UAE pledges $1 million to help upgrade UN nuke labs


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SEOUL // Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, announced yesterday that the UAE will donate US$1 million (Dh3.67m) to help upgrade laboratories at the International Atomic Energy Agency (IAEA) that track the origin of nuclear material.

Sheikh Mohammed also announced plans to host an IAEA workshop in October 2013 on safeguarding radioactive sources that could be used to make "dirty bombs", which can contaminate areas with large amounts of radiation. Participating with leaders from more than 50 nations in the Nuclear Security Summit in Seoul, Sheikh Mohammed said that threats related to nuclear security, including the possibility of nuclear terrorism, affect all nations.

The UAE is joining with other nations to pay to expand and enhance the UN nuclear watchdog's labs, which allow the agency to determine the origin of nuclear materials and detect undeclared and illegal nuclear installations.

On the sidelines of the summit, North Korea's plan to launch a satellite that many believe is a practice run for a nuclear missile drew criticism from neighbours including China, its close political ally and benefactor. North Korea's nuclear aims were explicitly excluded from the agenda, but its plans were much discussed, even at the formal summit.

"The planned missile launch North Korea recently announced would go against the international community's nuclear non-proliferation effort and violate UN Security Council resolutions," Yoshihiko Noda, the Japanese prime minister, told 52 other ministers and heads of state at the meeting.

The announcement of the rocket launch, which is planned for mid-April, came just a month after the US and North Korea reached a deal in which North Korea would halt missile tests and uranium enrichment in exchange for food aid.

Hu Jintao, the Chinese president, held "intense" discussions with the US president, Barack Obama, over North Korea's announced satellite launch, said Ma Zhaoxu, China's assistant foreign minister.

"China is concerned and worried about the development of the situation," Mr Zhaoxu said. "China calls on relevant parties to focus on the larger picture and the long-term picture, and exercise restraint and find a solution through diplomatic means."

China is willing to continue to serve as an interlocutor between North Korea and other nations to "uphold regional peace and stability", said Mr Zhaoxu, in a briefing to reporters on the meeting between the American and Chinese presidents.

"Over the years, China has made tireless efforts for the demilitarisation of the Korean peninsula and upholding peace," he said. "China is willing to maintain communication and close coordination with the parties concerned, and uphold regional peace and stability."

At the meeting, where leaders are trying to curb the threat of nuclear attacks from terrorists, nations agreed to continue efforts to cut nuclear stockpiles and improve security for nuclear facilities to cut the risk that terrorists could steal nuclear material.

Concrete commitments, should they be hammered out, would follow in two years when the nations meet again in the Netherlands.

The US, Belgium, France and South Korea plan to develop a special low uranium-235 fuel to replace the highly enriched nuclear fuel used in today's research reactors.

"We've come a long way in a very short time, and that should encourage us [but] that should not lead us to complacency," Mr Obama told leaders at the summit.

But the summit was overshadowed by concerns over North Korea and Iran, which the IAEA believes is developing a nuclear weapon.

South Korea, which in recent years has adopted a policy of promoting conciliation with its neighbour, said that North Korea's launch would set back its chances of joining the international community and building its economy.

"This is a serious, provocative act and a serious security threat," said Yu Woo-ik, the South Korean minister of unification. "North Korea should immediately withdraw from the missile launch plan. Otherwise there will be consequences."

By ignoring its agreement to halt missile tests or nuclear enrichment in exchange for food aid, North Korea was "going against humanity and against common sense", he said.

"Korea is trying to launch the missile to show its nuclear stature ... This can be construed as putting a stopgap measure in the turmoil of their political situation. They do not have enough power."

In spite of souring relations, Mr Yu remained optimistic that the South Korean legislature this year would authorise a US$50 billion reunification fund. It would rely on a proposed seed payment of US$15 million from the government and donations from Koreans. The programme is meant to raise the amount of money South Korea estimates would be necessary to rehabilitate and integrate with its neighbour over one year, should the nations ever unify.

"The key to unification is in the hands of the two Koreas," said Mr Yu. "However, for real unification to really happen, we need support from neighbouring countries."

Last year he visited the US, China and EU to talk about the possibility of rapprochement with the North, and plans to go to Japan and Russia this year for similar missions.

ayee@thenational.ae

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UAE group fixtures (all in St Kitts)
Saturday 15 January: v Canada
Thursday 20 January: v England
Saturday 22 January: v Bangladesh

UAE squad
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly, Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya Shetty, Kai Smith

India squads

Test squad against Afghanistan: Rahane (c), Dhawan, Vijay, Rahul, Pujara, Karun, Saha, Ashwin, Jadeja, Kuldeep, Umesh, Shami, Pandya, Ishant, Thakur.

T20 squad against Ireland and England: Kohli (c), Dhawan, Rohit, Rahul, Raina, Pandey, Dhoni, Karthik, Chahal, Kuldeep, Sundar, Bhuvneshwar, Bumrah, Pandya, Kaul, Umesh.

ODI squad against England: Kohli (c), Dhawan, Rohit, Rahul, Shreyas, Rayudu, Dhoni, Karthik, Chahal, Kuldeep, Sundar, Bhuvneshwar, Bumrah, Pandya, Kaul, Umesh

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“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”

“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”

“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”

“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”

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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.”