• With sponge cities the water can be stored under the surface with a series of honeycomb-like networks. This picture was taken as the model was under construction at the Zhongguancun Exhibition Centre. Photo: Dech Rechsand
    With sponge cities the water can be stored under the surface with a series of honeycomb-like networks. This picture was taken as the model was under construction at the Zhongguancun Exhibition Centre. Photo: Dech Rechsand
  • Permeable surfaces like this one allow water to seep below the street and disperse. Photo: Xinhua News Agency
    Permeable surfaces like this one allow water to seep below the street and disperse. Photo: Xinhua News Agency
  • This cycling and walking path in Beijing was also designed using the sponge city method. Photo: Dech Rechsand
    This cycling and walking path in Beijing was also designed using the sponge city method. Photo: Dech Rechsand
  • The Zhongguancun Exhibition Centre in Beijing uses the sponge city model to help absorb water into the ground. Photo: Dech Rechsand
    The Zhongguancun Exhibition Centre in Beijing uses the sponge city model to help absorb water into the ground. Photo: Dech Rechsand
  • Worker clearing the road after the recent flood in Fujairah. Turning urban areas into sponge cities could help avoid a repeat of these scenes. Pawan Singh / The National
    Worker clearing the road after the recent flood in Fujairah. Turning urban areas into sponge cities could help avoid a repeat of these scenes. Pawan Singh / The National
  • Muscat was brought to a standstill earlier this due to heavy floods. Photo: Joseph Bunn
    Muscat was brought to a standstill earlier this due to heavy floods. Photo: Joseph Bunn
  • Buildings and farmlands are seen partially submerged in floodwaters following heavy rainfall in the Jiangxi province of China in 2020, which led to renewed calls for the country to transform more areas into sponge cities. Photo: Reuters
    Buildings and farmlands are seen partially submerged in floodwaters following heavy rainfall in the Jiangxi province of China in 2020, which led to renewed calls for the country to transform more areas into sponge cities. Photo: Reuters

'Sponge city' technology could help the Gulf prevent flooding caused by climate change


Patrick Ryan
  • English
  • Arabic

When you think of regions afflicted by flooding and heavy rainfall, the Middle East may not be the first one that springs to mind.

That said, recent floods that brought Fujairah and Muscat in Oman to a standstill could soon become a regular occurrence, experts have warned.

Part of the solution to curb the fallout from flash flooding could be to transform cities in the region into what essentially amounts to giant sponges, allowing water to be drained away safely.

Leading voices in the sector believe it could be the answer to a problem that will only become more frequent due to the onset of climate change and rising global temperatures.

We are a region that has lots of humidity and high temperatures, and that has the potential to result in episodes of extreme storms
May Faraj,
WSP Middle East

“We need to take climate change seriously,” said May Faraj, senior advisory director for environment and sustainability at engineering consultants WSP Middle East.

"The warmer the air gets here, the more intense the precipitation will be.

“We are a region that has lots of humidity and high temperatures, and that has the potential to result in episodes of extreme storms.

“It won’t happen immediately but it is going to happen.”

She said the sponge city model was one that would work well in the Middle East.

The term is used to describe urban areas with abundant natural areas such as trees, lakes and parks, or other good designs intended to absorb rain and prevent flooding, according to the World Economic Forum (WEF).

Cities that have already adopted the model through improved drainage systems, inner city gardens and plant-edged sidewalks include Cardiff in the UK, Shanghai in China and New York in the US.

One of the major benefits of sponge cities is they hold water in rivers, greenery and soil, making them more resilient to droughts, which could be a key appeal in the Middle East, said Ms Faraj.

“The Middle East has a water scarcity issue and this model would help tackle that,” she said.

“It is easier to collect the water that has been naturally absorbed into storage units in the ground rather than seeing a lot of it being lost to evaporation.

“This water can then be filtered and reused.”

Capturing urban water

Chandra Dake, chief executive of Dech Rechsand, believes sponge cities could be the answer to flooding problems in the region. Photo: Dech Rechsand
Chandra Dake, chief executive of Dech Rechsand, believes sponge cities could be the answer to flooding problems in the region. Photo: Dech Rechsand

Natural solutions to absorbing urban water are 50 per cent more affordable than man-made alternatives, as well as being 28 per cent more effective, according to a recent WEF report.

One of the major stumbling blocks to the wider adoption of the model has been the perception it would be prohibitively expensive to install new drainage systems across cities.

However, that is not necessarily the case, said Ms Faraj.

“Cost is definitely an issue but the beauty of this system is you can retrofit a lot, so you don’t have to completely rip up everything you already have in place,” she said.

“It has already been implemented in Hong Kong, Singapore and New Zealand, and they have had a lot of success stories already.”

Another expert said the heavy flooding witnessed recently in Fujairah and Muscat could have been alleviated by the creation of flood plains — low-lying areas that can absorb water.

“You could have a storage facility every few kilometres that would absorb excess water for up to a decade, keeping it clean the whole time,” said Chandra Dake, chief executive of Dech Rechsand, a Dubai company specialising in sustainable solutions.

“They can vary in size, but you can build them as big as soccer pitches if you need to. In the event of heavy rainfall, they would act as catchment areas.”

One solution is to use permeable alternatives when it comes to drainage systems.

Mr Dake suggested systems could be overhauled with permeable materials.

An example of this is curbs made from sustainable materials such as sand rather than concrete, which would allow the water to be absorbed directly into the ground.

“There is a perception the [Middle East] doesn’t need to worry about creating defences against flooding because it happens here so rarely,” said Mr Dake.

“Recent events and the onset of climate change are forcing us to rethink those views.

“We anticipate we will see pilot sponge city projects in the region that will increase in numbers.”

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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Updated: September 19, 2022, 9:26 AM