AMMAN // The UN launched an awareness campaign last week that seeks to replace flimsy, disposable grocery store-style plastic bags with fabric ones amid hopes such a move will cut down on unnecessary waste and decrease the bags' harmful effect on the environment.
The measure was part of a UN commemoration of World Environment Day, which is marked on June 5. Paper and fabric bags were distributed free of charge in three main shopping outlets in Amman, Zarqa and Irbid, the country's most densely populated cities, along with posters that urged citizens to "save the environment."
Paper bags are recyclable and take only a month to decompose. Fabric bags are durable and reusable.
Each year, about three billion plastic bags are used in Jordan. Their production and disposal - whether in rubbish bins or on the street - creates litter, damages the soil, consumes energy, and clogs water treatment systems. Bags even threaten marine life in Aqaba, where they are blown into the Red Sea, suffocating coral life and killing fish and turtles who might ingest them, environmentalists said.
Bags deplete natural resources and need up to 1,000 years to decompose. If the polyethylene, the petroleum product plastic bags are made of, is not disposed of properly, when it breaks down it becomes toxic, leaks into the soil and enters the food chain.
"Plastic bags constitute a serious and highly visible environmental problem for Jordan, where the increasingly urbanised population of more than six million people is contributing to the negative environmental impact of plastic bags and hereby also reducing the possibility of Jordan achieving Goal 7 on environmental sustainability," Luc Stevens, the UN resident coordinator in Jordan, said in a statement.
Goal 7, one of the UN Millennium Development Goals, seeks to ensure global environmental sustainability by 2015.
"The threat towards Jordan's environment is very real and the situation will only worsen unless habits are changed. Everyone can make a difference and it is our hope that Environment Day will raise awareness on the impact plastic bags have on the environment and that people will understand how they can help make a real difference."
But changing attitudes may not be an easy task. Plastic bags are commonly used in Jordan mainly because of their cheap production cost, which hovers between 0.10 Jordanian fils and 0.30 fils (Dh0.0005 and Dh0.001), according to the ministry of environment.
Safeway alone spends US$1 million (Dh3.67m) a year on 350,000 kilograms of plastic bags, "which results in waste", said Laith Abu Hilal, the company's chief commercial officer in Jordan.
What compounds the problem is the absence of laws that regulate the use of disposable plastic bags, little environmental awareness on their hazards, the absence of fees on plastic bags for consumers and because fines on littering on the streets are not seriously enforced, according to the UN.
But the government itself cannot count on people to reduce the use of plastic bags, said Abdul Rahman Sultan, the deputy director of Friends of the Earth Middle East, a non-governmental organisation active in environmental peacemaking. "Citizens themselves should be concerned about their environment and their own health. We need national campaigns. Citizens should have personal judgment and have a sense of responsibility."
Sammar Sawalha, 33, a housewife, said she would start using fabric bags when she heard of the campaign while shopping for groceries. "I don't like plastic bags. I am already aware that they harm the environment. Actually, the fabric bags look better."
Inas, 35, said she would not use fabric bags because she cannot be troubled to take them with her each time she wants to shop. "And if they get dirty, it will be a hassle to wash them. I find it easier to carry plastic bags instead of fabric."
Hazem Malhas, the minister of environment, who joined the UN efforts in distributing fabric and paper bags, told schoolchildren how his grandmother used a hay basket for shopping at a time plastic bags were not available.
"The fabric bags remind me of my grandmother's basket. She used to take the basket with her when she bought fruits," he told a group of schoolchildren who donned white-T-shirts saying "Go Green".
The government is intent on cutting down on the use of plastic bags.
"A draft policy is in place," said Mohammad Khashneh, the director of the chemicals and waste management directorate at the environment ministry. "One of the scenarios is to impose taxes on plastic bags. We have not specified the taxes though, but this measure requires cabinet approval."
Other scenarios include raising public awareness about the hazards of the plastic bags, including banning black plastic because they contain toxic material that could ultimately enter the food chain, he said.
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Nancy 9 (Hassa Beek)
Nancy Ajram
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The biog
Favourite book: Homegoing by Yaa Gyasi
Favourite holiday destination: Spain
Favourite film: Bohemian Rhapsody
Favourite place to visit in the UAE: The beach or Satwa
Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19
Killing of Qassem Suleimani
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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