The UAE has become a 'trendsetter' in the search for innovative farming methods, the UAE's Minister of Climate Change and Environment Mariam Almheiri said. Ravindranath K / The National
The UAE has become a 'trendsetter' in the search for innovative farming methods, the UAE's Minister of Climate Change and Environment Mariam Almheiri said. Ravindranath K / The National
The UAE has become a 'trendsetter' in the search for innovative farming methods, the UAE's Minister of Climate Change and Environment Mariam Almheiri said. Ravindranath K / The National
The UAE has become a 'trendsetter' in the search for innovative farming methods, the UAE's Minister of Climate Change and Environment Mariam Almheiri said. Ravindranath K / The National

UAE hailed as 'trendsetter' in drive for innovative sustainable farming methods


Laura O'Callaghan
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The UAE's role as a “trendsetter” in the global battle to find innovative ways to produce food in regions with a low supply of fresh water is in the spotlight at the Munich Security Conference.

Minister of Climate Change and Environment Mariam Almheiri said the issue of water scarcity was not a hindrance but had spurred the Emirates to use its natural resources — the sun, the sand and the sea — to experiment with new ways to produce food.

In a session titled “Seed Change Needed: Ensuring Food Security” at the conference on Friday, Ms Almheiri said the UAE has “really doubled up on investments in [research and development] because we believe this is also the way to go".

“The UAE is known as a country that imports most of its food. We are a water scarce country, we have less than 5 per cent arable land,” she said.

“And when I took to the position of Minister of State for Food Security in 2017, our leadership said to me, focus on a plan, focus on technology and innovation and focus on research and development.

“We see us a little bit of a trendsetter. We also feel very responsible as global citizens to invest money and look for solutions that work in our environment.”

UAE Minister of Climate Change and Environment Mariam Almheiri said she is working to attract more young Emiratis into the agricultural sector. Photo: Mariam bint Mohammed Almheiri/Twitter
UAE Minister of Climate Change and Environment Mariam Almheiri said she is working to attract more young Emiratis into the agricultural sector. Photo: Mariam bint Mohammed Almheiri/Twitter

She said the UAE is keen to use the natural resources it has to help the drive to find new ways to produce food.

The minister stressed the central role consumers have to play when it comes to improving food systems at home and overseas, particularly when it comes to avoiding waste.

“Each and every one of us have a huge role to play. And I often set challenges for my own team and my own family as well.

“I say, let's try and not put any edible food in the bin. You have to think about it. You really have to think about what you're doing because sometimes you're doing it without realising it.”

Ms Almheiri said she and her colleagues are working to encourage young Emiratis to venture into the agricultural sector.

“I don't call them farmers anymore. I give them a new name: agri-technologists, because we need to make this a cool thing to do.”

She said farming technology that has proved successful in the UAE has made its way to other Gulf nations.

“We've seen now a lot of companies that have set up in the UAE three four years ago using some innovation funds and are now going into neighbouring countries to help them as technology providers on how to grow food.”

Werner Baumann, chief executive of German pharmaceutical giant Bayer, said climate change is a “massive contributor” to the growing problem of food insecurity.

“We see massive changes in arable land and the lack thereof, we see massive pressure on ecosystems,” he said.

This means the global community has to “find better solutions that give us a more climate resilient type of agriculture where we bring people who are the ones most exposed into the capacity to care for themselves and their family’s livelihood with better tools, better knowledge, and also access to finance and a few other things".

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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.”

Updated: February 18, 2022, 6:49 PM