SPECIAL EDITION I 338 ISSUE

LA PUBLICATION AW BY AL TAMIMI & COMPANYU P DAT E SPECIAL EDITION UAE CENTENNIAL 2071

INSPIRING THE NEXT 50 YEARS: A FUTURE WITH NO BOUNDARIES 4 Special Feature FOREWORD

Welcome to this special edition of Law Update that Looking at the implications of the pandemic on focuses on the UAE’s Centennial 2071 plan. education and what the future might look like, Dr Abdulla Al Karam, Director General of the This year is very much a year of reflection; a time Knowledge and Human Development Authority, to reflect on what the UAE has achieved since its believes the online learning programmes inception 50 years ago, and a time to reflect on the implemented by most schools at the outset of UAE’s vision for the next 50 years. the pandemic were swift, made the necessary adjustments and minimised interruption to In this issue we look back, with pride, at what this education (page 15). country has achieved in its young life, and look forward, with optimism, to continue pursuing Hassan Al Hashemi, Vice President of International the vision of the UAE’s founding fathers and Relations, Chamber of Commerce and UAE Centennial 2071. Launched by H.H. Sheikh Industry, offers insights into his vision of how Dubai Mohammed bin Rashid Al Maktoum, Vice President and the UAE can continue to grow as an attractive and Prime Minister of the UAE and Ruler of Dubai financial hub. Mr Hassan also reflects on the and H.H. Sheikh Mohammed bin Zayed Al Nahyan, importance of supporting the entrepreneurial spirit Crown Prince of Abu Dhabi and Deputy Supreme of women, their role in education and the workplace Commander of the Armed Forces, UAE Centennial (page 19). 2071 features four distinct pillars: a future focused government; offering excellent education; creating Khalfan Belhoul, CEO of Dubai Future Foundation a diversified knowledge economy; and a happy and gives his views on the Foundation’s contribution cohesive society. These pillars will ensure continued to the UAE Centennial 2071 plan (page 23). The investment in the country’s future generations, and Foundation’s name speaks for itself! will prepare and provide them with the necessary skills to adapt to the rapidly changing times. Paddy Padmanathan, President and CEO of ACWA Furthermore, the Plan will ensure the UAE preserves Power, discusses how ACWA Power is supporting its place on the global stage as a forward thinking, the UAE in its journey towards sustainability, as innovative and creative hub. well as pioneering the development and cost reduction of renewable power generation and water As we prepare to celebrate the anniversary of desalination projects (page 29). the UAE, we are also honoured to celebrate the 30th anniversary of Al Tamimi & Company’s Law Dr Raja Easa Al Gurg, Vice Chairperson and Update, a leading publication since its inception. Managing Director of Al Gurg Group writes how The magazine has, and continues to, document, they continue to evolve and adapt against the ever- comment on and offer insights into the country’s changing backdrop of Dubai (page 35). and region’s legal landscape. We also hear from Sultan Ahmed bin Sulayem, My partners, colleagues and I would like to extend Group Chairman and CEO of DP World, who gives our deepest gratitude to our clients, friends and us valuable insights into of transport and government authorities that have supported us logistics and shares his thoughts on what to expect on this journey. With their support we have made in the future (page 39). a mark as legal pioneers across the & North Africa ('MENA') region, whilst supporting the In addition, we cover a number of topics that ideals and vision of our esteemed leaders. have left an indelible footprint on the UAE’s legal landscape and which are worthy of note. A key feature of this special edition are the interviews we conducted with a number of industry leaders, Our teams across the UAE touch on a wide variety who highlight the outstanding attributes across all of topics including: the recently established State areas of the UAE Centennial 2071 plan. Their insights Ministry for Food Security and the new UAE provide a sense of the sheer scope and optimism National Food Security Strategy 2051 (page 68); the of the plan and highlights how the attributes are ever-changing nature of Space and how we can infused in the entrepreneurial spirit of the nation to benefit from it (page 78); how the Education sector drive development. I would like to personally thank has adapted to the demands of the pandemic (page those who contributed their valuable insights to this 52); and the pros and cons of introducing further tax milestone issue of Law Update. commitments (page 88).

