sky orange. AFP
    Smoke billows near the town of Keflavik, with the eruption turning the sky orange. AFP
  • The Norwegian Meteorological Agency estimated that 100 to 200 cubic metres of lava is spewing out each second. Reuters
    The Norwegian Meteorological Agency estimated that 100 to 200 cubic metres of lava is spewing out each second. Reuters
  • A local resident watches smoke billow as the lava colours the night sky orange on the Reykjanes peninsula. AFP
    A local resident watches smoke billow as the lava colours the night sky orange on the Reykjanes peninsula. AFP
  • Grindavik, a fishing town of 3,400, sits on the Reykjanes Peninsula, about 50km south-west of the capital, Reykjavik. AFP
    Grindavik, a fishing town of 3,400, sits on the Reykjanes Peninsula, about 50km south-west of the capital, Reykjavik. AFP
  • Molten lava is thrown into the air from a fissure on the Reykjanes Peninsula. AFP
    Molten lava is thrown into the air from a fissure on the Reykjanes Peninsula. AFP
  • Scientists say the eruption is unlikely to produce a plume of smoke like the Eyjafjallajokull volcano eruption, which grounded flights globally. AFP
    Scientists say the eruption is unlikely to produce a plume of smoke like the Eyjafjallajokull volcano eruption, which grounded flights globally. AFP
  • Reykjanes is a volcanic and seismic hotspot south-west of Reykjavik. AFP
    Reykjanes is a volcanic and seismic hotspot south-west of Reykjavik. AFP

Lying between the Eurasian and North American tectonic plates, two of the largest on the planet, Iceland is a seismic and volcanic hotspot. The two plates are moving in opposite directions.

In 2010, ash clouds from eruptions of the Eyafjallajokull volcano in the south of Iceland spread over large parts of Europe, leading to about 100,000 flights being grounded and forcing hundreds of Icelanders from their homes.

Unlike Eyafjallajokull, the Reykjanes systems are not trapped under glaciers, so are not expected to cause similar ash clouds.

if you go

The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow. 
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes). 

House-hunting

Top 10 locations for inquiries from US house hunters, according to Rightmove

  1. Edinburgh, Scotland 
  2. Westminster, London 
  3. Camden, London 
  4. Glasgow, Scotland 
  5. Islington, London 
  6. Kensington and Chelsea, London 
  7. Highlands, Scotland 
  8. Argyll and Bute, Scotland 
  9. Fife, Scotland 
  10. Tower Hamlets, London 

 

Why your domicile status is important

Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.

Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born. 

UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.

A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.

Tributes from the UAE's personal finance community

• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style

“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.

Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term. 

From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”

• Sam Instone, director of financial advisory firm AES International

"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed.  Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."

• Demos Kyprianou, a board member of SimplyFI.org

"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."

• Steve Cronin, founder of DeadSimpleSaving.com

"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.

His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.

Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."

• Zach Holz, who blogs about financial independence at The Happiest Teacher

"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen.  He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”

• Tuan Phan, a board member of SimplyFI.org

"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."

Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

How to help

Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200

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.”

BIO

Favourite holiday destination: Turkey - because the government look after animals so well there.

Favourite film: I love scary movies. I have so many favourites but The Ring stands out.

Favourite book: The Lord of the Rings. I didn’t like the movies but I loved the books.

Favourite colour: Black.

Favourite music: Hard rock. I actually also perform as a rock DJ in Dubai.

Five personal finance podcasts from The National

 

To help you get started, tune into these Pocketful of Dirham episodes 

·

Balance is essential to happiness, health and wealth 

·

What is a portfolio stress test? 

·

What are NFTs and why are auction houses interested? 

·

How gamers are getting rich by earning cryptocurrencies 

·

Should you buy or rent a home in the UAE?  

What is a Ponzi scheme?

A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.

UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
THE SPECS

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Power: 169bhp

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WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

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Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Updated: January 15, 2024, 11:26 AM