• The burnt out shell of a ferry near Real town, the Philippines, after a fire ripped through the vessel on Monday, killing at least seven people. AFP
    The burnt out shell of a ferry near Real town, the Philippines, after a fire ripped through the vessel on Monday, killing at least seven people. AFP
  • The vessel, the 'Mercraft 2', was travelling from Polillo to Real when it caught fire off the waters of Quezon province, forcing several passengers to jump overboard. EPA
    The vessel, the 'Mercraft 2', was travelling from Polillo to Real when it caught fire off the waters of Quezon province, forcing several passengers to jump overboard. EPA
  • A handout photo made available by the Philippine Coast Guard (PCG) shows the wreckage of the passenger boat MV Mercraft 2 hauled to shore following a fire in waters off Quezon province, Philippines 23 May 2022. Data from the PCG shows that seven people were killed and 120 were rescued after the passenger boat caught fire while travelling from Polillo to Real in Quezon province. Authorities continue to determine the cause of the blaze. EPA / PHILIPPINE COAST GUARD / HANDOUT BEST QUALITY AVAILABLE HANDOUT EDITORIAL USE ONLY / NO SALES
    A handout photo made available by the Philippine Coast Guard (PCG) shows the wreckage of the passenger boat MV Mercraft 2 hauled to shore following a fire in waters off Quezon province, Philippines 23 May 2022. Data from the PCG shows that seven people were killed and 120 were rescued after the passenger boat caught fire while travelling from Polillo to Real in Quezon province. Authorities continue to determine the cause of the blaze. EPA / PHILIPPINE COAST GUARD / HANDOUT BEST QUALITY AVAILABLE HANDOUT EDITORIAL USE ONLY / NO SALES
  • Coastguard members attend to passengers who were rescued from the doomed vessel, which was later hauled to shore. AP
    Coastguard members attend to passengers who were rescued from the doomed vessel, which was later hauled to shore. AP

Philippine ferry fire claims at least seven lives


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Seven people died after a high-speed ferry caught fire in the Philippines on Monday, with another seven of the 134 people who were on board still missing, the coastguard said.

The Mercraft 2 caught fire before reaching the port of Real in Quezon province, about 60 kilometres east of the capital, Manila, on the main island of Luzon.

It left Polillo Island at 5am and made a distress call at 6.30am.

Five women and two men died, while 120 passengers were rescued. Twenty-three people, including the captain, were treated for injuries, the coastguard said.

The fire appears to have started in the engine room, Philippine coastguard spokesman Cdre Armando Balilo said.

Pictures shared by the coastguard showed people in life vests floating at sea awaiting rescue as fire and thick smoke engulfed the ferry.

The two-storey passenger boat had a 186-person capacity.

“We heard an explosion,” said Kycel Pineda, 18, a high school student who was travelling on another ferry. “When we saw the boat, it was already engulfed by fire and passengers were already floating in the sea.”

Brunette Azagra, captain of another passenger vessel that was 500 metres from the Mercraft 2 when the fire broke out, said they were able to rescue 40 survivors.

“They were lucky because we also came from Polillo. They overtook us, but we were just nearby,” Capt Azagra told a local radio station, describing sea conditions as “quite good”.

The wreck was towed to shore after the fire was brought under control.

The Philippines, an archipelago of more than 7,600 islands, has a poor maritime safety record, with vessels often overcrowded and many vessels well past their prime.

In 1987, about 5,000 people died in the world's worst peacetime shipping disaster after an overloaded passenger ferry, the Dona Paz, collided with an oil tanker off Mindoro island, south of Manila.

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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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.”

Company profile

Company: Eighty6 

Date started: October 2021 

Founders: Abdul Kader Saadi and Anwar Nusseibeh 

Based: Dubai, UAE 

Sector: Hospitality 

Size: 25 employees 

Funding stage: Pre-series A 

Investment: $1 million 

Investors: Seed funding, angel investors  

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In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
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  • Field operator: Dh5,000 to Dh7,000
Updated: May 23, 2022, 5:11 AM