With more than 780 million people lacking access to potable water and 1.3 billion people lacking access to electricity, sustainable water and energy production is critical to our planet's future. It is in this context that leaders from around the world are gathering at the World Future Energy Summit in Abu Dhabi, to address the water-energy nexus and its effect, elevating this important discussion to the global agenda.
According to the International Energy Agency, energy production accounts for 15 per cent of the world’s total water withdrawal – defined as water withdrawn from a groundwater source – which amounts to an estimated 580 billion cubic metres of fresh water per year. Thermoelectric power plants already account for over a third of fresh water withdrawal in the United States, where the volume is even more than the water used for agriculture, and in Europe.
There is no doubt that the water-energy nexus is real and of particular concern to water-scarce regions, such as the Middle East. The fact of the matter is that most energy generation technologies — including coal, nuclear and even concentrating solar power – consume tremendous amounts of water during operations, for processes such as fuel extraction, cooling and cleaning.
As our energy needs continue to grow, so will our use of water to generate it. The World Bank predicts that while global energy consumption will increase by 35 per cent by 2035, water consumption will increase by 85 per cent during the same period.
Looking at it in the context of energy demand in the Middle East, which has some of the highest per capita water and energy consumption rates in the world, the management of water resources will be critical to driving growth in the country’s generation capacity.
Water is a finite resource and its use in electricity production should be managed through diversified power generation that minimises water usage.
Sunlight, on the other hand, is an abundant resource and can help mitigate some of the effect on our water resources. Photovoltaic (PV) solar energy is one of only two electricity generation technologies with comparatively negligible water consumption.
PV energy systems provide a sustainable solution to the water-energy nexus by generating clean electricity with little to no water use. Most of the water consumed at solar plants is used to ensure that workers on-site stay hydrated.
On a life cycle basis, PV also consumes less water than most other power generation sources, including hydrocarbon-based technologies and biofuels, in the production process.
With the smallest carbon footprint, lowest life cycle water use, and fastest energy payback time in the industry, thin-film PV modules provide a sustainable solution to water scarcity and energy security.
While a power portfolio that completely excludes thermal generation is an unrealistic expectation at this time, the reality is that water conservation needs to remain a priority. As world leaders and decision makers meet in Abu Dhabi this week, it will also be important for them to attempt to respond to the issue in terms that will deliver tangible results.
Dr Raed Bkayrat is vice president for Saudi Arabia at First Solar
Results
Women finals: 48kg - Urantsetseg Munkhbat (MGL) bt Distria Krasniqi (KOS); 52kg - Odette Guiffrida (ITA) bt Majlinda Kelmendi (KOS); 57kg - Nora Gjakova (KOS) bt Anastasiia Konkina (Rus)
Men’s finals: 60kg - Amiran Papinashvili (GEO) bt Francisco Garrigos (ESP); 66kg - Vazha Margvelashvili (Geo) bt Yerlan Serikzhanov (KAZ)
KILLING OF QASSEM SULEIMANI
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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