Economy

Tourism

Hatta Earns Global Acclaim as a Sustainable and Culturally Enriched Destination

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The enchanting Hatta region of Dubai, nestled in the Hajar Mountains, is undergoing a remarkable transformation, positioning itself as a model for sustainable growth and cultural preservation. This visionary development is gaining widespread acclaim, solidifying Hatta’s status as a destination of increasing popularity on both national and global scales.Recognized as one of the ’50 Most Beautiful Small Towns in the World’ by Condé Nast Traveler in May this year, Hatta reflects Dubai’s visionary leadership and commitment to balanced growth. Situated 130 km southeast of Dubai city, Hatta has not only become a must-visit destination but also serves as an example of how modern development can seamlessly coexist with cultural conservation and environmental sustainability. The Hatta Master Development Plan, initiated in 2021 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, plays a pivotal role in this transformative journey. Integral to the Dubai 2040 Urban Master Plan, the development plan focuses on enhancing residents’ well-being, creating unique visitor experiences, and catalyzing Hatta’s ascent as a vital tourism and cultural hub. His Excellency Mattar Al Tayer, Dubai’s Commissioner General for Infrastructure, Urban Planning, and Well-Being Pillar, emphasized that Hatta’s development, guided by His Highness Sheikh Mohammed bin Rashid Al Maktoum’s visionary strategy, strikes a harmonious balance between sustainability and economic growth while preserving the region’s unique cultural identity. As part of the initial phase of the plan, the ‘Hatta, The Highlands of Dubai’ campaign was launched to promote the region’s natural beauty, pleasant climate, and rich history. Notably, Hatta received a significant boost with the development of the new Hatta Souq and the revitalization of the Hatta Heritage Village. The Souq, blending traditional and contemporary designs, has become a vibrant marketplace showcasing local products and crafts, while the Heritage Village has transformed into a cultural landmark, highlighting the region’s rich history and traditions. With attractions like Hatta Dam, Hatta Hill Park, Hatta Honeybee Garden, and Discovery Centre, Hatta has become a bustling tourist hub offering distinctive experiences in nature and heritage. The first phase of the plan also witnessed the creation of a robust infrastructure, including an extensive network of cycling tracks, enhancing connectivity and accessibility for eco-friendly travel and adventure sportThe second phase, launched in early 2023, includes 22 projects and initiatives, featuring the transformation of Hatta Beach into an all-season tourist spot. The Hatta Beach Project, with the Crystal Lagoon, is designed to provide year-round leisure and entertainment facilities, further elevating the region’s appeal. Another notable project is the Hatta Sustainable Waterfalls, near Hatta Dam, uniquely designed to combine sustainability, heritage, and economic development. The hexagonal beehive design, inspired by Hatta’s honey-making traditions, adds a cultural touch to the project. Additionally, a 5.4 km cable car will be installed, carrying visitors from the dam to the top of Umm Al Nusour, the highest peak in Dubai. Hatta has emerged as a hub for sports and culture, hosting events such as the Dubai Fitness Challenge and the Spartan Race. These events underscore Hatta’s potential for hosting international sporting events and promoting an active lifestyle.

Tourism

Arabian Travel Market Establishes Key Partnerships with ICCA and GBTA as Knowledge Collaborators

