The UAE has announced that construction of Unit 3 of the Barakah Nuclear Energy Plant is complete.
The unit has been handed over for readiness checks and is set to be up and running in 2023.
The announcement was made on the sidelines of Cop26 in Glasgow, to demonstrate the UAE's transition to cleaner energy sources, while cutting carbon emissions and increasing the power supply to meet the growing demand for electricity.
The Arab world's first multi-unit operating nuclear energy plant is located in the Al Dhafra region of Abu Dhabi. Unit 1 is already fully operational and Unit 2 was recently connected to the main grid and continues to undergo testing.
As the world gathers at Cop26 in Glasgow, the need for concrete action to tackle climate change is indisputable and urgent
Mohamed Al Hammadi,
Enec
The UAE's bid to host Cop28 in 2023 has been endorsed by member states of the UN's Asia Pacific group and the country continues to demonstrate commitment to the 2050 Net Zero initiative.
By 2025 it is projected that the Barakah plant will have cut the emirate's carbon emissions by 50 per cent.
Unit 3 will now be subjected to testing, regulatory inspections and international assessments required to obtain the Operating Licence for Unit 3 from the UAE’s independent nuclear regulator, the Federal Authority for Nuclear Regulation (FANR).
"With Unit 1 already commercially operating and Unit 2 recently connected to the UAE grid, Unit 3 construction completion demonstrates the steady progress we are making with the development of the Barakah Nuclear Energy Plant," said Mohamed Al Hammadi, chief executive of Emirates Nuclear Energy Corporation (Enec).
"As the world gathers at Cop26 in Glasgow, Scotland, the need for concrete action to tackle climate change is indisputable and urgent.
"The Barakah Plant, with its rapid decarbonisation of the power sector, is delivering climate solutions today and with Unit 3 construction now complete, we are progressing smoothly towards supplying a quarter of the UAE’s electricity needs completely carbon-free."
Unit 3 of the Barakah Plant has already successfully completed a number of individual and combined system tests, including Cold Hydrostatic Testing, the Structural Integrity Test, and Integrated Leak Rate Test and the Hot Functional Test as part of the first phase of its Initial Testing Program. The ITP aims to ensure that the unit’s systems operate in accordance with the highest industry standards and will continue to do so during the operation of the plant over the coming decades.
The Barakah Plant is one of the largest nuclear energy plants in the world, with four APR-1400 units. Construction began in 2012 and has progressed steadily. The development is now more than 96 per cent complete. When fully operational, the plant will produce 5.6 gigawatts of carbon-free electricity for more than 60 years.
“By developing nuclear energy in the UAE, Enec is enabling sustainable growth and prosperity for the nation through the provision of abundant, 24/7 clean electricity, whilst underpinning intermittent renewables and creating a bridge to other clean energy technologies like green hydrogen," said Mr Al Hammadi.
"We are tackling climate change directly today and will do for the next 60 years to come."
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
THE BIO:
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Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
KILLING OF QASSEM SULEIMANI
Results:
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RESULT
Wolves 1 (Traore 67')
Tottenham 2 (Moura 8', Vertonghen 90 1')
Man of the Match: Adama Traore (Wolves)
WHAT IS GRAPHENE?
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were experimenting with sticky tape and graphite, the material used as lead in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But when they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment led to graphene being isolated for the very first time.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics.
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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.”
UAE currency: the story behind the money in your pockets
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
