Saadiyat is about to boom. Its museums may have been delayed but its luxury residences are rapidly filling up. Yet a tour of the island chain shows that tranquillity - and the sound of the waves - still rule. Words by John Henzell, photos by Christopher Pike
For an island that was terra incognita to almost everyone in Abu Dhabi only three years ago, Saadiyat is about to experience a population surge normally reserved for gold mining boomtowns. It is about to become Abu Dhabi version 2.0: the city's new public face to the world through the cultural district museums on which the capital is staking its tourism credentials for the decades to come.
Even today, Saadiyat's beach is a place where you can stand in the warm evening breeze and hear a soundtrack that disappeared from life in the capital nearly a generation ago: the rhythm of waves lapping on a natural beach. Just three years ago, this was a sound enjoyed only by the gazelles and by the occasional hawksbill turtle looking for an undisturbed location to bury its eggs.
A week ago, I joined some long-term Abu Dhabi residents for a kind of housewarming for one of the first occupants of the St Regis Saadiyat Island Resort's adjoining residential apartment blocks and villas. Heading to the beach, it was the waves that stunned everyone. Ever since man-made Lulu Island was completed in 1992, sheltering the newly reclaimed expanse of the Corniche, that simple natural soundtrack has been missing.
Besides the St Regis's 259 apartments and 33 villas, providing a permanent population to offset the hotel's transitory residents, 254 beach villas - all already sold - are due to be handed over this month.
The first three apartment blocks in Saadiyat Beach Apartments are due to follow by the end of the summer, with another three due at the start of 2013.
This year was also supposed to see the opening of the Sheikh Zayed National Museum, to be followed by the Louvre and the Guggenheim in 2013: the three institutions that would turn Saadiyat into a cultural centre of world renown. The recession, of course, created a hiccup in the development process - now resolved - with tendering for the Louvre project just restarted.
The main contract works for the museum are expected to be awarded late this year, according to a spokeswoman for the Tourism Development and Investment Company (TDIC), with a projected opening in 2015. The Zayed National Museum is expected to open the year after, followed by the Guggenheim in 2016.
But while the cultural district may have been delayed slightly, many of the residential parts of Saadiyat's development continued and are about to come on stream.
Even a year ago, trying to reach the beach was more than likely to be thwarted by a phalanx of guards and gates, leaving the galleries of the Manarat Al Saadiyat as the island's sole publicly accessible feature.
Now it's possible to access the foreshore via the St Regis or Park Hyatt hotels, the Monte Carlo Beach Club or even by retrieving a wildly sliced shot while playing a round at the Saadiyat Beach Golf Club.
None of the new developments quite capture the new nature of Saadiyat like the Monte Carlo Beach Club. From being part of a rough and desolate shoreline that attracted both hawksbill turtles and the Gulf's inexhaustible supply of plastic flotsam, a local version of the namesake Monaco resort has become a beachside haven that many deem to be the most luxurious destination in Abu Dhabi.
It needs to be, because the yearly membership for one person is a wallet-wilting Dh35,000, and that doesn't even include access to one of the poolside cabanas, which cost an extra Dh750. A day.
A couple with four children will pay Dh85,000 for a family membership. (Although for that, one nanny can accompany them for free, while subsequent nannies will cost an extra Dh10,000 each).
The Monte Carlo club's combination of grace, luxury and exclusivity clearly has considerable appeal. Nearly 150 memberships have been bought since it opened last October, well on the way to its intended membership base of between 200 and 250. Who is accepted for membership, the fine print on the application says, is solely at the discretion of the club's management and no explanation will be given for refusal to award or renew membership.
For those who can't stretch to the annual membership fees, or are only passing through Abu Dhabi, a taste of the experience is available by eating at one of the club's restaurants. A visiting Australian businessman, Sam Yassa, brought here by his Dubai-based German colleague, Julia Al Jenabi, tries to define that "extra something" offered by the Beach Club.
"It's the right mix of luxury," he says. "And it's a much higher quality of service."