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Arabian Travel Market (ATM) has unveiled a strategic collaboration with the International Congress and Convention Association (ICCA) and the Global Business Travel Association (GBTA) for the forthcoming edition of the event, scheduled from May 6th to 9th, 2024, at the Dubai World Trade Centre. Designated as ‘Knowledge Partners’ for the regional trade show, these esteemed global organizations will offer comprehensive insights and opportunities within the thriving domains of business events and travel. Citing data from the ICCA statistical forecast, which delineates the history and performance of the International Association Meetings Industry from 1963 to 2022, it was revealed that 10,602 business events were documented globally last year, with 9,009 (85 percent) being conducted in person. This marked a remarkable 349 percent surge from the previous year when only 2,007 in-person events occurred. Notably, the Middle East accounted for the highest percentage of in-person delegates (94 percent) in the official figures for the preceding year. The business travel industry is also witnessing substantial growth, as indicated by the 2023 GBTA Business Travel Index™ Report, revealing that the global business travel sector rebounded more swiftly than anticipated in 2023. Factors such as pent-up demand post-pandemic and healthier economic conditions than projected were identified as significant contributors to this positive trend. The report further highlighted a 47 percent increase in global business travel spending to $1.03 trillion last year, with expectations for this figure to reach nearly $1.8 trillion globally by 2027.Danielle Curtis, Exhibition Director at Arabian Travel Market, expressed: “The latest research underscores the robustness of the business events and business travel sectors. As integral verticals at ATM, the official partnership with ICCA and GBTA for the 2024 edition will elevate our offerings. Collaborating with these esteemed industry leaders, ATM aims to provide enhanced value and innovation to its attendees and exhibitors. With a dedicated focus on these pivotal sectors, ATM is committed to delivering a world-class event that serves as a platform for networking, education, and business opportunities for global professionals.” During ATM 2024, ICCA will present seminars covering various MICE industry topics, while GBTA will delineate prevailing trends in the business travel sector. These seminars aim to provide valuable insights into recent research, innovations, and best practices within the industry. Dr. Senthil Gopinath, CEO of ICCA, expressed: “ICCA proudly announces our collaboration with ATM, envisioning business events as a foundational segment in future editions. With ICCA as a Knowledge Partner for the MICE segment, we are collectively poised to redefine collaboration, innovation, and success in the interconnected realms of business.” Catherine Logan, Regional Senior Vice President EMEA and APAC at GBTA, added: “Despite being one of the smaller global business travel markets, the MEA region has significant growth potential and exceeded pre-pandemic business travel spending, reaching 95 percent recovery in 2022. Forecasts for 2023 predict business travel spend in the region to surpass this figure and reach USD$30.6 million, continuing its growth trajectory.”

Tourism

DXB Achieves Historic Milestone as the First International Airport to Attain Certified Autism Centre Designation

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Dubai International (DXB) has achieved a groundbreaking milestone as the first international airport to be granted the Certified Autism Centre™ (CAC) designation by the International Board of Credentialing and Continuing Education Standards (IBCCES). This accomplishment underscores Dubai Airports’ commitment to enhancing the travel experience and fostering accessibility for individuals with disabilities, aligning with Dubai’s aspirations to be recognized as a Certified Autism Destination™. Majed Al Joker, Chief Operating Officer at Dubai Airports, expressed the significance of this achievement, stating, “This recognition attests to our steadfast commitment to providing an inclusive travel experience for all our guests, including those with hidden disabilities. In line with UAE Vision 2021 and Dubai Plan 2021, aiming for the Emirate to be the world’s leading disability-friendly city, we are devoted to promoting the inclusion of all guests and creating an airport environment where everyone feels welcomed and supported. “We are honored to collaborate closely with the Department of Economy and Tourism (DET) and the IBCCES team to address challenges in this area.” Essa bin Hadher, General Manager at Dubai College of Tourism, highlighted the pivotal role of Dubai International Airport as the initial touchpoint in the traveler’s journey, emphasizing the significance of this accomplishment in advancing accessibility goals. Dubai International (DXB) underwent a thorough on-site assessment of all three terminals conducted by IBCCES to earn the certification. The assessment included an evaluation of the tailored services introduced through the Sunflower Lanyard Programme. The Sunflower Lanyard Programme discreetly identifies and assists People of Determination (POD) guests, providing access to prioritized routes for check-in, passport control, security checkpoints, and boarding when wearing a sunflower lanyard. Specially trained Guest Experience Ambassadors and employees wearing a sunflower pin are available to assist POD travelers throughout their airport journey. In addition to the Sunflower Lanyard Programme, Dubai International (DXB) introduced a hidden disability service training and awareness program as part of its ‘We all meet the world differently’ initiative launched in 2022. This program, delivered to 33,000 airport staff across DXB service providers, enhances their understanding of visible and non-visible disabilities. Furthermore, a travel planner was introduced as a step-by-step visual guide for passengers with hidden disabilities, facilitating their navigation of the airport. DXB’s POD service offering includes complimentary two-hour parking, specialized assistance at customs and immigration, dedicated taxis, and wheelchair services. Myron Pincomb, IBCCES Board Chairman, commented on the certification, stating, “This certification reflects the airport operator’s dedication to exceptional service and aligns with Dubai’s vision for a more accessible city. Through our partnership, we empower airport staff with skills and tools to create a more welcoming environment for autistic and sensory-sensitive travelers, contributing to an enhanced travel experience for all.”

