NAIROBI // It seemed, when the proposal was announced last December, to be a throwaway clause in a much larger deal. In exchange for a US$2.5 billion (Dh9.1bn) loan to build a second deep-water port in Kenya, Qatar asked for 40,000 hectares of land to grow food.
Qatar's emir, Sheikh Hamad bin Khalifa Al Thani, may have thought that he had a deal that would help feed his 800,000 people. But he was also about to get a major headache.
In the months since, the proposed land deal in Kenya's Tana River Delta has been jeopardised by the global economic downturn, tainted by criticism from think tanks, conservationists and civil society and seized upon by locals who have promised to fight it - to the death, if it comes to that.
"No government has ever been able to acquire Tana River Delta land as long as we've been alive," said Omara Kalasinga, a local activist. "No amount of force will get us to give that land to Qatar."
The furore surrounding the Tana River Delta is perhaps an ominous example of just how difficult it is proving for Gulf states to find food security abroad and especially in Africa. Some analysts question whether such proposals - which have gained a great deal of media attention in the wake of rising food prices and South Korea's failed bid to snap up a third of all arable land in Madagascar - are worth the trouble. They are asking whether Qatar and its neighbours should seek alternative strategies to feed their people.
"It turns out these deals are not such simple things to do," Marie Bos, a researcher at the Gulf Research Center in Dubai, said. "Buying land comes with so many issues, so many factors to take into consideration."
By all accounts, given the business climate when Qatar made the proposal to the Kenyan president, Mwai Kibaki, during a visit to Doha in December 2008, the idea seemed perfect. Qatar and its wealthy neighbours had recently launched sovereign investment funds which were looking to buy land abroad. Even better, the Kenyan government seemed willing to play along.
The Tana River Delta is a massive swath of land along Kenya's coast. Rain is abundant and much of the land is government owned. Little of it is developed and prime, fertile land would be just kilometres from the proposed port and a quick run by sea up to Qatar. At the same time, Kenya was pushing its own development plan, known as Vision 2030, to promote investment and improvements in Kenya. The port deal was seen as crucial because it would open up a third of the country - the arid and neglected north-east - to development.
The country's planning minister, Wycliffe Oparanya, declared that Qatar was ready to finance the port unconditionally and that the deal was too urgent to go through the process of applying for a World Bank loan.
"It is not a matter of free money," he told Reuters. "But if we go to the World Bank, it takes four years to negotiate and then you are told: 'Do this, do that'. The Kenyan people cannot wait that long for this urgent development project."
Yet soon after the announcement appeared in Kenyan newspapers, anger started to mount. In Kenya, people do not just debate land - they kill for it too, as happened during violence after botched elections in December 2007. And for decades, people had been killing each other over the Tana River Delta, an area inhabited by pastoralists and small-scale farmers and occasionally terrorised by bandits from Somalia.
Despite its post-election troubles, Kenya has a vibrant civil society. Its neighbours, Sudan and Ethiopia, have been popular destinations for Gulf investors looking for land, but Kenya is a messier place to do business. Desperate peasants in Ethiopia may be easily cowed by autocratic governments. Kenya's conservationists are a different matter.
"They think Kenyans like making noise and after a while they won't have the energy to sustain it and will keep quiet," said Hadley Becha, the director of the East African Wildlife Society. "But they don't know some of us, we are like sniffer dogs."
That the Tana River Delta is undeveloped is, in some ways, testament to that tenacity. The government has long tried a host of schemes - from sugarcane, to shrimp farming, to rice fields and agro-fuels - in the delta, all of which failed, sunk by local opposition, poor planning or conservation groups, who cherish the delta's extraordinary ecological diversity.
The government claims that the land - 200,000 hectares - is its to give. Yet the people who live there say that while they have no deed, customary law makes it theirs.
"There were people there even before the state came into being," said Ms Becha. "On the ground, they will have to displace people and people are not ready to be displaced."
Even if Qatar does look elsewhere, such deals have come under a lot more scrutiny, especially since the South Korea deal in Madagascar ultimately played a part in the government's downfall.
Regardless of the fact that Kenya has a great deal of uncultivated land, the country finds itself in the middle of a drought that has brought a low-level famine to many of its people. The land Qatar wants may be small, but the symbolism would be potent, experts say.
"It does seem rather anomalous that you've got countries which are food insecure and in receipt of food aid shipments and at the same time handing over control of land to third countries," said David Hallam, head of the Trade Policy Service at the UN Food and Agriculture Organization.
