A worker in one of Samsung C&T's tunnel-boring machine being used for the 919 section of Seoul Metro's Line 9 extension. Seong Joon Cho for The National
A worker in one of Samsung C&T's tunnel-boring machine being used for the 919 section of Seoul Metro's Line 9 extension. Seong Joon Cho for The National
A worker in one of Samsung C&T's tunnel-boring machine being used for the 919 section of Seoul Metro's Line 9 extension. Seong Joon Cho for The National
A worker in one of Samsung C&T's tunnel-boring machine being used for the 919 section of Seoul Metro's Line 9 extension. Seong Joon Cho for The National

South Korea's Samsung C&T digs deep into expertise for Qatar metro project


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SEOUL // Ohyoung Sun disappears 16 metres underground twice a day - once in the morning and once at lunch - to check on the progress of his tunnel, section 919 of the Seoul Metro's Line 9 on the eastern edge of town.

Mr Sun, a project manager for Korea's Samsung C&T, is an underground mass transport specialist, starting 24 years ago when he trained on the Tokyo subway and more recently in Seoul and Singapore. Next week he moves to Doha to work on two stations there; he will stay, alone without his wife and child, for three to five years.

Metros in the Arabian Gulf, both a practical response to traffic and a flashy assertion of modernity, made their first appearance in 2009 in Dubai. Since then, the Arab Spring has opened up a pinata of public spending, including metro plans across the region. Mr Sun and more men like him are coming to build them.

Abu Dhabi is launching a tender for a Dh7 billion metro project this year, starting with a 17-station line connecting Zayed Sports City to the port. Two other lines, including a 15-kilometre link from Marina Mall to Reem Island and a 13km link from Saadiyat Island to the Al Wahda bus station, are also set to be running in the next three to four years.

Dubai also plans a Dh5bn connection from its Jebel Ali station to Al Maktoum International Airport in time for Expo 2020, should it win its bid. Samsung C&T, one of two engineering and construction arms of the Korean conglomerate Samsung, is preparing proposals for the UAE projects as well as for Jeddah, Mecca and Riyadh.

There is also an upcoming bidding round in Doha for additional construction packages. "Maybe we'll get one or two more," said Mr Sun.

Helmet on, he set out from his office for a traffic median, blocked off for the above-ground section of his construction zone. Steel stairs wind underground to a lair worthy of Spider-Man's sewer-loving foe The Lizard: dripping wet, noisy with the work of 40 silent men (half of them Korean, half-Thai) and filled with the acrid scent of fuel and freshly ground dirt. A tinny rendition of Beethoven's Fur Elise warns employees when equipment is being lowered from above. It seems to always be playing.

Mr Sun reaches the end of the stairs and finds the tracks, already laid in preparation for the extension of Seoul's newest subway line for commuters from the domestic airport to Yeouido, the modern financial centre. This US$187 million extension will increase Line 9's span by another 1.5 km.

A conveyor belt filled with grey, soggy dirt whirs on a track, leading Mr Sun to his most expensive tool: the tunnel-boring machine.

Tunnelling is an art, and as in any art there are competing philosophies. One is to blow things up, a quick and cheap way to make a subway but one that could get the neighbours complaining. The other, Mr. Sun's preferred, is to use a machine to chew through dirt and spit it out, like an earthworm.

One of the machines, which are made in Japan and Eurppe, can cost 10 billion Korean won (Dh326.6 million), and each must to be custom-made or modified to suit the size of each tunnel (8 metres here) and type of dirt. Samsung C&T has about 10 of then.

Tunnelling in Doha, where the ground is sandy rather than soft rock and gravel, will likely be easier.

The 4bn riyal (Dh4.03bn) package, part of a massive metro to serve arrivals for the Fifa World Cup, is for stations at Education City and Msheireb, a green property development downtown. Samsung C&T will build it with the Spanish construction firm OHL and the local Qatar Building Company, and the budget dwarfs that of the Seoul extension by 10 times.

"It's a symbolic station for Qatar, so a different design and a different scale," said Mr Sun. He had not started packing.

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Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

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October 1: 1 Round One of the inaugural UAE Desert Championship (rally)

November 1-3: Abu Dhabi Grand Prix (Formula One)

November 28-30: Dubai International Rally

January 9-11: 24Hrs of Dubai (Touring Cars / Endurance)

March 21: Round 11 of Rotax Max Challenge, Muscat, Oman (karting)

April 4-10: Abu Dhabi Desert Challenge (Endurance)

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Director: Hasan Hadi

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

Rating: 4/5

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TCL INFO

Teams:
Punjabi Legends 
Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals

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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- Johanna Konta (6) v Caroline Garcia (21), Court 1 (4pm)

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UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
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