Aviation

Dubai’s Emirates becomes world’s first to operate an A380 test flight using 100% SAF

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The flight was powered by 100% SAF in one of four engines to test performance Dubai airline Emirates completed an Airbus A380 demonstration flight last week using 100 per cent sustainable aviation fuel (SAF), making it the first airline in the world to do so. WHAT WAS THE FUEL USED? The 100% drop-in SAF used on today’s flight includes renewable aromatics and closely mimics the characteristics of conventional jet fuel. This is the first time that drop-in SAF has been used on an A380 aircraft, with the expectation of full compatibility across the aircraft’s existing systems. The flight carried four tonnes of SAF, comprised of HEFA-SPK provided by Neste (hydro processed esters and fatty acids synthetic paraffinic kerosene) and HDO-SAK from Virent (hydro deoxygenated synthetic aromatic kerosene). ENOC helped to secure the neat SAF comprised of HEFA-SPK, and blended it with Sustainable Aviation Kerosene (SAK) at its facility in Dubai International Airport ahead of the demonstration, and also carried out into-plane services. According to Adel Al Redha, Chief Operating Officer of Emirates Airline, the test flight conducted today paves the way for future standardization, qualification and adoption for 100 per cent SAF flying. He said, “Emirates is the first passenger airline in the world to operate an A380 with 100 per cent drop-in SAF (sustainable fuel blended with conventional fuel) powering one of four Engine Alliance GP7200 engines.” Al Redha said the test also marks a significant step in validating the use of SAF in one of the engines of the A380, a wide-body aircraft with four engines. This is the first time drop-in SAF (sustainable fuel blended with conventional fuel) has been used on an A380 aircraft, with the expectation of full compatibility across the aircraft’s existing systems. Large-scale manufacturing Al Redha said, “Now that we have completed this test, the next step would be to ensure the availability of the fuel in various airports. We rely on fuel suppliers to start manufacturing and producing such fuel in the required volume, and that will be the challenge.” The growing global demand for lower-emission jet fuel alternatives is there, said Al Redha. “However, the work of producers and suppliers to commercialize SAF and make it available will be critical in the coming years,” he explained. This will help Emirates and the wider industry advance the path to cutting emissions. Earlier this year, Emirates completed the first 100 per cent SAF-powered demonstration flight in the region on a GE90-powered Boeing 777-300ER, and last month, the first Emirates flights operating with SAF provided by Shell Aviation took off from Dubai International Airport (DXB). Shell supplied 315,000 gallons of blended SAF for use at the airline’s hub in Dubai. The airline recently expanded its partnership with Neste to supply over 3 million gallons of blended SAF in 2024 and 2025 for flights departing from Amsterdam Schiphol and Singapore Changi airports. Emirates currently uplifts SAF in Norway and France. The test flight also comes against a backdrop of the third International Civil Aviation Organization (ICAO) Conference on Aviation and Alternative Fuels (CAAF/3), where members of the aviation industry, international organisations, regulatory bodies and high-level officials are driving policy-related decisions related to the adoption of SAF.

Aviation

Dubai’s vision for advanced aerial mobility accelerates its sustainability agenda

