A container ship sails past barges during foggy conditions at Hong Kong's Victoria Harbour. Reuters
A container ship sails past barges during foggy conditions at Hong Kong's Victoria Harbour. Reuters
A container ship sails past barges during foggy conditions at Hong Kong's Victoria Harbour. Reuters
A container ship sails past barges during foggy conditions at Hong Kong's Victoria Harbour. Reuters

Atomic ships just over the horizon


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The merchant shipping industry is hoping to go nuclear.

Despite the reactor disaster at the Fukushima power station in Japan last year and the fallout that blanketed the nuclear sector, the cargo ships and tankers of the future could one day be powered by atomic energy.

Last month, in the German port city of Hamburg, delegates at a conference on marine propulsion discussed the progress being made to design and build a new generation of merchant ships to be powered by onboard nuclear reactors.

The current research focus is on power plants for liquefied natural gas (LNG) carriers and oil tankers - huge ships common in the waters of the Gulf. But that is not all as the shipping industry believes there is equal scope for container ships and bulk carriers to be fuelled by atomic energy. But they will not be cheap.

"The purchase price of the nuclear propelled ship would be considerably greater than that of an equivalent conventional ship," says John Carlton, a professor of marine engineering at the City University London, one of the keynote speakers at the forthcoming Hamburg conference.

However, for the conventionally propelled ship, the through-life fuel costs are high and are likely to rise further, especially with any introduction of carbon tax.

In contrast, the price of uranium enriched to commercial levels is much cheaper than conventional fuels. Therefore, the fuel costs become very much less for the nuclear ship.

The Russians already have two nuclear powered ice breakers-cum-cruise ships and a freighter plying their Arctic waters.

The marine engine manufacturers Babcock, and the international ship classification society Lloyd's Register, are already far advanced in research and development work and despite the technical and political hurdles they face, both believe the age of the nuclear-powered merchant ship will soon be with us.

The main drivers are the rising cost of traditional fuel, and the coming tranche of emissions regulations aimed at limiting the world's merchant fleet's power to pollute. And those are big problems, says Prof Carlton.

The world merchant fleet has an installed power capacity of 410 million kW; that is 9 per cent of world electricity generating capacity. It costs a lot to power that using fossil fuels, and it generates a lot of greenhouse gases in the process. "Also, it is clear that there is a perception that CO2 and greenhouse gases present a significant threat for the future. [In that context] there is growing acceptance that the use of nuclear power for ship propulsion is beneficial," says Prof Carlton.

"Some countries are suggesting that serious consideration should be given to nuclear propulsion for merchant ships. In a recently produced UK government memorandum detailing options for decarbonising Britain by 2050, the section on international shipping suggests 'building and maintaining a new fleet of nuclear-powered container ships and passenger ships.'"

Lloyd's Register is leading a consortium made up of the Greek tanker operator Enterprises Shipping and Trading, the US engine designer Hyperion Power Generation and the British naval architect BMT Nigel Gee, to examine the marine applications for small modular reactors (SMRs) in tankers. "Changes in oil regulation are driving the shipping industry's move to nuclear power," says Vince Jenkins, a Lloyd's Register global marine risk advisor.

"By 2020, ships will have to switch from today's heavy fuel oil to distillate fuels to reduce NOx [nitrogen oxide] and SOx [sulphur Oxide] greenhouse gases, which will be expensive. Unlike other low-carbon forms of energy, only nuclear power would be powerful enough to be able to completely replace a diesel engine."

Babcock International Group Marine Division has already completed a study to investigate the commercial implications of developing a nuclear-powered LNG carrier, based on its work as the support contractor for the Royal Navy's nuclear submarine fleet.

"The study was undertaken to determine the commercial feasibility of utilising nuclear power for the main propulsion and auxiliary power generation on board an LNG carrier," says David Dobson, Babcock's integrated technology commercial projects director.

