The tropics lost an area of primary forest almost the size of Switzerland last year, according to recent figures from the World Resources Institute.
Despite decades-long campaigns against deforestation and in the face of temperature increases in part driven by the felling of forests, 3.7 million hectares were cleared.
Community support is key, and conservation areas remain our best tool for halting deforestation
Dr James Deutsch,
CEO of the Rainforest Trust
The WRI said there were increases in deforestation in Bolivia, Laos and Nicaragua in 2023, but Brazil and Colombia both significantly reduced the amount of logging.
According to the environmental organisation WWF, forest destruction accounts for about 10 per cent of the temperature increases the world is experiencing, because it causes the release of vast amounts of carbon that had been stored by the trees.
Estimates suggest 137 animal and plant species are driven to extinction each day as a result of deforestation, with creatures that see their habitat destroyed having nowhere else to go.
Why it's happening
Much of the destruction is blamed on clearances for agriculture and the growing of crops, including soya, which is often to feed animals, and palm oil.
A key issue is what Georg Winkel, professor of forest and nature conservation policy at Wageningen University and Research in the Netherlands, describes as “imported and exported” deforestation.
Countries may deforest their own territory to produce goods or commodities that are exported to other nations.
Linked to this is the forest transition theory, which suggests that forest cover falls most rapidly when a developing country is experiencing its fastest economic and demographic (or population) growth.
Later, once a country is richer and its population has stabilised, forest cover may rebound slightly, with the country importing goods that have been produced through deforestation in other nations.
Prof Winkel described international trade patterns as “important drivers” of logging and said tackling them was central to efforts to reduce deforestation.
“We have global production of agricultural commodities, where land seems to be available, forests are not protected and land seems fertile,” Prof Winkel said.
“From an environmental perspective we want to make sure these large-scale old forests remain for the future because of the biodiversity and carbon storage, but populations are growing and there’s an interest in the population in becoming wealthy.”
Hope remains
Brazil, home to the Amazon basin, one of the most prized and threatened areas of primary rainforest in the world, has seen its deforestation rates fall thanks to a clampdown on illegal logging by the country’s president, Luiz Inacio Lula da Silva, who returned to power at the beginning of 2023. In Gustavo Petro, Colombia too has a president keen to reduce deforestation.
In response to the WRI report, Dr James Deutsch, chief executive of the Rainforest Trust, said the statistics showed that deforestation could be slowed or stopped “given high-level political leadership, good governance and direct action”.
“Community support is key, and conservation areas, including indigenous territories and titled land, remain our best tool for halting deforestation,” he added.
Meanwhile, the EU is aiming to reduce its contribution to deforestation by introducing the EU Deforestation Regulation (EUDR), which the European Commission, has called “an important turning point in the global fight against deforestation”.
Due by the end of 2024, it would bar key commodities, including palm oil, rubber and coffee, from being imported into the EU if their production has contributed to deforestation.
The UK has also announced regulations aimed at stopping imports of essential commodities linked to illegal deforestation.
Challenges to come
The EU’s rules have faced pushback from countries that export to the bloc as well as from trade associations. As a result, implementation is likely to be gradual.
One potential consequence of the rules could be that suppliers develop separate supply chains, said Dr Kristjan Jespersen, an associate professor at the Copenhagen Business School in Denmark and the chief Engagement officer at Loh-Grønager Partners, a London-based hedge fund.
“[There could be] clean products going to Europe and deforestation products being sent to other parts of the world that are not as demanding. That’s the tension happening right now,” he said.
“If you have people willing to pay the same price but with less regulatory requirements, you will see products [going] to China or India, where the [consumers] are more price sensitive … The producers are very rational and will distribute their products globally.”
Organisations including the Rainforest Alliance and the Fair Trade Advocacy Office, while welcoming the EU’s rules, have said that smallholders – who produce a third of the world’s food – must not “bear a disproportionate burden for compliance” or risk being pushed out of the market.
Brazil in transition
Prof Winkel suggested that Brazil may be moving towards the later stages of the development process, evidenced by a slowing of its population growth.
In the early 1960s, the country’s population was increasing by about three per cent a year, but the rate now is about 0.5 per cent.
“Brazil and other forest-rich emerging economies have become more wealthy and population growth slowed down,” Prof Winkel said.
“There’s lots of inequality, but I’m carefully optimistic there will be a forest transition and large parts of the Amazon will remain forested, but part will be secondary forest, managed forest.
“Policies tackling harmful investments and trade, and consumers that are sensitive to environmental issues, will play a key role there as well.”
An African future
Prof Winkel said there may be even greater pressure in future on forested areas of Africa, such as the Congo Basin, which is the continent's largest forested area and stores more carbon than even the Amazon.
The UN Environment Programme states that the basin’s peat swamps alone contain about 29 billion tonnes of carbon – equivalent of three years’ worth of global greenhouse emissions.
Each year the whole basin absorbs about 1.5 billion tonnes of carbon, which is well over twice the annual emissions of Saudi Arabia.
Africa is experiencing some of the fastest population growth in the world; jumping from about 818 million in 2000 to 1.39 billion in 2020, and the UN forecasts that, by the middle of the century, it will have reached 2.5 billion.
This, Prof Winkel said, will inevitably lead to more challenges down the line.
“In the end, it’s more and more people plus our human desire to consume more and more, and capitalist logic of exploring and investing in land where it is still available, that drives deforestation,” he said.
“There is no easy solution to these challenges but we have to tackle them from different perspectives.”
Climate tipping points – in pictures
History's medical milestones
1799 - First small pox vaccine administered
1846 - First public demonstration of anaesthesia in surgery
1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases
1895 - Discovery of x-rays
1923 - Heart valve surgery performed successfully for first time
1928 - Alexander Fleming discovers penicillin
1953 - Structure of DNA discovered
1952 - First organ transplant - a kidney - takes place
1954 - Clinical trials of birth control pill
1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.
1998 - The first adult live-donor liver transplant is carried out
Profile
Company name: Jaib
Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
INDIA SQUAD
Virat Kohli (capt), Rohit Sharma, Shikhar Dhawan, KL Rahul, Vijay Shankar, MS Dhoni (wk), Kedar Jadhav, Dinesh Karthik, Yuzvendra Chahal, Kuldeep Yadav, Bhuvneshwar Kumar, Jasprit Bumrah, Hardik Pandya, Ravindra Jadeja, Mohammed Shami
Last 10 NBA champions
2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2
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
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
RESULT
Australia 3 (0) Honduras 1 (0)
Australia: Jedinak (53', 72' pen, 85' pen)
Honduras: Elis (90 4)
The biog
Name: Mohammed Imtiaz
From: Gujranwala, Pakistan
Arrived in the UAE: 1976
Favourite clothes to make: Suit
Cost of a hand-made suit: From Dh550