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Dubai has always believed in proactively preparing for the future and setting in place strategies to address forthcoming challenges. Sustainability is one of the dominant themes underpinning every aspect of development in the emirate today, from urban planning to utilities to public transport. It is no surprise then that Dubai has been among the first cities in the world to pilot air taxis and chart their future growth with visionary planning and infrastructure development. Aerial taxis are expected to feature prominently in discussions on sustainable aviation and net zero emission targets at the 2023 edition of the Dubai Airshow under the theme ‘The Future of the Aerospace Industry’, prominently featured the soaring market for advanced aerial mobility (AAM) and urban air mobility (UAM) solutions. Aerial mobility pioneer While the deployment of aerial taxis is part of Dubai’s agenda for adopting cutting-edge innovation, the emirate also places high priority on the new technology due to its significant potential for advancing sustainable urban transportation. In the broader aviation industry, carbon dioxide (CO2) emissions could climb sharply to anywhere between 25% to 30% by 2050 in the absence of credible alternatives given the soaring demand for air travel, predicts a report by Frost & Sullivan titled ‘Sustainable Technologies in Aviation’. By taking cars off the road and reducing traffic congestion, aerial taxis can contribute significantly to addressing environmental challenges. According to some estimates, flying taxis have the potential to reduce greenhouse gas emissions by up to 80% compared to traditional cars. The AAM market globally is projected to reach $16.8 billion in 2025, expanding significantly to $110 billion by 2035. This translates into a compound annual growth rate (CAGR) of approximately 21.7%. The Dubai Airshow seeks to provide regional and international players a platform to explore futuristic technologies that are bound to revolutionize air travel. Dubai, being the trendsetter it is, has been among the first movers in the context of AAM innovation and infrastructure planning. Earlier this year, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced plans to launch air taxis in Dubai in just over three years. The initiative will see vertiports spring up across the city as part of an air mobility infrastructure network designed for the future. Providing the AAM industry still more impetus, the UAE General Civil Aviation Authority (GCAA) and the Mohammed bin Rashid Aerospace Hub (MBRAH) have joined hands to establish the world’s first AAM integrator world center in Dubai. The development of the world’s first-ever vertiport certification process and strengthening Dubai’s global standing in the AAM sector would also come under the ambit of the project. Early bird As far back as 2017, Dubai conducted a test flight of a driverless flying vehicle that at the time gained instant attention as the world’s first self-flying taxi service set to be introduced by Dubai’s Roads and Transport Authority (RTA). Spelling out Dubai’s will to make things happen, HH Sheikh Mohammed bin Rashid tweeted during the World Government Summit held in Dubai: “We approved today the design of the new air taxi stations in Dubai, which will start operating within three years.” Dubai’s Roads and Transport Authority (RTA) has worked on a conceptual design of aerial taxi vertiports. His Excellency Mattar Al Tayer, Director General, Chairman of the Board of Executive Directors of the RTA, explained that the vertiports will feature designated take-off and landing zones in addition to a passenger waiting area and electric charging stations. There will also be required security protocols to comply with the applicable security policies and laws. “In line with Dubai’s vision for future technologies, the adoption of advanced aerial mobility technologies is a testament to our commitment to transforming urban mobility as well as ushering in a greener future. Under the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, we are investing in a technology-rich future that is sustainable, efficient and interconnected. This is aligned with our broader vision for Dubai, as outlined in the Dubai Economic Agenda D33 to transform the city into one of the world’s top three urban economies. The integration of aerial taxis into our urban infrastructure will create a cohesive, multimodal transportation network that demonstrates Dubai’s readiness to embrace new technologies while keeping sustainability and the wellbeing of its residents at the forefront,” His Excellency said. When ready, the new infrastructure will make Dubai the first city in the world with a fully developed network of vertiports. Capable of achieving top speeds of 300 km/hr and a maximum range of 240 km, the aerial taxis would accommodate four passengers in addition to the pilot. Currently we are working with the right investor who is capable of building the infrastructure required for the air mobility industry, Al Tayer added. Initial networkThe initial network of vertiports is expected to connect four main areas of Dubai, namely Downtown Dubai, Dubai Marina, Dubai International Airport and Palm Jumeirah. The task of devising a comprehensive framework for introducing aerial taxis has been left to the RTA, which would also identify take-off and landing sites, besides framing protocols for safe and efficient operations. “The regulatory and safety aspects of aerial taxi operations will be studied at length and a clear framework evolved well in advance to deliver path breaking services while ensuring the highest level of public satisfaction,” Al Tayer added.