"The company believes that a number of benefits could be realised by the use of nuclear powered vessels for LNG. Low emissions is one of these, as the nuclear plant would eliminate CO2, NOx and SOx emissions.

"Additionally, the vessel's large power-generation requirements would be supplied by a relatively compact power source compared to normal power methods for this vessel type - a space saving that would maximise cargo capacity," he says.

"Further benefits would include the significant reduction in noise generation, reducing the environmental impact of the vessel."

However, all experts agree safety and public perception will play major roles in deciding the future of this technology. As for the former, the UN International Maritime Organisation (IMO) adopted a code of safety for nuclear merchant ships, Resolution A.491(XII), in 1981, which is still extant and could be updated. Also Lloyd's Register has maintained a set of provisional rules for nuclear-propelled merchant ships, which it has recently completely revised. Public opinion is a different matter. Both Mr Dobson and Mr Jenkins agree it could be partly assuaged by initially using nuclear powered ships on set routes avoiding enclosed waters, such as from Los Angeles to Shanghai.

Lloyd's Register is also looking a design concepts that could place the power plant separately from the cargo-carrying hull, enabling the ship to be split while still offshore allowing the non-nuclear cargo section to detach and go into port.

"The role of the land-based nuclear regulator and the views of the flag and port state controls will be critical for the successful implementation of marine nuclear propulsion," Prof Carlton says.

"Mutual acceptance of certification between different countries will become the key to nuclear ship operation and voyage planning."

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BABYLON
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Gifts exchanged
  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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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.”

The National photo project

Chris Whiteoak, a photographer at The National, spent months taking some of Jacqui Allan's props around the UAE, positioning them perfectly in front of some of the country's most recognisable landmarks. He placed a pirate on Kite Beach, in front of the Burj Al Arab, the Cheshire Cat from Alice in Wonderland at the Burj Khalifa, and brought one of Allan's snails (Freddie, which represents her grandfather) to the Dubai Frame. In Abu Dhabi, a dinosaur went to Al Ain's Jebel Hafeet. And a flamingo was taken all the way to the Hatta Mountains. This special project suitably brings to life the quirky nature of Allan's prop shop (and Allan herself!).

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%3Cp%3EEncourage%20innovation%20in%20the%20metaverse%20field%20and%20boost%20economic%20contribution%3C%2Fp%3E%0A%3Cp%3EDevelop%20outstanding%20talents%20through%20education%20and%20training%3C%2Fp%3E%0A%3Cp%3EDevelop%20applications%20and%20the%20way%20they%20are%20used%20in%20Dubai's%20government%20institutions%3C%2Fp%3E%0A%3Cp%3EAdopt%2C%20expand%20and%20promote%20secure%20platforms%20globally%3C%2Fp%3E%0A%3Cp%3EDevelop%20the%20infrastructure%20and%20regulations%3C%2Fp%3E%0A
Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

RESULTS

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Sara El Bakkali bt Anisha Kadka
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Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
Mohamed Mardi bt Noureddine El Agouti
Middleweight
Nabil Ouach bt Ymad Atrous
Welterweight
Nouredine Samir bt Marlon Ribeiro
Super welterweight
Brad Stanton bt Mohamed El Boukhari

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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Sui Dhaaga: Made in India

Director: Sharat Katariya

Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav

3.5/5

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

The specs: 2018 Nissan Patrol Nismo

Price: base / as tested: Dh382,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 428hp @ 5,800rpm

Torque: 560Nm @ 3,600rpm

Fuel economy, combined: 12.7L / 100km

Company profile

Name: Fruitful Day

Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie

Based: Dubai, UAE

Founded: 2015

Number of employees: 30

Sector: F&B

Funding so far: Dh3 million

Future funding plans: None at present

Future markets: Saudi Arabia, potentially Kuwait and other GCC countries

UAE currency: the story behind the money in your pockets
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Reputation

Taylor Swift

(Big Machine Records)