Sheikh Mohamed bin Zayed on Sunday directed Abu Dhabi National Oil Company to explore opportunities in hydrogen, with the ambition to position the UAE as a world leader in exploiting this ultimate green fuel.
The Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces said the UAE has the chance to capitalise on the emerging global market for hydrogen by making use of Adnoc’s existing infrastructure, as well as Abu Dhabi’s vast reserves of natural gas.
Adnoc already produces hydrogen for its downstream operations and after this mandate will explore the potential to help meet the demand for hydrogen and ammonia derived from natural gas.
Here we look at why hydrogen is the fuel of the future:
Why is hydrogen so special?
Hydrogen is an energy source like no other. It is by far the most common element in the universe and when burnt releases nothing but heat and water. Hydrogen can also be used to generate clean electricity directly in battery-like devices called fuel cells.
In contrast, burning fossil fuels releases greenhouse gases such carbon dioxide, along with noxious pollutants such as oxides of nitrogen.
So why has it taken so long to exploit?
Despite its cosmic abundance, most hydrogen on Earth is bonded to other atoms – such as carbon in natural gas and oxygen in water – and freeing it requires energy. So hydrogen is a clean fuel only if clean methods are used to extract it.
Until now, 95 per cent of it has been produced from fossil fuels using high pressures and temperatures. Known as brown or grey hydrogen, it is anything but clean.
Another big problem is that hydrogen is a dilute source of energy, and needs compressing – another energy-intensive challenge. However, the UAE has been at the forefront of tackling these problems using clean, renewable sources of energy.
How is the UAE making hydrogen energy viable?
By focusing on so-called blue and green hydrogen projects. The former involves extracting hydrogen from fossil fuels such as natural gas, but making the process cleaner by capturing the carbon dioxide, which is either stored or put to use. Adnoc, the UAE’s biggest energy producer, has huge carbon capture facilities and is now planning to expand them.
The ultimate goal, however, is green hydrogen, where renewable sources such as solar energy are used to extract the gas from water using electrolysis.
The Mohammed bin Rashid Al Maktoum Solar Park in Dubai is on course to be the first solar-powered hydrogen plant in the Middle East. The megawatt-scale project will use electricity from solar panels to split hydrogen from oxygen in water and use it to generate clean power.
The generation of green hydrogen also offers a solution to the problem of storing renewable energy for times of low supply, such as after dark or on windless days.
But is hydrogen not incredibly dangerous?
The promise of hydrogen energy has long been blighted by images of the Hindenberg airship disaster in 1937 and the Challenger Space Shuttle explosion in 1986. Yet while hydrogen is highly flammable and easily ignited, industry has decades of experience in handling it safely, and experts insist it poses no greater safety risk than petrol.
The UAE has already addressed such concerns, last year becoming the first Middle East country to draw up safety regulations for hydrogen-powered transport.
When will we see hydrogen-powered vehicles?
They are already on the roads, albeit in modest numbers. Dubai opened the first hydrogen filling station in the Middle East in October 2017 and it serves vehicles powered by fuel cells, a key part of the hydrogen energy revolution.
Invented by the Welsh chemist William Grove almost 180 years ago, the fuel cell generates electricity by stripping electrons off hydrogen gas, producing water as its only waste product.
With transport being responsible for 20 per cent of the world’s carbon dioxide emissions and blamed for life-threatening pollution, the wider use of fuel cells is one of the biggest attractions of the switch to hydrogen. Abu Dhabi Police has already announced plans to convert some of its vehicle fleet to fuel cells in the coming years.
Will hydrogen help the UAE meet its Paris Agreement obligations?
The UAE became the first Middle Eastern country to ratify the UN Paris Climate Agreement in 2016. This committed the Emirates to helping to keep global average temperatures well below 2°C above pre-industrial levels. But some experts say green hydrogen alone will not be enough to achieve this.
They point out that while blue hydrogen derived from fossil fuels may be less attractive, it remains the most cost-effective source, and could support the switch to hydrogen while green hydrogen becomes more competitive. At present, green hydrogen is six times more expensive than oil as a source of energy.
What other benefits could come from the push for hydrogen?
According to the International Energy Agency, there is now “unprecedented political and business momentum” behind hydrogen, driven by the pressure to replace fossil fuels.
A recent Bank of America report estimated hydrogen-based energy generation, transport and home heating could generate $2.5 trillion of direct revenue, plus $11tn in infrastructure potential globally over the next 30 years.
China, Japan, South Korea and the EU are already investing huge sums in hydrogen energy. Last week, British Prime Minister Boris Johnson included hydrogen in his £12 billion ($15.93bn) plan for a “green industrial revolution”.
There is thus a huge market awaiting those nations who can lead the world in supplying hydrogen and the technology to exploit it.
Saudi Arabia has already revealed plans to build the world’s largest green hydrogen plant, powered by four gigawatts of wind and solar power. With today’s announcement, the UAE has shown it also intends to be taken seriously in the race to exploit the ultimate green fuel.
Robert Matthews is visiting professor of science at Aston University, Birmingham, UK
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
Brief scores:
Southampton 2
Armstrong 13', Soares 20'
Manchester United 2
Lukaku 33', Herrera 39'
Mohammed bin Zayed Majlis
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
Indoor Cricket World Cup Dubai 2017
Venue Insportz, Dubai; Admission Free
Day 1 fixtures (Saturday)
Men 1.45pm, Malaysia v Australia (Court 1); Singapore v India (Court 2); UAE v New Zealand (Court 3); South Africa v Sri Lanka (Court 4)
Women Noon, New Zealand v South Africa (Court 3); England v UAE (Court 4); 5.15pm, Australia v UAE (Court 3); England v New Zealand (Court 4)
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