Tax News

UAE Corporate Tax: Big relief for commodity traders in free zones

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Commodity businesses at free zones will be much pleased with latest corporate tax updates A big relief has been provided to commodity traders operating from free zones that have not been deemed ‘designated zones’. Income derived from trading of ‘qualifying commodities’ with non-free zone persons (domestic or overseas) would also be eligible for 0 per cent tax rate. Qualifying commodities means metals, minerals, energy and agriculture commodities traded on a recognized commodities exchange market – in the UAE or overseas – in raw form. It applies to physical trading activities of such commodities and associated derivative trading used to hedge against risks involved in such activities. Qualifying intellectual property Income from the ownership or exploitation of all intellectual property assets was earlier specifically excluded from 0 per cent rate. Under the revised decisions, a certain portion of the income derived from the ownership of ‘Qualifying Intellectual Property’ is eligible for 0 per cent rate. Qualifying IP includes patents and copyrighted software. Any other rights that are functionally equivalent to a patent are also included. (For example, utility models, IPR for plants and genetic material, orphan drug designations, and extensions of patent protections.) However, any marketing related IPR – such as trademarks – would not be eligible. The proportion of the expenses incurred to fund R&D activities directly connected with the creation, invention or significant development of such qualifying IP – along with a deemed ‘uplift expenditure’ – will determine how much income from qualifying IP could enjoy 0 per cent rate. Clarity on adequate substance Maintaining ‘adequate substance’ is an important compliance requirement to claim 0 per cent tax rate. Adequate substance requires conducting core income-generating activities (CIGA) and maintaining adequate assets, a certain number of employees and incurring operating expenditure. Core income-generating activities mainly consist of those functions that drive the business value and are not mostly support activities. It requires an adequate number of qualified full-time employees. The adequate substance should be maintained in such free zone – or a designated zone – where the qualifying activity is required to be conducted. Even the third-parties to whom core income-generating activities could be outsourced should meet this location condition. Points to ponder Income from headquarter services to related parties – eligible for 0 per cent – has now been explained in detail. ‘Headquarter services’ includes the administering, overseeing and managing of business activities of related parties, including the provision of senior and general management, captive insurance services, administrative services, procurement services, business planning and development, risk management, coordination of group activities, and in general incurring expenditures on behalf of related parties and providing other support services to related parties. The ‘headquarter services’ should be treated carefully. Apart from the anti-abuse rules, a question remains if a mainland company – otherwise ineligible for 0 per cent rate and/or operating mainland retail stores – could restructure its management activities (including owners’ salaries) into a separate free zone company. Similarly, free zone companies – otherwise ineligible for 0 per cent – should split their management activities into a separate free zone company. Even though transfer pricing will apply, the corporate group may be able to enjoy 0 per cent on a fair portion of its overall profits. The activity of distribution of goods or materials in or from a designated zone has been explained in detail, thereby addressing pertinent concerns of taxpayers. I have come across many interesting scenarios that still need careful evaluation – be it the distribution of equipment not intended for resale, ensuring that overseas customers are resellers, trading of goods that are not qualifying commodities, or third-port shipment sales. With more clarity available on free zone tax incentives, business owners need to ensure that they ask the right questions to optimize the tax impact and compliance requirements. Offset Paper ======================================= Indonesia (per Ream) ————————————— 23×36              75             12000 27×34              75             14000 25×35.5            75            13,400 30×40              75            18,150

Tech

DIEZ launches AED500 million venture capital fund designed to finance technology startups

