The Arctic and the Gulf have more in common than you think


Marwa Maziad
Marwa Maziad
  • English
  • Arabic

April 25, 2025

A decade ago, I had the opportunity to be among the first Arctic Fellows in the University of Washington’s nascent Arctic Studies programme. This allowed me to explore connections few were considering at the time – such as those between the Middle East and the rapidly changing Arctic region.

In January 2014, I published an article arguing that the Arctic should not be viewed solely through the lens of polar science or climate change. It was a region of co-operation and competition, one whose melting ice caps would one day rival traditional maritime routes and whose governance structures would demand greater global engagement.

My research identified a unique window for Egypt and Gulf states such as the UAE and Qatar to use their expertise in energy and logistics towards shaping the emerging Arctic order. Today, we are witnessing that strategic foresight take shape in policy.

Despite their vast differences in geography and culture, the Arctic and the Arabian Gulf share surprising and under-explored parallels in how they have responded to global energy politics, especially concerning oil and gas. What began for me as a visual connection between Arctic igloos and desert tents unfolded into a deeper realisation: with the Inuit Circumpolar Council and the Gulf Co-operation Council, both regions have formed powerful coalitions. Both have leveraged natural resources to develop their societies, and both deal with the challenge of balancing economic progress with cultural preservation.

At the time, what was most striking was uncovering a historical thread that has gone largely unnoticed: the 1973 October War between Egypt and Israel, and the subsequent Arab oil embargo, had a ripple effect on the Arctic. That moment not only reshaped global energy markets, it catalysed the political awakening of the Arctic’s Indigenous communities.

In response to increased interest in Arctic oil as a result of the embargo, Inuit leaders mobilised and asserted their rights to their land and resources, leading to the creation of the circumpolar council. This connection between a Middle Eastern geopolitical conflict and Indigenous sovereignty in the Arctic had not been made before, and it revealed just how deeply interconnected global regions truly are.

Renewed US interest in the Arctic, demonstrated most starkly by Donald Trump and his administration’s proposal to "buy Greenland", signals a broader recalibration of global maritime priorities. While many unfamiliar with Arctic studies dismissed his idea as impractical, we in the field know it is not entirely implausible.

The episode underscores the Arctic’s strategic weight. Greenland, rich in rare earth minerals and geographically pivotal, has become a site of increasing interest not only for the US but also for China and Russia. The Arctic is no longer remote. It is now recognised as a fulcrum in the evolving balance between military security, energy flows and climate governance.

Gulf countries, home to tribal values with nomadic traditions and long histories of surviving extreme weather, are uniquely positioned to engage in authentic, peer-level diplomacy with Arctic Indigenous peoples

The growing involvement of non-Arctic states such as Egypt, the UAE and Qatar in the region reflects an understanding that maritime power is shifting and that active participation in shaping Arctic governance today could have lasting implications for global trade routes and security architecture well into the future.

In 2015, Egypt completed an $8 billion expansion of the Suez Canal, doubling its capacity and reaffirming its centrality to global trade. Completed in a single year, the project was part of a long-term plan to increase canal revenue and ensure competitiveness amid shifting maritime dynamics. With the Arctic’s North-west Passage and Northern Sea Route becoming increasingly navigable due to melting ice, some have suggested that this route could emerge as a competitor to the Suez Canal.

According to the eight-nation Arctic Council, shipping over arctic routes experienced a 37 per cent increase between 2013 and 2023. Egypt’s response has been twofold: first, to enhance the capabilities of the Suez Canal itself, and second, to pursue co-operation with Arctic nations. Rather than see Arctic shipping as a threat, Egypt has embraced deeper maritime partnerships with Arctic-engaged powers thereby positioning the Suez not as a rival to the Northern Sea Route but as an essential and indispensable artery in a diversified global trade network.

The UAE, already a global logistics hub, has actively developed Arctic collaborations. Dubai-based DP World has partnered with Russia’s Rosatom to develop infrastructure along the Northern Sea Route. The goal is to facilitate year-round trade between Asia and Europe through Arctic waters.

In January, the UAE took another leap signing an agreement with India to expand co-operation between the Emirates Polar Programme and India’s National Centre for Polar and Ocean Research. The UAE has also deepened ties with Norway, an Arctic nation known for its advanced maritime infrastructure and environmental stewardship. By engaging with Arctic states on their terms, the UAE is building credibility and capability in polar policy spaces.

A stuffed polar bear stands at the airport as Canadian soldiers are briefed upon arrival for Operation Nanook, the Canadian Armed Forces' annual Arctic training and sovereignty operation, in Inuvik, Northwest Territories, on March 1. AFP
A stuffed polar bear stands at the airport as Canadian soldiers are briefed upon arrival for Operation Nanook, the Canadian Armed Forces' annual Arctic training and sovereignty operation, in Inuvik, Northwest Territories, on March 1. AFP

Qatar is increasingly focused on Arctic energy interests. As a major LNG producer with global ambitions, its investments in Arctic energy exploration and maritime shipping align with its broader diversification and foreign policy strategies.

