There was a time, not too long ago, when the global energy debate was largely dominated by the price of oil. Many argued that climate change was a subject of debate – that harnessing the power of the Sun or the wind was essentially science fiction. That chapter in history ended somewhat abruptly as humankind began to witness the devastating and undeniable impact of rising temperatures. We have reached a point where energy transition, climate goals, national interests, economic growth and sustainability coincide.
When it comes to meeting climate goals, however, no country can do it alone. Nations have no choice but to join forces. Since the energy sector is responsible for three quarters of all greenhouse emissions, that is where change needs to happen as quickly as possible. The Turkish government recognises this reality and continues to take necessary steps in that direction.
That is exactly why Turkey and the UAE signed a strategic partnership framework agreement in the field of energy and natural resources during Turkish President Recep Tayyip Erdogan’s historic visit to three Gulf states – the UAE, Qatar and Saudi Arabia – last month. Inked with a $29.7 billion agreement, the two countries pledged to jointly implement huge projects in a broad range of areas from renewable energy, including offshore wind and solar energy, to clean hydrogen and nuclear power.
When it comes to meeting climate goals, however, no country can do it alone
Turkey, an import-dependent geopolitical heavyweight with a constant growing energy market, and the UAE, whose economy has benefited from oil and gas exports, would work together to spearhead the region’s transition to clean energy and efforts to meet climate goals. Yet our most recent agreement also reflects a core value of Turkish foreign policy: promoting international co-operation based on mutual interests and the principle of a just energy transition for all.
At the same time, it is important to consider that each nation has unique challenges and opportunities. Energy transition may be a buzzword today, but the right term of reference would be Smart Energy Transition: energy transition that is inclusive, responsive, flexible, rational and digital. We must strike a healthy balance between energy transition, job creation and economic growth to ensure that everyone gets on board and contributes to our efforts. Obviously, political consistency plays a huge role in this endeavour.
Mr Erdogan’s re-election in May 2023 not only showcased the resilience of Turkey’s democratic institutions but also marked the beginning of a new era of reform and investment in the country’s liberal, competitive, well-functioning and transparent energy markets. Having pledged to become a carbon-neutral economy by 2053, our country already generates 45 per cent of its electricity from renewables – which makes Turkey rank fifth in Europe and 12th worldwide.
Keeping in mind that our country’s electricity demand increased by 4.4 per cent annually between 2002 and 2022, compared to just 3 per cent globally, meeting climate goals without jeopardising economic and social development represents a Herculean task. Still, Turkey has the strong political leadership, robust economy and extraordinary resources to get the job done. By working closely with our friends and allies, we aim to end our import dependency. What Turkey foresees is a smart energy transition, where decisions are made rationally, not emotionally, for the purpose of maintaining our supply security, diversifying our energy mix, and transforming Turkey into an energy hub, becoming a safe space for investors. In line with that objective, we will continue to increase our oil and natural gas production as well as build nuclear power plants to diversify our energy mix.
The first Arab state to set a net-zero emissions target, the UAE joined dozens of countries, whose investments and trust in Turkey paid off spectacularly over the years. That the country is scheduled to host Cop28 later this year proves that it means business. Specifically, Cop28 President-designate Dr Sultan Al Jaber’s call to “challenge old models that were built for the last century” and “bridge divides that are blocking critical breakthroughs” deserves recognition as the country aims to mobilise action around a global “major course correction” to accelerate emissions reductions while ensuring energy security. We welcome the UAE’s vision and hosting of Cop28.
That is the context in which this budding strategic partnership fits, as it goes beyond profits and embodies our shared commitment to energy transition, building more sustainable economies, and promoting supply security for the region and beyond.
Going forward, Turkey will continue to create win-win situations in the field of energy and natural resources as it encourages its friends and allies to become part of its success story. Under Mr Erdogan’s leadership, we shall redouble our efforts to achieve a high level of economic and social development, contribute to energy security in Europe and the Middle East, and become a carbon-neutral economy within the next 30 years. Turkey’s strategic partnership with the UAE represents a giant leap forward towards that goal – and it should serve as a reminder to countries across the region that changing the course of history remains within the realm of possibility if we work together and make unwavering commitment to leaving behind a bright future to our children and grandchildren.
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
ABU%20DHABI%20CARD
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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.”
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
The biogs
Name: Zinah Madi
Occupation: Co-founder of Dots and links
Nationality: Syrian
Family: Married, Mother of Tala, 18, Sharif, 14, Kareem, 2
Favourite Quote: “There is only one way to succeed in anything, and that is to give it everything.”
Name: Razan Nabulsi
Occupation: Co-founder of Dots and Links
Nationality: Jordanian
Family: Married, Mother of Yahya, 3.5
Favourite Quote: A Chinese proverb that says: “Be not afraid of moving slowly, be afraid only of standing still.”
UAE gold medallists:
Omar Al Suweidi (46kg), Khaled Al Shehhi (50kg), Khalifa Humaid Al Kaabi (60kg), Omar Al Fadhli (62kg), Mohammed Ali Al Suweidi (66kg), Omar Ahmed Al Hosani (73), all in the U18’s, and Khalid Eskandar Al Blooshi (56kg) in the U21s.
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