A woman sits on the rubble of her house at village following Saturday's earthquake in Sindhupalchowk, Nepal on April 28, 2015. Danish Siddiqui/Reuters
A woman sits on the rubble of her house at village following Saturday's earthquake in Sindhupalchowk, Nepal on April 28, 2015. Danish Siddiqui/Reuters
A woman sits on the rubble of her house at village following Saturday's earthquake in Sindhupalchowk, Nepal on April 28, 2015. Danish Siddiqui/Reuters
A woman sits on the rubble of her house at village following Saturday's earthquake in Sindhupalchowk, Nepal on April 28, 2015. Danish Siddiqui/Reuters

‘More devastating quake to strike Himalayan region in near future’


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NEW DELHI // As the death toll from the Nepal earthquake climbs above 5,000, seismologists and geologists have even grimmer news – a more devastating quake may rip through the Himalayan region in the near future.

The earthquake that struck on Saturday, with an epicentre 80 kilometres north-west of Kathmandu, had a magnitude of 7.8, but experts say only a “great earthquake” – one with a magnitude of 8 or more – can release the seismic tension that has built up along a 600-kilometre length of the Himalayan region, a stretch known as the “central seismic gap”.

However, scientists cannot predict with certainty when such a quake will strike.

“For a while, people have been predicting an 8.5 earthquake in the central seismic gap,” said Kusala Rajendran, an associate professor at the Centre for Earth Sciences at the Indian Institute of Science in Bengaluru. “And an 8.5 earthquake has more than 30 times the energy of this 7.8 earthquake. Think of what that can do.”

Seismic tension has been building up along the boundary where the Indian tectonic plate pushes up against the Eurasian tectonic plate – a phenomenon of continental drift that is responsible for the birth of the Himalayas itself.

“If you look back 70 million years, all of India as we know it today was an island,” said K Muthumani, chief scientist at the Advanced Seismic Testing and Research Laboratory in Chennai. “It drifted into the Eurasian plate and pushed against it.”

While the rate of this drift has slowed, it is still estimated to be roughly five centimetres per year. With such gigantic land masses involved, this is sufficient to generate enormous tension along the 2,400km boundary between the plates.

"Considering such fast convergence rates, it is not surprising that this plate boundary has generated two great earthquakes during the last century," a team of three Indian seismologists, led by C P Rajendran of the Jawaharlal Nehru Centre for Advanced Scientific Research in Bengaluru, wrote in a paper published in the Journal of Geophysical Research in March.

The scientists were referring to two great “ruptures” – one in 1905 near the Indian state of Himachal Pradesh and another in 1934 in eastern Nepal.

“However, only less than 50 per cent of the Himalayan arc has ruptured in the last 200 years, and the inferred existence of unbroken segments raises concerns about impending great earthquakes,” the paper said.

Of the 600km along the unruptured central seismic gap, roughly 150km fell into the zone affected by Saturday’s quake in Nepal. That still leaves more than 400km of the gap stressed and vulnerable to a great earthquake.

These 400km encompass some of Nepal and sections of northern India, including the hill states of Uttarakhand and Himachal Pradesh, as well as parts of western Bihar.

“The Nepal quake propagated east, not south,” Dr Rajendran said. “South would have been far worse, because it would have come into the plains of northern India. The plains amplify the energy of the earthquake, so that even a 6.5-magnitude quake will cause a lot of damage.”

The anticipated earthquake in the central seismic gap will almost certainly affect the plains, and with a magnitude of 8.5, it can wreak widespread destruction.

“Some scientists are even saying that it could be of magnitude 9, although I don’t think that will happen,” Dr Rajendran said. “Usually a 9-magnitude quake will happen along much longer fault lines than the Himalayan one.”

The damage from a great earthquake in the plains of northern India is difficult to imagine.

The 1905 earthquake, with a magnitude of between 7.8 and 8, killed nearly 20,000 people. The 1934 quake, with a magnitude of 8.2, killed an estimated 17,000 in India and Nepal.

The region is now much more heavily populated, leaving far more people at the mercy of a quake.

A study called the Himalayan Seismic Hazard, published in the journal Science in 2001, estimated that roughly 50 million people were at risk from a great Himalayan quake, many of them in the plains of north India.

Casualties from earthquakes are largely a result of the collapse of shoddily constructed buildings, which are rife in Nepal and northern India, particularly in secondary towns and villages.

“I was walking through that very area where that earthquake was, and I thought at the very time that the area was headed for trouble,” James Jackson, head of the earth sciences department at the University of Cambridge, told the Associated Press.

Mr Jackson had been in Kathmandu just a week before the quake hit, as part of a conference on how to better prepare the congested urban centres of Nepal and India for a repeat of the 1934 quake.

“It’s buildings that kill people, not earthquakes,” Mr Jackson said. “The construction is appalling in Kathmandu.”

Mr Muthumani, who analyses the structural strength of buildings, said he observed on a visit to Nepal last year how poor the quality of construction was.

“It was just random masonry, not well connected,” he said. “In the villages, nobody follows building codes at all.

“But that is what is needed. After the earthquake in Gujarat in 2001, the Ahmedabad municipality started setting regulations.”

“That kind of situation is only now evolving across the region,” he said. “But it needs time and money, and in these parts, that is always a problem.”

ssubramanian@thenational.ae

Company Profile

Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

Initial investment: Dh75,000

Investor: Dtec Startupbootcamp

Future plan: Looking to raise $400,000

Total sales: Over 1,000 deliveries in three months

RESULTS

Bantamweight: Victor Nunes (BRA) beat Azizbek Satibaldiev (KYG). Round 1 KO

Featherweight: Izzeddin Farhan (JOR) beat Ozodbek Azimov (UZB). Round 1 rear naked choke

Middleweight: Zaakir Badat (RSA) beat Ercin Sirin (TUR). Round 1 triangle choke

Featherweight: Ali Alqaisi (JOR) beat Furkatbek Yokubov (UZB). Round 1 TKO

Featherweight: Abu Muslim Alikhanov (RUS) beat Atabek Abdimitalipov (KYG). Unanimous decision

Catchweight 74kg: Mirafzal Akhtamov (UZB) beat Marcos Costa (BRA). Split decision

Welterweight: Andre Fialho (POR) beat Sang Hoon-yu (KOR). Round 1 TKO

Lightweight: John Mitchell (IRE) beat Arbi Emiev (RUS). Round 2 RSC (deep cuts)

Middleweight: Gianni Melillo (ITA) beat Mohammed Karaki (LEB)

Welterweight: Handesson Ferreira (BRA) beat Amiran Gogoladze (GEO). Unanimous decision

Flyweight (Female): Carolina Jimenez (VEN) beat Lucrezia Ria (ITA), Round 1 rear naked choke

Welterweight: Daniel Skibinski (POL) beat Acoidan Duque (ESP). Round 3 TKO

Lightweight: Martun Mezhlumyan (ARM) beat Attila Korkmaz (TUR). Unanimous decision

Bantamweight: Ray Borg (USA) beat Jesse Arnett (CAN). Unanimous decision

THE BIO

Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13 

Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier

Favourite place to travel to: Any walkable city. I also love nature and wildlife 

What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents. 

Favorite place to go in the UAE: A quiet beach.

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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The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Medicus AI

Started: 2016

Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh

Based: Vienna, Austria; started in Dubai

Sector: Health Tech

Staff: 119

Funding: €7.7 million (Dh31m)

 

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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900