ABU DHABI // GCC customers will be among the last to benefit from a global roll-out of electric cars due to the minimal interest shown by the region in using alternative energy vehicles, a car company chief said yesterday.
Carlos Ghosn, the chief executive of Nissan and Renault, was in Abu Dhabi yesterday for the global launch of the 2010 Nissan Patrol 4x4 vehicle. And while he said the Middle East was shaping up to be "the main market" for the Patrol, the reverse is true of Nissan's forthcoming electric Leaf car.
"The Middle East is not a prime target for electric vehicles," Mr Ghosn said at a press conference, citing a lack of government interest in the region for zero-emission cars.
"We give priority to governments who are ready to provide incentives for electric cars, like infrastructure," he said.
The debut of the new Nissan Patrol, a petrol-engined 5.6-litre V8 luxury SUV with an estimated highway fuel economy of 18 litres per 100km, is the prime focus of Nissan in the Middle East, rather than an early launch of the Leaf.
At present, fully electric vehicles are not available in UAE automotive dealerships, although Lexus and Mercedes-Benz are selling luxury hybrids which combine petrol engines with electric motors to lower emissions and fuel consumption.
Mr Ghosn said that the US, Japan, Europe and the UK will be among the first to take delivery of the Nissan Leaf, with the roll-out starting later this year and continuing throughout 2011.
"Not a lot of governments in the Middle East came to us and said they were interested," said Mr Ghosn.
The Leaf's first production run will be 500,000 vehicles, less than one per cent of the company's global market, Mr Ghosn said. Given the relatively small numbers being distributed worldwide, he said Nissan will be targeting markets that are committed to installing charging stations and providing financial incentives for motorists to switch to zero-emission cars.
"The US, Japan, France and the UK are the major countries who have signed up, and we have cities signing up as well when not necessarily the whole country has signed up, like Mexico City," said Mr Ghosn.
"We will focus on countries that are not producers of oil and are concerned with their CO2 emissions."
At the World Future Energy Summit held last month in Abu Dhabi, delegates detailed plans in other countries to make the purchase of electric vehicles easier.
Sean Long, an automotive specialist for One North East, a regional development organisation in north-east England, said options include allowing the leasing of batteries, an expensive component of electric cars, and offering cheaper electricity rates to owners of electric cars.
In the UK, cash payments of up to £5,000 (Dh29,000) are designed to offset the high prices of electric vehicles.
In France, Renault has formed a partnership with EDF, a utilities company, to build a nationwide network of charging stations, with ?400 million (Dh2 billion) contributed by the French government for the project.
The car-rental company Hertz, meanwhile, will add the Leaf to its fleets in the US and Europe by early 2011.
Although the infrastructure for fully electric cars is lacking in the UAE, Abu Dhabi Water and Electricity Authority reportedly plans to set up charging points for electric-powered cars and has singled out the Tesla Roadster, an electric sports car, as a vehicle it will help market.
At Masdar's carbon-neutral city, 10 electric pod cars are expected to be moving passengers from the city's car park while another three will move freight.
Some capital commuters may need time to adjust to the idea of electric cars.
Hassan Ahmad, a 35-year-old electrical engineer from the Palestinian territories, owns a Mitsubishi Pajero and said: "With such modern cars, I don't think I'll exchange my new fast car with an electric one for the environment's sake. Who's concerned about the environment here? People want new, nice and fast cars. They don't care whether it's environmental friendly or not."
However, Essa al Mazroui, a 54-year-old Emirati businessman, would consider exchanging his Nissan four-wheel drive for a more environmentally friendly alternative. "Yes, I sure would buy one," he said. Even if they were slower and more expensive, I would sacrifice that for a cleaner and healthier world."
glewis@thenational.ae
* With additional reporting by Lynne al Nahhas
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The schedule
December 5 - 23: Shooting competition, Al Dhafra Shooting Club
December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq
December 11 - 20: Dates competition, from 4pm
December 12 - 20: Sour milk competition
December 13: Falcon beauty competition
December 14 and 20: Saluki races
December 15: Arabian horse races, from 4pm
December 16 - 19: Falconry competition
December 18: Camel milk competition, from 7.30 - 9.30 am
December 20 and 21: Sheep beauty competition, from 10am
December 22: The best herd of 30 camels
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McIlroy's struggles in 2016/17
European Tour: 6 events, 16 rounds, 5 cuts, 0 wins, 3 top-10s, 4 top-25s, 72,5567 points, ranked 16th
PGA Tour: 8 events, 26 rounds, 6 cuts, 0 wins, 4 top-10s, 5 top-25s, 526 points, ranked 71st
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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