A maternity hospital employee carries to patients meals provided by the NGO World Central Kitchen, during an electricity power cut, in Mykolaiv, Ukraine on October 22. Reuters
A maternity hospital employee carries to patients meals provided by the NGO World Central Kitchen, during an electricity power cut, in Mykolaiv, Ukraine on October 22. Reuters
A maternity hospital employee carries to patients meals provided by the NGO World Central Kitchen, during an electricity power cut, in Mykolaiv, Ukraine on October 22. Reuters
A maternity hospital employee carries to patients meals provided by the NGO World Central Kitchen, during an electricity power cut, in Mykolaiv, Ukraine on October 22. Reuters


Hospitals, banks, schools, petrol pumps – what happens when the electricity is cut off?


Paul Sullivan
Paul Sullivan
  • English
  • Arabic

October 25, 2022

In ancient times, energy wars often involved scorched-earth efforts and siege warfare. Back then, the primary energy sources were grain, meat and other food for people and livestock. Sometimes wind energy was used to mill the grain. Solar power was used to ignite fires. Wood and charcoal were used for cooking, heating, or making weapons and other implements.

Energy systems were often internal to or near villages, towns and cities. Creating a siege for a small town or city was easy. An enemy surrounded the area long enough that stores were worn down, and those under siege gave up or died.

As trading networks became more distant, attacking armies realised that one of the most effective ways to reach their targets was through sea and land traffic over trading routes.

The remains of a cluster missile on a sunflower field in the Kharkiv region of Ukraine on October 2. EPA
The remains of a cluster missile on a sunflower field in the Kharkiv region of Ukraine on October 2. EPA

Today, the world is seeing new forms of regional and globalised siege warfare. Huge amounts of wheat, sunflower oil and fertilisers used to be exported from Russia, Ukraine and Belarus. Many of these exports were closed off at the critical ports on the Black Sea until a deal between Russia, Ukraine, Turkey, the UN, and others allowed them through.

Grain and other food prices skyrocketed worldwide, and many significant importers of wheat, such as Egypt, got foreign exchange and debt shocks and had to turn to other grain sources. The food siege shock from the Russia-Ukraine war rocketed worldwide. It increased food insecurity in Indonesia, Lebanon, Mongolia, Syria and several sub-Saharan African countries. Grain such as corn is used to feed animals to be eaten. When corn prices go up, meat prices follow. The poor of the world use much more of their income for food than others. They were shocked and hurt the most.

The use of energy now is far more complex and globalised than during ancient times. It is one reason why electricity-generating stations in Ukraine are being targeted, as winter approaches.

Wheat loaded onto trucks during harvest near a village in the Omsk region, Russia, on September 8. Reuters
Wheat loaded onto trucks during harvest near a village in the Omsk region, Russia, on September 8. Reuters

Electricity is used for lighting, heating, cooking and other household activities, as well as hospital and school use. Without electricity, many banking systems can seize up. Cheque clearing and payroll systems can stop. One cannot go to an ATM and get money with no electricity.

Without electricity, petrol pumps don’t work. Oil and gas pipelines need it for their pumping and pressure stations. Modern communications systems depend on it, and not just to charge cell phones. Emergency systems often do not work without it. Government services too break down without electricity. The police, fire and other first responders are disabled without it. The treatment and transport of water can become dysfunctional in its absence.

In case of even a limited nuclear war, much of the food and fertiliser that may have been exported from Ukraine, Russia and Belarus could end up being poisoned with radiation

Hospitals will lose lighting, sanitation, heating and more. Think of newborns in incubators and you get the picture. A country’s health could decline rapidly. It is more challenging to fix and cure those injured from war when there is no energy. Schools will have to shut down due to a lack of lighting. Education could stagnate.

What happens when oil and gas are cut off and refineries are damaged or taken over? That one seems a bit more obvious to most than the effects of siege electricity warfare. How does one get around without petrol and diesel? Also, how do the electricity stations work when the oil, gas and coal cannot get to them?

The Russian seizure of the Zaporizhzhia Nuclear Power Plant has more ominous overtones. Moscow has, in recent weeks, threatened nuclear strikes in areas it has annexed in eastern Ukraine. But with shells falling close to the site in Zaporizhzhia, visiting experts from the International Atomic Energy Agency worry about a lack of political commitment by any power “to exercise restraint”.

Zaporizhzhia nuclear power plant is seen from 20 kilometres away, in Dnipropetrovsk, Ukraine, on October 17. AP
Zaporizhzhia nuclear power plant is seen from 20 kilometres away, in Dnipropetrovsk, Ukraine, on October 17. AP

A nuclear disaster, or a limited nuclear war – if it comes to that – could cost millions of lives. If this happens, the Mena region's economic, military and political fallout will be incalculable, particularly as much of the food and fertiliser that may have been exported from Ukraine, Russia and Belarus could end up being poisoned with radiation.

A significant amount of electricity in Ukraine comes from nuclear power. The rest is mostly from gas, oil and coal, with small but increasing amounts coming from renewables such as solar and wind.

Hydropower is also an essential source. When the Russians took over Crimea, they also took over a large number of offshore oil fields. With the recent annexations, they took away 15 per cent of the GDP of the country and significant coal and gas fields. Much of Ukraine’s coal, after all, is found in the east. They also took control of essential hydropower facilities as well as rivers sending water to other hydropower facilities.

By taking over agricultural machines, crops, livestock and more, and with the destruction of fields and logistical networks for food and other agricultural goods, Moscow has essentially co-opted energy resources, facilities and energy logistical networks.

Which is probably more devastating in the context of the war than the drones and missile strikes that have rained on Ukraine's cities over the past week.

These may be tactics to win battles, but the political and strategic fallout can last much longer. Winning a war also means winning strategically.

And this applies to all countries that use such tactics. It is worth asking if the past siege wars in the Mena region, including in Iraq, brought peace and security? The answer is a resounding no. The same will hold for this nightmare in Ukraine, particularly with nuclear threat thrown into the mix.

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  •  30,000 square metres is its total area
  •  17,000 square metres is the length of the stainless steel facade
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Name: Rain Management

Year started: 2017

Based: Bahrain

Employees: 100-120

Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund

The specs: Rolls-Royce Cullinan

Price, base: Dh1 million (estimate)

Engine: 6.75-litre twin-turbo V12

Transmission: Eight-speed automatic

Power: 563hp @ 5,000rpm

Torque: 850Nm @ 1,600rpm

Fuel economy, combined: 15L / 100km

Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

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Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
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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

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Where can I submit a sample?

Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.

Collection centres in Abu Dhabi include:

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  • Al Towayya in Al Ain
  • NMC Royal Hospital in Khalifa City
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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.

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“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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A new relationship with the old country

Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.

ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed

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Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.

Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.

Benefits:  No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.

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HIV on the rise in the region

A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.

New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.

Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.

Access to HIV testing, treatment and care in the region is well below the global average.  

Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.

Updated: October 25, 2022, 1:04 PM