Saudis lend their weight to Irena



ABU DHABI // Saudi Arabia, the world's leading oil producer and a long-standing sceptic of climate change, will become a member of the International Renewable Energy Agency, it was announced here yesterday. Sultan al Jaber, the chief executive of Masdar, Abu Dhabi's clean-energy firm, said Irena, as the energy agency is known, had received "official notification from Saudi Arabia to become a signatory state".

"Hopefully in the next three weeks, official representatives of Saudi Arabia will get their full powers to become an authorised member of Irena," said Dr al Jaber, speaking following the UN agency's first meeting in the capital, which was attended by heads of state, prime ministers and energy ministers and 1,400 chief executives from 138 countries. The meeting was held in conjunction with the World Future Energy Summit, which opens in the capital today.

Irena's third preparatory session also saw the addition of three new members: South Africa, Kyrgyzstan, and St Vincent & the Grenadines, an island state in the Caribbean. Saudi Arabia, one of the most influential OPEC members, has for years downplayed the risks associated with climate change. The Saudi government has also insisted on financial compensation for oil revenues lost due to measures to reduce the fossil-fuel consumption of developed states.

Dr al Jaber and Hélène Pelosse, Irena's interim director-general, said the overture from Saudi Arabia was an encouraging one. "It is sending out a strong message that we cannot rely on energy of the past to power the future," said Mrs Pelosse. "We know that within 40 years there will be no more oil." The idea, she said, "is to co-operate". China, the world's largest emitter of greenhouse gases, is also considering joining Irena.

"We have had a lot of meetings with China and a huge delegation is attending," said Mrs Pelosse. "They are considering seriously. It's not a decision you take quickly." At the session yesterday, the UAE stressed it would strive to make the agency a success. The UAE capital was chosen in June as the home of Irena, beating three European cities, Vienna, Copenhagen and Bonn, to the honour. "The UAE firmly believes that Irena will evolve into one of the most important international organisations of the 21st century and we are truly proud to be part of that journey," said Dr Mohammed Anwar Gargash, the Minister of State for Foreign Affairs, in a speech reported by WAM, the state news agency.

Sheikh Abdullah bin Zayed, the Minister of Foreign Affairs, also told the session that as a major oil producer and home of Irena, "the UAE is adding its voice to other countries to send out a message that we all believe in it and which says, 'We can't rely on the energy of the past to make prosperity in the future'," reported WAM. Irena yesterday fixed the budget for its first full year at US$13.7 million (Dh50.3m). Decisions about how it will be governed and staffed were also made.

The overriding importance of the Irena initiative in the global battle against climate change was reinforced yesterday by the first visit by an Israeli cabinet minister to a meeting in the UAE. Israel and the UAE were among the 75 states that founded Irena in Bonn last January. Uzi Landau, Israel's national infrastructure minister, attended the day-long meeting at the Emirates Palace hotel after "special arrangements" were made for him and his delegation to enter the country, with which the Emirates has no diplomatic ties.

Mandated by governments worldwide, Irena's mission is to promote the adoption and sustainable use of all forms of renewable energy. In her opening speech, Mrs Pelosse praised Masdar for the "enormous support" it had given the organisation; the Masdar Institute of Science and Technology has offered 20 scholarships to Irena to support and establish its technical and administrative bodies. Mrs Pelosse told delegates that gender equality was also on Irena's agenda: 50 per cent of its employees would be women, she said.

Dr al Jaber also defended the UAE's decision to use nuclear energy. "We will have to adopt a new approach to energy, which is going to be about an energy mix," he said. "Hydrocarbons will play a role. Renewable energy will play a significant role." He said nuclear energy would play a role "for some time", until renewable energy is able to compete financially with other sources of power. vtodorova@thenational.ae

Cryopreservation: A timeline
  1. Keyhole surgery under general anaesthetic
  2. Ovarian tissue surgically removed
  3. Tissue processed in a high-tech facility
  4. Tissue re-implanted at a time of the patient’s choosing
  5. Full hormone production regained within 4-6 months
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Race card:

6.30pm: Maiden; Dh165,000; 2,000m

7.05pm: Handicap; Dh165,000; 2,200m

7.40pm: Conditions; Dh240,000; 1,600m

8.15pm: Handicap; Dh190,000; 2,000m

8.50pm: The Garhoud Sprint Listed; Dh265,000; 1,200m

9.25pm: Handicap; Dh170,000; 1,600m

10pm: Handicap; Dh190,000; 1,400m

The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.

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.”

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

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