“Nuclear terrorism is one of the highest threats internationally,” said Ambassador Hamad Alkaabi, the UAE permanent representative to the International Atomic Energy Agencywho will be part of the UAE delegation at the Nuclear Security Summit at The Hague. Courtesy FANR
“Nuclear terrorism is one of the highest threats internationally,” said Ambassador Hamad Alkaabi, the UAE permanent representative to the International Atomic Energy Agencywho will be part of the UAE Show more

Abu Dhabi Crown Prince to lead UAE nuclear delegation at The Hague



ABU DHABI // The threat from nuclear terrorism, improving cybersecurity and boosting global cooperation are set to dominate the Nuclear Security Summit at The Hague this week.

Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, will lead the UAE's delegation at the summit.

At least 53 heads of state and government, and four international organisations are due to attend, including the US president, Barack Obama.

He will also to meet Sheikh Mohammed to discuss US efforts in Syria, nuclear negotiations with Iran and the prospects for the Middle East peace talks.

High on the agenda at the summit are ways to prevent nuclear technology, material and information from being misused, particularly securing sites that use radiological equipment, such as hospitals and universities.

“Nuclear terrorism is one of the highest threats internationally,” said Ambassador Hamad Alkaabi, the UAE’s permanent representative to the International Atomic Energy Agency (IAEA).

“The risk involves use of nuclear material by terrorist organisations and non-state actors for malicious acts. This includes fiscal security, facilities and material, cybersecurity and commercial security.

“This is where the momentum for nuclear security gets high-level attention,” said Mr Alkaabi, who will also be attending the two-day summit, which starts on Monday.

“In 2010 in Washington, the major commitment of the state was that, in four years, they would commit to secure all nuclear material,” he said.

“This means any material, used peacefully or not, should be secured from terrorist acts. Measures need to be introduced to minimise the risk of misusing such material by reducing the amount of highly enriched uranium.”

Although the UAE does not have highly enriched uranium, it has already introduced legislation and stronger review procedures from the IAEA.

“We signed an integrated security support plan by the IAEA, which ensures nuclear security infrastructure in the UAE is consistent with the IAEA guidance, but also with best international practices,” said Mr Alkaabi. “We also have a strong export-control regime today, and we moved very well in adapting all international instruments to ensure security.”

Gerard Michels, the Dutch ambassador to the UAE, said that if a terrorist attack using nuclear material were to happen, the consequences for the whole world would be “very serious”.

“Governments, companies, scientists and organisations from many different countries are therefore working together to reduce the quantity of nuclear material, improve the security of existing nuclear material, and make better international agreements,” he said.

“Nuclear material has an important function – it is used to cure the sick and light our homes. The summit is needed to ensure that global cooperation is effective and thereby prevent nuclear terrorism.”

Cyber security is also one of the key areas that will be examined during the summit.

"It's becoming an important aspect of nuclear security and the risk of not having an adequate information-security system in place could jeopardise nuclear security," Mr Alkaabi said.

“Cyber security is a threat that governments and the industry are taking seriously, and the assessment of such threats requires additional measures to be put in place.

“The UAE is taking the lead in counter-nuclear terrorism and cyber terrorism in general, preventing attacks, recovery from attacks and responses. There’s a good effort internally, in coordination with our international partners, but also keeping up to date with these risk assessments is very important.”

Mr Michels said the issues to be discussed included radiological sources.

“They are used in a variety of settings, including hospitals and universities, where they are not easy to protect,” he said. “If we want, for example, to minimise the inconvenience to patients caused by security measures, what is the best way to protect these sources?”

Andrey Karasev, the director of international nuclear safety and security at JSC Rusatom Overseas, a subsidiary of the Russian State Atomic Energy Corporation, Rosatom, said he was focusing on two main issues.

First, enforcing the amendment to the Convention on the Physical Protection of Nuclear Material.

Second, the universalisation of the International Convention on the Suppression of Acts of Nuclear Terrorism as a basis for international law.

“The participating states will reaffirm their commitments to the strengthening of nuclear security and formulate political intentions on relevant activities,” he said.

“Nuclear terrorism is one of the most challenging threats to international security and strong nuclear security measures are the most effective means to prevent terrorists and criminals from acquiring nuclear materials.”

The Nuclear Security Summit will conclude on Tuesday with a collective declaration of intent signed by the participants.

cmalek@thenational.ae

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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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