Khalid Irani, Jordan's energy minister, left, and Olafur Ragnar Grimsson, the president of Iceland, at the Emirates Palace yesterday.
Khalid Irani, Jordan's energy minister, left, and Olafur Ragnar Grimsson, the president of Iceland, at the Emirates Palace yesterday.
Khalid Irani, Jordan's energy minister, left, and Olafur Ragnar Grimsson, the president of Iceland, at the Emirates Palace yesterday.
Khalid Irani, Jordan's energy minister, left, and Olafur Ragnar Grimsson, the president of Iceland, at the Emirates Palace yesterday.

Icelandic clean energy solution in the desert


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Iceland's president says the UAE could be the first of many countries in the Middle East to develop geothermal resources.

"What has already been proven here is there are geothermal resources in Abu Dhabi and possibly elsewhere in the region that can be used for formidable energy transformation," said Olafur Ragnar Grimsson. "Usually if you find geothermal in a space then it's not restricted to one spot."

Reykjavik Geothermal, an Icelandic energy company that has linked up with Abu Dhabi's clean energy company Masdar, found a geothermal pocket 2.5km under Masdar City in June. If the project is successful, Abu Dhabi would be the first place in the world to employ geothermal power for cooling, rather than more common uses such as electricity or industrial power.

By the second quarter of next year, Masdar plans to finish studying whether the site can yield enough water to make district cooling economically feasible, Frank Wouters, the director of Masdar's power unit, told The Nationalthis month.

The pockets in Abu Dhabi were 95°C, hot enough for district cooling but not for power production. Temperatures need to reach over 100°C to produce electricity. But with 40 per cent of the emirate's electricity consumed by air conditioning, geothermal could help Abu Dhabi to meet its goal to produce 7 per cent of its energy from renewable sources by 2020.

Masdar awarded the US$1.6 million (Dh5.87m, contract to Reykjavik Geothermal in September last year. Drilling began at two sites in Masdar City in January and ended in June, when drills hit hot water pockets 2.5km below the surface, said Magnus Asbjornsson, the Icelandic company's regional director for the Middle East and Africa.

If the Masdar City geothermal project is successful, water would pass through underground pipelines where heat from the earth's core would create steam.

Although Al Ain, with its hot springs, could also be promising for Reykjavik Geothermal, the company has not yet looked at sites "in detail". said Mr Asbjornsson.

"There are hot springs in Al Ain, and therefore there's some geothermal activity," he said. "We don't know if that's going to be significantly more than is available in Masdar City."

Mr Grimsson, whose country sources 81 per cent of its energy from renewables, said Abu Dhabi's sustainable energy goals were within reach. He recalled the dramatic shift he witnessed in Iceland, which once imported 80 per cent of its energy in the form of oil and coal. Today it sources more than half of its energy from geothermal resources.

Reykjavik Geothermal, which was founded in 2008 to pursue geothermal development outside Iceland, has also held talks with Saudi and Yemen officials.

"Are we looking? Absolutely," said Mr Asbjornsson. "There are geothermal resources in parts of the Arabian Peninsula, in particular in Yemen and western Saudi Arabia."

Geothermal power is also used in Kenya to maintain temperatures in greenhouses, in Iceland to heat homes, and elsewhere to power industrial production such as aluminium smelters.

"For a number of years I was advertising to my friends in Abu Dhabi that there should be drilling in the Masdar City desert," Mr Grimsson said in the capital, where he was deliberating with a jury the winner of a Masdar-sponsored sustainable energy prize.

"In the beginning, they sort of smiled politely. And then I brought the experts in."

Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

AL%20BOOM
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'Shakuntala Devi'

Starring: Vidya Balan, Sanya Malhotra

Director: Anu Menon

Rating: Three out of five stars

The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

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

THE CARD

2pm: Maiden Dh 60,000 (Dirt) 1,400m

2.30pm: Handicap Dh 76,000 (D) 1,400m

3pm: Handicap Dh 64,000 (D) 1,200m

3.30pm: Shadwell Farm Conditions Dh 100,000 (D) 1,000m

4pm: Maiden Dh 60,000 (D) 1,000m

4.30pm: Handicap 64,000 (D) 1,950m

UAE rugby season

FIXTURES

West Asia Premiership

Dubai Hurricanes v Dubai Knights Eagles

Dubai Tigers v Bahrain

Jebel Ali Dragons v Abu Dhabi Harlequins

UAE Division 1

Dubai Sharks v Dubai Hurricanes II

Al Ain Amblers v Dubai Knights Eagles II

Dubai Tigers II v Abu Dhabi Saracens

Jebel Ali Dragons II v Abu Dhabi Harlequins II

Sharjah Wanderers v Dubai Exiles II

 

LAST SEASON

West Asia Premiership

Winners – Bahrain

Runners-up – Dubai Exiles

UAE Premiership

Winners – Abu Dhabi Harlequins

Runners-up – Jebel Ali Dragons

Dubai Rugby Sevens

Winners – Dubai Hurricanes

Runners-up – Abu Dhabi Harlequins

UAE Conference

Winners – Dubai Tigers

Runners-up – Al Ain Amblers

Director: Jon Favreau

Starring: Donald Glover, Seth Rogen, John Oliver

Rating: 2 out of 5 stars

Honeymoonish
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UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: Akeed

Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

The years Ramadan fell in May

1987

1954

1921

1888