The Dubai skyline. AP
The Dubai skyline. AP
The Dubai skyline. AP
The Dubai skyline. AP

What if you could move cities as easily as ordering food online?


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Globally, the impact of coronavirus has been felt differently across cities – some have been affected more severely than others. Similarly, economic sectors too have been affected differently in each country and each city.

In Dubai, the effect on air travel, tourism, construction and real estate have been undeniable. While we all hope that 2021 will bring relief from this year's challenges, it is not a useful strategy to simply hope.

Looking ahead, we must consider what can be done. What can we learn from this year? More importantly, how can we use the lessons of 2020 to shape the future?

Even as we hope for respite from challenges brought on by the pandemic, we must resolve to take urgent action with a specific focus on the local experience.

A couple of months ago, the Dubai Future Foundation convened online workshops to examine the economic impact and possible routes into the future. We identified three essential insights.

First, there is no going back to the economy that existed before coronavirus. This matters because there are many countries and cities around the world that are attempting to turn back the clock.

Dubai as seen from Al Sufouh. Reem Mohammed/The National
Dubai as seen from Al Sufouh. Reem Mohammed/The National

Another implication is that the infrastructure and human capital built during the pandemic will remain. Time will tell, however, whether they remain assets or liabilities.

Second, the digital and intangible spheres will be all-important. As we all know, online activity boomed during Covid-19. This will continue to be the case. We have become digital beings – online commerce, online working, online teaching are here to stay.

Third is the undeniable fact that people are united. We are one species, on one planet and our fates are intertwined. While physical borders were closed and some countries stockpiled goods, all countries were quick to reopen to travel, goods and services. As they say, globalisation is dead – long live globalisation.

Roll these three into one and you get, what we call, city-as-a-service. Or more precisely, Dubai-as-a-service.
The city-as-a-service offering is appealing because it is easy, globally accessible and customisable.

In the future, cities may offer add-ons to a basic service. A bit like television subscriptions: a basic one offers a few channels, more money buys more interesting channels

Think about it: there are plenty of reasons to relocate to Dubai, including a choice of housing, great international travel connections and an advantageous tax situation. So, the Dubai Tourism Authority was quick to realise this and has implemented a 'one-year virtual working programme', which redefines remote working.

This might just be a means to make up for the economic impact endured, a way to leverage existing assets and capitalise on the global supply of high-value work.

In essence, working professionals from around the world who meet the criteria can move to Dubai and make the city their base for working remotely. Such a scheme comes on the back of similar ones offered by countries such as Barbados and Estonia that advertise 'digital nomad visas' to attract start-ups and entrepreneurs who want to select the most suitable and appealing location for their work.

Such steps aim to attract high-value individuals and companies, thus boosting the economy.

In the future, cities may offer add-ons to a basic service. A bit like television subscriptions: a basic one offers a few channels, more money buys more interesting channels. How could cities make use of this approach and make it work for them?

Cities have a certain attraction because of what’s on offer: a vibrant scene, culture, restaurants, interesting people and plenty of opportunities. But they can also be expensive as housing, transport, health and education are factored in – not to mention, the effort of relocating can be a drain on time.

But what if there was an alternative. What if packages were available that included school and housing with an optional add-on for health that you could virtually just click on and add to your basket.

You might have transferable health insurance from your home country, but in case you don’t there would be options for add-ons, for transport (a basic add-on would include public transport, a high-end add-on would include a driver).

Choose length of the service, pick a level of service, select a location, sign digitally and you're all done – your package, the visa and the entry code to your apartment would be on the app. And your sim and driver would wait for you in Dubai.

As cities take steps to attract talent and money, a customisable menu, so to speak, would tempt professionals to relocate. In the future, the appeal of cities-as-a-service will grow.

As people choose a location, such services will become part of the offering that will make such moves easy and thus more feasible. It is not inconceivable to think that there will be waves of nomadic movements of this kind: as a city becomes more popular, prices will increase.

Consequentially and over time, nomads will be quick to relocate. Dubai-as-a-service will vie for the top spots with a view to retain as many people as possible.

With cities-as-a-service the technology, economy, location and globalisation are rolled into one and there is a dire need for creative thinking to reinvigorate economies.

As dramatic a year as 2020 has been, it has also been an innovative, entrepreneurial and creative one. I, for one, look forward to meet the first cohort of Dubai-resident digital nomads in 2021.

Dr Patrick Noack is the executive director of future, foresight and imagination at the Dubai Future Foundation

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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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

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Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

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What is graphene?

Graphene is a single layer of carbon atoms arranged like honeycomb.

It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.

Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.

By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.

At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.

It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.

But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.

In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties. 

 

What are the GCSE grade equivalents?
 
  • Grade 9 = above an A*
  • Grade 8 = between grades A* and A
  • Grade 7 = grade A
  • Grade 6 = just above a grade B
  • Grade 5 = between grades B and C
  • Grade 4 = grade C
  • Grade 3 = between grades D and E
  • Grade 2 = between grades E and F
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Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5