Emirates is reviewing its contingency processes after record-breaking rain that swamped the UAE in April cost the airline $110 million, the airline's president said on Sunday.
“It was a very, very difficult situation to manage,” Tim Clark said during a media briefing at the 80th International Air Transport Association annual meeting in Dubai.
“Our baggage systems became inundated with water, labels were falling off, containers all over the airfield – it was very difficult to get a handle on it.
“It got so bad that access to the airport was underwater, so nobody could get to the airport.”
For Emirates, it was “a Dh400 million cost” in that one incident, he added. “We measured that we had to do the right thing with our customers' claims and all other bits and pieces.”
In April, Mr Clark apologised to passengers after days of disruption including flight cancellations and delays, with much of Dubai International Airport and the roads around it flooded.
He said dozens of flights were diverted, while nearly 400 were cancelled and “many more” delayed, as operations “remained challenged by staffing and supply shortages”.
Emirates' protocols were “under huge stress and challenges” and were overwhelmed by the situation, Mr Clark said on Sunday.
“We've got to be far more aggressive, if you can call it that, and if necessary, stop the operations and deal with all the fallout,” he said.
“That was always the last contingent … we never thought water would do that.”
Now the airline is undertaking a major review of its procedures, Mr Clark said.
“Next, we will go back to our major review going over all the processes to make sure we reshape our armour plate,” he said.
“If it happens again, we're still going to face the same problem but, hopefully, we will be in a better place from the source, and that means we have to spend money on manpower, ground equipment and training.”
Emirates has a “very big contingency response group” that deals with any scenarios that might happen and that is exercised three to four times a year.
The airline is expected to move its operations to the new passenger terminal at Al Maktoum International Airport within a decade and the new base will take into account lessons learnt in terms of “maximising the evacuation of water”, Mr Clark said.
The new passenger terminal at DWC is expected to be completed by 2032 to 2034 and the plan is to move Emirates' massive operations from Dubai International Airport to its new home in one go.
“It is likely that we will, as best as we can, do it overnight,” Mr Clark said.
“It will be very, very rapid. The airport has been designed in a manner that it will be a mega hub.
“Everything about it will improve everything that Emirates does, and the other carriers.”
The new passenger terminal will be a “well oiled” and “easy-to-run” operation, which will make the transition easier, he added.
The five pillars of Islam
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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Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