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– In the presence of Ahmed bin Mohammed ..Dubai Integrated Economic Zones Authority launches AED500 million venture capital fund designed to finance technology startups – The new fund was launched on the sidelines of the Dubai Business Forum, organised by Dubai Chambers– Launched under the trademark Oraseya Capital, the fund will play a pivotal role in supporting startups from the pre-seed stage to the Series B investment stage Under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Dubai Integrated Economic Zones Authority (DIEZ), announced the launch of a venture capital (VC) fund worth AED500 million. Launched in the presence of His Highness Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Second Deputy Ruler of Dubai, the fund is designed to finance technology startups and supports the economic objectives outlined in the Dubai Economic Agenda, D33 by promoting the growth of small and medium-sized enterprises (SMEs) in various emerging sectors. The new fund was launched on the sidelines of the Dubai Business Forum, which is being organised by Dubai Chambers under the patronage of HH Sheikh Mohammed bin Rashid. The fund is the first investment programme launched under the name of Oraseya Capital, the venture capital arm of DIEZ specializing in venture investment operations in startups. It will play a pivotal role in supporting startups, starting from the pre-seed stage, and extending all the way to the Series B investment stage. His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, said the launch of Oraseya Capital and the creation of a AED500 million VC fund for technology startups represents a strategic move that aligns with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum to support the growth of Dubai’s digital economy sector. His Highness said: “This qualitative strategic initiative supports the efforts of DIEZ to enhance its contribution to Dubai’s economy and the growth of the SME sector, which is a vital segment of the economy and serves the overarching goal of achieving comprehensive and sustainable development. This will ensure the continued sustainability and progress of Dubai’s economy in the decades to come. “The establishment of this VC fund serves as a major boost for accomplished companies looking to build a global presence. It will play a pivotal role in strengthening Dubai’s status as a nurturing ground for the most innovative, advanced and creative enterprises worldwide. We are confident in the capabilities of the expert team at Oraseya Capital, who are well-versed in supporting startups in emerging sectors and cutting-edge technology. Our aim is to see these startups join the esteemed ranks of ‘unicorn’ companies, beginning their journey right here in emirate, a key player in shaping the global economy,” His Highness concluded. One of the fund’s core objectives is to address the existing gaps in corporate finance, particularly during these crucial developmental stages. The initiative reflects Dubai’s commitment to keeping pace with the world’s leading economies in the field of startup investment, recognizing the potential these companies hold for contributing to the growth, advancement and reinforcement of the national economy. DIEZ established Oraseya Capital to reinforce capability and competency building. The initiative is geared towards facilitating the global expansion aspirations of startups and making investments in cutting-edge technology. These endeavours collectively serve to strengthen Dubai’s status as a rapidly growing hub and an attractive destination for companies and enterprises alike. His Excellency Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, leads the Board of Directors of this enterprise. Its members include specialists in financial funds, corporate establishment, business development, and investment consulting, each bringing over 15 years of experience in the startups field, specifically within the UAE and Dubai. Leveraging the extensive experience of DIEZ and its economic zones, spanning nearly a quarter of a century, brings added depth and perspective to this initiative. His Excellency Abdul Aziz Abdulla Al Ghurair, Chairman of Dubai Chambers, said: “The launch of DIEZ’s investment fund reflects Dubai’s growing position as a leading destination for investments and a global hub for financing technology startups. The Dubai Business Forum creates the ideal platform to announce ambitious initiatives of this kind that support the objectives outlined in the D33 agenda and advance the global economy.” Al Ghurair added: “We remain committed to achieving our strategic priorities by attracting international businesses and investments to Dubai and supporting the continuous growth of the digital economy. We greatly value DIEZ’s initiative, which represents an advanced step towards enhancing Dubai’s global competitiveness in attracting and financing technology startups.” His Excellency Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, said: “Oraseya Capital’s core values include effective engagement, support for modern technology and the cultivation of creative ideas. The emphasis is on fostering a collaborative ecosystem for innovative entrepreneurs to exchange ideas, knowledge and resources. This initiative prioritises adaptability by remaining open to new opportunities and contemporary technologies that align with the fund’s objectives. Integrity stands at the forefront, with a commitment to upholding the highest standards of transparency, all in service of supporting and financing technology companies at the emirate’s level. “The VC fund’s primary focus lies in the strategic investment of startups exhibiting substantial growth potential. Our goal is to empower entrepreneurs from various corners of the world to nurture and establish innovative enterprises. This endeavor is instrumental in strengthening Oraseya Capital’s standing as a premier venture investment company for startups, eagerly sought after by both entrepreneurs and investors alike, all of whom aspire to reshape the landscape and future of advanced technology sectors,” Dr. Al Zarooni added. Oraseya Capital has introduced its official website, providing a platform for business owners to submit financing applications to the VC fund. This initiative targets local companies within the city, as well as international enterprises seeking to establish their operations in Dubai.The VC fund excels at providing support to companies that are part of its investment portfolio by adopting a direct guidance approach and active participation to help companies ensure their

Banking & insurance

How UAE Banks arespearheading sustainability drivewith $51 billion in green financing

