With global average sea levels rising faster than during any preceding century in the past 3,000 years, a mass movement of entire populations on a "biblical scale" could ensue, UN Secretary General Antonio Guterres warned on Tuesday.
Citing World Meteorological Organisation data, Mr Guterres said even if global heating was “miraculously” limited to 1.5°C above pre-industrial levels, there would still be a sizeable sea level rise.
He said mega cities on every continent would face serious effects. These included Cairo, Bangkok, Dhaka, Mumbai, Copenhagen, London, New York, and Buenos Aires.
“Rising seas are sinking futures," Mr Guterres said at a debate aimed at highlighting the risks to international peace and security posed by the phenomenon. "Sea-level rise is not only a threat in itself. It is a threat-multiplier.
"Low-lying communities and entire countries could disappear forever," he said. "We would witness a mass exodus of entire populations on a biblical scale."
He said Earth's oceans had warmed faster over the past century than at any time in the previous 11,000 years.
Egypt replants mangroves to fight climate change - in pictures
The UN chief said the danger was especially acute for nearly 900 million people who live in coastal zones at low elevations, and triple the average rate of sea-level rise had already occurred on some coastlines.
Nasa has said Antarctica is losing an average of 150 billion tonnes of ice annually, and the Greenland ice cap is melting even faster, losing 270 billion tonnes a year.
Mr Guterres also underlined the need to address the effects of rising seas across legal and human rights frameworks.
“Rising sea levels are literally shrinking land masses, a cause of possible disputes related to territorial integrity and maritime spaces,” he said.
The current legal regime must look to the future and address any gaps in existing frameworks, he added.
The US ambassador to the UN, Linda Thomas-Greenfield, who called the threats of rising seas a “matter of international peace”, urged the Security Council to consider how the problem could complicate peacekeeping mandates, especially near coastlines.
“For our part, the United States is responding to these challenges by working with communities vulnerable to sea level rise at home and engaging vulnerable states abroad," she said.
"The Biden administration has stepped up efforts to reduce greenhouse gas emissions, including through the historic Inflation Reduction Act, which puts us on track to meet our commitments under the Paris Agreement."
Majid Al Suwaidi, the UAE's director general and special representative of Cop28, echoed Ms Thomas-Greenfield's call and recognised the urgent need for a co-ordinated response across the multilateral system.
“Our obligation with each body contributing within its mandate is to reverse the current trajectories with inclusive, effective and responsive climate action,” he said.
He also urged the world body to address "unprecedented" legal and policy challenges which sea-level rise has brought to the fore and prevent insecurity.
Sheikh Mohammed reviews hosting of Cop28 - in pictures
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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.”
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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