Yemenis try to buy grain at a market in Sanaa on Monday. The escalation of Houthi attacks on shipping lanes in the Red Sea and the Gulf of Aden could put further pressure on food prices. EPA
Yemenis try to buy grain at a market in Sanaa on Monday. The escalation of Houthi attacks on shipping lanes in the Red Sea and the Gulf of Aden could put further pressure on food prices. EPA
Yemenis try to buy grain at a market in Sanaa on Monday. The escalation of Houthi attacks on shipping lanes in the Red Sea and the Gulf of Aden could put further pressure on food prices. EPA
Yemenis try to buy grain at a market in Sanaa on Monday. The escalation of Houthi attacks on shipping lanes in the Red Sea and the Gulf of Aden could put further pressure on food prices. EPA


Global trade will survive the Red Sea crisis. People who depend on aid may not


  • English
  • Arabic

March 06, 2024

Against the backdrop of a continuing failure to end the devastating war on Gaza, the crisis in the Red Sea is worsening. Months of Houthi attacks on international shipping have sunk their first ship – the UK-registered Rubymar – and on Monday, US Central Command said missiles fired by the rebels struck the MSC Sky II, a Liberian-flagged, Swiss-owned container vessel. Meanwhile, the Hong Kong telecoms company HGC Global Communications has said that four underwater communications cables in the Red Sea have been damaged, an incident that has had “a significant impact on communication networks in the Middle East”.

Much has been written about the risks to global trade posed by such attacks that, on the face of it, are being carried out by the Yemeni militants ostensibly to show their opposition to the US, Israel and their allies. Although many people in the region and further afield are frustrated – to put it mildly – at the international community’s apparent inability to end Gaza’s suffering, the Houthis’ tactics are endangering some of the region’s most vulnerable civilians, including their fellow Yemenis.

Yemen runs the risk of an ecological disaster after Houthi rebels sank the Rubymar, above, which was carrying thousands of tonnes of fertiliser in the Red Sea. EPA
Yemen runs the risk of an ecological disaster after Houthi rebels sank the Rubymar, above, which was carrying thousands of tonnes of fertiliser in the Red Sea. EPA

Last week, the International Rescue Committee said a decision by its carrier to suspend operations in the Red Sea had forced the charity – which has been supplying vital aid to civilians in war-torn Sudan – to “seek alternative routes, which are longer and more costly, for the delivery of essential pharmaceutical supplies which are critical for life saving health services”. The rising cost and physical risk of sending aid and supplies through the Red Sea have been highlighted by other humanitarians, too.

In January, 26 aid bodies signed a joint statement expressing “grave concern over the humanitarian impacts of the recent military escalation in Yemen and the Red Sea” adding that “escalation will only worsen the situation for vulnerable civilians and hinder the ability of aid organisations to deliver critical services”. A February report from the Food Security Cluster – which is jointly led by the UN’s Food and Agriculture Organisation, and World Food Programme – warned that continued disruption in the Red Sea “has the potential to reduce food imports to Yemeni Ports, increase the cost of imports because of higher insurance premiums and increase prices of basic food and non-food items, and reduce household purchasing power”.

While the risks posed to life-saving humanitarian aid are devastating, the Houthis’ sinking of the Rubymar, which was carrying thousands of tonnes of fertiliser when it went down, could pose a long-term threat to the region's marine life. The Middle East division of Greenpeace this week warned that the release of this much fertiliser could affect the pH balance of the seawater and cause a major algae bloom. That would produce a massive influx of nitrogen that would affect the Red Sea’s delicate ecosystem. Given the major international effort that went into averting another potential environmental disaster – that posed by the rusting FSO Safer oil tanker off the coast of Hodeidah – endangering yet more of Yemen’s ecosystem is a step backwards for the country.

In a UN Security Council report issued last week, the UN Special Envoy for Yemen, Hans Grunberg, pointed to the need for “the Yemeni parties to stop public provocations, refrain from military opportunism inside Yemen, and refocus on safeguarding the progress made to date in the peace talks”. It is this opportunism by the Houthis, who are exploiting the understandable anger over the situation in Palestine, that is damaging lives and livelihoods among some of the region’s most vulnerable people. Global trade can weather the storm of shocks such as shipping disruption in the Red Sea – people who depend on aid cannot.

yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

Last-16 Europa League fixtures

Wednesday (Kick-offs UAE)

FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm

Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm

Inter Milan v Getafe (one leg only) 11pm

Manchester United (5) v LASK (0) 11pm 

Thursday

Bayer Leverkusen (3) v Rangers (1) 8.55pm

Sevilla v Roma  (one leg only)  8.55pm

FC Basel (3) v Eintracht Frankfurt (0) 11pm 

Wolves (1) Olympiakos (1) 11pm 

The stats

Ship name: MSC Bellissima

Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

Crew members: 1,536

Number of cabins: 2,217

Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

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

Heather, the Totality
Matthew Weiner,
Canongate 

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
%3Cp%3EBy%202030%2C%20Abu%20Dhabi%20aims%20to%20achieve%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%2039.3%20million%20visitors%2C%3C%2Fstrong%3E%20nearly%2064%25%20up%20from%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%20Dh90%20billion%20contribution%20to%20GDP%2C%3C%2Fstrong%3E%20about%2084%25%20more%20than%20Dh49%20billion%20in%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%20178%2C000%20new%20jobs%2C%3C%2Fstrong%3E%20bringing%20the%20total%20to%20about%20366%2C000%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%2052%2C000%20hotel%20rooms%2C%3C%2Fstrong%3E%20up%2053%25%20from%2034%2C000%20in%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%207.2%20million%20international%20visitors%2C%3C%2Fstrong%3E%20almost%2090%25%20higher%20compared%20to%202023's%203.8%20million%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%203.9%20international%20overnight%20hotel%20stays%2C%3C%2Fstrong%3E%2022%25%20more%20from%203.2%20nights%20in%202023%3C%2Fp%3E%0A
Updated: March 06, 2024, 12:55 PM