As a starting point, we have a special feature on I hope you enjoy this special edition and its the UAE Government which provides a detailed celebration of the UAE. overview of how the UAE Centennial 2071 vision was born. Through a strong desire to continue to serve its people, and ensure that the UAE will top Best regards, the world in all facets of its economy, education, Essam Al Tamimi healthcare, entrepreneurship, innovation and Chairman, Al Tamimi & Company technology (page 8). SECTOR INSIGHTS 45

Artificial Intelligence Pushing the boundaries of the possible: the growth of AI in the UAE 46

Education Destination 2071: reimagining education and getting UAE to the top of class 52

Energy & Utilities Here comes (more of) the sun: what will be lighting lamps in 2071 56

Environment The road to sustainability: legal perspectives on climate change and the 60 environment in the UAE

Finance A SPECIAL FEATURE ON Where to from here? The future of the UAE finance industry 64 08 THE UAE GOVERNMENT

Food Security Food for thought; the future of food security in the UAE 68

Healthcare UAE health 2071: the future of healthcare 72 INDUSTRY EXPERT INSIGHTS 13 IN CONVERSATION WITH 15 Dr Abdulla Al Karam, Director General, Knowledge and Space Human Development Authority (KHDA) Star laws: how UAE law is boldly going into the final frontier 78

Hassan Al Hashemi, Vice President of International Relations, 19 Succession Planning Dubai Chamber Planning for the next 50: estate and succession planning in the UAE 84

Khalfan Belhoul, CEO, Dubai Future Foundation 23 Tax The introduction of corporate tax in the UAE: myth or reality? 88

Paddy Padmanathan, President and CEO, ACWA Power 29

Dr Raja Easa Al Gurg, Vice Chairperson and Managing Director, 35 Easa Saleh Al Gurg Group

The contents of this publication are not intended to be a substitute for specific legal advice on any individual matters. No part of Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World 39 this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except for individual use and other non-commercial uses permitted by copyright law. The permission to recopy by an individual does not allow for incorporation of the material in part or in whole of any work or publication, whether in hard copy, electronic or any other form, unless specific mention is made to the source, “Law Update published by Al Tamimi & Company” and written permission is granted by the firm. For more information, please contact us at [email protected].

