Major milestone reached in Dubai solar power mega project

The multi-billion dirham development of the world's tallest solar power tower in Dubai is continuing to gather pace in spite of the Covid-19 pandemic.

The striking 262-metre-high construction is one of the crown jewels of the Mohammed bin Rashid Al Maktoum Solar Park, which itself is central to the UAE's long-term strategy to shift its focus to renewable energy.

Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy, and Saeed Mohammed Al Tayer, chief executive of Dubai Electricity and Water Authority (DEWA) were on hand as a Molten Salt Receiver was hoisted above the ground and installed on top of the tower.

The receiver will play a crucial role in ensuring the tower can store sunlight and convert it into thermal energy.

The project is part of the Dh15.78 billion fourth phase of the vast solar park, called Noor Energy 1, and aims to provide power for 320,000 homes while slashing carbon emissions by 1.6 million tonnes.

The sprawling solar park has a planned capacity of 5,000 megawatts (MW) by 2030 and investments of up to AED 50 billion.

Dubai has set out ambitious plans to derive 75 per cent of its total power output from clean energy by 2050.

Abdul Hamid Al Muhaidib, executive managing director of Noor Energy 1, briefed Sheikh Ahmed on the progress and installation of the MSR.

Noor Energy 1 is owned by DEWA, the Silk Road Fund, which is owned by the Chinese Government and ACWA Power from Saudi Arabia.

Officials witness the latest developments at the Mohammed bin Rashid Al Maktoum Solar Park. Courtesy: Dubai Media Office

“ACWA Power is proud to partner with DEWA and Silk Road Fund and support all efforts to make the Dubai Clean Energy Strategy 2050 a reality," said Mohammad Abunayyan, chairman of ACWA Power.

"Today, we reached another significant milestone in the world’s largest concentrated solar power plant, Noor Energy 1. We have completed the lifting of the Molten Salt Receiver in a record time, keeping the highest standards of safety despite the impact of the COVID-19 pandemic and many other challenges."

The solar park will become operational in stages, starting in the third quarter of 2021.

Arctic Monkeys

Tranquillity Base Hotel Casino (Domino)

Explained

Who are the bidoon?

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Kareem Shaheen on Canada

Canada should look past the US election outcome

There would be no Alphonso Davies without open borders

Hard-hit Canada is springing back to life – or to the already cliched 'new normal'

The most expensive investment mistake you will ever make

When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.

“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.

This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).

Age	$250 a month	$500 a month	$1,000 a month
25	$640,829	$1,281,657	$2,563,315
35	$303,219	$606,439	$1,212,877
45	$131,596	$263,191	$526,382
55	$44,351	$88,702	$177,403

The specs

Engine: 4 liquid-cooled permanent magnet synchronous electric motors placed at each wheel

Battery: Rimac 120kWh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry

Power: 1877bhp

Torque: 2300Nm

Price: Dh7,500,00

On sale: Now

Motori Profile

Date started: March 2020

Co-founder/CEO: Ahmed Eissa

Based: UAE, Abu Dhabi

Sector: Insurance Sector

Size: 50 full-time employees (Inside and Outside UAE)

Stage: Seed stage and seeking Series A round of financing

Investors: Safe City Group

BMW M5 specs

Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor

Power: 727hp

Torque: 1,000Nm

Transmission: 8-speed auto

Fuel consumption: 10.6L/100km

On sale: Now

Price: From Dh650,000

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.”