New plants to increase production of water



ABU DHABI // The emirate's production of desalinated water is to increase by a third by 2012, a senior water executive said yesterday. Projects in Shuweihat and Fujairah, which have been awarded to contractors, will help achieve the boost, said Dr Najib Dandachi, network services director at the Abu Dhabi Transmission and Despatch Company (Transco). The two new power and water plants, known as S2 and F2, will be added to the facilities at the two locations.

In 2007, capacity in the emirate was 637 million gallons a day but will reach 864 million gallons a day in 2012, Mr Dandachi said. Transco is a subsidiary of the Abu Dhabi Water and Electricity Authority, which is already planning more facilities at the two sites. The UAE has the highest per capita water consumption in the world, with per capita use estimated at 550 litres. Mr Dandachi said despite plans to increase production, the company was encouraging conservation to ensure that water supplies met the demands of the growing population.

"The need for conservation is there and should be pursued irrespective of whether we are building the stations to produce water," he said. The emirate's need for water is expected to increase greatly by 2020 as development projects in the city near completion and add an estimated three million to the population. Mr Dandachi said conservation could help solve the limitations of the desalination technology.

Most of the emirate's power and water plants operate on a combined-cycle principle. Excess heat generated by electricity production produces steam for desalination units, which make seawater potable. The problem is that because of air conditioning, the need for electricity fluctuates significantly depending on the time of year. "In winter, power demand is 30 per cent of the summer peak, yet we still have to produce 100 per cent of the water throughout the year," Mr Dandachi said.

Mr Dandachi was addressing an audience at WaterTech 2008, a conference in Dubai. vtodorova@thenational.ae Editorial, page a29

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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.”

Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.