Men shop for produce in Doha. Qatar is among the countries looking to buy farmland in Africa.
Men shop for produce in Doha. Qatar is among the countries looking to buy farmland in Africa.

Kenyan activists fight land deal with Qatar



NAIROBI // It seemed, when the proposal was announced last December, to be a throwaway clause in a much larger deal. In exchange for a US$2.5 billion (Dh9.1bn) loan to build a second deep-water port in Kenya, Qatar asked for 40,000 hectares of land to grow food. Qatar's emir, Sheikh Hamad bin Khalifa Al Thani, may have thought that he had a deal that would help feed his 800,000 people. But he was also about to get a major headache. In the months since, the proposed land deal in Kenya's Tana River Delta has been jeopardised by the global economic downturn, tainted by criticism from think tanks, conservationists and civil society and seized upon by locals who have promised to fight it - to the death, if it comes to that. "No government has ever been able to acquire Tana River Delta land as long as we've been alive," said Omara Kalasinga, a local activist. "No amount of force will get us to give that land to Qatar." The furore surrounding the Tana River Delta is perhaps an ominous example of just how difficult it is proving for Gulf states to find food security abroad and especially in Africa. Some analysts question whether such proposals - which have gained a great deal of media attention in the wake of rising food prices and South Korea's failed bid to snap up a third of all arable land in Madagascar - are worth the trouble. They are asking whether Qatar and its neighbours should seek alternative strategies to feed their people. "It turns out these deals are not such simple things to do," Marie Bos, a researcher at the Gulf Research Center in Dubai, said. "Buying land comes with so many issues, so many factors to take into consideration." By all accounts, given the business climate when Qatar made the proposal to the Kenyan president, Mwai Kibaki, during a visit to Doha in December 2008, the idea seemed perfect. Qatar and its wealthy neighbours had recently launched sovereign investment funds which were looking to buy land abroad. Even better, the Kenyan government seemed willing to play along. The Tana River Delta is a massive swath of land along Kenya's coast. Rain is abundant and much of the land is government owned. Little of it is developed and prime, fertile land would be just kilometres from the proposed port and a quick run by sea up to Qatar. At the same time, Kenya was pushing its own development plan, known as Vision 2030, to promote investment and improvements in Kenya. The port deal was seen as crucial because it would open up a third of the country - the arid and neglected north-east - to development. The country's planning minister, Wycliffe Oparanya, declared that Qatar was ready to finance the port unconditionally and that the deal was too urgent to go through the process of applying for a World Bank loan. "It is not a matter of free money," he told Reuters. "But if we go to the World Bank, it takes four years to negotiate and then you are told: 'Do this, do that'. The Kenyan people cannot wait that long for this urgent development project." Yet soon after the announcement appeared in Kenyan newspapers, anger started to mount. In Kenya, people do not just debate land - they kill for it too, as happened during violence after botched elections in December 2007. And for decades, people had been killing each other over the Tana River Delta, an area inhabited by pastoralists and small-scale farmers and occasionally terrorised by bandits from Somalia. Despite its post-election troubles, Kenya has a vibrant civil society. Its neighbours, Sudan and Ethiopia, have been popular destinations for Gulf investors looking for land, but Kenya is a messier place to do business. Desperate peasants in Ethiopia may be easily cowed by autocratic governments. Kenya's conservationists are a different matter. "They think Kenyans like making noise and after a while they won't have the energy to sustain it and will keep quiet," said Hadley Becha, the director of the East African Wildlife Society. "But they don't know some of us, we are like sniffer dogs." That the Tana River Delta is undeveloped is, in some ways, testament to that tenacity. The government has long tried a host of schemes - from sugarcane, to shrimp farming, to rice fields and agro-fuels - in the delta, all of which failed, sunk by local opposition, poor planning or conservation groups, who cherish the delta's extraordinary ecological diversity. The government claims that the land - 200,000 hectares - is its to give. Yet the people who live there say that while they have no deed, customary law makes it theirs. "There were people there even before the state came into being," said Ms Becha. "On the ground, they will have to displace people and people are not ready to be displaced." Even if Qatar does look elsewhere, such deals have come under a lot more scrutiny, especially since the South Korea deal in Madagascar ultimately played a part in the government's downfall. Regardless of the fact that Kenya has a great deal of uncultivated land, the country finds itself in the middle of a drought that has brought a low-level famine to many of its people. The land Qatar wants may be small, but the symbolism would be potent, experts say. "It does seem rather anomalous that you've got countries which are food insecure and in receipt of food aid shipments and at the same time handing over control of land to third countries," said David Hallam, head of the Trade Policy Service at the UN Food and Agriculture Organization. Analysts say Qatar and its neighbours may be better off forming relationships with existing domestic farms rather than snapping up land. Last week, a UN report on Africa noted that the global financial crisis would slash growth rates across the continent and said that such land deals with wealthy Gulf nations could be "part of the solution" to the continent's troubles - but only if they helped create jobs or cut poverty. "There has been talk about the business model not being robust enough - it may be better just to work with local farmers," said O B Sisay, a deputy Africa analyst with Exclusive Analysis in London. "You're going to find it difficult to produce food for export in countries that have perennial food and farming shortages." Kenyan officials deny the Qatar deal has been set in stone, while Qatar has maintained a general silence. Isaiah Kabira, President Kibaki's spokesman, said there would be discussions next month over the port deal. He said Kenya was asking Qatar to develop not only the 40,000 hectares for its own use, but also another 40,000 hectares so that the produce could be sold domestically. He insisted that conservation groups and community leaders were wrong about the location of the land that would be leased to Qatar, and that the port would bring benefits to the entire country. * The National

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

Company%20profile
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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Company%20Profile
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The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

COMPANY%20PROFILE
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Tips to avoid getting scammed

1) Beware of cheques presented late on Thursday

2) Visit an RTA centre to change registration only after receiving payment

3) Be aware of people asking to test drive the car alone

4) Try not to close the sale at night

5) Don't be rushed into a sale 

6) Call 901 if you see any suspicious behaviour

Sri Lanka squad

Dinesh Chandimal, Dimuth Karunaratne, Kaushal Silva, Kusal Mendis, Angelo Mathews, Lahiru Thirimanne, Niroshan Dickwella, Sadeera Samarawickrama, Rangana Herath, Suranga Lakmal, Nuwan Pradeep, Lakshan Sandakan, Vishwa Fernando, Lahiru Kumara, Jeffrey Vandersay, Milinda Siriwardana, Roshen Silva, Akila Dananjaya, Charith Asalanka, Shaminda Eranga and Dhammika Prasad.

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

Four%20scenarios%20for%20Ukraine%20war
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How tumultuous protests grew
  • A fuel tax protest by French drivers appealed to wider anti-government sentiment
  • Unlike previous French demonstrations there was no trade union or organised movement involved 
  • Demonstrators responded to online petitions and flooded squares to block traffic
  • At its height there were almost 300,000 on the streets in support
  • Named after the high visibility jackets that drivers must keep in cars 
  • Clashes soon turned violent as thousands fought with police at cordons
  • An estimated two dozen people lost eyes and many others were admitted to hospital