The heatwave baking the US and much of the globe is helping to raise water temperatures in Florida to such an extent that coral reefs are facing an existential threat.
Already hit by the effects of pollution, overfishing, disease and the destructive forces of hurricanes, ever-warmer water is heaping new misery on the fragile marine ecosystem.
In some parts of the Sunshine State, the water is now as hot as a bathtub, hitting 36.5°C near the Upper Keys last week.
Local organisations, including several supported by funding from the UAE, are urgently trying to save Florida's coral, which acts as the ocean's lungs as it pulls carbon dioxide from the atmosphere and pumps out oxygen.
Reefs are also natural barriers, protecting coastlines from flooding and storms, and breeding grounds for fish and other marine life.
Tim Gallaudet, a retired US Navy rear admiral and a leading oceanographer, said water temperatures are far above normal and could harm the corals' ability to reproduce.
“If the high temperatures persist for a few weeks, coral reefs could undergo bleaching or weaken as they expel the algae that inhabit their tissues,” Mr Gallaudet told The National.
“Even if coral bleaching doesn't occur, the conditions are already conducive to additional stress before the expected coral spawning in August.”
July 3 was the hottest day globally since records began, and climate scientists are warning that the world is falling far short of meeting targets to cut emissions and limit temperature rises.
Global sea surface temperatures have been at record highs since April, with the North Atlantic extremely warm since mid-March, meteorologists report.
“We are in uncharted territory and we can expect more records to fall,” Christopher Hewitt, the World Meteorological Organisation's director of climate services, told AP. “This is worrying news for the planet.”
In collaboration with local groups in southern Florida, the UAE has been working for more than three years to protect the Florida Reef Tract, through the Mission: Iconic Reefs initiative.
Mr Gallaudet, who was previously deputy director of the National Oceanic and Atmospheric Administration and is now chief executive of Ocean STL Consulting, said the partnership between the US and the UAE is crucial to marine conservation.
In February 2020, the UAE announced a donation of $3.5 million to support the coral restoration efforts, administered by United Way of Collier and the Keys.
The loss of coral reefs can have cascading effects on the economy and culture of the Florida Keys region, which are deeply rooted in the local marine ecosystem.
The unique habitats generate billions of dollars in recreation and tourism for Florida.
Healthy coral reefs provide a habitat for commercially and recreationally important fish species, and marine animals including spiny lobsters and sea turtles.
“Local efforts have struggled to keep pace with the rate of decline,” Mr Gallaudet said. “This is where the UAE's partnership is instrumental in helping Florida to catch up.”
Marine biologist Jessica Dockery, the Reef Revitalisation Project Liaison at UWCK, said rising sea temperatures, ocean acidification, and more frequent and severe coral bleaching events are all consequences of climate change that can lead to the decline and destruction of coral reefs.
Preserving and restoring coral reefs is crucial for mitigating climate change and for their survival against the effects of climate change impacts.
“The joint effort between the United States and the United Arab Emirates not only aims to address the impacts of climate change, but also to protect and restore these invaluable coral reefs,” Ms Dockery told The National.
“By collaborating on this vital mission, we can secure a brighter future for our oceans, marine life and the communities that rely on them.”
The Florida Keys has the only barrier reef in North America and about 60 per cent of residents are dependent on the marine environment.
Globally, coral bleaching and dying are becoming more frequent with climate change, especially during an El Nino year, with Australia’s Great Barrier Reef losing half of its coral during the last supersized El Nino in 2016.
Russia's Muslim Heartlands
Dominic Rubin, Oxford
3%20Body%20Problem
%3Cp%3E%3Cstrong%3ECreators%3A%3C%2Fstrong%3E%20David%20Benioff%2C%20D%20B%20Weiss%2C%20Alexander%20Woo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EBenedict%20Wong%2C%20Jess%20Hong%2C%20Jovan%20Adepo%2C%20Eiza%20Gonzalez%2C%20John%20Bradley%2C%20Alex%20Sharp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
