I'm writing to you today from the lavish city of Dubai.
This is my first time here, and it’s a pretty incredible place, especially when you consider how quickly this technological marvel was built — and in the middle of a desert no less.
I’ve been absolutely amazed by the architecture and conveniences available to anyone who can afford it. I’m staying with a friend who lives on the Palm Jumeirah, which is a collection of man-made islands that seems to house a lot of very wealthy individuals from all over the globe. In fact, nearly 90% of the population here is made up of foreigners who work or do business here — and you can get a lot of stuff here that you wouldn’t expect to get in a desert.
In fact, I’m writing to you right now from an upscale food court in a well-cooled mall that has everything from Turkish dates and Korean kimchi to French cheeses and Italian coffees.
Taxis and private cars are reasonably priced and very efficient. I suspect they must be as it’s just too hot to walk anywhere. I learned this lesson yesterday after visiting the Louvre Abu Dhabi where the proverbial mercury reached 116 degrees Fahrenheit.
And this morning, I decided to take a swim in the Persian Gulf, which was like trying to take a swim in warm bathwater. I stayed in just long enough to experience it and then immediately dove into a nearby cold-water pool where I was joined by two professional swimmers from Australia and the occasional Palm Dove that swooped in to wet its feet in the shallow end. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
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While I find Dubai to be a fascinating place, my car trip to Abu Dhabi did allow me to see a glimpse of what is coming to many parts of the world: an increased demand for resources that are necessary to adapt to the heat and drought conditions that are becoming the new normal.
While oil and gas are still abundant in this part of the world, water is not.
In the UAE, the water table has fallen by roughly 1 meter per year since 2000. Naturally, this is not sustainable for a country that’s growing so rapidly.
In 1980, the population of the UAE was just 254,000 people.
Today, it’s 9.5 million, and by the end of this decade, it’s expected to exceed 11 million.
So to ensure the country doesn’t turn to dust, the government launched the Water Security Strategy 2036, which is designed to reduce total water demand by 21%, increase the reuse of treated water to 95%, reduce average consumption by half, and construct a water storage system that could provide water to residents for up to 45 days in extreme weather events.
As a side note, 99% of Dubai’s water comes from desalination, which, while it has its own downsides including being energy-intensive, the city simply could not exist as it does today without it.
What the UAE is investing in today in an effort to produce and conserve clean water is what other parts of the world will be doing in the very near future too.
The dual threats of recurring heat waves (like the one Italy is experiencing right now) and extreme droughts are no longer random events. They are the new normal, and adapting to this new normal is an absolute necessity that will bear fruit for investors who understand that this is not hyperbole but an opportunity.
Actually, it's one of many that I've given my Green Chip Stocks readers recently.
One of the plays we're investing in is a tiny satellite company that records and analyzes water resources and land cover changes, which is vital for identifying the impacts of drought for the energy and agriculture sectors.
Is it profitable?
With the insurance industry struggling to adapt to a new normal in which losses fueled by climate change are now regularly exceeding $100 billion a year, you better believe it.
Another play we've gotten into is a fund that allows us to profit from companies that are benefiting from water supply-and-demand imbalances. This encompasses everything from water distribution to filtration and treatment to water equipment, such as pipes, pumps, valves, and water efficiency products.
This is a long-term investment that presents an opportunity to enjoy some steady gains as well as a small dividend.
I'm also looking to add some new water infrastructure plays soon, particularly those that design and build large-scale water infrastructure projects and components. There’s definitely more desalination coming in the Middle East, and this will require some very big orders for water pipelines and monitoring systems.
If you want to get in on the ground floor of these profitable opportunities, simply click here to get started.
Until next time, mae alsalama from Dubai.
Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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