Under US embargoes for decades and blighted by an ageing power infrastructure that is prone to cuts, Cuba may seem an unlikely saviour to parts of the world struggling for Covid-19 vaccines.
But the country of 11.3 million punches well above its weight when it comes to medicine: it has a strong research sector, is a health care tourism destination and sends doctors and nurses to work around the world, including the Gulf region.
It is less surprising, then, that Cuba is in discussions about its locally developed coronavirus vaccines being used in more than a dozen nations – on top of those that have already given them to their people.
Efforts to distribute the shots out more widely came after Cuba achieved one of the highest vaccine coverage figures in the world on home soil.
While the UAE leads the global rankings, Cuba is in the top 10. About 93 per cent of its people have had at least one shot, 87 per cent have had two, and 51 per cent have received a booster.
“I’m not surprised at all that they set out to develop their own vaccine. They have the need, but they also have the capability,” said Dr Helen Yaffe, a senior lecturer in economic and social history at the University of Glasgow in Scotland and author of We Are Cuba! How a Revolutionary People Have Survived in a Post-Soviet World.
“Just because I’m not surprised, it doesn’t mean it’s not incredibly impressive. It’s such a feat for a small Caribbean island.”
Long-term investment in health service pays off
Cuba, with its decades of state-directed investments in healthcare and medical research – an approach championed by the late president Fidel Castro – has long practised self-reliance when it comes to vaccines, producing most of those used in its national immunisation programmes.
Vaccination campaigns have helped Cuba to control or eliminate polio, measles, mumps, rubella and typhoid, among other diseases, something once described in a scientific journal as “remarkable” given the country’s limited resources. The infant mortality rate and average life expectancy have also won praise.
All this meant that when the coronavirus emerged, the country’s research institutes had the expertise to develop their own vaccines.
“They have a pretty good health service given the level of money they have, and part of that was developing their own biopharmaceutical industry, in part a reaction to the Americans blocking them off,” said Prof David Taylor, emeritus professor of pharmaceutical and public health policy at University College London.
Cuba follows own path on vaccine journey
Also, the country decided not to join the Covax programme, which aims to distribute vaccines to poorer nations but which has struggled for sufficient supplies.
In developing its own vaccines, Cuba did not employ cutting-edge mRNA or viral vector technology of the kind used in the Pfizer-BioNTech, Moderna, Oxford-AstraZeneca and Johnson and Johnson vaccines.
Instead, it turned to a well-established approach of using protein subunits from the pathogen to generate protection against the virus.
The coronavirus proteins can be produced in artificially grown cell lines before they are purified and incorporated into the vaccine.
With a “conjugate” vaccine called Soberana 02 from Cuba’s Finlay Institute of Vaccines, part of the receptor binding domain (RBD) of the spike protein is “conjugated” or linked to a harmless neurotoxin protein, which enhances the immune response.
Two doses of Soberana 02 and a third dose called Soberana Plus containing just the RBD segment has a reported efficacy of more than 92 per cent, although data from Cuban trials has not always been shared as widely as the international scientific community would like.
The Centre for Genetic Engineering and Biotechnology in Cuba’s capital, Havana, has produced a vaccine called Abdala with similar efficacy after three doses.
Another vaccine from the centre, Mambisa, is administered as a nasal spray, and Cuban scientists said it could strengthen the protection in individuals given other vaccines.
Majority of children vaccinated
“They’ve become the first country in the world to vaccinate children from two [years and] up,” said Dr Yaffe. “The Cuban vaccines were developed from the outset to be used in children.”
Government figures indicate that more than 95 per cent of two to 18-year-olds have been inoculated, something that officials have said should reduce transmission.
The country’s vaccine programmes have not been affected by the vaccine hesitancy or scepticism seen in many other nations.
Cuba experienced its main coronavirus peak in July, August and September 2021, and another, much smaller, peak in January this year driven by the Omicron variant, but case numbers have since fallen significantly. There have been just over 1 million cases and around 8,500 deaths.
Just as Cuba has long exported medical personnel, including to the Gulf region to combat the pandemic (like medical tourism to Cuba, this generates much-needed income for the country), so it is expanding overseas use of its vaccines.
There have already been donations to Syria, and exports to Venezuela and Vietnam – some purchased and some donated – while Iran has manufactured Soberana 02.
Last month Progressive International, which ties together left-wing organisations and activists, organised a briefing at which Cuban government officials reportedly said the country was looking to export tens of millions of vaccines to lower-income countries.
The Finlay Institute of Vaccines said it had the capability to produce 120 million doses per year and in a statement released online, Progressive International said Cuban officials had promised “solidarity prices” for low-income countries.
Cuba has said it will transfer technology to allow production abroad and officials have stated they are in discussions with more than 15 countries that could produce Cuban vaccines.
Havana has also offered to provide personnel to assist vaccine campaigns, an echo of how the country sent medical personnel to Africa in 2014 and 2015 to combat Ebola.
Cuba plans to apply for World Health Organisation approval for its vaccines this year, but national regulators in other countries are free to give them approval without this.
“The Cubans are looking for bilateral agreements with other countries to get that vaccine recognition,” Dr Yaffe said.
“The African Union was interested in the Cuban vaccines. It might happen in that collective way … [Cuba’s vaccines] are probably the best chance many populations in the global south have to access a vaccine before 2025.”
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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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.”
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham 0-1 Ajax, Tuesday
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Game is on BeIN Sports
'Shakuntala Devi'
Starring: Vidya Balan, Sanya Malhotra
Director: Anu Menon
Rating: Three out of five stars
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