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The UAE’s banking sector has been toeing the line in tandem with UAE Net Zero 2050and the energy diversification strategy, launching sustainability frameworks andfinancing some of the biggest renewable projects, all the while fighting climate changewith environmental campaigns and activities, a top official said. “This reaffirms the sector’s commitment to UN Sustainable Development Goals (SDGs)and aims to contribute to making green energy affordable and accessible in the countryand wider region, primarily through the issuance of green financing and funds,” JamalSaleh, Director General of UAE Banks Federation – the sole representative and unifiedvoice of banks in the UAE, told Al Maktoum Investment Magazine. Apart from financing, banks have been adopting innovative technologies and embracingdigitization to reduce their carbon footprints by way of paperless transactions, improvingenergy efficiencies through “green buildings” retrofitting and smart facility managementto conserve electricity, recycle waste and plastic, as well as monitoring to reduce theirgreenhouse gas (GHG) emissions. Thus, contributing to the UN’s goals of buildingresilient infrastructure and fostering innovation. Saleh underlined that the UAE banking sector’s efforts and initiatives aim to “transformthe finance industry into a force for driving sustainability”. UAE banks have been fervent in implementing sustainable finance frameworks andbuilding robust green finance infrastructure to support green projects and initiatives. According to published data from six major banks: First Abu Dhabi Bank (FAB), AbuDhabi Commercial Bank (ADCB), Emirates NBD, Dubai Islamic Bank, Mashreq Bankand Abu Dhabi Islamic Bank, green financing for various projects, in committed andallocated loans, bonds and investment funds, amounts to $51.8 billion (more thanDh190 billion). Mashreq Bank Green bonds issued by UAE banks to finance environmental projects have been vital insecuring investments for renewable and sustainability projects. For example,sustainability- and adaptation-linked investments worth $15.5 billion have been financedby Mashreq Bank. The bank formed its very first internal Sustainability Working Group (SWG), which willbe accountable for assessing current and potential Environmental, Social, andGovernance (ESG)-related risks and opportunities, reviewing the existing framework tomanage such risks, prioritizing ESG initiatives for immediate implementation, settingtargets, and monitoring performance against established key performance indicators(KPIs). Abu Dhabi Commercial Bank Abu Dhabi Commercial Bank (ADCB) has recently been recognized by the UAEgovernment for the bank’s strong track record in sustainability and social impact. Thebank has committed $13.6 billion to green financing by 2030 under its ADCBGreen/Sustainable Bond Framework. The framework adopted last year was launchedwith inaugural $500 million funding to help finance low-carbon initiatives like windturbines and solar panels. First Abu Dhabi Bank FAB has allocated $1.16 billion by 2022 to various green projects, such as three solarpower plants that will help reduce CO2 emissions, seven “green buildings” for energyefficiency and a wastewater plant that can treat up to 430,000 cubic metres of waterevery day. The bank’s green financing efforts have supported UAE’s solar energy initiativehighlighted by the Mohammed Bin Rashid Al Maktoum Solar Park (MBR), which will bethe largest single-site concentrated solar power plant in the world with a plannedproduction capacity of 5,000 MW by 2030. When completed, it will provide clean energyfor 320,000 residences and save over 6.5 million tonnes of carbon emissions annually. Emirates NBD As per the Emirates NBD’s annual Environmental, Social, and Governance (ESG)report, the bank has issued some $11.35 million in ESG bonds as conventional andsukuk financing over the past three years to support various projects. Some $50.63million was also issued in “sustainable loan solutions,” which covered agriculture,projects to reduce greenhouse gas emissions, and increasing the use of renewableenergy. Abu Dhabi Islamic Bank Abu Dhabi Islamic Bank has put in motion a new three-year ESG strategy thatprioritizes accelerating its green financing and investing initiatives, having already madesignificant strides in this area with the allocation of $1.7 billion towards sustainableproject financing. Dubai Islamic Bank Dubai Islamic Bank introduced a Sustainable Finance Framework (SFF) ESG credit riskpolicy and scorecards and issued sukuk of $705 million in 2022, the first-everSustainable Sukuk from a UAE Financial Institution. In addition, ESG funding during theyear booked new green financing of approximately $367 million. Over the past severalyears, the bank has participated in more than $7 billion of green Islamic capital markettransactions globally. Prominence of COP28 Saleh underlined that COP28 is a powerful platform for the UAE banking sector.

