AHMADI // It has been nearly 20 years since Saddam Hussein's occupation army wilted under the coalition forces' onslaught and scrambled back up the road to Iraq, leaving 798 exploded oil wells by which Kuwait would remember its seven-month occupation.
The resulting infernos were under control within a year, but the legacy of Iraq's scorched-earth policy - destroying anything that advancing enemies can use - continues to fester. Crude oil that leaked from the wells mixed with formation waters and more than six billion gallons of seawater used to extinguish the fires, forming sludge-filled "oil lakes" that scar more than 100 square kilometres of local desert.
Since that time, thousands of oil lakes, largely located on restricted land owned by Kuwait Oil Co (KOC) have sat like an open sore, ravaging the desert's fragile ecosystem. The catastrophe has killed fauna and flora and the contaminants have seeped into the ground, polluting the freshwater aquifers in the north of the country.
This week, under pressure from the United Nations and companies that are baying for clean-up contracts, Kuwait National Focal Point (KNFP), which is in charge of planning the remediation of the soil, convened a forum to try to kick-start the rehabilitation.
Redha al Hasan, KNFP's programme manager, said the three-day forum that began in KOC's Hubara Centre in Ahmadi on Monday was to "discuss the feasibility of the UNCC-recommended approach, to present alternative restoration approaches to independent reviewers and to seek input from experts". The United Nations Compensation Commission was created in 1991 to distribute money from Iraqi oil sales as compensation for losses suffered during the invasion.
"The goal of the Kuwait Environmental Remediation Programme is to get clean-up remedies in place - in a cost-effective manner as early as possible," Mr al Hasan said.
The technical issues related to cleaning up the disaster are formidable. Lighter fractions of oil evaporated in soil temperatures that can reach up to 86°C in the summer, leaving a viscous sludge or a hardened, tar-like substance. In some areas, the contaminated soil was heaped into piles by earthmovers to control its spread.
More damage exists in the south of the country, where Iraqis dug trenches and filled them with oil to try to slow an attack. Any attempt to repair the damage caused to more than 40 million cubic metres of soil will be complicated by unexploded ordinance that was left by the retreating army.
Some of the participants at the forum were unhappy with the KNFP's progress. An academic at Kuwait University's chemical engineering department, who asked to remain anonymous because he said the issue is sensitive, said: "Maybe they are waiting for someone to come from heaven to solve this."
The academic said the KNFP has talked about the issue a lot, and now pressure from the UN is pushing them to act.
Companies are also keen to bid for contracts. Mustafa Maarouf, the manager of industrial waste management at National Cleaning Co, showcased his company at the forum. The Kuwaiti-based cleaning and waste management company was the first contracted to clean two oil lakes in Shuaiba Industrial Area in 2007, a job that it finished last year, Mr Maarouf said.
"Money-wise, we lost, but got a lot of experience using the equipment and technology, and now our name is established," he said. He said he had heard that tenders for the major clean-up projects would be offered "a couple of years ago" but they still have not.
"Why it's delayed, we don't know. It's their strategy, not ours," he said.
"The companies are jumping up and down trying to find more details," Mr al Hasan of KNFP said. He said Kuwait has been awarded US$3 billion (Dh11bn) to restore and rehabilitate the damaged earth, and the tenders will be offered next year.
According to Mr al Hasan, the process was prolonged by the fact that Kuwait was the first country to make a claim for environmental damage as a result of an invasion to the UN. He said Kuwait had to scientifically prove that the damage had been caused by Iraq and monitor the situation for five years "to reach the point where the UN agreed to some of the claims".
He said since that time, the KNFP has been preparing the remediation process according to UN guidelines.
Even if the programme is moving slowly, Kurt Pennell, a UN independent reviewer and chair of the department of civil and environmental engineering at Tufts University in the United States, believes that might not be a bad thing.
"It's not as if the contamination is in the city or an area where people have exposure, so from that perspective, it's not quite as imperative that the action is really quick, Mr Pennell said. "There's some groundwater contamination, but the flow rates are very slow there so it's not like there are huge exposures - huge changes - with what's happening.
"In some cases, it might be better to go slow and wait for the technology to speed up and come down in cost, rather than rush in when you don't really know what you're doing," he said.
"Everyone would probably be happier if it was moving forward more quickly, but I don't think it's a horrible thing that it's taking more time."
@Email:jcalderwood@thenational.ae
The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Types of fraud
Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
Smishing: The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
Vishing: The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
* Nada El Sawy
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.6-litre%2C%20V6%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3Eeight-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E285hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E353Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh159%2C900%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
UAE currency: the story behind the money in your pockets
Super Bowl LIII schedule
What Super Bowl LIII
Who is playing New England Patriots v Los Angeles Rams
Where Mercedes-Benz Stadium in Atlanta, United States
When Sunday (start time is 3.30am on Monday UAE time)
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
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.”
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
FROM%20THE%20ASHES
%3Cp%3EDirector%3A%20Khalid%20Fahad%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Shaima%20Al%20Tayeb%2C%20Wafa%20Muhamad%2C%20Hamss%20Bandar%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now