Sinkholes created by the drying of the Dead Sea, near Kibbutz Ein Gedi. A plan to link the Red Sea with the shrinking Dead Sea could save it from total evaporation but environmentalists warn that the “Red-Dead” project could have dire consequences.
Sinkholes created by the drying of the Dead Sea, near Kibbutz Ein Gedi. A plan to link the Red Sea with the shrinking Dead Sea could save it from total evaporation but environmentalists warn that the Show more

Warning over plan to save Dead Sea by linking it with the Red Sea



JERUSALEM // A plan to link the Red Sea with the shrinking Dead Sea could save it from evaporating and bring desalinated water to thirsty neighbours Israel, Jordan and the Palestinians.

But environmentalists warn that the "Red-Dead" project could have dire consequences, altering the unique chemistry of the landmark lake at the lowest point on earth.

The Jordanian prime minister, Abdullah Nsur, on Monday said that his government had decided to press ahead with the US$980 million (Dh3599m) project which would give the parched Hashemite kingdom 100 million cubic metres of water a year.

"The government has approved the project after years of technical, political, economic and geological studies," Mr Nsursaid.

Under the plan, Jordan would draw water from the Gulf of Aqaba at the northern end of the Red Sea to the nearby Risheh Height, where a desalination plant is to be built.

"The desalinated water will go south to [the Jordanian town of] Aqaba, while salt water will be pumped to the Dead Sea," Mr Nsur said.

The Dead Sea, the world's saltiest body of water, is on course to dry out by 2050.

It started shrinking in the 1960s when Israel, Jordan and Syria began to divert water from the Jordan River - the Dead Sea's main tributary.

Israel and Jordan's use of evaporation ponds for extracting valuable minerals from its briny waters has only exacerbated the problem.

With a coastline shared by Israel, the Palestinian Authority and Jordan, the Dead Sea's surface level has been dropping at a rate of about a metre a year. According to the latest available data from Israel's hydrological service, on July 1, it stood at 427.13 metres below sea level, nearly 27 metres lower than in 1977.

Under the plan most of the desalinated water would go to Jordan, with smaller quantities transferred to Israel and the Palestinian Authority.

But Friends of the Earth Middle East (FoEME) and other environmental groups have called on the three partners to reject it on environmental grounds.

The main concern, the group said, was that a large influx of water from the Red Sea could radically change the Dead Sea's fragile ecosystem, forming gypsum crystals, and introducing red algae blooms.

In addition, leakage from the pipeline could contaminate groundwater along its route through southern Israel's Arava Valley.

The Israeli ministry of environmental protection said that studies left "vast uncertainty", and it is calling for a pilot project to be run on a limited scale to study the potential implications.

But critics contend that a small-scale pilot might not carry enough water to trigger the effects that it is intended to examine.

And for the Palestinians, the joint project raises more political issues such as Israel allowing them to develop part of the shore that lies within the Israeli-occupied West Bank.

"We would like to be in this cooperative project," said Shaddad Al Attili, head of the Palestinian Water Authority. "We would like to be treated equally as well as the Jordanians and the Israelis, we would like to benefit from the outcome.

"But before all of that, we would like to get access to the Dead Sea, not only to get water and to swim in the sea, but also to build hotels and to develop a tourist area."

The Dead Sea's mineral-rich waters and mud are considered therapeutic, while visitors love the novelty of floating in the inland sea which does not allow a person to sink. Israelis operate a number of tourist hotels and beaches along the western shore.

FoEME has called on the three partners to endorse a set of integrated actions including water recycling and conservation, rehabilitation of the lower Jordan River and even importing water from Turkey - one of three alternatives in a World Bank study that was estimated to be cheaper and have much less environmental impact than the Red-Dead option.

Prime minister Nsur said Jordan wanted water to supply its northern regions, while Israel needs water in the south.

Jordanian officials said the 500,000 Syrian refugees that Jordan is hosting are stretching its meagre water resources.

The majority of refugees are living in the north, particularly the Zaatari camp, home to about 130,000 Syrians.

Jordan had initially agreed in principle to build, along with the Palestinians and Israelis, a $11 billion pipeline from the Red Sea to resolve the problem.

But the water minister, Hazem Nasser, said that due to the high cost of that project, Jordan had decided to opt for its alternative plan, "which we call the 'first phase'."

Jordan signed a peace treaty with Israel in 1994.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
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Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia

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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  • Premier League-standard football pitch
  • 400m Olympic running track
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  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
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  • Disruption Lab and Research Centre for developing entrepreneurial skills
UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

How to invest in gold

Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.

A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).

Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.

Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”

Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”

Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”

By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.

You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.

You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.

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Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Structural%20weaknesses%20facing%20Israel%20economy
%3Cp%3E1.%20Labour%20productivity%20is%20lower%20than%20the%20average%20of%20the%20developed%20economies%2C%20particularly%20in%20the%20non-tradable%20industries.%3Cbr%3E2.%20The%20low%20level%20of%20basic%20skills%20among%20workers%20and%20the%20high%20level%20of%20inequality%20between%20those%20with%20various%20skills.%3Cbr%3E3.%20Low%20employment%20rates%2C%20particularly%20among%20Arab%20women%20and%20Ultra-Othodox%20Jewish%20men.%3Cbr%3E4.%20A%20lack%20of%20basic%20knowledge%20required%20for%20integration%20into%20the%20labour%20force%2C%20due%20to%20the%20lack%20of%20core%20curriculum%20studies%20in%20schools%20for%20Ultra-Othodox%20Jews.%3Cbr%3E5.%20A%20need%20to%20upgrade%20and%20expand%20physical%20infrastructure%2C%20particularly%20mass%20transit%20infrastructure.%3Cbr%3E6.%20The%20poverty%20rate%20at%20more%20than%20double%20the%20OECD%20average.%3Cbr%3E7.%20Population%20growth%20of%20about%202%20per%20cent%20per%20year%2C%20compared%20to%200.6%20per%20cent%20OECD%20average%20posing%20challenge%20for%20fiscal%20policy%20and%20underpinning%20pressure%20on%20education%2C%20health%20care%2C%20welfare%20housing%20and%20physical%20infrastructure%2C%20which%20will%20increase%20in%20the%20coming%20years.%3C%2Fp%3E%0A
German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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