Antigua and Burbuda has suffered devastating losses. Johnny Jno-Baptiste / AP Photo
Antigua and Burbuda has suffered devastating losses. Johnny Jno-Baptiste / AP Photo

Nature is the most awesome destroyer of all



"The storm is up, and all is on the hazard". The fury of the tropical storms that have barrelled, and are barrelling, their way through the Americas recalls Shakespeare's words. Everything that stands in their path is liable to fall. August closed with Hurricane Harvey slamming into Texas with a wind speed of 130 miles per hour. Seventy-one lives were lost and the resulting damage to property and infrastructure is estimated in the region of $70 billion.

September has begun with Hurricane Irma, a monstrous tropical cyclone fiercer than any of its forerunners in the Atlantic basin, sweeping through the Americas at a wind speed of 185 miles per hour, which it sustained for an unprecedented 37 hours. It will make landfall in Florida this weekend, but the devastation it has already caused en route in the Caribbean is terrifying to behold. Virtually every building on the island of Barbuda – one half of the tiny Caribbean state of Antigua and Barbuda – has been wrecked. Half the population in the island is now homeless and a two-year-old child is dead. Ninety-five per cent of St Barthélemy, the French overseas collectivity in the West Indies, is in ruins. Eleven people are dead and more than 100 are injured.

Haiti, the Dominican Republic, Bahamas and Cuba have all suffered losses. Evacuation efforts are hampered by ravaged roads and collapsed communication systems. Reconstruction will take years and cost billions. The United States, the richest and best equipped country in the world, is bracing itself for Irma. More than five million people are being evacuated from Florida. Just as our fears were being monopolised by the threat of war and nuclear apocalypse, nature has reminded us that it is the most awesome destroyer of all. Tens of millions in people in South Asia are still recovering from this year's cyclones even as hurricanes overwhelm the Americas. There is no respite. Hurricane Jose is expected to charge through the Caribbean at Category 5 speeds next week, deepening the misery of people already shattered by Irma.

Tropical cyclones are not caused by climate change, but the intensification of hurricanes, which feed off the warmth of surface waters, is almost certainly the consequence of a rapidly warming globe. President Trump has rightly been criticised for failing to prioritise action against climate change. He must demonstrate leadership in the aftermath of Irma.

Ultimately, however, only a global effort can help us, if not to immediately stop climate change, then at least mitigate its effects. The UAE has taken a lead in helping the victims of natural catastrophes. Dubai, under the auspices of International Humanitarian City, has already dispatched substantial humanitarian relief supplies to Haiti. It did the same last year. The UAE has also provided $10 million to help aid the reconstruction efforts in Texas following Hurricane Harvey. Others must follow the UAE's lead. The scenes of suffering in the Americas and South Asia should stir the world into collective action.

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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 
Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

Based: Dubai, UAE

Sector: Laundry

Employees: 170

Funding: about $8m

Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

Cryopreservation: A timeline
  1. Keyhole surgery under general anaesthetic
  2. Ovarian tissue surgically removed
  3. Tissue processed in a high-tech facility
  4. Tissue re-implanted at a time of the patient’s choosing
  5. Full hormone production regained within 4-6 months

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.”