A boy holds an oar while another prepares to jumps off the prow of a grounded boat on the dried up soil of what was Lake Hamrine in Iraq's Diyala province in May. AFP
A boy holds an oar while another prepares to jumps off the prow of a grounded boat on the dried up soil of what was Lake Hamrine in Iraq's Diyala province in May. AFP
A boy holds an oar while another prepares to jumps off the prow of a grounded boat on the dried up soil of what was Lake Hamrine in Iraq's Diyala province in May. AFP
A boy holds an oar while another prepares to jumps off the prow of a grounded boat on the dried up soil of what was Lake Hamrine in Iraq's Diyala province in May. AFP


It won't be oil that decides Iraq's future


Paul Sullivan
Paul Sullivan
  • English
  • Arabic

July 21, 2022

Iraq is in a fragile state. Increasing water crises, desertification and climate change could magnify and drive greater instability and even violence in the future.

About 98 per cent of Iraq’s surface water comes from the Tigris and Euphrates rivers and their tributaries. Both rivers have had natural declining flows of water to Iraq and Syria for decades. But the flows have also been slowed down considerably in recent years by the development of dam projects in Turkey.

A large part of the area of Iraq that is on the border with Turkey is Kurdish, and Turkish-Kurdish relations have been fraught with difficulties for an exceptionally long time. Water is part of those tensions. The Kurdish areas plan to dam up more water, and that will cause tensions with the south.

At most, 6 per cent of water flows into Iraq come from rivers in Iran into the Tigris. Flows from the rivers in Iran have also been in decline due to damming and decreased rainfall there.

A weaker Iraq, of course, empowers Iran in its drive for hegemony and malign leverage in the region, particularly in the south of Iraq, where it is already influential. Because of deficits in energy and food, in part due to water stress, Iraq has had to increasingly import both things from Iran.

Water stress in Iraq has also increased unemployment in the countryside. About one quarter of the Iraqi population used to rely on agriculture for employment. As agricultural employment dropped, migration to the cities increased.

Rural-urban migration has increased resource and social stress on many Iraqi cities. As employment in farming and related industries is in decline, for many the temptation to go into illicit industries and criminal enterprises is rising. With enormous levels of youth unemployment, the problem is only made worse.

Ethno-sectarian conflicts, moreover, risk increasing as water becomes scarcer and desertification spreads. As water stresses get worse there could be significant increases in outward migration from Iraq.

  • Cattle in the shallow waters of the Shatt Al Arab river, in Iraq's southern port city of Basra. All photos: AFP
    Cattle in the shallow waters of the Shatt Al Arab river, in Iraq's southern port city of Basra. All photos: AFP
  • A palm orchard degraded by salt and pollution on a bank of the Shatt Al Arab river.
    A palm orchard degraded by salt and pollution on a bank of the Shatt Al Arab river.
  • Basra sits on the Shatt Al Arab waterway, formed by the confluence of the Tigris and Euphrates rivers that flow into the Gulf.
    Basra sits on the Shatt Al Arab waterway, formed by the confluence of the Tigris and Euphrates rivers that flow into the Gulf.
  • Today, saltwater from the sea has taken over and reaches 300 kilometres upriver.
    Today, saltwater from the sea has taken over and reaches 300 kilometres upriver.
  • Wastewater produced by Iraq, a country of 38 million people, is also poisoning the Tigris and Euphrates.
    Wastewater produced by Iraq, a country of 38 million people, is also poisoning the Tigris and Euphrates.
Iraq’s bureaucracy is often sectarian and tribal in nature, which makes achieving positive changes more difficult

Increasing water scarcity has destroyed some communities. As one of many examples, the marshlands of the south that have largely dried up. Salt water is moving up the Shatt al Arab River and into the water table relied on for farming and drinking water. Depopulation has started as a result.

The once mighty river systems are no longer mighty. And that massive change affects the entire country’s livelihood, culture and security. The effects of water crises, desertification and climate change are shredding communities.

Climate change is clearly at work. Increased dust storms, lower and less predictable rains, and increasing temperatures made life exceedingly difficult for many. Evaporation of water in reservoirs, rivers, and on farms has increased.

Some of the problems stem from international issues, such as shared water coming into Iraq that other states seem increasingly less willing to share. The government in Baghdad no doubt understands that this is a major part of the country’s water problems, and popular anger towards the country’s neighbours is growing.

How does Iraq ask a water-scarce Iran and Syria for more water? How does it ask Turkey for more water when Turkey has banked the pacification and development of its restive south-east on massive irrigation and dam projects that reduce water flows to Iraq?

There are no effective solid, long-term agreements on water sharing with any of Iraq’s neighbours, even though there have been many attempts at this since the 1920s.

Turkey sees the Tigris and Euphrates as transboundary water originating from the same water basin in its country. Syria and Iraq see the Tigris and Euphrates as shared water systems. Iran sees the water in its tributaries flowing into Iraq as its own.

Among the most pernicious problems, however, is corruption. Iraq’s bureaucracy is often sectarian and even tribal in nature, which makes achieving positive changes on resource issues more difficult.

The sun sets as flare stacks burn off excess gas at the Mushrif site inside the Zubair oil and gas field, north of the southern Iraqi province of Basra last week. AFP
The sun sets as flare stacks burn off excess gas at the Mushrif site inside the Zubair oil and gas field, north of the southern Iraqi province of Basra last week. AFP

Better integrated water management could be a solution. However, that integrated system will have to take into consideration national as well as local and tribal issues.

The oil industry uses immense amounts of water, but Iraq is one of the most oil-dependent countries on the planet for its export revenues, government budget and GDP.

Another potential solution would be to look at water efficiency. This may include a move away from water-intensive crops such as wheat and rice. But there is also huge water waste from the way these crops are irrigated. Eighty-five per cent of the water use in Iraq is in agriculture to grow water-inefficient crops using water-inefficient irrigation systems.

There is also waste from ill-maintained municipal water infrastructure. But these amounts are nowhere near the waste in agriculture.

The problem extends into the quality of what little water is available. Diarrhoea, cholera and water-borne sicknesses occur all too often. Water quality and quantity are hygiene and health issues in many parts of the country. Those most affected by these are women and girls, the very young and the old. These groups must often walk long distances in some places to get water.

Better education and training on water issues are vital at all levels of Iraqi society. And better governance of water is required. More efficient and productive ways of using water, meanwhile, are essential, along with more productive ways of solving water disputes. The country is already in dire straits when it comes to its water supply. If nothing changes quickly, it will face an even grimmer and more forbidding water future.

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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 President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Key products and UAE prices

iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229

iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649

iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179

Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

WandaVision

Starring: Elizabeth Olsen, Paul Bettany

Directed by: Matt Shakman

Rating: Four stars

Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

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MATCH INFO

Manchester United v Manchester City, Wednesday, 11pm (UAE)

Match is on BeIN Sports

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Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
WOMAN AND CHILD

Director: Saeed Roustaee

Starring: Parinaz Izadyar, Payman Maadi

Rating: 4/5

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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War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

Updated: July 21, 2022, 4:00 AM