Dr Sultan Al Jaber, Cop28 President-designate, said the Bonn talks are important for 'meaningful, pragmatic and impactful outcomes' in the UAE. AP
Dr Sultan Al Jaber, Cop28 President-designate, said the Bonn talks are important for 'meaningful, pragmatic and impactful outcomes' in the UAE. AP
Dr Sultan Al Jaber, Cop28 President-designate, said the Bonn talks are important for 'meaningful, pragmatic and impactful outcomes' in the UAE. AP
Dr Sultan Al Jaber, Cop28 President-designate, said the Bonn talks are important for 'meaningful, pragmatic and impactful outcomes' in the UAE. AP

Crucial climate talks in Germany to lay groundwork for Cop28


John Dennehy
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Climate negotiators will gather in Germany next week for key talks that aim to lay the groundwork for the crucial Cop28 summit in the UAE.

The Bonn Climate Change Conference that runs from June 5 to June 15 marks the halfway point between successive Cop summits and will focus on ramping up at what was achieved at Cop27 in Egypt last year and chart a course for agreement at Cop28.

Negotiators will tackle issues that are expected to dominate the talks in Dubai such as climate finance, adaptation and measures to cut greenhouse emissions, as well as work to further the loss and damage fund that was established at Cop27.

Cop28 will also complete the first global stock-take of pledges made by countries under the 2015 Paris Agreement and this is expected to feature prominently in Bonn.

Each stock-take is a two-year process that happens every five years. The first got under way at Cop26 in Glasgow and will conclude at Cop28.

The Paris Agreement

The Paris deal aims to limit global temperature rises to 1.5°C on pre-industrial levels and to keep them “well below” 2°C.

Global emissions must halve by 2030 if this target is to be met, the UN has said, while repeatedly warning the world is way off track.

The stock-take will result in countries submitting revised pledges – known as national determined contributions – to try to keep alive the goal of limiting temperature increases to 1.5°C above pre-industrial levels.

Simon Stiell, the executive secretary of the UN Framework Convention on Climate Change. EPA
Simon Stiell, the executive secretary of the UN Framework Convention on Climate Change. EPA

“For many people around the world, limiting warming of our planet to 1.5°C is a matter of survival,” said Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, the organisation that oversees the talks.

“The global stock-take is the opportunity of a generation to correct the course we are on, to design a way forward to tackle climate change with fresh vigour and perspective,” he said.

“Cop27 in Sharm El Sheikh marked the shift to implementation of the Paris Agreement, resulting in several important outcomes supporting this historic new phase. Parties know what is at stake, and each country now has to deliver.”

The Bonn gathering is much smaller than a Cop summit and largely consists of technical negotiations.

Other issues expected to be discussed are measures to ensure a flow of climate finance to developing countries, increase the transparency of climate action and examine the impact of climate change on agriculture and the food security.

Six months until Cop28

With only six months to go, Dr Sultan Al Jaber, the event's President-designate, said the Bonn sessions were critical for shaping “meaningful, pragmatic, and impactful outcomes” in the UAE.

“As the incoming presidency, we will ensure a fair, inclusive and transparent presidency that provides space for all parties to reach consensus across the whole agenda,” said Dr Al Jaber, also the UAE’s Minister of Industry and Advanced Technology.

“That includes making climate finance more available, accessible and affordable; doubling adaptation finance, operationalising the loss and damage fund, tripling global renewable energy capacity by 2030; and putting young people, nature and health at the heart of climate progress.”

High-Level Champions for Cop27 and Cop28, Mahmoud Mohieldin and the UAE’s Razan Al Mubarak, will also seek to galvanise non-state actors – businesses, cities, financial institutions, civil society, non-government organisations, indigenous people, academia and all other sections of society – into addressing the climate emergency.

“The Bonn Climate Conference is an opportune occasion to stock-take the status of implementation of the outcomes and breakthroughs achieved in Sharm El Sheikh,” said Sameh Shoukry, president of Cop27.

“It also provides an opportunity to pave the way towards achieving remarkable progress at Cop28 in the UAE later this year. This is most urgent, given that the climate crisis is becoming the new reality and we are forced to deal with its consequences on a daily basis.”

Cop28 runs at Expo City Dubai from November 30 to December 12.

Cop27 at Sharm El Sheikh in Egypt – in pictures

  • Climate activists take part in a protest during the Cop27 summit in Sharm El Sheikh. Reuters
    Climate activists take part in a protest during the Cop27 summit in Sharm El Sheikh. Reuters
  • An activist demands action to limit the global temperature rise to 1.5°C compared to pre-industrial levels during the demonstration at the Cop27 event. AFP
    An activist demands action to limit the global temperature rise to 1.5°C compared to pre-industrial levels during the demonstration at the Cop27 event. AFP
  • Protesters make their point outside Sharm El Sheikh International Convention Centre. AFP
    Protesters make their point outside Sharm El Sheikh International Convention Centre. AFP
  • A protester from the '1.5 to Survive' movement. EPA
    A protester from the '1.5 to Survive' movement. EPA
  • Placards bearing slogans in Spanish and English are held aloft in the Red Sea resort city. AFP
    Placards bearing slogans in Spanish and English are held aloft in the Red Sea resort city. AFP
  • Activists dance on leaflets with objectives for climate change written on them at the Resilience Pavilion at the conference centre in Sharm El Sheikh. AFP
    Activists dance on leaflets with objectives for climate change written on them at the Resilience Pavilion at the conference centre in Sharm El Sheikh. AFP
  • A climate activist demanding the cancellation of developing nations' debts draws attention to his cause. AFP
    A climate activist demanding the cancellation of developing nations' debts draws attention to his cause. AFP
COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

The five pillars of Islam
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

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.”

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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Company profile: buybackbazaar.com

Name: buybackbazaar.com

Started: January 2018

Founder(s): Pishu Ganglani and Ricky Husaini

Based: Dubai

Sector: FinTech, micro finance

Initial investment: $1 million

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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%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Lee%20Sang-yong%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Don%20Lee%2C%20Lee%20Jun-hyuk%2C%20Munetaka%20Aoki%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Alaan%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Parthi%20Duraisamy%20and%20Karun%20Kurien%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%247%20million%20raised%20in%20total%20%E2%80%94%20%242.5%20million%20in%20a%20seed%20round%20and%20%244.5%20million%20in%20a%20pre-series%20A%20round%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
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