The UAE has been hit by more foggy weather this week. Victor Besa / The National
The UAE has been hit by more foggy weather this week. Victor Besa / The National
The UAE has been hit by more foggy weather this week. Victor Besa / The National
The UAE has been hit by more foggy weather this week. Victor Besa / The National

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UAE

UAE weather warning as Abu Dhabi blanketed by fog for second day

Motorists urged to exercise caution as speed limits are cut in the capital

The National

September 11, 2024

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Motorists in Abu Dhabi were urged to be vigilant after large parts of the capital were engulfed in fog on Wednesday morning.

Speed limits in Abu Dhabi were temporarily reduced to 80 kph on a number of key routes in the emirate due to the hazardous weather.

Abu Dhabi Police sent notices by mobile phone to inform commuters of the speed restrictions being enforced.

The force asked people to abide by posted speed limits on electronic road signs.

The National Centre of Meteorology issued its most severe red alert for fog in some areas of Abu Dhabi, cautioning that visibility had dropped below 1km.

A wider yellow alert, warning of fog and mist formations, is in place until 9am for Abu Dhabi and parts of Dubai.

Traffic was moving slowly on the E11 road linking Dubai to Abu Dhabi, although the fog was less severe than on Tuesday.

The NCM said the fog is expected to persist until Saturday, in its latest five-day bulletin.

Keep to speed limits

Abu Dhabi Police began to enforce the 80 kph speed limit during bad weather – such as heavy rain, sandstorms and fog – in April 2019. The activation of temporary speed limits is posted on electronic signs on roads and announced on social media to alert people about to set off on journeys.

The scheme was introduced months after Abu Dhabi's Department of Transport's traffic safety committee agreed on a plan to reduce speeds during poor weather. Motorists who break the 80 kph speed limit face fines.

Abu Dhabi Police stress that during bad weather motorists should follow the speed limit posted on electronic road signs. This supersedes any fixed speed limit signs.

Drivers should abide by the revised speed limit until electronic signboards indicate it has been lifted. Police also typically post on social media to confirm when temporary speed limits have been removed.

Fog in the UAE – in pictures

  • Foggy conditions in Dubai on Tuesday morning. All pictures by Pawan Singh / The National
    Foggy conditions in Dubai on Tuesday morning. All pictures by Pawan Singh / The National
  • A weather alert was issued after fog blanketed skies in Dubai and Abu Dhabi
    A weather alert was issued after fog blanketed skies in Dubai and Abu Dhabi
  • The Dubai skyline was shrouded by dense fog on Tuesday morning
    The Dubai skyline was shrouded by dense fog on Tuesday morning
  • More fog is expected to roll in on Wednesday and Thursday
    More fog is expected to roll in on Wednesday and Thursday
  • Visibility was reduced in parts of Dubai and Abu Dhabi
    Visibility was reduced in parts of Dubai and Abu Dhabi

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.”

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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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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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

The biog

Birthday: February 22, 1956

Born: Madahha near Chittagong, Bangladesh

Arrived in UAE: 1978

Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.

Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”

While you're here
Updated: September 11, 2024, 3:53 AM
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