Rare rains pay visit to eastern mountains



ABU DHABI // As the midsummer sun baked the rest of the UAE, in the mountainous region to the east, raindrops fell. The clouds that billowed up were stoked by normal weather conditions, according to Dubai International Airport's meteorological office. But the droplets that eventually fell this week may have been prodded to life by a cloud-seeding mission launched from Al Ain.

"I couldn't believe it was summertime and it was raining," said Phillipa Barlow, the manager of Al Awadi Stables near Dhaid. "We had a couple of drops of rain and then massive, massive thunderstorms and lightning." "It was like January," she added, noting that the electricity failed for nearly four hours. "Very, very angry skies." More than 4mm of rainfall splashed down into the Manama area, helping to top off reservoirs and wadis, and offering a respite from the heat to the southern parts of Hatta, Dhaid, Meleiha, Felli and Madam. Much of that water feeds into drinking systems.

"This [water ] needs to be replenished," a spokesman from the meteorlogical office said. "They're trying to enhance the activity with cloud seeding." While much of the UAE is seared dry during the summer, the eastern parts of the country see occasional rain as moist air is driven upwards by mountains. That makes the region more suitable for cloud seeding, experts say. The National Centre of Meteorology and Seismology has been seeding clouds since 2001. The practice has been criticised - it is difficult to gauge its effectiveness, and sometimes it has been blamed for creating catastrophic storms - but it is used worldwide, including in the US and Britain.

A spokesman from the centre said the current seeding programme would continue until September. A separate one runs from March to June. The process involves using sounding rockets or aircraft to spray tiny particles of sodium chloride, calcium chloride or silver iodide into the air, around which water droplets are supposed to form. When enough large droplets coalesce, a cloud begins raining. But the seedings are ineffective when the proper weather conditions do not prevail, experts say. To have any effect, the atmosphere must be unstable, producing well-developed clouds with a high concentration of moisture - the scenario during the past week around Manama.

In the UAE, twin-engined King Air C90 aircraft are used to spray clouds at altitudes of 3,000 to 4,200 metres. In the Emirates, cloud seeding was first done in collaboration with the US-based National Center for Atmospheric Research. Internationally, the first experiments with cloud seeding began in 1946, when the process was used to encourage snowfall in the US. China is one of the world's biggest practitioners, using rockets to launch particles of silver iodide into cloud layers.

dbardsley@thenational.ae * Additional reporting by Anna Zacharias

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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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Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”