Farhana Imran of Archcorp shows a thermostat in her company's office. By mandating a temperature a little higher than the setting in most offices, the architectural engineering firm has cut its electricity bill. Jaime Puebla / The National
Farhana Imran of Archcorp shows a thermostat in her company's office. By mandating a temperature a little higher than the setting in most offices, the architectural engineering firm has cut its electrShow more

Air conditioning heats up energy bills



ABU DHABI // As hot as the UAE gets in the summer, inside its shopping malls, hotels, offices, cinemas and homes the country is notorious for maintaining an icy chill.
So it is little wonder air conditioning accounts for a 60 per cent increase in the country's energy consumption during the summer months.
But turning up the thermostat only two degrees reduces energy consumption by an average of 16 per cent per year, said Tanzeed Alam, climate change and sustainability manager at the Emirates Wildlife Society - World Wide Fund for Nature.
"If you tackle air-conditioning consumption, you can make some big savings in energy use," he said.
One Dubai company has abandoned Arctic temperatures. More than a year ago Archcorp Architectural Engineering installed seven programmable thermostats that are tuned to about 25°C.
The company maintains that the measure - which has helped cut its electricity bills by more than half - makes for a perfectly comfortable working atmosphere.
"Some people like to put the thermostat down to 18 degrees and go to bed with blankets," said Farhana Imran, managing partner of the 43-strong architecture firm. "We believe it can be set to 24 or 25 degrees and for us, this is comfortable enough."
Tackling air-conditioning use is important because cooling is most in demand during the hot summer months, when the UAE is the most power-hungry.
In Abu Dhabi, for example, peak electricity demand reaches 9,000 megawatts in summer and drops by a third the rest of the year, said David Scott, executive director of economics and energy affairs at the Executive Affairs Authority.
Although the peak only lasts a few months, the emirate has to invest in expensive infrastructure to accommodate it. Diesel fuel, which is more polluting than most other types of fossil fuels, is also burnt to supplement power demand.
"This is neither the most economic, nor the most environmentally friendly way of solving the problem," said Mr Scott.
Office temperature can be an emotional issue anywhere in the world, said a spokesperson at the Abu Dhabi National Exhibitions Company, where the thermostats are maintained at 23.5 degrees Celsius.
"People's backgrounds, dressing, upbringing all have a role to play in how one prefers the temperature to remain," the spokesperson said.
"You often have two people sitting in close proximity to each other - one feeling too cold and the other feeling the temperature was just right, or vice versa," because of such factors," the spokesperson said.
Michael John, a 28-year-old from the UK who works in finance, said he and his boss have different tastes in temperature.
"I like the AC at 23.5°C," he said. "This is my comfort temperature. My boss likes a good 18°C. Because he is my boss, we work in an igloo."
Olga Fedorova, a 36-year-old from Kazakhstan, has already developed an aversion to the UAE's cold interiors in the four months since she arrived.
"I always carry a warm thing with me," she said. "I wonder how people get used to this. I think this is bad for your health, especially in summer when the temperature difference is so large between the outside and inside."
George Berbari, an expert in heating, ventilation, and air conditioning and district cooling systems, said that although turning up the thermostat up a few degrees can lead to big energy savings, other factors are also at play. Some of them - such as a building's insulation, its orientation and the type of AC system in use - are outside of individual control.
"What makes the biggest difference is to shut down the air conditioning when you don't need it," said Mr Berbari, who is also the chief executive of the engineering firm DC Pro.
Installing metres and charging people based on how much they consume would be the biggest driver for savings, he said. "Wherever there is a metre, people are saving anywhere between 20 and 40 per cent. Once people are conscious of the cost, then and only then will they start saving."
vtodorova@thenational.ae

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Ship name: MSC Bellissima

Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

Crew members: 1,536

Number of cabins: 2,217

Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

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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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Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
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Total funding: Self funded
Number of employees: 4
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The Pope's itinerary

Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport


Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial


Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
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1pm: departure by plane to Rome
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Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar

Based: Dubai, UAE

Founded: 2014

Number of employees: 36

Sector: Logistics

Raised: $2.5 million

Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE

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Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding

Seemar’s top six for the Dubai World Cup Carnival:

1. Reynaldothewizard
2. North America
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6. Secret Ambition