Demolition sites such as this one in Al Salam St, Abu Dhabi produce massive amounts of construction waste.
Demolition sites such as this one in Al Salam St, Abu Dhabi produce massive amounts of construction waste.

Government to tackle demolition waste



ABU DHABI // The Government has funded two projects to tackle mountains of construction waste and giant piles of old tyres. A contract, for Dh1.1 billion (US$300 million), has been awarded to Thiess Services Middle East to build and operate a demolition waste facility in Abu Dhabi. Another to rebuild and operate an Al Ain recycling plant that is already capable of processing 20,000 tonnes of old tyres a year, went to Omnix Group. The two projects will be handed back to the Government at some point in the future. It is not clear when work on either project will be finished.

When they are, they will divert large amounts of waste from landfills and disposal sites that have filled under the strain of a rapidly growing population. Millions of tyres have been dumped at nine locations in the emirate, creating a major environmental hazard. Old tyres are highly flammable and hard to put out when they catch fire. Left at dump sites, where large amounts of methane gas are created by decomposing trash, they create even more of a hazard, said Majid al Mansouri, the secretary general of the Environment Agency - Abu Dhabi.

"The lifespan of the rubber that tyres are made of is hundreds or thousands of years," he said. Omnix Group, a company with offices in Canada, Saudi Arabia, Jordan and the UAE, specialises in computer-aided design, information technology, networking and security solutions. When the Al Ain facility is finished, the recovered rubber will be used to make a range of products for use in the UAE including irrigation pipes, insulation and flooring solutions, and heat-resistant plastics for traffic signs. The 2005 State of the Environment Report estimated that up to 940 tonnes of construction waste was being dropped each day at Abu Dhabi's largest disposal site at Al Dhafra, which covers 16square kilometres. Another site in Moqatra, Al Gharbia, received 5,000 tonnes a day.

Both amounts will increase significantly as Abu Dhabi continues to develop. Thiess Services Middle East, a joint venture formed last year by Australia's Thiess Services and Al Habtoor Engineering Enterprises in Dubai, will build and manage a recycling plant for some of this waste. Concrete, gravel and sand will be used in new construction. The company has a 15-year concession agreement with the Centre of Waste Management Abu Dhabi for the project, which will take about a year to build and will also separate demolition debris including plastics, wood, ceramics and metals.

Most construction and demolition waste ends up in landfills, although other emirates have been taking steps to deal with the issue. Emirates Environmental Technology, an Austrian company, has been operating a construction waste recycling facility in Sharjah since November 2007. The plant cost Dh40 million to build and processes 9,000 tonnes of waste per shift, producing a construction aggregate that can be used to pave roads and make bricks and cement.

The Dh65 million Emirates Recycling Plant began operating early last year in Dubai, where the construction industry was responsible for 27.7 million tonnes of waste in 2007. The two Abu Dhabi projects are part of a strategy to reform waste management services in the emirate. Last year the Centre for Waste Management Abu Dhabi announced a scheme to rehabilitate six major disposal sites that for years were receiving waste from the capital's households, industries and hospitals.

vtodorova@thenational.ae

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Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.

She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.

She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.

The couple were married in August 2009 in Winchester and their daughter was born in June 2014.

She was held in her native country a year later.

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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