The UAE has a good track record of preparedness, but the increasing frequency and intensity of floods, storms and droughts is a challenge for everyone. Antonie Robertson/The National
The UAE has a good track record of preparedness, but the increasing frequency and intensity of floods, storms and droughts is a challenge for everyone. Antonie Robertson/The National
The UAE has a good track record of preparedness, but the increasing frequency and intensity of floods, storms and droughts is a challenge for everyone. Antonie Robertson/The National
The UAE has a good track record of preparedness, but the increasing frequency and intensity of floods, storms and droughts is a challenge for everyone. Antonie Robertson/The National


UAE storms show we must climate-proof our futures


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April 18, 2024

The violent storms and torrential rain that lashed the UAE and neighbouring countries this week have been a sobering reminder not only of the power of nature, but of the effect humanity is having on the planet’s climate. Although life in the Emirates was disrupted as roads were submerged, schools shut their doors and many employees were unable to get to work, it was Oman that bore the brunt of the extreme weather, losing 18 people who found themselves trapped in wadis that quickly flooded.

Sadly, it is not the first time the Middle East and North Africa has been struck by such extreme rainfall: last year, more than 5,000 people lost their lives when Storm Daniel dropped more than 400mm of rain on north-east Libya in less than 24 hours. The divided country’s many difficulties left it woefully unprepared for such a crisis, raising the question: how can nations in this region climate-proof their futures?

The UAE has a good track record of preparedness. In 2017, it invested in the creation of a National Early Warning System in line with a strategic plan development by the National Emergency Crisis and Disasters Management Authority. This brought together government agencies and telecoms companies to develop an alert system for incidents just like extreme weather. Even so, this week’s storm cost one life, caused damage to property and had an international ripple effect as Dubai International Airport, the world’s busiest, was forced to suspend operations. This highlights the fact that adapting to climate change is a continuing challenge.

It is a challenge that must be met, because such violent weather seems set to stay. The World Meteorological Organisation says every 1°C degree of global warming is projected to cause a 7 per cent increase in extreme daily rainfall. And there should be no doubt that humanity is fuelling this threat: the Intergovernmental Panel on Climate Change (IPCC)’s Sixth Assessment Report released in 2021, said human-caused rise in greenhouse gases has increased the frequency and intensity of extreme weather events.

Given the population growth and urbanisation that is taking place in many parts of Gulf and wider Middle East, this week’s floods further highlight the need to take a long-term view of preparing their urban centres. Some cities face a problem in finding ways for floodwater to dissipate. The scale of this task is more daunting that it appears even at first glance, because such changes involve changing the urban environment of a region that for as long as it has been inhabited, has experienced little but heat and sand. In addition, not all countries have the resources to prioritise this preparation.

Indeed, deciding whether to engage in such forward planning is often an unappetizing choice for decision-makers. Updating and improving building design, road construction, airport operations and other critical infrastructure is expensive, and it may only have to prove its worth once or twice a year. But there is no way around this - even if climate targets are met, extreme rain and floods will be with us for the foreseeable future.

But it is not just governments that have a role to play in climate-proofing the future. We as individuals must think about what kind of cities and towns we will want to live in, in the years to come. There is also the issue of personal responsibility: the authorities can prepare and warn but the responsibility for our personal safety and for protecting our loved ones and property by making the right decisions, including having the right insurance, is primarily down to us.

It would be tempting to chalk down this week’s storms and floods as a once in a generation event. Sadly, the science proves that this kind of weather is becoming the new norm. The work to adapt and prepare for this new reality will continue long after this week’s clean-up operation is over.

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

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Company profile

Name: Back to Games and Boardgame Space

Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)

Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)

Based: Dubai and Abu Dhabi 

Industry: Back to Games (retail); Boardgame Space (wholesale and distribution) 

Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space  

Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019

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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

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

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

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Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Tips to avoid getting scammed

1) Beware of cheques presented late on Thursday

2) Visit an RTA centre to change registration only after receiving payment

3) Be aware of people asking to test drive the car alone

4) Try not to close the sale at night

5) Don't be rushed into a sale 

6) Call 901 if you see any suspicious behaviour

The Farewell

Director: Lulu Wang

Stars: Awkwafina, Zhao Shuzhen, Diana Lin, Tzi Ma

Four stars

Updated: April 18, 2024, 8:15 AM