A reduction in the threat of piracy off the eastern coast of Africa means that the second and third legs of this year's Volvo Ocean Race (VOR) may not face the disruption in the previous race of 2011/12.
That year, the Cape Town to Abu Dhabi leg involved all the boats sailing to a secret safe haven destination, where they were loaded onto an armed ship without their crew, which then took them through the safest possible route and unloaded them along the Sharjah coastline.
For the subsequent leg to Sanya, in China, the boats sailed a short distance out of Abu Dhabi before being loaded onto a ship again and taken to another safe destination, from where they finished the leg.
Improved security in the region means pirates hijacked the fewest number of merchant ships in 2013 in nearly a decade.
Two vessels were hijacked in 2013 compared to 14 in 2012, according to a report from the International Maritime Bureau.
In turn that has encouraged race organisers to believe that the threat will not impinge heavily on the second and third legs this year.
“Currently our advice is that we will sail the whole way,” Knut Frostad, the VOR chief executive, said.
“As we speak today, we will sail all the way from Cape Town to Abu Dhabi and from Abu Dhabi to Sanya without any interfering in the actual sailing.
“That said, if we do sail all the way, which is the current plan, we will not give them complete freedom into where they race.
“They will have an enforced limitation, pushing them quite far to the east.”
VOR has been running regular risk management training programmes, which cover dealing with the hazards posed by piracy.
At least based on history, the threat would appear to be minimal – only one boat has been hijacked during a race and that was in the 1970s.
Frostad acknowledged that they would continue to keep a vigilant eye on what is always a fluid situation.
“We monitor piracy all the time, both through military and private intelligence and we do that every week,” he said.
“Every week we have an assessment internally about the situation. When it comes to what we will do, it depends completely on the advice we are getting. This picture changes.
“Since the last race, it has only changed for the better.
“The frequency of piracy in the Indian Ocean has in fact moved to the west coast of Africa rather than the east coast. We actually have piracy assessments now that gives us higher risks around the north-east coast of South America rather than where we are sailing in the Indian Ocean.”
Ironically, Abu Dhabi stands to benefit from the continuing risks posed by pirates.
This year’s stopover in the capital has been extended by a week to account for any such incidents during the second leg.
The boats are expected to arrive from Cape Town between December 11 and 15 and the third leg begins on January 3, with the in-port race scheduled for January 2.
That, according to Frostad, works out well for the long-term ambitions of the race to have an enhanced presence in this part of the world.
“It was a very strategic decision for us to move the race to also include the region for many reasons,” Frostad said.
“The sport is growing here, not only Abu Dhabi but also in Oman, Dubai and other places.”
It also means that the capital will be the longest stopover of any during the nine-month race.
“I’m excited about the stopover,” Frostad said.
“It’s going to be fantastic. It was one of our most exciting stopovers last race and a very high quality one.
“It was a great experience and highlighted the local interest in sailing, which is stronger than people are aware of, with all the dhow racing on the coast.
“We really enjoyed that and Christmas in Abu Dhabi will be very good for all the sailors.”
osamiddin@thenational.ae
Follow us on twitter at @SprtNationalUAE
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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Founders: Joe Franklin and Milos Savic
Launched: February 2020
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Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
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Environmental Development and Sustainability: Bkerzay (Lebanon)
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Start-up hopes to end Japan's love affair with cash
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