The UAE will host Cop28 in November. Wam
The UAE will host Cop28 in November. Wam
The UAE will host Cop28 in November. Wam
The UAE will host Cop28 in November. Wam


The leaders shaping Cop28


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  • Arabic

January 13, 2023

The year 2023 has only just started, and already the critical nature of the climate emergency has made itself clear. The US state of California, whose ongoing drought is well documented, has recently been inundated with rain and flooding. More positively, BloombergNEF, a strategic research provider, predicts that this year will see an 18 per cent growth in carbon-free energy.

These and many more issues will be discussed at Cop28, the UN’s climate summit that is being held in the UAE this year. It is one of the most important conferences the region will have ever held, and it is quickly taking shape.

On Wednesday, the country announced its president-designate and climate champions for the summit. Dr Sultan Al Jaber is president-designate. The Minister of Industry and Advanced Technology; who is also managing director and group chief executive of Adnoc and chairman of Masdar, has been the UAE’s special envoy for climate change since November 2020. He will essentially lead the global negotiations.

Shamma Al Mazrui, Minister of State for Youth, will be the Youth Climate Champion, and Razan Al Mubarak, president of the International Union for Conservation of Nature and managing director of Environment Agency Abu Dhabi, is the UN Climate Change High-Level Champion.

The three roles give the necessary scope to most effectively cover such a wide-ranging topic over a year of leading the Cop process. Speaking of all the constituencies that need to be involved, Dr Al Jaber stressed that: "We will take an inclusive approach that engages all stakeholders from the public and private sectors, civil society, scientific community, women, and youth. We must especially focus on how climate action can address the needs of the Global South, as those most impacted by climate change trends.”

With such a team, the UAE will try and create a Cop that has something for all countries and most constituencies. There is no one-size-fits-all approach to fighting the climate crisis, but the green transition that the UAE is undertaking will have something to say for many nations.

It developed rapidly in the late 20th century, a process that started because of the discovery of large hydrocarbon reserves. Today, the industry remains an important part of its economy, but energy expertise built up over decades is also being transferred into innovation in renewables. It has invested tens of billions of dollars into measures to limit emissions and was the first country in the region to ratify the Paris Agreement. It was also the first to commit to net-zero emissions by 2050.

The UAE is situated in a part of the world that is feeling the effects of climate change the first and hardest. A 2022 study by the Review of Geophysics said that temperatures in the Middle East and eastern Mediterranean are rising almost twice as fast as the rest of the world. Wealthier nations have more flexibility to deal with these challenges, but poorer ones are far more vulnerable.

That is why the fact that Cop28 is being held in the Middle East is so important, and it is here that the Global Stock Take on the world’s progress in tackling climate change will happen. The region will be fastest and hardest hit by climate change, and large parts of it are unprepared. Crucially, in terms of historic emissions, many of them have emitted relatively little over time, but are paying disproportionately for the high levels that developed economies have been putting out since the Industrial Revolution. Cop28 is an important moment to recognise and address this inequality on a global scale. The fact that the previous one was held in Egypt builds yet more regional momentum.

Speaking at the announcement of the roles, Dr Al Jaber emphasised that: “The UAE is approaching Cop28 with a strong sense of responsibility and the highest possible level of ambition.” It is his conviction that the Emirates will deliver this year. That is an important basis for building a strong Cop28. But it will only be a success if all members are on the same page.

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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Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

UAE players with central contracts

Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.

Profile

Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari

Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.

Number of employees: Over 50

Financing stage: Series B currently being finalised

Investors: Series A - Audacia Capital 

Sector of operation: Transport

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

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'The Batman'

Stars:Robert Pattinson

Director:Matt Reeves

Rating: 5/5

Updated: January 13, 2023, 3:00 AM