Europe is seeing a significant rise in Covid-19 cases. AFP
Europe is seeing a significant rise in Covid-19 cases. AFP
Europe is seeing a significant rise in Covid-19 cases. AFP
Europe is seeing a significant rise in Covid-19 cases. AFP


What does the Omicron Covid-19 variant mean for the UAE?


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November 28, 2021

It's sometimes hard to remember quite how much Covid-19 has expanded our epidemiological vocabulary during the past year and a half. Now, there's a new word that is worrying experts, governments and ordinary people the world over: Omicron, or, as it was known at first, the "Nu" variant. It refers to a new strain of Covid-19 that was recently identified in South Africa.

It is spreading, with cases reported throughout southern Africa and as far as Belgium and Hong Kong. It is too early to know quite how dangerous it is. And while worrying, the situation seems relatively manageable for now although the world must remain alert. The chair of the South African Medical Association, Angelique Coetzee, has said only "very mild cases" have been spotted in her country.

In general, new virus strains rarely pose a significantly greater danger in terms of individual illness. The most serious potential threat is on a larger, global scale. Omicron appears to be the most radical Covid-19 mutation to date. This increases the risk of vaccines being less effective against it. Mutations can also be more contagious. When these seemingly subtle changes are applied to billions around the world, the results are huge. The situation is particularly risky for countries that have low inoculation rates.

Today's anxiety mirrors the early days of the Delta variant in December last year. The strain did indeed turn out to be more dangerous, with higher transmission rates and perhaps more severe illness, particularly among the unvaccinated. It now represents 99.8 per cent of all cases that the WHO have sequenced in the past 60 days.

Beyond health, today's heightened uncertainty is hurting the economy. The price of oil, for example, fell about 13 per cent on Friday, the biggest decline since the early days of Covid-19. Hotspots face a particularly hard hit. South Africa has already had a difficult year, with high case numbers and widespread riots in July. It was banking on a strong tourism season, which now seems in doubt. The same is true for the rest of southern Africa. Just as people would have been looking forward to Christmas at home, many countries are putting in place travel bans to the region.

  • A Father Christmas figure holds Covid-19-related hygiene instructions for visiting the Christmas market in Hagen, western Germany. AFP
    A Father Christmas figure holds Covid-19-related hygiene instructions for visiting the Christmas market in Hagen, western Germany. AFP
  • People wait to be vaccinated below Albrechtsburg castle and the cathedral in Meissen, Germany. AP
    People wait to be vaccinated below Albrechtsburg castle and the cathedral in Meissen, Germany. AP
  • A pupil at the Petri primary school in Dortmund, western Germany. AFP
    A pupil at the Petri primary school in Dortmund, western Germany. AFP
  • A drive-in vaccination centre at Lanxess Arena in Cologne, Germany. Reuters
    A drive-in vaccination centre at Lanxess Arena in Cologne, Germany. Reuters
  • Shoppers in face masks at a Christmas market in Frankfurt, Germany. Bloomberg
    Shoppers in face masks at a Christmas market in Frankfurt, Germany. Bloomberg
  • People in a queue reported to be 700 metres long wait to be vaccinated at the Philharmonic Hall in the northern German city of Hamburg. AFP
    People in a queue reported to be 700 metres long wait to be vaccinated at the Philharmonic Hall in the northern German city of Hamburg. AFP
  • A medical worker administers a vaccine to a patient in a dressing room at the Theatre de Verdure vaccination centre in Nice, France. Reuters
    A medical worker administers a vaccine to a patient in a dressing room at the Theatre de Verdure vaccination centre in Nice, France. Reuters
  • Cyclists on a 'coronapiste', a temporary cycle path created during the pandemic in Paris, France. Mayor of Paris Anne Hidalgo set up about 60 kilometres of new cycling roads to take pressure off public transport during the pandemic. AFP
    Cyclists on a 'coronapiste', a temporary cycle path created during the pandemic in Paris, France. Mayor of Paris Anne Hidalgo set up about 60 kilometres of new cycling roads to take pressure off public transport during the pandemic. AFP
  • A healthcare worker administers a vaccine during a vaccination campaign for foreign tourists in Benidorm, Spain. AFP
    A healthcare worker administers a vaccine during a vaccination campaign for foreign tourists in Benidorm, Spain. AFP
  • Visitors have their Covid-19 health passes checked at the Christmas market in Trento, Italy, on its opening weekend. Reuters
    Visitors have their Covid-19 health passes checked at the Christmas market in Trento, Italy, on its opening weekend. Reuters
  • Health workers administer booster shots at San Giovanni Addolorata Hospital in Rome, Italy. EPA
    Health workers administer booster shots at San Giovanni Addolorata Hospital in Rome, Italy. EPA
  • The closed Christmas market next to Stephen's Cathedral, which would normally be packed with crowds of people, in Vienna, Austria. The country is under a nationwide lockdown. AFP
    The closed Christmas market next to Stephen's Cathedral, which would normally be packed with crowds of people, in Vienna, Austria. The country is under a nationwide lockdown. AFP
  • An unusually quiet street decorated with Christmas lights in Vienna, Austria. AFP
    An unusually quiet street decorated with Christmas lights in Vienna, Austria. AFP
  • People queue to receive a vaccine in Vienna, Austria. AP
    People queue to receive a vaccine in Vienna, Austria. AP
  • Police patrol the centre of the northern city of Zwolle, where an emergency order is in force after three nights of unrest in the Netherlands over new Covid-19 measures. AFP
    Police patrol the centre of the northern city of Zwolle, where an emergency order is in force after three nights of unrest in the Netherlands over new Covid-19 measures. AFP

However mild Omicron might be for those fortunate enough to be healthy and vaccinated, it is worth remembering those set to be worst hit. Fortunately, after a year and a half of the pandemic, the measures we need are known. Hygiene measures and wearing masks are as important as ever, as is social responsibility; Dr Farida Al Hosani, a government health spokeswoman, has urged people in the UAE to holiday at home this National Day and Christmas.

Outside the Emirates, promoting vaccine equality is the best tool we have for stopping Omicron and future variants. It is no coincidence that this strain has come about in a part of the world that has low inoculation rates. Less than a quarter of South Africa's population is fully inoculated. All countries must work together to bring up rates in poorer countries.

We have been here before, and therefore know what we must do. Whether Omicron takes hold or not, at the most fundamental level it is a reminder that vigilance remains of the utmost importance.

The specs

Engine: 3.9-litre twin-turbo V8

Transmission: seven-speed

Power: 720hp

Torque: 770Nm

Price: Dh1,100,000

On sale: now

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

Developer: Ubisoft Montreal / Ubisoft Toronto
Publisher: Ubisoft
Platforms: Playstation 4, Xbox One, Windows
​​​​​​​Release Date: April 10

Updated: November 28, 2021, 5:59 AM