Handlers prepare the camels for racing at Al Marmoom camel race track on, September 1, 2020, in Dubai. Chris Whiteoak / The National
Handlers prepare the camels for racing at Al Marmoom camel race track on, September 1, 2020, in Dubai. Chris Whiteoak / The National
Handlers prepare the camels for racing at Al Marmoom camel race track on, September 1, 2020, in Dubai. Chris Whiteoak / The National
Handlers prepare the camels for racing at Al Marmoom camel race track on, September 1, 2020, in Dubai. Chris Whiteoak / The National


UAE's sustainable tourism drive might well be the highpoint of travelling to Dubai


Yousuf Lootah
Yousuf Lootah
  • English
  • Arabic

March 29, 2022

It is well known by now that the international tourism and the livelihoods dependent on it were greatly affected by the global pandemic. However, as the world opens up, the UAE's travel industry remains resilient. Governments and private sector partners have ensured destinations stay compelling and confidence increases as people begin to travel again.

Things were already looking up last year as Dubai welcomed 7.28 million visitors. Our mission is to strengthen Dubai's economy by delivering world-class experiences underpinned by sustainable principles. There is tremendous untapped potential in this area – to engage the private and public sectors and garner support from people who are passionate about sustainable tourism.

The Abu Dhabi Birdathon at Al Wathba Wetland Reserve, on December 10, 2019, in Abu Dhabi. WAM
The Abu Dhabi Birdathon at Al Wathba Wetland Reserve, on December 10, 2019, in Abu Dhabi. WAM

Since the launch of our Sustainability Requirements, which were implemented to improve and unify environmental practices across hotels and resorts in Dubai, we have ramped up efforts to strengthen the city’s responsible tourism credentials. The requirements also support the hospitality industry and strengthen the ecosystem, as hotels and resorts across the country progress towards achieving their goals. As part of these efforts, Dubai Sustainable Tourism delivered 18,000 hours of training to its stakeholders and partners last year.

A recent Tripadvisor report, Travel in 2022 – A Look Ahead that surveyed more than 10,000 adults aged 18 to 75, found that travellers are seeking destinations where they can immerse themselves in "authentic local experiences".

Research commissioned by the Centre for Sustainability through Research and Education for Expo 2020 Dubai has also shown that eco-tourism has an increased significance to those travelling to Dubai as 44 per cent of visitors considered sustainability an "important concept influencing their behaviour".

Catering to this growing demand for eco-tourism, Dubai offers wildlife observation trips, bird watching, stargazing, wetland exploration and visits to local communities. The same study also highlighted that 22 per cent of visitors surveyed identified themselves as responsible, sustainability-minded travellers who use public transport, consume water sensibly, and are willing to pay more for eco-certified products and services.

Like much of the UAE, Dubai offers a multitude of experiences where tourists have the opportunity to engage with local traditions, experience a cultural exchange and visit historical neighbourhoods to understand Emirati heritage.

One example is the Al Marmoom Desert Conservation Reserve, a vast expanse comprising 10 per cent of Dubai's total area and the largest unfenced nature reserve in the UAE. Popular with both domestic and international tourists, the reserve is home to the 3,000 year old Saruq Al Hadid archaeological site. It is also a sanctuary for more than 200 species of native birds, 158 species of migratory birds and endangered species. The reserve is the perfect terrain for horse-riders and cyclists to explore the vast expanse comprising desert, wetlands and lakes.

The UAE boasts one of the largest ratios of protected areas per land mass in the world with 15.5 per cent of the country protected, and in Dubai protected areas include Al Marmoom Desert Conservation Reserve, the Ras Al Khor Wildlife Sanctuary and the Hatta Nature Reserve. However, the city is constantly expanding its sustainable tourism credentials.

The aim of Dubai 2040 Urban Masterplan is for the city to become one of the world’s most sustainable destinations, while reinforcing Dubai's reputation as a global hub for business, investment and tourism. The plan also emphasises enhancing the quality of life for Dubai's residents and visitors and preserving the environment.

The Nad Al Sheba Cycle track in Dubai. Pawan Singh / The National
The Nad Al Sheba Cycle track in Dubai. Pawan Singh / The National

By 2040, the length of public beaches across the Emirate will be increased by as much as 400 per cent. The expansion of tourism attractions, meanwhile, will increase by over 100 per cent, adding to the diversity of Dubai’s offerings. A 16km cycling track alongside Jumeirah beach will eventually connect to other coastal areas, building on the city's 520km bicycle network.

Dubai is committed to supporting ecotourism and environmental protection. And as the UAE looks forward to hosting next year's climate summit Cop28, which will address opportunities to create a more sustainable and progressive economic future, we believe that responsible tourism principles can help fulfil the country's sustainability goals.

We cannot, however, do it alone. It is imperative for the public and private sectors to continue to collaborate to accelerate moves towards a green economy, to achieve sustainable tourism goals and make the cities of UAE forward-thinking, world-class destinations for sustainable tourism.

COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

Sector: E-commerce / Marketplace

Size: Two employees

Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East) 

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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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

Updated: March 29, 2022, 9:00 AM