Climate change may be turning the Antarctic green


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Antarctica conjures images of an unbroken white wilderness, but blooms of algae are giving parts of the frozen continent an increasingly green tinge.

Warming temperatures due to climate change are helping the formation and spread of "green snow" and it is becoming so prolific in places that it is even visible from space, according to new research published on Wednesday.

While the presence of algae in Antarctica was noted by long-ago expeditions, such as the one undertaken by British explorer Ernest Shackleton, its full extent was unknown.

Researcher Andrew Gray geo-tagging snow algae blooming on Anchorage Island, near Davis Station, Antarctica. AFP/ Matthew Davey, University of Cambridge
Researcher Andrew Gray geo-tagging snow algae blooming on Anchorage Island, near Davis Station, Antarctica. AFP/ Matthew Davey, University of Cambridge

Now, using data collected over two years by the European Space Agency's Sentinel 2 satellite, together with on the ground observations, a research team from the University of Cambridge and the British Antarctic Survey have created the first map of the algae blooms on the Antarctic Peninsula coast.

"We now have a baseline of where the algal blooms are and we can see whether the blooms will start increasing as the models suggest in the future," Matt Davey of the University of Cambridge's Department of Plant Sciences told Reuters.

Mosses and lichens are considered the dominant photosynthetic organisms in Antarctica - but the new mapping found 1,679 separate algal blooms that are a key component in the continent's ability to capture carbon dioxide from the atmosphere.

"The algal blooms in Antarctica are equivalent to about the amount of carbon that's being omitted by 875,000 average UK petrol car journeys," Davey said. "That seems a lot but in terms of the global carbon budget, it's insignificant.

"It does take up carbon from the atmosphere but it won't make any serious dent in the amount of carbon dioxide being put in the atmosphere at the moment."

Green is not the only splash of colour in Antarctica. Researchers are now planning similar studies on red and orange algae, although that is proving harder to map from space.

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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.”

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UAE's role in anti-extremism recognised

General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.

He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.

"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.

He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.