The World Health Organisation is convening an emergency meeting to consider designating the new B.1.1.529 Covid-19 mutation a “variant of concern” as governments ban incoming flights from South Africa, where at least 77 cases have been detected.
It came as the fast-spreading variant was detected in Europe for the first time, with Belgium announcing that a traveller who returned from Egypt on November 11 had tested positive for the strain.
As European governments scrambled to shut down travel, Belgian Health Minister Frank Vandenbroucke said the patient was an unvaccinated person who tested positive for Covid-19 on Monday.
WHO experts were convening in Geneva, Switzerland, for a special meeting to discuss how to respond to the mutation. If it is indeed labelled a variant of concern, it will be named “Nu” after the next available letter of the Greek alphabet.
Britain, Germany and Italy have announced bans on travellers entering from South Africa amid concern over the variant. Ursula von der Leyen, the president of the European Commission, said air travel to affected countries should be cut off.
She said vaccine manufacturers were expected to adapt their products to new variants, if necessary, under their contracts with the EU.
Bahrain became the first Gulf state to suspend flights and restrict entry from travellers from South Africa, Namibia, Botswana, Zimbabwe, Lesotho and Eswatini, the Bahrain News Agency reported.
WHO spokesman Christian Lindmeier said nearly 100 sequences of the variant have been reported, and early analysis shows it has “a large number of mutations” requiring further study. This makes the spike protein dramatically different from those that the vaccines are engineered to target.
Watch: scientists raise concerns over 'Nu' Covid variant
Stock markets slid around 3 per cent, with market watchers expecting on Friday to see the worst reverses on the exchanges in more than a year.
Oil prices were hit, with US crude futures down 5.7 per cent to $73.96 a barrel and Brent crude down 4.66 per cent to $78.38, amid fresh demand fears.
As investors dashed for safe-haven assets, the yen jumped more than 1 per cent to around 113 per dollar, having languished earlier this week at five-year lows.
Dr Maria Van Kerkhove, Covid Technical Lead at WHO, on Thursday said the number of mutations of a variant can have a serious impact on how the virus spreads.
“We don’t know very much about this yet. What we do know is that this variant has a large number of mutations,” she said. “And the concern is that when you have so many mutations, it can have an impact on how the virus behaves.”
She said it would take the WHO “a few weeks” to understand what impact the variant will have and it is currently being monitored.
She said the Technical Advisory Group on Covid Evolution (TAG-VE), an independent group of experts who advise the WHO on the virus, would discuss whether it should be deemed a “variant of concern” and named “Nu".
The EU's drug regulator said on Friday that it was closely monitoring the new B.1.1.529 Covid-19 variant, but it was too soon to tell if updated vaccines would be needed.
The European Medicines Agency said it needed more details to see if the strain, which has "numerous mutations", could evade the current four jabs authorised for the bloc.
"We are closely monitoring the newly emerged B.1.1.529 variant which presents numerous mutations in the Covid-19 spike protein," the Amsterdam-based EMA said. "Current information is insufficient to determine if this variant is going to spread significantly and to what extent it may evade the immunity received with vaccines."
Scientists in South Africa have detected more than 30 mutations to the spike protein, the part of the virus that binds to cells in the body, the country’s department of health said on Thursday. The variant has caused cases in South Africa to spike 93 per cent in a day.
Imperial College London epidemiologist Neil Ferguson said that B.1.1.529 was driving the recent rapid increase in case numbers in South Africa.
“The government’s move to restrict travel with South Africa is, therefore, prudent,” he said. “However, we do not yet have reliable estimates of the extent to which B.1.1.529 might be either more transmissible or more resistant to vaccines, so it is too early to be able to provide an evidence-based assessment of the risk it poses.”
One patient in Israel has tested positive for B.1.1.529 after returning from Malawi, while a further two people are suspected of having it, the Israeli health ministry said.
Britain’s Transport Secretary Grant Shapps has said concerns the new coronavirus variant could “defeat the vaccine” prompted the revival of the UK's red list for travel.
He said that ministers acted “extremely fast” to ensure a “safety-first approach” to travel changes following an emergency meeting with chief medical officers.
“This is agreed across all of the United Kingdom and we have acted fast, it’s rather like the mink variant from Denmark last year, where we acted very quickly, within hours and we’re then able, once we’ve checked it out, to release things somewhat,” he said on BBC Breakfast.
“I hope that’s what this is, a pause rather than going backwards, but we can’t take risks when we see a variant which could well defeat the vaccine, or at least that’s the concern and we need just a bit of time to check that out.”
He said those who had flown to the UK from South Africa in recent days had been contacted by authorities asking them to take a PCR test and self-isolate upon arrival.
“The concern about this particular variant is that it is spreading very, very fast, its rate of growth has been very quick, we think the issue is probably [starting] from now, so we’re asking people to quarantine, self-isolate when they get home,” he added.
Ms von der Leyen said that she “proposes, in close co-ordination with the member states, to activate the emergency brake to stop air travel from the southern African region”.
Her statement came as the EU is gripped by a fourth wave of Covid, which has forced some governments to tighten restrictions.
Coronavirus cases rose by 11 per cent in Europe in the past week, the WHO said, making it the only region in the world where infections are on rising.
The organisation’s Europe director, Dr Hans Kluge, warned that without urgent measures, the continent could see another 700,000 deaths by the spring.
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Results
%3Cp%3E%3Cstrong%3EStage%203%3A%3C%2Fstrong%3E%3Cbr%3E1.%20Einer%20Rubio%20(COL)%20Movistar%20Team%20-%204h51%E2%80%9924%E2%80%9D%3Cbr%3E2.%20Remco%20Evenepoel%20(BEL)%20Soudal%20Quick-Step%20-%2014%22%3Cbr%3E3.%20Adam%20Yates%20(GBR)%20UAE%20Team%20Emirates%20-%2015%22%3Cbr%3E%3Cstrong%3EGeneral%20classifications%3A%3C%2Fstrong%3E%3Cbr%3E1.%20Remco%20Evenepoel%20(BEL)%20Soudal%20Quick-Step%3Cbr%3E2.%20Lucas%20Plapp%20(AUS)%20Ineos%20Grenaders)%20-%207%22%3Cbr%3E3.%20Pello%20Bilbao%20(ESP)%20Bahrain%20Victorious%20-%2011%22%3C%2Fp%3E%0A
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
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.”
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
