The UAE will develop 6.6 gigawatts of clean energy capacity in India, including the construction of 1,200 megawatts of wind and solar projects, Majid Al Suwaidi, Cop28 director general, has said.
The projects will be financed using the Emirates’ newly announced $30 billion fund for clean energy, which is backed by BlackRock, Brookfield and TPG.
The money will go towards a new private investment vehicle, Alterra, which aims to raise $250 billion globally in the next six years to create a fairer climate finance system.
“Alterra has already collectively committed $6.5 billion to climate-dedicated funds for global investments, including emerging markets and developing economies,” Mr Al Suwaidi told reporters during a media round-table on Friday.
The UAE is further exploring opportunities such as an African development platform with a pipeline of more than 5 gigawatts of onshore wind and solar energy projects as well as a rural electrification platform in Latin America that will provide electricity to more than one million people in remote rural areas.
“Alterra is going to be transforming the architecture of infrastructure decarbonisation for parts of the world that [are] underinvested today,” said Larry Fink, the chief executive and chairman of BlackRock, one of the world’s largest investment firms.
“I believe this is the beginning of really deploying true institutional capital alongside with governmental capital to try to really focus on making these changes,” Mr Fink said.
Developing countries require about $1.7 trillion per year in the clean energy sector but only managed to attract foreign direct investment worth $544 billion in 2022, according to the UN Conference on Trade and Development (Unctad).
With interest rates soaring globally, the cost of capital is a key barrier for energy investment in developing countries that are grappling with mounting external debt, with limited fiscal space.
Investors are also reluctant to allocate funds to climate change mitigation projects in emerging economies due to high perceived risks.
Jim Coulter, the executive chairman of TPG, said climate finance needs a “revolution” led by private capital like the one experienced by the tech sector in San Francisco, home to Silicon Valley.
“One of the things that's different between climate and technology [is that] the numbers needed in terms of capital for climate dwarfs anything that we've seen in technology. We need to supersize the effort,” Mr Coulter said.
“If we can take the skills around the world, whether they be in Africa or Asia or any of the Global South markets and supersize them and accelerate them through the private markets, we can drive innovation and change,” Mr Coulter said.
The UAE also pledged $200 million to help climate resilience in vulnerable countries, state news agency Wam reported.
The announcement follows a previous pledge of $200 million to support development in low-income countries earlier this year in Marrakesh.
Masdar strikes UK deal
Abu Dhabi clean energy company Masdar on Friday said it was part of an £11 billion ($14 billion) investment into the UK’s renewable energy sector.
The company is purchasing a 49 per cent stake in utility RWE’s 3-gigawatt Dogger Bank wind projects, one of the world’s largest planned offshore wind farms, it said in a statement.
The project could power millions of British homes, reducing emissions and creating up to 3,000 jobs.
The deal is expected to close in the first quarter of 2024, depending on regulatory approvals.
The Good Liar
Starring: Helen Mirren, Ian McKellen
Directed by: Bill Condon
Three out of five stars
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
Fire and Fury
By Michael Wolff,
Henry Holt
COMPANY PROFILE
Name: Akeed
Based: Muscat
Launch year: 2018
Number of employees: 40
Sector: Online food delivery
Funding: Raised $3.2m since inception
First Person
Richard Flanagan
Chatto & Windus
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
MATCH INFO
Tottenham Hotspur 1
Kane (50')
Newcastle United 0
'Hocus%20Pocus%202'
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Teaching in coronavirus times
South Africa v India schedule
Tests: 1st Test Jan 5-9, Cape Town; 2nd Test Jan 13-17, Centurion; 3rd Test Jan 24-28, Johannesburg
ODIs: 1st ODI Feb 1, Durban; 2nd ODI Feb 4, Centurion; 3rd ODI Feb 7, Cape Town; 4th ODI Feb 10, Johannesburg; 5th ODI Feb 13, Port Elizabeth; 6th ODI Feb 16, Centurion
T20Is: 1st T20I Feb 18, Johannesburg; 2nd T20I Feb 21, Centurion; 3rd T20I Feb 24, Cape Town
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
