Dr Al Zeyoudi and Kwon Yongwoo, Republic of Korea ambassador to the UAE, visit the rice field in Sharjah. Courtesy: Ministry of Climate Change and Environment
Dr Al Zeyoudi and Kwon Yongwoo, Republic of Korea ambassador to the UAE, visit the rice field in Sharjah. Courtesy: Ministry of Climate Change and Environment
Dr Al Zeyoudi and Kwon Yongwoo, Republic of Korea ambassador to the UAE, visit the rice field in Sharjah. Courtesy: Ministry of Climate Change and Environment
Dr Al Zeyoudi and Kwon Yongwoo, Republic of Korea ambassador to the UAE, visit the rice field in Sharjah. Courtesy: Ministry of Climate Change and Environment

Desert agriculture will be a driver of the UAE's post-pandemic strategy


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In the space of just a few months, the coronavirus pandemic has revealed both the shortcomings and the advantages of our globalised world.

For instance, widespread and high-tech means of transportation have enabled the virus to reach all four corners of the globe by air, sea and land. But they have also helped to deliver life-saving aid and medical equipment to vulnerable and severely affected nations. And the have proved integral to preserving the integrity of the global supply chain for basic necessities, such as food and hygiene products.

Yet the pandemic has forced some nations to limit exports as they deal with shortages and economic problems at home. This tension has pushed governments and individuals to become more innovative and to invest in local technologies and companies.

The knowledge and technology required to develop agriculture through scientific innovation is becoming widely available, and co-operation in this area has led to some extraordinary successes.

Regional and federal authorities in the UAE are promoting local production of vital personal protective equipment, with Abu Dhabi set to host the Middle East’s largest factory for masks. Gulf countries are also investing in domestic agriculture to ensure food security.

In the UAE, a joint project between UAE scientists and South Korean experts plans to turn Sharjah’s deserts into rice paddies. This apparently improbable feat is nonetheless one step closer to becoming reality. The project is currently pending approval and, according to the team managing it, should eventually allow Sharjah to grow 763 kilograms of rice in a 1,000 square metre plot of desert.

This is only the latest in a series of forward-looking projects aimed at promoting local agriculture in the UAE. Others include a $100 million fund for agritech from the Abu Dhabi Investment Office. Other non-native staple crops, such as tomatoes and potatoes, are already being grown in the country, and neighbouring Saudi Arabia has managed to develop a successful dairy industry that exports across the region. These success stories ought to give further confidence to the people of the Gulf that, with vision and ingenuity, nothing is impossible.

In the wake of the coronavirus outbreak, Gulf countries are investing in domestic agriculture to ensure food security

The Sharjah project is all the more valuable to the long-term food security of the Emirates considering that many rice-growing nations, such as China and India, have limited their exports. Although shortages have been avoided so far, for a desert nation like the UAE, which imports over 90 per cent of its food, these developments signal that it is time to boost self-reliance while maintaining strong global ties.

The help and expertise offered by friendly nations are instrumental in allowing the UAE to achieve this goal, as South Korea’s involvement in the Sharjah rice project demonstrates. Seoul and Abu Dhabi celebrate 40 years of bilateral relations this month. What better way is there to honour those ties – during this challenging time for global unity, public health and food security – than by working together to ensure that our future harvests are ever more bountiful.

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.”

England's all-time record goalscorers:
Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29

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

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

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