A red clay could stem the red tide



DUBAI // A red clay that could provide a solution to red tides is being tested for use in the UAE, where it could help revive fish stocks and protect beaches and desalination plants. But concerns about how it might hurt coral reefs mean the process, being developed in Iran, might not be widely used. "We are working closely with other countries in the region to find solutions to the red tide problem and are monitoring the success of the clay method in Iran," said Ebrahim Jamali, director of the Marine Resources Centre. "We have coral reefs in the UAE that are sensitive to environmental impacts, and so we have reservations about the widespread use of the method. However, we are considering its use it controlled and concentrated areas to protect aquaculture fishing and desalination plants."

The clay binds with the algae blooms, causing them to sink to the seabed. But the material can form a blanket that deprives marine life of vital oxygen. Red tides, however, killed 900,000 tonnes of fish in UAE fish farms in 2007, lending urgency to the search for a solution. Mr Jamali said today that experiments using local clays were being conducted to learn more about their impact on the seabed and marine life.

"A key factor will be in finding a suitable local clay that will minimise the environmental impact of the method," he said. "Mapping of the sea bed will need to be conducted to see what species are present at the selected sites and how they will be affected before use of the method is approved." The technique, which is in widespread use in Korea, mixes a fine clay with seawater, which is then sprayed onto the algae bloom. One of the benefits of the method is that small areas, such as the gates of fish farms or desalination plants, can be specifically targeted.

Abdulla Abdulrazzaq, consultant to the assistant deputy minister for fisheries, said that more information about what caused red tides was needed. "The red tide was brought to the region by tankers arriving from areas where the oceans are polluted. The ships use water for ballast and when they release it, nutrients flood the sea and attract the algae blooms. "Changes and fluctuations in the temperature and current will have an effect on red tide, and it is possible it could clear through natural processes. However, it is important that potential solutions are identified and tested, and clay may be suitable in concentrated areas, including some beaches."

Dealing with red tides was at the top of the agenda at the Regional Commission for Fisheries, held in Dubai last week. The algae blooms were identified as one of the factors behind a dramatic decrease in fish stocks seen across the region, particularly in coastal aquaculture. Those projects, which help meet high demand by farming fish and releasing them into the sea, are seen as key to reviving populations of threatened species, such as hammour and bream. But the operations are susceptible to red tides because they are located in shallow waters, where the algae can rob the water of oxygen, killing the fish.

tbrooks@thenational.ae

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

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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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Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

Honeymoonish
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia