Countries in the Middle East and North Africa are poised to gain from annual economic benefits of US$4.9 billion (Dh17.99bn) if they can find a way to raise $79bn needed to provide full access to drinking water, a new study shows.
The good news is access to funding is getting easier as banks earmark billions of dollars for environmental investments.
Clean water has never been easy to come by in the arid Middle East. Much of it is produced through desalination at significant environmental and economic cost, or effectively imported through purchases of agricultural produce from other countries.
Maplecroft, a risk analysis and mapping firm, rates all six GCC states as having levels of access to water that pose "extreme risk" to populations and business operations.
A study from HSBC estimates providing universal access to potable water in the Bric (Brazil, Russia, India and China) nations alone would cost about $725bn but would add $125bn to their combined annual GDP, equivalent to about 1 per cent in additional economic growth.
"We're thinking about climate change as a real factor, not a future threat. The way that climate change is expressed is through changes in water," says Nick Robins, the head of HSBC's climate centre.
"It's not just a project for the future … that would be challenging enough, but with the disruptive factor of climate change this could be really quite serious for the global economy."
The bank calculates the world economy would receive a boost through the potential reduction in days off work or school lost to illness from water-borne diseases, ultimately leading to higher productivity among workers.
A 2007 report from the World Bank estimated that pollution of the Middle East and North Africa region's already scarce water resources costs between 0.5 to 2.5 per cent of GDP annually. With industrial use of water increasing rapidly in the region as a result of high levels of economic growth, those pressures are likely to intensify.
Access to finance for water-related investments is becoming easier as global lenders announce green initiatives targeting the water sector.
As growth forecasts slide across emerging markets, banks worldwide are pledging billions of dollars for environmental investments - as much a means of bolstering their environmental credentials as ensuring future profitability.
Although the sums represent a small fraction of total lending, banks are keen not to be outdone. Last month, Goldman Sachs earmarked $40bn over a 10-year period for investment in environmental initiatives. In response, Bank of America Merrill Lynch pledged $50bn over the same time period soon after.
HSBC launched a $100m, five-year water programme this month, with a focus on cleaning water supplies in river basins including the Ganges, Nile and Indus rivers.
The programme is part of the bank's philanthropic efforts and does not seek to generate profits, Mr Robins said.
The costs of allowing strains on existing water supplies to intensify present a simple economic rationale for businesses to invest in water, Mr Robins adds.
"In the business world, unless you invest your assets base, they'll depreciate. The same applies to the environmental asset base," he says.
"Water is a key natural resource that's part of our natural capital. In that strategic context we really need to maintain and enhance our water resource base to deliver the growth in incomes."
ghunter@thenational.ae
MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
Results
5.30pm Maiden (TB) Dh82,500 (Turf) 1,400m
Winner Spirit Of Light, Clement Lecoeuvre (jockey), Erwan Charpy (trainer)
6.05pm Maiden (TB) Dh82,500 (Dirt) 1,900m
Winner Bright Start, Pat Cosgrave, Saeed bin Suroor
6.40pm Handicap (TB) Dh92,500 (D) 2,000m
Winner Twelfthofneverland, Nathan Crosse, Satish Seemar
7.15pm Handicap (TB) Dh85,000 (T) 1,600m
Winner Imperial Empire, Tadhg O’Shea, Satish Seemar
7.50pm Handicap (TB) Dh92,500 (T) 2,000m
Winner Record Man, Tadhg O’Shea, Satish Seemar
8.25pm Handicap (TB) Dh92,500 (D) 1,600m
Winner Celtic Prince, Fabrice Veron, Rashed Bouresly
Opening Rugby Championship fixtures:Games can be watched on OSN Sports
Saturday: Australia v New Zealand, Sydney, 1pm (UAE)
Sunday: South Africa v Argentina, Port Elizabeth, 11pm (UAE)
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Switch%20Foods%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Edward%20Hamod%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Plant-based%20meat%20production%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2034%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%246.5%20million%3Cbr%3E%3Cstrong%3EFunding%20round%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Based%20in%20US%20and%20across%20Middle%20East%3C%2Fp%3E%0A
SUNDAY'S ABU DHABI T10 MATCHES
Northern Warriors v Team Abu Dhabi, 3.30pm
Bangla Tigers v Karnataka Tuskers, 5.45pm
Qalandars v Maratha Arabians, 8pm
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