To play a meaningful role in shaping Arctic governance and maritime security, Egypt and the Gulf countries should lead with a strategy grounded in respect for Indigenous sovereignty and cultural resonance. Gulf countries, home to tribal values with nomadic traditions and long histories of surviving extreme weather, are uniquely positioned to engage in authentic, peer-level diplomacy with Arctic Indigenous peoples.

There are many ways in which Gulf countries can elevate their role as credible, responsible actors in polar affairs while forging partnerships with Indigenous communities: developing joint polar research programmes focused on environmental preservation, sustainable development and Indigenous knowledge systems; leveraging experience in desert infrastructure and climate adaptation as well as expertise in remote logistics, water scarcity and temperature extremes can translate into designing cold-climate port facilities, ice-class vessels, and robust polar supply chains.

The Arctic is no longer a frozen periphery – it is a geopolitical core

As extreme weather-vulnerable states with ambitious environmental agendas, Egypt and the Gulf countries should align Arctic development with international environmental goals. Championing a vision for an Arctic rooted in sustainable energy, biodiversity preservation and Indigenous inclusion would amplify their influence in global environmental diplomacy.

To support co-operative security in the Arctic, Egypt and the Gulf should engage with Nato and the six Indigenous Permanent Participants of the Arctic Council. Building trust with both Arctic states and Indigenous institutions ensures that maritime security reflects the values of inclusion, sustainability and shared stewardship.

The Arctic is no longer a frozen periphery – it is a geopolitical core. Egypt and the Gulf states are not only adapting to this reality, they are helping to shape it. This is not simply a story of changing shipping lanes. It is a new chapter in global strategy—one that spans from the deserts of the Gulf to the ice fields of the Arctic.

The symbolism is powerful: the oryx of the Arabian Peninsula and the caribou of the Arctic both embody resilience, mobility and cultural identity. This shared heritage offers a meaningful foundation for building alliances rooted in mutual respect.

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

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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.”

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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BUNDESLIGA FIXTURES

Friday (UAE kick-off times)

Cologne v Hoffenheim (11.30pm)

Saturday

Hertha Berlin v RB Leipzig (6.30pm)

Schalke v Fortuna Dusseldof (6.30pm)

Mainz v Union Berlin (6.30pm)

Paderborn v Augsburg (6.30pm)

Bayern Munich v Borussia Dortmund (9.30pm)

Sunday

Borussia Monchengladbach v Werder Bremen (4.30pm)

Wolfsburg v Bayer Leverkusen (6.30pm)

SC Freiburg v Eintracht Frankfurt (9on)

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes

The Baghdad Clock

Shahad Al Rawi, Oneworld

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

Four-day collections of TOH

Day             Indian Rs (Dh)        

Thursday    500.75 million (25.23m)

Friday         280.25m (14.12m)

Saturday     220.75m (11.21m)

Sunday       170.25m (8.58m)

Total            1.19bn (59.15m)

(Figures in millions, approximate)

Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara

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Profile of Foodics

Founders: Ahmad AlZaini and Mosab AlOthmani

Based: Riyadh

Sector: Software

Employees: 150

Amount raised: $8m through seed and Series A - Series B raise ongoing

Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.

MATCH INFO

Uefa Champions League semi-final, second leg result:

Ajax 2-3 Tottenham

Tottenham advance on away goals rule after tie ends 3-3 on aggregate

Final: June 1, Madrid

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'The Batman'

Stars:Robert Pattinson

Director:Matt Reeves

Rating: 5/5

White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Roll of honour 2019-2020

Dubai Rugby Sevens

Winners: Dubai Hurricanes

Runners up: Bahrain

 

West Asia Premiership

Winners: Bahrain

Runners up: UAE Premiership

 

UAE Premiership

Winners: Dubai Exiles

Runners up: Dubai Hurricanes

 

UAE Division One

Winners: Abu Dhabi Saracens

Runners up: Dubai Hurricanes II

 

UAE Division Two

Winners: Barrelhouse

Runners up: RAK Rugby

The biog

Favourite hobby: I love to sing but I don’t get to sing as much nowadays sadly.

Favourite book: Anything by Sidney Sheldon.

Favourite movie: The Exorcist 2. It is a big thing in our family to sit around together and watch horror movies, I love watching them.

Favourite holiday destination: The favourite place I have been to is Florence, it is a beautiful city. My dream though has always been to visit Cyprus, I really want to go there.

Updated: May 01, 2025, 10:56 AM