Kuwait committee quietly formulating nuclear plans


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KUWAIT CITY // While the UAE has charged ahead with its nuclear energy programme and Egypt and Jordan are not far behind, another Arab country is quietly putting in place the framework to make it the region's fourth nuclear-powered state. "We are taking concrete action," said Adnan Shihab-Eldin, a member of the Kuwait National Nuclear Energy Committee (KNNEC). "I would say Kuwait may be the second country to introduce nuclear power plants in the Gulf countries, based on current information.

"The frontrunner in the Arab countries is definitely the UAE, followed by Egypt and Jordan at the same level more or less," said Mr Shihab-Eldin, at the committee's headquarters in the Kuwait Institute for Scientific Research (KISR) this month. He said Kuwait's nuclear programme is "in the same league" as those of the two non-Gulf Arab states "but it is not there yet". Certainly, this nation of 2.8 million people is far from breaking ground on a nuclear power plant. It has not even decided whether to do so. Then there is Kuwait's influential but raucous parliament, which must give its approval to any nuclear programme.

The "concrete action" Mr Shihab-Eldin referred to is the establishment of the KNNEC, which met for the first time in July 2009 and is conducting a range of economic, geographical and legal studies to determine if nuclear energy is the best option. The committee's formation comes at a time when power stations are struggling to meet domestic demand after years of low investment. "We have still not made a decision yet," said KNNEC's secretary general, Ahmad Bishara. "Hopefully all these studies will converge by the year's end," and then the committee, which is headed by the prime minister, Sheikh Nasser Mohammed al Sabah, will decide if Kuwait is to become a nuclear-powered state.

Mr Bishara expects a decision by February, and if the committee decides to proceed a reactor could be built in "seven or eight years". In the meantime, the ministry of higher education is giving scholarships to students who are interested in the field. Five students began courses related to nuclear energy in western universities last year and 15 more will join them when the new term begins. Taha Ali, a student who is about to begin a degree in nuclear energy at Purdue University in Indiana, believes he will have no problem finding a job when he returns.

"This is important for Kuwait; nuclear energy is not something new and now we are catching up," Mr Ali said. "It will reduce global warming - that's why we have to do it." But a pool of graduates will be of little use without cutting-edge technology and training. To ensure that expertise is available, the government has signed co-operation agreements with France and the United States, and their consultants are already pitching in. Similar deals will soon be reached with Russia and Japan.

The agreements will secure a stable supply of enriched uranium and collection of the spent fuel for reprocessing. "Whoever is going to provide you with the technology, you also have to agree with them about how you're going to get your fuel supply ? it's not something you cook in your back yard," Mr Bishara said. KNNEC's economists are considering if nuclear power makes sense in a country with such vast energy reserves. Kuwait had around 7.7 per cent of the world's proven crude oil reserves in 2009, making it the world's fifth most oil-endowed nation, behind Saudi Arabia, Canada, Iran and Iraq, according to the US government's Energy Information Administration.

Kuwait currently burns 12 per cent of its oil to meet local electricity needs, but with demand growing at around seven per cent annually, that figure is set to surge. Mr Bishara estimates that power stations will need 20 per cent of the country's oil production for fuel in 20 years. "That's a huge amount. Every barrel you can save is a barrel you can export," he said. Gas could be an alternative fuel for power generation, but most of Kuwait's gas is produced in association with oil, not independently. The country's oilfields would have to churn out high volumes to keep a steady supply of associated gas, and Kuwait's production is limited by international quotas.

Khalid al Hajri, the chairman of the environmental group Green Line, believes that accidents like Chernobyl have proved the dangers of nuclear power, and instead the country should take advantage of its sunny location. "Solar energy is the best alternative," Mr al Hajri said. "We are located in the 'heat-belt', so we are in a perfect place for this. Solar power is enough; actually it's more than enough."

Mr Shihab-Eldin, the KNNEC member, argued that, even in the Gulf, renewable energies such as solar have "problems with intermittency and variability - you cannot rely on them without expensive storage". The committee members declined to specify what locations they are considering for a nuclear power plant. Sorour al Otaibi, a specialist in energy and power plants at Kuwait University's college of engineering, said: "We don't have the land to build normal power plants, never mind nuclear power plants, which are worse.

"Nuclear power stations need to be close to the sea, and most residential areas in Kuwait are within 10 kilometres of the sea shore. The small size of the country is an issue," he said. Mr al Otaibi said a hybrid system of power generation that incorporates oil- and gas-fuelled stations and renewable energies is preferable to nuclear. He said if the government implemented a energy conservation programme it could reduce consumption by up to 25 per cent.

"We have many easier options, economically and for safety. We don't have the manpower and the technology for nuclear - we are lacking many things," he said. Mr Bishara argues that "the new technology is, as far as the experts are concerned, quite safe". "Most of the accidents are blackouts, leaks here and there. They're not to be sniffed at, but they're not that serious," he said. If the government gives nuclear power the green light, a raft of new legislation will have to pass through parliament, a body that has blocked major development projects in the past.

But Mr Shihab-Eldin is optimistic. He said: "If we bring the best experience of the world, sanctioned by the IAEA, and in co-operation with the friendly countries such as the US, France, Japan, then I don't see a problem with the parliament agreeing to the legal framework." @Email:jcalderwood@thenational.ae

If Kuwait does try to join the world's nuclear-powered nations, it will not be its first attempt. When oil prices spiked in the 1970s, the government decided to construct a small pilot project nuclear power plant that would build the country's capacity before attempting a commercial project. Adnan Shihab-Eldin, a member of Kuwait National Nuclear Energy Committee, believes it was the Gulf's first real attempt to go nuclear. "Plans were drawn up. We settled on a 50-megawatt electric power plant that would also serve to produce some water, and we prepared a call for proposals with the help of the United Kingdom Atomic Energy Authority," he said. Companies in France and Germany sent detailed paper proposals in large boxes to Kuwait. "There was trunk after trunk after trunk," he said. Events at the end of the decade ensured the project was "indefinitely shelved". Iran was convulsed with revolution in 1979, and the following year Iraq invaded Iran, sparking an eight-year war. At the same time, the world began to think twice about atomic energy after the partial core meltdown at Three Mile Island power station in Pennsylvania in 1979. The project's fate was sealed when the oil price collapsed in the 1980s.

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1. Fasting 

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5. Zakat 

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What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

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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.”

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

Abramovich London

A Kensington Palace Gardens house with 15 bedrooms is valued at more than £150 million.

A three-storey penthouse at Chelsea Waterfront bought for £22 million.

Steel company Evraz drops more than 10 per cent in trading after UK officials said it was potentially supplying the Russian military.

Sale of Chelsea Football Club is now impossible.

'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

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Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra

Director: ​Yeon Sang-ho

Rating: 2/5