Analysts say Qatar and its neighbours may be better off forming relationships with existing domestic farms rather than snapping up land.
Last week, a UN report on Africa noted that the global financial crisis would slash growth rates across the continent and said that such land deals with wealthy Gulf nations could be "part of the solution" to the continent's troubles - but only if they helped create jobs or cut poverty.
"There has been talk about the business model not being robust enough - it may be better just to work with local farmers," said O B Sisay, a deputy Africa analyst with Exclusive Analysis in London. "You're going to find it difficult to produce food for export in countries that have perennial food and farming shortages."
Kenyan officials deny the Qatar deal has been set in stone, while Qatar has maintained a general silence.
Isaiah Kabira, President Kibaki's spokesman, said there would be discussions next month over the port deal. He said Kenya was asking Qatar to develop not only the 40,000 hectares for its own use, but also another 40,000 hectares so that the produce could be sold domestically.
He insisted that conservation groups and community leaders were wrong about the location of the land that would be leased to Qatar, and that the port would bring benefits to the entire country.
* The National
The Matrix Resurrections
Director: Lana Wachowski
Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick
Rating:****
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
All the Money in the World
Director: Ridley Scott
Starring: Charlie Plummer, Mark Wahlberg, Michelle Williams, Christopher Plummer
Four stars
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Company%20Profile
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Company%20profile
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The biog
Siblings: five brothers and one sister
Education: Bachelors in Political Science at the University of Minnesota
Interests: Swimming, tennis and the gym
Favourite place: UAE
Favourite packet food on the trip: pasta primavera
What he did to pass the time during the trip: listen to audio books
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Company%20Profile
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How to donate
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
UAE currency: the story behind the money in your pockets
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Company%20Profile
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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.”
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Brolliology: A History of the Umbrella in Life and Literature
By Marion Rankine
Melville House
Mane points for safe home colouring
- Natural and grey hair takes colour differently than chemically treated hair
- Taking hair from a dark to a light colour should involve a slow transition through warmer stages of colour
- When choosing a colour (especially a lighter tone), allow for a natural lift of warmth
- Most modern hair colours are technique-based, in that they require a confident hand and taught skills
- If you decide to be brave and go for it, seek professional advice and use a semi-permanent colour
Kibsons%20Cares
%3Cp%3E%3Cstrong%3ERecycling%3Cbr%3E%3C%2Fstrong%3EAny%20time%20you%20receive%20a%20Kibsons%20order%2C%20you%20can%20return%20your%20cardboard%20box%20to%20the%20drivers.%20They%E2%80%99ll%20be%20happy%20to%20take%20it%20off%20your%20hands%20and%20ensure%20it%20gets%20reused%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKind%20to%20health%20and%20planet%3C%2Fstrong%3E%3Cbr%3ESolar%20%E2%80%93%2025-50%25%20of%20electricity%20saved%3Cbr%3EWater%20%E2%80%93%2075%25%20of%20water%20reused%3Cbr%3EBiofuel%20%E2%80%93%20Kibsons%20fleet%20to%20get%2020%25%20more%20mileage%20per%20litre%20with%20biofuel%20additives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESustainable%20grocery%20shopping%3C%2Fstrong%3E%3Cbr%3ENo%20antibiotics%3Cbr%3ENo%20added%20hormones%3Cbr%3ENo%20GMO%3Cbr%3ENo%20preservatives%3Cbr%3EMSG%20free%3Cbr%3E100%25%20natural%3C%2Fp%3E%0A
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
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
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.
- It’s So Easy
- Mr Brownstone
- Chinese Democracy
- Welcome to the Jungle
- Double Talkin’ Jive
- Better
- Estranged
- Live and Let Die (Wings cover)
- Slither (Velvet Revolver cover)
- Rocket Queen
- You Could Be Mine
- Shadow of Your Love
- Attitude (Misfits cover)
- Civil War
- Coma
- Love Theme from The Godfather (movie cover)
- Sweet Child O’ Mine
- Wichita Lineman (Jimmy Webb cover)
- Wish You Were Here (instrumental Pink Floyd cover)
- November Rain
- Black Hole Sun (Soundgarden cover)
- Knockin’ on Heaven’s Door (Bob Dylan cover)
- Nightrain
Encore:
- Patience
- Don’t Cry
- The Seeker (The Who cover)
- Paradise City
Company%20Profile
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Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
COMPANY%20PROFILE
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Company%20profile
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