Related — UAE salary guide 2022: how much should you be earning?
The opportunity to make money while we sleep is one few of us would turn down. And passive income, at face value, suggests we can do just that.
Social media is full of influencers telling us how to make passive income. And while many of those content creators do actually earn money even when they’re not on the clock, fewer of them are forthcoming about the work required to get there.
“A lot of people are surprised by how much work it takes because I think a lot of people who are earning a passive income are talking about how great it is having earned that,” says Pat Flynn, a California-based entrepreneur and creator of the Smart Passive Income podcast. “But they don’t necessarily tell you the whole truth. You’re seeing the tip of the iceberg.”
“Passive” income, in most cases, won’t be created passively. Whatever the pursuit — investing in stocks to receive dividends, buying rental properties, earning ad revenue on video channels — you’ll have to put in work upfront before you can start making money while doing little, or no, work. And in many cases, you’ll have to keep doing work to maintain that income, too.
Passive income has no set definition
When does a job or side hustle turn into passive income? That depends on how you define it.
There is no clear-cut point where income turns passive. For some, it could be when no work or upkeep is required, or for others, it could be when a minimal amount of work each week is required. And “minimal work” is also subjective.
“Passive income, for me, is really something that you have to work to set up, but after that, it takes very minimal work to maintain and to keep that income stream coming,” says Joseph Hogue, a chartered financial analyst and creator of the YouTube channel Let’s Talk Money.
Other sources of passive income include investing in bonds or peer-to-peer lending, generating advertisement revenue from a blog, or putting your money in a high-yield savings account. Even the money an artist makes through plays of their songs on a streaming platform can qualify as passive income.
If you want passive income, be ready to work
Contrary to what the phrase passive income suggests, you need to put in work to attain it.
Investing money you inherited or won in a lottery may be the only path to truly passive income, start to finish. But for most of us, creating this new revenue stream will involve investing money made from more traditional means like a job, or investing our time building a source of income from the ground up.
Without a large initial financial investment, people often underestimate the “sweat equity” or time and energy required at the beginning, says Jannese Torres-Rodriguez, a Florida-based entrepreneur and creator of the Yo Quiero Dinero podcast.
“That initial workload, that time it’s going to take to get to a place where it’s passive, is what freaks a lot of people out and makes them think that, ‘Oh, well, this is obviously a scam because I just want to make money quickly’,” says Ms Torres-Rodriguez.
For both Ms Torres-Rodriguez and Mr Flynn, it took at least a year before they saw earnings from some of their current sources of passive income. Both said that it took consistent work during that period before they started seeing money come from their blogs, including from affiliate marketing, advertisement revenue and selling courses, among other sources.
That initial workload, that time it’s going to take to get to a place where it’s passive, is what freaks a lot of people out and makes them think that, ‘Oh, well, this is obviously a scam because I just want to make money quickly
Jannese Torres-Rodriguez,
entrepreneur and creator of the Yo Quiero Dinero podcast
The amount of work upfront can depend on the income stream and what you want to get out of it. For instance, if you’re making income from rental properties, you can hire a person or a company to take care of all the property management. That’ll take away from your earnings, but putting in your own time will make the income more active than passive.
If you’re looking to make passive income, keep in mind it’s not guaranteed down the road — even if you do put in the work. There’s no promise your investment, whether that’s time or money, will pay off. Inevitably, there is risk involved.
Seeing other peoples’ successes, or hearing about them, can trigger that fear of missing out on a good thing. But before you try to emulate them, consider the journey. It’s not unattainable, but it won’t happen overnight.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt
Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
The specs
Engine: 2.0-litre 4-cylinder turbo hybrid
Transmission: eight-speed automatic
Power: 390bhp
Torque: 400Nm
Price: Dh340,000 ($92,579
'Brazen'
Director: Monika Mitchell
Starring: Alyssa Milano, Sam Page, Colleen Wheeler
Rating: 3/5
Florence and the Machine – High as Hope
Three stars
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Black Panther
Dir: Ryan Coogler
Starring: Chadwick Boseman, Michael B Jordan, Lupita Nyong'o
Five stars
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
First Person
Richard Flanagan
Chatto & Windus
