ABU DHABI // The Federal National Council subjected the Environment Minister to six hours of questioning yesterday, following the publication of a critical report accusing his department of a number of failures.
From 10am until 4pm, the minister, Dr Rashid Ahmed bin Fahad, was put on the spot over findings by the council's foreign affairs, planning, petrol, mineral resources and fishing committee.
The report, presented to the council by Hamad Al Rahoumi (Dubai), accused the ministry of lacking proper plans for dealing with environmental disasters, such as the sinking of the White Whale, a diesel tanker that ran aground off the coast of Umm Al Quwain in October.
The incident showed that the ministry had no plan or funds to respond in a timely fashion, said the report, recommending that it urgently draw up such a strategy.
Abdulrahim Al Shahin (RAK) said the ministry's response was a "disaster". "I call it a disaster not because of the environmental damage, but because of the time it took for a response," he said.
"Four months and we only had a decision made yesterday [Monday]."
The minister said talks had been conducted in recent weeks but salvage attempts had been delayed by sea conditions.
"We want to retrieve the boat in one piece but we need four to five days of clear weather," he said.
Dr bin Fahad admitted that the ministry lacked a disaster management strategy.
"We are currently working with UAE University and conducting studies to develop the correct strategies," he said. "We have dedicated Dh4 million to resolve this".
Dr bin Fahad admitted that the ministry faced serious challenges, but said it had made great strides since its foundation in 2006.
The report accuses the ministry of failing to provide leadership on environmental issues, failing to enforce environmental laws and failing to measure the success or otherwise of its own actions.
It also complained that the ministry had refused to cooperate with its preparation of the report, which was commissioned in November.
Ali Jassim (Umm Al Quwain) called on the government to intervene to force ministries to cooperate with such inquiries.
"This should be taken up by the government," he said. "We have made numerous recommendations regarding environmental problems and none of them have been taken."
Dr bin Fahad said the ministry's doors were always open and that there must have been a miscommunication. "We are ready to cooperate with everyone," he said.
But this claim was denounced by Ahmed Al Shamsi (Ajman), a member of the committee.
He walked across the chamber to present Dr bin Fahad with his ministry's written refusal to give access to the committee.
Ahmed Al Zaabi (Sharjah) said that while there were environmental protection laws, a lack of coordination meant they were often not enforced.
"What is the ministry's role in legislation and enforcement?" he asked. "What are these enforcement officials doing about violations? We live on the eastern coast and see a lot of violations. Our fishermen are losing millions because their nets and equipment are ruined by illegally dumping."
The country now has 21 natural reserves, covering six per cent of its total land area. There are also numerous unannounced reserves, he said, "as well as breeding grounds for endangered species".
But Mr Jassim said the country was still burning too many fossil fuels.
"We have the world's second largest carbon footprint after the US, which is many times our size and power," he said.
Dr bin Fahad said this was no gauge of pollution or environmental danger.
"The carbon footprint is a representation of the consumption of natural resources per person and not a pollution gauge," he said. "According to the Yale University Environmental Protection Index (EPI), we are ranked 77 in the world, which is a great achievement."
But Mr Shaheen said: "The minister said we are ranked 77 out of 132, but failed to state that the UAE has gone down 50 places since the first EPI."
He also questioned the ministry's organisational structure.
"The minister sets the strategy and the undersecretary executes it. The fact that there is no undersecretary cannot be accepted."
Rashid Al Shuraiqi (RAK), a member of the committee that prepared the report and the director of the Abu Dhabi Food Control Authority, was previously undersecretary of the Ministry for Agriculture and Fisheries, a precursor to the current Ministry of Environment and Water.
"Instead of telling us everything is fine, the minister should have sat with us and accepted the problems and tried to act to resolve them, instead of telling us 'inshallah' and 'it will be fixed'," said Mr Al Shuraiqi.
Dr bin Fahad said the country's biggest environmental concern was landfill dumps.
"Is there a problem regarding waste? Yes there is," he said. "Are there efforts in place? Every emirate and municipal authority is working on it. For example, in Ras Al Khaimah there are 24 dumps. We are implementing a project to close them and keep only two dumps facing [the] Gulf coast and Indian Ocean.
"However, we cannot determine how long this will take, we are working with the Ministry of Planning to finalise the plans."
There was also a complaint from Dr Abdel Rahim Shaheen (RAK) that ministry practices were driving away Emirati staff.
"If a person from Abu Dhabi is employed he would be sent to Fujairah, if someone from Ras Al Khaimah applies he would be employed in Sharjah," he said. "How many Emirati staff do you have left due to this bad policy?"
The committee's report made seven recommendations. As well as disaster planning, it called for federal environment law 24 to be amended, to take account of environmental changes occurring in the UAE. Specialised research centres should be set up, and standardised databases on environmental issues.
The ministry should also make regular reports on the country's environmental situation and implement a waste recycling project.
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Takreem Awards winners 2021
Corporate Leadership: Carl Bistany (Lebanon)
Cultural Excellence: Hoor Al Qasimi (UAE)
Environmental Development and Sustainability: Bkerzay (Lebanon)
Environmental Development and Sustainability: Raya Ani (Iraq)
Humanitarian and Civic Services: Women’s Programs Association (Lebanon)
Humanitarian and Civic Services: Osamah Al Thini (Libya)
Excellence in Education: World Innovation Summit for Education (WISE) (Qatar)
Outstanding Arab Woman: Balghis Badri (Sudan)
Scientific and Technological Achievement: Mohamed Slim Alouini (KSA)
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In numbers: PKK’s money network in Europe
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Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
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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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In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
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Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
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