Tech

Khaled bin Mohamed bin Zayed, Hamdanbin Mohammed launch Sirb development phase

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His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of AbuDhabi and Chairman of Abu Dhabi Executive Council, and H.H. Sheikh Hamdan binMohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of DubaiExecutive Council, have launched the development phase of the Sirb program, markinga historic moment in the development of the country’s space sector, driven by the UAE’sindustrial sector.Their Highnesses received a comprehensive overview of the project’s objectives andthe advanced technology slated for development in the satellite programme. They werealso briefed on the project’s milestones and the mechanisms for developing andoperating the satellites by a national industrial consortium under the supervision of theUAE Space Agency.The first satellite, which will be launched in 2026, will complement the UAE’s investmentin remote sensing technologies that serve different sectors using various satelliteimages. Radar satellites are capable of capturing images, day or night, and irrespectiveof atmospheric conditions. This groundbreaking project marks the pioneeringdevelopment of a constellation comprising three synthetic aperture radar (SAR)satellites, utilising state-of-the-art imaging technology to achieve high-precision resultsin all weather conditions.The project aims to enhance the UAE’s efforts to find solutions to climate changechallenges and environmental sustainability, contribute to urban development, integrateefforts to tackle natural disasters, and support food security challenges, by relying onqualified national talent and UAE companies. It also aims to nurture partnerships withglobal institutions and offer incentives, as an extension of the Space Economic Zonesproject, to consolidate the UAE’s position as a global hub for talent, investment andinnovation.H.H. Sheikh Khaled said, “We will enhance local expertise in the field of space tosupport our ambitious vision for the UAE to become a global hub for manufacturing andoperating satellites. We are focusing on creating opportunities for national companiesand the private sector to be part of this significant journey, and to support thedevelopment of the space sector’s infrastructure.” H.H. Sheikh Hamdan said, “Sirb marks a strategic turning point in the UAE spacesector, transitioning from a governmental and academic sector to an integratedgovernmental, private and academic sector that supports the development ofmicrotechnology and progresses the space sector’s industrial development.Empowering start-ups, SMEs and entrepreneurs tops our priority list, as they are themain drivers for economic growth.”Sarah Al Amiri, Minister of State for Public Education and Advanced Technology andChairperson of UAE Space Agency, thanked Their Highnesses Sheikh Khaled andSheikh Hamdan for their continuous support and vision in the space sector, as well asfor supervising the launch of the development phase of the Sirb programme, led by theindustrial and the private sectors in the UAE, for the first time.Al Amiri, said, “The launch of the development phase of Sirb is a milestone in our spacejourney that embodies the UAE’s determination and persistence to lead thecomprehensive renaissance of the space sector in all its fields and sectors. Today, wechart a course aligned with the UAE’s unwavering commitment and tenacity inadvancing the space sector and ensuring its prosperity and sustainability, with thesteadfast backing of our leadership.”She added, “At the UAE Space Agency, we are committed to opening new horizons forlocal industry, developing Emirati talent, and supporting national companies to ensuretheir contribution to the comprehensive development renaissance and building aprosperous future for the UAE.”EDGE assumes the role of a strategic partner to manage the programme with an addedfocus on the Synthetic Aperture Radar (SAR) payload development. Yahsat andBayanat will both manage satellite operations and data, while NSSTC will contribute byproviding assembly, integration, and testing (AIT) operations.The consortium will continue to expand its collaboration with other industry players,SMEs and startups to further enhance the collective expertise and capabilities of theprogramme and support the growth of the space private sector.EDGE will also work on the development of strategic alliances for technology transfer,knowledge exchange, and expertise development in satellite systems, amplifying theUAE’s sovereign capabilities in crucial space domains, particularly SAR payloads.This space programme will strengthen the UAE’s position as a regional and globalleader in space, while also driving economic growth and technological innovation.Central to the Sirb programme is the commercialisation of the satellites, and the datathey generate, on both national and international fronts. These highly accurate spaceradar satellites will support a wide range of scientific and commercial applications, frommonitoring environmental changes to natural disaster management and mapping.  

Property

Dubai property buyers need to get realisticon price expectations

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  For a true pulse on market performance, go with what’s happeningon ready homes When it comes to property investments in Dubai, the best way forward is toformulate realistic assumptions regarding the trajectory of the real estatemarket. To do so, it is essential to delve into the fundamental cycle thatpropels real estate prices.What are the underlying principles that drive these price? While there existany number of valid reasons behind the buoyant state of Dubai & real estatemarket, they all converge on certain pivotal triggers that fuel price increases.This cycle commences with an intricate interplay between supply and demand,particularly for ready properties. These residential units serve as trueindicators of the actual real estate market & pulse, as opposed to off plan sales.This is because off plan sales tend to diverge from demand for readyproperties, because they are overly reliant on investor enthusiasm and marketsentiment to propel them. A good market run Consequently, they cease to accurately represent the essential factors thatdrive the market. Nevertheless, it is vital for all investors – and landlords – to maintain a sense of realism. The rapid price escalation in Dubai property from late 2020 onwards – when the market was at its lowest point – cannot be expected to continue at the same pace indefinitely.Therefore, it is prudent for sellers and landlords to identify the actual marketvalue of their properties using the open data sources provided by Dubai LandDepartment. Depending on their willingness to sell or rent, as opposed towaiting for the ‘perfect’ time for a buyer or tenant, they should make informeddecisions, even if it entails accepting offers slightly below their expectations.While there is a noticeable upward trend in the number of transactions, asevidenced by 31,000 property sales transactions and a 23 per cent increasecompared to Q3 2022, as well as a sales value of Dh98 billion in Q3-2023,investors must be cognizant that healthy trend, while indicative of marketsustainability, does not imply an endless surge in property prices.The substantial increase in supply, exemplified by the registration of 90 newprojects in Q3-23, representing the highest ever for any third quarter in thepast. With this surge in supply, demand may become diluted across numerousprojects in the market, potentially slowing down the rate of price appreciation.Unrealistic market dynamics must be avoided for the sake of long-termsustainability. In summary, the Dubai real estate market exhibits stability interms of transaction volumes and property prices. However, no investmentdecision should be made without scrutinizing the stats at the unit level. TheDubai Land Departments& provision of data is a valuable resource for allmarket stakeholder…

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