The UAE’s fragile natural habitat and animal life are likely to be put under more strain by climate change, leading to economic losses for the growing tourism sector.
The Emirates Wildlife Society and World Wildlife Fund report, UAE Climate Change Risks and Resilience, this week outlined concerns about the effect on coral reefs off the coast.
Some effects of climate change can be predicted through research, such as the effect of a changing marine environment. But many are as yet unknown, including global warming’s influence on certain species’ habits.
“Marine ecosystems and species of the Arabian Gulf already often function at the maximum limits of their environmental tolerance and further changes in climatic conditions are likely to affect them severely,” the report said.
Sabkhas, low-lying sand and salt flats, are also recognised as one of the largest carbon storage habitats of coastal systems.
“The UAE’s sabkhas are internationally recognised as the largest and most geomorphologically interesting examples in the world,” the report said.
“Coastal sabkhas can stand only a few centimetres above high-tide mark, and changes in precipitation and higher sea level could have negative consequences on their halophytic flora and fauna.
“Estimates indicate that with a continuation of current trends in GHG emissions, a significant proportion of the planet’s remaining coral reefs may be lost to bleaching over the next century.”
The Arabian Gulf is already one of the most heat-stressed and saline marine environments in the world due to desalination plants and decades of pollution.
Policies are in place to reverse some of the damage done by rapid urban modernisation, but the shift in sea temperature and increasing ocean acidity have already taken their toll on coral reef habitats and the almost Dh100 billion they bring in annually.
Coral bleaching in 2010 led to the loss of more than half of the acropora corals in Ras Ghanada, Abu Dhabi, a place famous for its reefs. This was important because that species of coral excretes a calcium skeleton, which is the basic building block for reefs.
The Environment Agency Abu Dhabi last month said it planned to increase the percentage of protected marine areas to 14 per cent by 2019, stating that it will benefit coral reefs and boost tourism in making the UAE a more popular diving destination.
It said that coral replenishment programmes were a feasible option for the Gulf to help coral populations that might be at risk.
Apart from the known link to the coral reefs, change in the region’s ocean conditions could have unpredictable effects on turtles.
A recent study by the Emirates Wildlife Society found turtles dive to cooler waters during the summer and that is likely to increase as water surface temperatures are set to rise by up to 2°C in the next 30 years.
On land, most species depend on a healthy and vibrant desert. But increases in temperature could lead to stress for species including the Arabian oryx, the spiny-tail lizard and migratory birds.
Extreme temperatures will also threaten the flora and fauna of mountainous regions, as the scarcity of plants could lead to species degradation and allow invasive species to flourish.
nalwasmi@thenational.ae
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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.”
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
UAE%20set%20for%20Scotland%20series
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
US tops drug cost charts
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
Company%20Profile
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