MSC Cruises has cancelled the 23-night journey of MSC Virtuosa from Dubai to Southampton, UK. Pawan Singh / The National
MSC Cruises has cancelled the 23-night journey of MSC Virtuosa from Dubai to Southampton, UK. Pawan Singh / The National
MSC Cruises has cancelled the 23-night journey of MSC Virtuosa from Dubai to Southampton, UK. Pawan Singh / The National
MSC Cruises has cancelled the 23-night journey of MSC Virtuosa from Dubai to Southampton, UK. Pawan Singh / The National

Cruise voyages from the UAE cancelled as Red Sea tensions ramp up


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Major global cruise companies are rerouting or even cancelling voyages through the Red Sea as tensions rise between Yemen's Houthi militants and British and US forces.

Royal Caribbean and MSC Cruises are among those adjusting itineraries to avoid the area, as well as Carnival Corporation, one of the world's biggest cruise operators, which has rerouted at least 12 ships across seven brands.

Swiss-Italian operator MSC Cruises became the first cruise line to cancel its sailings in mid-January amid the conflict, including the 21-night voyage of MSC Opera from Dubai to Genoa, Italy, and a 23-night journey of MSC Virtuosa from Dubai to Southampton, UK.

The critical situation affecting maritime traffic along the Red Sea and the Gulf of Aden is constantly being monitored
Costa Cruises

“The safety of passengers and crew is the number one priority and as there was no viable alternative itinerary, the company has regrettably had to cancel the voyages,” MSC Cruises said in a statement at the time.

The ships sailed empty around Africa en route to Europe, where they will dock until the summer season.

Affected guests are able to transfer to a future journey of a similar duration free of charge, rebook on another cruise with a partial refund or pay extra to cover the difference. Alternatively, they are also being offered full refunds.

Carnival-owned Costa Cruises also recently cancelled a cruise that was set to sail from the UAE to Italy over 19 nights, departing on March 9.

“As you can well understand, the critical situation that is currently affecting the maritime traffic along the Red Sea and the Gulf of Aden is constantly being monitored with the maximum attention,” Costa said in a statement that was sent to guests who had already booked their places on the ship.

“Given recent developments on the security environment and future uncertainties in the area, working in close consultation with global security experts and government authorities, we have made the difficult decision to cancel the cruise that was originally planned.”

Other brands under the Carnival Corporate banner, including Seabourn and Aida Cruises, have cancelled several voyages scheduled for the spring and summer seasons.

This includes Aida cruises set to sail from Dubai to Hamburg, Germany, on March 20 and Abu Dhabi to Hamburg on April 7. The brand's Dubai to Mallorca voyages in April have also been cancelled.

The brand said in a statement that this was the “only responsible option”. It added: “It is important to us to give all guests planning security for their vacation with this early information.”

The cruise line is providing passengers with alternative travel options, according to Cruise Hive, including the opportunity to rebook any voyage in Aida's programme, plus a 10 per cent voucher of their previous travel price.

Seabourn, meanwhile, cancelled several trips, including Seabourn Encore's voyage departing on March 2 from Hong Kong to Dubai. It is now due to end on March 16 in Singapore, rather than on April 3 in the UAE.

Other brands such as Princess Cruises, which also falls under Carnival Corporation, are rerouting ships away from the Red Sea and instead sailing around the Horn of Africa to avoid affected areas.

Princess Cruises' World Cruise, which set sail from Los Angeles on January 18, skipped the Middle East, including the UAE and Asia. The itinerary was revised to include ports of call in Australia, then South Africa and the west coast of Africa, followed by Western Europe and the Mediterranean, before continuing its scheduled Atlantic crossing.

A statement confirmed its forthcoming world cruise on Coral Princess, which is set to depart in April, is being “reworked”.

The itinerary for Coral Princess's April sailing is being 'reworked', according to Princess Cruises. Reuters
The itinerary for Coral Princess's April sailing is being 'reworked', according to Princess Cruises. Reuters

Elsewhere, Silversea cancelled two voyages in January on board Silver Moon, including one from Muscat to Dubai and another from Dubai to Mumbai. It also amended the itinerary for a sailing between Aqaba and Muscat, allowing guests to disembark in Athens.

At the time of writing, only spring sailings are affected, with those scheduled to set off later this year and early next year remaining unaffected.

Dozens of cruises are also still scheduled to dock in Dubai and Abu Dhabi throughout February, according to cruise itinerary platform CruiseDig.

While tens of thousands of passengers are being affected, the impact on cruise operators at a global level is not expected to be significant, Todd Elliott, chief executive of Floridian travel agency Cruise Vacation Outlet, told Reuters last month. “This is a small part of their overall fleet and multiyear itineraries so they will be able to overcome this easily.”

Carnival Corporation said last Tuesday that its annual earnings would take a hit, but that it also experienced an “early and robust” start to the season, with booking volumes hitting an all-time high since November, according to Reuters.

These changes come after a series of attacks by the Iran-backed Houthi militants, who control most of Yemen, on vessels travelling through the Red Sea and the Suez Canal in response to Israel's bombardment of Gaza. This has resulted in repeated US and UK military strikes against the Houthis.

US President Joe Biden said in January that strikes against the Houthis are not deterring the group but that such military actions in Yemen will continue, either unilaterally or with other countries.

The Biden administration has said its operations are aimed at defending the economically vital waterway that sees at least 10 per cent of global trade.

By some calculations, 150 fewer vessels went through the Suez Canal in January compared to the same month last year.

Day 5, Abu Dhabi Test: At a glance

Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.

Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.

The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

The specs: 2018 Nissan Patrol Nismo

Price: base / as tested: Dh382,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 428hp @ 5,800rpm

Torque: 560Nm @ 3,600rpm

Fuel economy, combined: 12.7L / 100km

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

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.”

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

The%20specs%3A%202024%20Mercedes%20E200
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Silent Hill f

Publisher: Konami

Platforms: PlayStation 5, Xbox Series X/S, PC

Rating: 4.5/5

FROM%20THE%20ASHES
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England v South Africa Test series:

First Test: at Lord's, England won by 211 runs

Second Test: at Trent Bridge, South Africa won by 340 runs

Third Test: at The Oval, July 27-31

Fourth Test: at Old Trafford, August 4-8

COMPANY%20PROFILE
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Company Profile

Company name: NutriCal

Started: 2019

Founder: Soniya Ashar

Based: Dubai

Industry: Food Technology

Initial investment: Self-funded undisclosed amount

Future plan: Looking to raise fresh capital and expand in Saudi Arabia

Total Clients: Over 50

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

The figures behind the event

1) More than 300 in-house cleaning crew

2) 165 staff assigned to sanitise public areas throughout the show

3) 1,000 social distancing stickers

4) 809 hand sanitiser dispensers placed throughout the venue

North Pole stats

Distance covered: 160km

Temperature: -40°C

Weight of equipment: 45kg

Altitude (metres above sea level): 0

Terrain: Ice rock

South Pole stats

Distance covered: 130km

Temperature: -50°C

Weight of equipment: 50kg

Altitude (metres above sea level): 3,300

Terrain: Flat ice
 

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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Updated: February 07, 2024, 1:18 PM