A scavenger collects used plastic at a landfill in Denpasar, on Indonesia's resort island of Bali. The modern economy has been built on a linear model: taking resources, using them up and throwing them away. AFP
A scavenger collects used plastic at a landfill in Denpasar, on Indonesia's resort island of Bali. The modern economy has been built on a linear model: taking resources, using them up and throwing them away. AFP
A scavenger collects used plastic at a landfill in Denpasar, on Indonesia's resort island of Bali. The modern economy has been built on a linear model: taking resources, using them up and throwing them away. AFP
A scavenger collects used plastic at a landfill in Denpasar, on Indonesia's resort island of Bali. The modern economy has been built on a linear model: taking resources, using them up and throwing the


Rebuilding a circular economy should come naturally



June 18, 2023

The transition towards a circular economy begins with our commitment to the planet, to people and to ourselves. It involves a recognition of our responsibility to care for the environment around us – for the betterment of our lives and those of generations ahead.

Today, we are facing a triple planetary crisis: climate change, biodiversity loss and pollution. Each of these crises has its own causes, symptoms and solutions, but figuring out how the world can tackle all three at the same time, with the urgency that is required, is an intimidating thought.

And when we speak broadly of the economy, industry and infrastructure, or hear technical terms like “ESG” or “carbon capture”, it can be easy to disconnect from the urgency of the problems being discussed.

There is no single solution to the climate change puzzle; we must all collaborate to find the macro and micro-solutions that fit together to unlock progress.

Some of the most effective solutions are also some of the most inherent and natural to our planet and to us as humans. The modern economy has been built on a linear model: taking resources, using them up and throwing them away. Now, we need to rebuild a ‘circular economy’ inspired by the life-giving resources and regenerative abundance of our Earth. This means finding new ways to reduce our use of natural materials, extend the lifecycle of the products we create, and recycle and reuse materials in perpetuity.

A fire burns out of control in Maranhao state, north-eastern Brazil. The fire is thought to have been started deliberately to clear a logged area of secondary forest for agriculture or cattle farming. The realities of climate change, pollution and biodiversity loss are formidable, and often feel insurmountable. Charlie Hamilton James / Wildlife Photographer of the Year 2020
A fire burns out of control in Maranhao state, north-eastern Brazil. The fire is thought to have been started deliberately to clear a logged area of secondary forest for agriculture or cattle farming. The realities of climate change, pollution and biodiversity loss are formidable, and often feel insurmountable. Charlie Hamilton James / Wildlife Photographer of the Year 2020

The realities of climate change, pollution and biodiversity loss are formidable, and often feel insurmountable. But it inspires me to think of the work being done not as a complete transformation, but rather, a process of getting us back on track to living in sustainable harmony with our planet.

We need to create circular societies – including in areas like education, resources and mobility. These solutions should be designed to sustain the progress we make and have purpose at every phase of action.

Currently, we face great disparity between the value of circular trade and the opportunities of the global North and global South – in terms of representation, financial gains and economic development. Equality is more than simply a goal of sustainability – it is a key that will unlock great progress.

Climate change is a borderless challenge, and one that can only be faced through the power of the collective.

We must progress together. We must not get lost in the complexity of this space, and we must remain steadfast on the ethics and true intentions in circular trade. Our focus must remain on making the best use of what we have and empowering the next generation to do better.

The youth of our world, no matter where, have creativity, ambition and determination in abundance. I have had the privilege of witnessing these qualities first-hand through our work at the UAE Independent Climate Change Accelerators. We recognise the importance of creating the conditions that empower young innovators to realise their ideas and speed up practical climate solutions.

The young innovators that I speak to in the UAE and around the world are driven by an innate and powerful commitment to environmental protection

For example, take Zach Faizal, the 23-year-old chief executive of Peec Mobility, one of the start-ups participating in UICCA’s accelerator programme. Mr Faizal and his team are working to advance the petrol-to-electric transition by extending the life cycle of retired petrol vehicles with electric engines.

UICCA works hand in hand with our ambitious start-ups to equip them with exactly the tools, support and environment they need to thrive and bring their ideas to market successfully.

For Peec, we recently hosted our first Policy Hack, convening representatives from public sector entities like the Ministry of Climate Change and Environment and the Ministry of Economy. Also involved was the transport sector, including Abu Dhabi Department of Municipalities and Transport and National Taxi Dubai, as well as private sector entities such as Careem, Howden Insurance and Lloyds Bank.

The event created a productive dialogue between key players on how the UAE can lead the way in repurposing petrol vehicles as an effective and sustainable alternative to producing brand-new electric vehicles, and how we can collaborate to help Peec get their first vehicles safely and legally on the road.

Another shining example of a youth-led organisation that is committed to driving this agenda forward is Rebound Exchange, which is creating a digital trading platform for bulk recycled plastics in 140 countries.

Its founder and chief executive is an impressive young Emirati named Maryam Al Mansoori, with whom I recently enjoyed a conversation. Our discussions centred on the challenges faced in helping a successful transition to a circular economy, and the role the recycling industry places in unlocking the opportunity around trading waste.

“Moving from a linear to circular economy means that business leaders need to be brave. To be brave enough to do things differently and have an appetite to try,” Maryam told me. “Instead of simply ‘taking action,’ these companies need to see that environmental impact is as valuable as profitability.”

There is immense wisdom in these words, and they demonstrate the unique perspectives and skill sets our young people can bring to the table.

In turn, it is our responsibility to nurture these future leaders, create opportunities for them to grow their ideas and, wherever we can, open the path for them to succeed.

The young innovators that I speak to in the UAE and around the world are driven by an innate and powerful commitment to environmental protection. They are fearless in their determination to solve this problem, and it is imperative that all of us stand shoulder to shoulder with them.

The great tennis player and activist Arthur Ashe said: “Start where you are, use what you have, do what you can” – simple, but powerful words.

So, let us start where we are, and accept the challenge of creating real, measurable and tangible change to preserve our planet and re-make the global economy in a more sustainable way.

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2a)
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COMPANY PROFILE

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

England squads for Test and T20 series against New Zealand

Test squad: Joe Root (capt), Jofra Archer, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Jack Leach, Saqib Mahmood, Matthew Parkinson, Ollie Pope, Dominic Sibley, Ben Stokes, Chris Woakes

T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince

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

UEFA CHAMPIONS LEAGUE FIXTURES

All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

Spider-Man%202
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'How To Build A Boat'
Jonathan Gornall, Simon & Schuster

Honeymoonish
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What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

 

Company: Instabug

Founded: 2013

Based: Egypt, Cairo

Sector: IT

Employees: 100

Stage: Series A

Investors: Flat6Labs, Accel, Y Combinator and angel investors

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.”

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MOST%20POLLUTED%20COUNTRIES%20IN%20THE%20WORLD
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NYBL PROFILE

Company name: Nybl 

Date started: November 2018

Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono

Based: Dubai, UAE

Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

Funding round: Series B (raising $5m)

Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up 

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

Updated: June 18, 2023, 7:00 AM