Around the world there are various happy traditions linked to the end of the year, but in recent times a new and unwelcome global trend for December has emerged: the toppling of climate records.
December 2025 is proving to be no exception, with news reports in recent weeks having highlighted a series of “hottest evers”.
Last week, the US National Oceanic and Atmospheric Administration revealed the Arctic experienced its warmest year since records began.
The organisation’s figures, which apply to the 12 months from October 2024 to September 2025, indicate that during this period, temperatures were 1.6 °C higher than the average for 1991 to 2020.
Tom Ballinger, a University of Alaska researcher who co-authored the NOAA’s annual Arctic Report Card, branded the figures “alarming”.
It brings to mind forecasts from a year ago suggesting that the Arctic could be ice-free by the summer of 2027.
Following on from NOAA’s announcement, the Met Office in the UK said this week 2025 was set to be the country’s hottest year on record, with the temperature averaging 10.05°C, up from the previous high of 10.03°C. The UK’s 10 hottest years on record have been during the past 20 years, the organisation said.
Spain has also been breaking records, with August's heatwave meaning the nation experienced its hottest-ever summer.
But, globally, 2025 is not quite a record-breaker. Early in December, the European Union’s Copernicus Climate Change Service said this year was tied with 2023 as the world’s second-hottest year on record, with temperatures from January to November 1.48 °C up on pre-industrial levels.
This is marginally down on 2024, the all-time hottest year so far, when temperatures were 1.6 °C above pre-industrial levels.
Let’s see what 2026 has in store in terms of climate records, action to limit climate change and new technology that could address the challenges the planet is facing.
Drivers and pedestrians work their way through flooded streets in the Al Quoz area of Dubai following last week's downpours. Antonie Robertson / The National
Severe rains lashed the UAE late last week, with Ras Al Khaimah experiencing as much rain on Thursday and Friday as it normally gets in a year. Heavy rains had been predicted by forecasters.
Over the two days, 127mm of rain fell in Al Ghaznah area, according to the National Centre of Meteorology, while the Jebel Jais mountain destination had to be closed, as reported by David Tusing here.
Other emirates also faced a deluge, with Dubai Police receiving more than 39,000 calls during the same two days.
Read more about how Dubai Police responded to the extreme conditions here.
The Garadagh solar plant operated by Masdar in Baku, Azerbaijan. Pawan Singh / The National
Masdar, the Abu Dhabi clean-energy company, is continuing its global expansion by agreeing to develop a floating solar plant in Malaysia.
With a capacity of 200 megawatts, the $208 million facility – Masdar’s largest floating solar plant – is set to be able to provide power to more than 100,000 homes.
The plant at the Chereh Dam in the state of Pahang will be Masdar’s first project in Malaysia, although the organisation has other schemes in South-east Asia, including in Indonesia.
Read more about the plans in Alvin R Cabral’s story here.
The big fact
Last month, global temperatures were 1.54 °C above pre-industrial levels, according to the European Centre for Medium-Range Weather Forecasts.
The centre also said that the average for 2023-2025 was set to be more than 1.5 °C above pre-industrial levels - the threshold that the 2015 Paris Agreement aimed to ensure was not breached.
Jargon buster
Pre-industrial temperatures: these are the average temperatures between 1850 and 1900, a reference period before the climate was significantly affected by the burning of fossil fuels.
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Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.
The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers.
Basquiat in Abu Dhabi
One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi.
The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier.
It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.
“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi.
Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October
Also on December 7 to 9, the third edition of the Gulf Car Festival (www.gulfcarfestival.com) will take over Dubai Festival City Mall, a new venue for the event. Last year's festival brought together about 900 cars worth more than Dh300 million from across the Emirates and wider Gulf region – and that first figure is set to swell by several hundred this time around, with between 1,000 and 1,200 cars expected. The first day is themed around American muscle; the second centres on supercars, exotics, European cars and classics; and the final day will major in JDM (Japanese domestic market) cars, tuned vehicles and trucks. Individuals and car clubs can register their vehicles, although the festival isn’t all static displays, with stunt drifting, a rev battle, car pulls and a burnout competition.
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