Ms Al Jenabi cites the beautiful location and the service. "It sounds rude," she adds, "but I feel like I'm in Dubai but I'm in Abu Dhabi."
If Saadiyat and Yas islands are earning worldwide name recognition, other parts of the island group are destined to remain both unpopulated and wild. Fahid Island, which is sandwiched between Saadiyat and Yas, is usually little but a blur to motorists speeding on the Sheikh Khalifa motorway, although a lucky passenger might occasionally spot one of the numerous groups of gazelle that live among the sand banks and mangroves.
Further along the archipelago, at the western end of Yas Island, reached via a girder bridge that dates from long before the grand vision for this area was announced, is a previously inaccessible beach that is home to a more brightly coloured and rather less shy species.
Known universally as Kitesurfing Beach - for obvious reasons - it offers what the capital's kitesurfers had long craved: ease of access, reliable onshore winds, and the lack of hazards such as other beach users or overhead power lines.
Until the Sheikh Khalifa motorway opened, kitesurfers had faced slim pickings because most of the emirate's coastline was in private hands and off limits. They congregated instead around the former public beach site on the far side of Emirates Palace, but then it became the site for the new presidential palace.
Sameh Elsghir, an Egyptian kitesurfing instructor who has been based in Abu Dhabi since the late 1990s, is one of those making the most of the new site.
"I've been in Abu Dhabi for 15 years," he says.
"Before we had windsurfing and there were two or three kites but then people started shifting from windsurfing to kitesurfing.
"Here, if it's windy, you get maybe 30 kites out. It's easier and you don't have to carry a lot of gear. You need 15 knots of wind for a windsurfer but only 12 for a kitesurfer. It's regular to get 12 knots here and we kitesurf until the end of July and then the wind drops."
From being a happy accident of Saadiyat's development, kitesurfing has become something of a tourism earner in its own right, attracting European enthusiasts.
"Here there's good weather, good facilities and also prices are cheaper than in Europe," he adds. "It's Dh300 an hour and it usually takes about seven hours to get going, although I can't say how long it will take until I see you fill the kite."
The kitesurfers aren't the only unintended beneficiaries of the opening up of the coastal zone that the motorway has allowed. The workers who populate the labour camps on Yas Island also enjoy the freedoms that it brings.
For six days a week Randy San Antonio works helping construct Abu Dhabi's new business district on Sowwah Island.
But on Friday, he wanders 45 minutes from his home on Yas to the channel separating the northeastern side of the island from the mainland. Sometimes he goes even further. A 90-minute walk takes him to better fishing grounds but today he's gone for the nearer option because he's hosting a Filipina friend, Emma Abdullah, who took the bus from town to Ikea and then walked to here.
There's no annual membership fee for this beach, but then the facilities are limited to a single shady tree under which he's fashioned a couple of crude seats from driftwood and has lit a small fire fuelled by twigs.
San Antonio has three hand lines which he keeps in the water and uses old juice bottles for floats. When he hauls in a fish, it's usually cooked straight on the fire.
It's Ms Abdullah's first visit and she's impressed. "Normally I go to the Corniche on Friday," she said. "I'll come back here."
One of Mr San Antonio's hand lines whirrs as a fish takes the bait and it's hauled in. "I don't know the name of this fish but it's good eating," he said, admiring the small white and yellow fish gasping its last breaths.
"In Philippines, we don't have this fish. Last Friday we catch maybe 2-3 kilograms. We catch two big fish."
The latest catch goes on the fire to become the next course in an extended lunch. For an investment of three hand lines and a few prawns as bait, he's entertained and fed himself and his friends on their day off.
He misses his native Manila and it'll be a while before he will have the chance to go home. In the meantime, he has his Friday fishing expeditions to assuage his hankering for his homeland.
"After fishing," he declares, "homesick over."
jhenzell@thenational.ae
Zayed Sustainability Prize
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Red Joan
Director: Trevor Nunn
Starring: Judi Dench, Sophie Cookson, Tereza Srbova
Rating: 3/5 stars
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
Global state-owned investor ranking by size
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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.”
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