The Opti Robot, official mascot of Expo 2020 Dubai, visits the Future Energy Summit Abu Dhabi National Exhibition Centre, on Jan 19. Victor Besa / The National
The Opti Robot, official mascot of Expo 2020 Dubai, visits the Future Energy Summit Abu Dhabi National Exhibition Centre, on Jan 19. Victor Besa / The National
The Opti Robot, official mascot of Expo 2020 Dubai, visits the Future Energy Summit Abu Dhabi National Exhibition Centre, on Jan 19. Victor Besa / The National
Dr Nawal Al-Hosany is permanent representative of the UAE to the International Renewable Energy Agency
July 25, 2022
Sheikh Mohamed’s first address to the nation as UAE President provided a clear and practical roadmap for the UAE. It is a future that is underpinned by economic diversification, energy security and international co-operation. As Sheikh Mohamed emphasised, our most valuable resource will sit at the heart of this future state: our people.
In the years ahead, the UAE's resilience and the driving force behind our sustainable progress will be formed and powered by human capital.
“The people of the UAE, and striving to empower them, always has been, and continues to be our nation’s top priority. Their happy lives remain the basis of all our future plans,” Sheikh Mohamed said, noting that “thanks to the efforts of our people and those who have chosen to call the UAE their home,” the UAE has transformed into an advanced, sustainable and integrated ecosystem.
At times of uncertainty and disruption, such clarity of purpose and message is vital. Sheikh Mohamed’s vision for the future – and the continuation of the legacy of Sheikh Zayed and Sheikh Khalifa it embodies – reminds us of the interconnected nature of the challenges we face today, and why people must be at the heart of solutions.
In the same way that everything in the Earth’s system is connected, so too the health and well-being of our people is inextricably linked to the health of our planet and our shared prosperity.
The UAE is sending two critical messages
When the first part of that system crosses its tipping point, it produces a knock-on effect, pushing other parts of the system over their critical threshold, just like the cascading effect of dominoes.
In this example, the first domino is our people. By putting them first and enabling them to stand firm, we can bring greater security and stability to the rest of the chain – our supply chains, our economic systems, or indeed, our energy system.
It starts and ends with us, the people. Especially when it comes to the energy transition which the UAE is setting the benchmark for in the Middle East and beyond.
A view of solar cells on the rooftop of a hotel in the resort town of Sharm Al Sheikh, the first to operate a solar-powered plant in a bid to turn to clean energy as the city prepares to host the upcoming Cop27 summit in November, in Egypt, June 4. Reuters
In seeking to strike the balance between remaining a responsible energy provider while being a leading advocate, facilitator and implementor of the transition to clean and renewable energy sources, the UAE is sending two critical messages.
Firstly, it tells other hydrocarbon economies that this transition is not optional, it is essential. Secondly, it shows that the UAE is acting in the interests of those most affected by volatile energy markets – the people. Those who are hit with price hikes at the pump today, as well as those who desperately need clean energy sources for cooking in developing economies.
A recent example of how the UAE is planning for a practical transition is the Abu Dhabi powerhouse. The coming together of Adnoc, Mubadala Investment Company and Taqa to claim a controlling stake in Masdar’s renewable operations will consolidate our renewable assets under one brand, help accelerate our path to net-zero emissions by 2050 and create one of the largest renewable energy companies in the world.
The inclusion of Adnoc, the national energy company, in this mix is vital. While we prepare the future generations to lead the energy system of the future, we must remain mindful that the current workforce and the current energy system can and must act as a bridge to the new energy system.
If we are going to oversee a genuinely inclusive energy transition, it must include the entire energy ecosystem. The people of today’s energy system must be included in the energy system of tomorrow.
As such, we must find ways to transfer the skills, knowledge, technologies, and even the infrastructure, of the immensely successful energy system of today to the new energy system of tomorrow.
As one example, we have seen that existing pipelines can be used to transport hydrogen in the future, according to the International Renewable Energy Agency (Irena). Repurposing existing infrastructure to move towards a future powered by green, renewable energy sources like green hydrogen is a win-win.
With the UAE’s Hydrogen Leadership Roadmap aims to capture 25 per cent of the global hydrogen market share, as demand for clean fuel increases globally amid the energy transition pivot, such an open-minded approach to skills and knowledge transfer is crucial if we are to deliver on the promises of a climate-resilient future.
While upskiling the current workforce with the tools and knowledge they need to enter the future energy system, our economies can still benefit from the transferrable skills and experience they have built over decades of working in the energy sector.
Moreover, the jobs of those employed under the current energy system, on which they rely for their livelihoods, will be given purpose and direction and a future.
There is good reason that the language of the seventh sustainable development goal includes “for all” in its description, which states the 2030 UN goal as, to “ensure access to affordable, reliable, sustainable and modern energy for all.”
Energy impacts us all. The transition has the potential to uplift us all. And it is only by putting our people first that we can, to echo the sentiment of Sheikh Mohamed, build an advanced, integrated and sustainable energy system of tomorrow that works for all.
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister. "We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know. “All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.” It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins. Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement. The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
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.”
