UAE and South Korea unite on nuclear plan



The UAE's nuclear regulator has signed an agreement to co-operate with its South Korean counterpart.

Creating safeguards will be critical as the UAE forges ahead with an ambitious plan to produce nuclear energy by 2017, using reactors and fuel supplies from South Korean companies.

"Since the technology that's been selected by the operating company is Korean, we have a vested interest in co-operating with the governmental agencies in Korea," said William Travers, the director general of the Federal Authority for Nuclear Regulation (FANR). He said the agreement would allow FANR and the Korea Institute of Nuclear Non-proliferation and Control (Kinac) to "establish a common language", giving the UAE the option of adopting the same software or tracking systems to monitor the location of nuclear material and protect nuclear facilities.

Such nuclear safeguards will be critical as the UAE enters a global nuclear energy scene shaken by ongoing events in Japan, which is struggling to tackle radiation leaks at its stricken Fukushima Daiichi plant in the wake of a disastrous tsunami and earthquake.

Yesterday's agreement came a day after Lee Myung-bak, the Korean president, visited the proposed site of the UAE's nuclear plant for a ground-breaking ceremony.

The UAE has signed deals with other countries' governments over nuclear co-operation. Those agreements pave the way for those countries' nuclear regulators to establish relationships, including arrangements signed last year with the US Nuclear Regulatory Commission and Korea's other nuclear regulatory body, the Korea Institute of Nuclear Safety.

The UAE's programme, the first in the Arab world, has been heralded by international observers as a model in transparency and non-proliferation issues.

In 2009 Emirates Nuclear Energy Corporation, the Government's nuclear energy company, signed a US$20 billion (Dh73.46bn) contract with a Korean consortium led by Korea Electric Power Corporation (Kepco) to build four reactors for Braka, a town in Abu Dhabi's Western Region. Earlier generations of the reactor, Kepco's APR1400, are used in South Korea.

"This is important in terms of the experience of the Korean regulator in regulating the Korean reactors and plants in Korea," said Hamad al Kaabi, the UAE representative to the International Atomic Energy Agency, a global nuclear watchdog based in Vienna. "The goal is to develop capabilities."

The UAE, like other nations in the region including Saudi Arabia, is counting on nuclear power to help meet growing electricity demand as well as free up oil and gas currently used for power generation to more lucrative uses, such as exports of petrochemicals. Abu Dhabi hopes nuclear power will provide a quarter of its electricity within the next decade.

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In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

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Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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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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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
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Current number of staff: More than 150
Funds raised: $22 million