Al Tamimi & Company © 2021 Special Feature 9

A special feature on Prime Minister of the UAE and Minister How is the UAE Government preparing for of Presidential Affairs, and a committee the future, and in which focus areas? to oversee the UAE's Golden Jubilee The objectives of the government Pillar, celebrations, chaired by H.H. Sheikh Abdullah under "UAE Centennial 2071", include bin Zayed Al Nahyan, Minister of Foreign establishing the UAE Government to be the Affairs and International Cooperation. The best government in the world, with a long- announcement marks the formulation of term vision and inspirational leadership that the largest national strategy of its kind to THE UAE anticipates, and prepares for the future. fortify the country's reputation and enhance Other objectives include adopting best rankings across global competitiveness experiences and practices, developing a indices. national strategy to enhance the UAE’s reputation and soft power, and ensuring that there are new, diverse, and sustainable What is included in the “UAE Centennial GOVERNMENT: sources of government revenue other than 2071” and what does this mean for future oil, with a view to enhancing the financial and generations? FUTURE-ORIENTED AND HUMAN-CENTRIC investment capabilities of the Nation. H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched What importance does education play in the the UAE Centennial 2071 as a long-term “UAE Centennial 2071”? government work program, based on the Regarding education, "UAE Centennial 2071" historic lecture of H.H. Sheikh Mohamed re-affirms the UAE’s commitment to provide bin Zayed Al Nahyan, Crown Prince of Abu the best education system in the world Dhabi and Deputy Supreme Commander How has the UAE Government approached President and Prime Minister of the UAE for future generations by allocating and of the Armed Forces, addressed to future planning for its future? and Ruler of Dubai, launched, in September channelling resources towards investment 2020, the UAE next 50-years Design Project generations, in which he charted a path and Preparing for the future is a key function of in an education system that will enable the which includes a number of joint interactive laid the foundation for the future of the UAE. the UAE Government, which has created country to develop the talents of future initiatives between both the government a comprehensive action plan for the The "UAE Centennial 2071" is a five-decade generations and build their capabilities to and private sector and community members development of government work, with vision for future generations that includes: serve the nation. The education system will to collaborate in creating ideas and charting an integrated, future-centric, vision that the development of a national strategy reinforce the national identity, instil ethical a course for the future in all sectors and engages community members in its design. to enhance the country's reputation and values and positivity, and plant skills needed fields through various activities and events The plan aims to make the UAE the best soft power; ensuring diverse sources for the 22nd century in future generations, organized by the 50-year Development Plan country in the world by 2071. of government revenue other than oil; equipping them with all disciplines of Committee, such as seminars and design investing in advanced technology based knowledge, while using the best artificial Since it was founded, the UAE has sessions. education; instilling ethics and values in intelligence systems and technology in order focused on investing in and enabling The UAE “Designing the Next 50” Project future generations; increasing productivity to develop globally open-minded, qualified citizens, securing their future, building included a number of initiatives launched by of the national economy; and enhancing Emirati scientists and researchers to lead cohesive communities, developing a the 50-year Development Plan Committee community cohesion. future growth. national knowledge-based economy, with the aim of involving individuals from and enhancing global competitiveness, The "UAE Centennial 2071" is dedicated all segments of society in shaping the through strategies and initiatives aimed at to preparing a generation that carries the UAE's future, including students, youth, The economy is always evolving but what promoting achievement and encouraging flag of the future and boasts the highest and non-profit organisations, in addition to are the long-term plans for economic all sectors to participate in the sustainable scientific and professional standards, government leadership dialogues. development until 2071? development of the country, to help pave and ethical and positive values to ensure the way for achieving the objectives of the H.H. Sheikh Mohammed bin Rashid Al continuity, secure a happy future and a On the economy Pillar, the "UAE Centennial "UAE Centennial 2071" vision and preparing a Maktoum, Vice President and Prime Minister better life for future generations, which will 2071" reiterates the UAE Government's vision roadmap for the next 50 years. of the UAE and Ruler of Dubai, along with elevate the UAE to become the best country to become a global economic player within H.H. Sheikh Mohamed bin Zayed Al Nahyan, in the world. The UAE Centennial is based on the major economic groups. Developing the Crown Prince of Abu Dhabi and Deputy four pillars: best education in the world, best best economy in the world, by employing Who has been involved in designing the Supreme Commander of the Armed Forces, economy in the world, happiest society in a professional national workforce and UAE’s future for the next five decades? had announced in December 2019 that the world, and best government in the world. the best global talent, while relying on 2020 would be “Towards the Next 50 years." It strives to invest in the UAE’s youth and advanced sciences and technology, With the aim of involving community Their Highnesses issued a directive for the to position the UAE as the best and most innovation, creativity, entrepreneurship and members in shaping the future of the UAE formation of two committees affiliated to advanced country in the world, through a environmental sustainability as essential and developing themes and components the UAE Cabinet, the 50-Year Development comprehensive strategy whose outcomes drivers for economic prosperity. The plan of the UAE Centennial Plan, H.H. Sheikh Plan Committee, chaired by H.H. Sheikh and objectives will be achieved by the UAE’s also seeks to promote the best competitive Mohammed bin Rashid Al Maktoum, Vice Mansour bin Zayed Al Nahyan, Deputy centenary celebrations in 2071. environmental, digital and physical 10 Special Feature Special Feature 11

infrastructure in the world, establishing the decade, in addition to developing plans and UAE Government also discussed, on "The to attract the best talent according to the UAE as a hub for innovation, a platform for strategies that lay the foundation for the Future of Infrastructure and Environmental Legatum Prosperity Index report, second entrepreneurship, and a global economic "UAE Centennial 2071". Sustainability," ways of developing future globally and first regionally for adaptability centre. plans to upgrade the infrastructure, housing, of government policy according to the IMD The second annual meetings discussed the environment, food and water security, as well report, and second globally for mobile phone first phase of the "UAE Centennial 2071" with as digital infrastructure sectors. subscription penetration according to the 30 councils, aiming to create a unified vision How are societal facts addressed in the “UAE ITU report. In addition, the UAE Government of the country’s future infrastructure and In the area of “Security, Justice and Safety,” Centennial 2071” Strategy? received an "Aa2" rating in creditworthiness, generating main ideas and directions for the the UAE Government focused on enhancing which is the strongest sovereign rating in "Society" is a vital pillar in "UAE Centennial first phase. readiness in this vital sector. Under “The the region by the international rating agency 2071" with several target areas, notably: Future of Education and Human Capital” In November 2019, co-design sessions for “Moody's for 2020. establishing a secure, tolerant, cohesive and area, in support of efforts to advance the the future of the UAE were held as part ethical society that embraces happiness education sector and enhance investment The UAE ranked first regionally on the of the third annual meetings of the UAE and a positive lifestyle, and provides higher in national skills and talents, within five main Government Ensuring Political Stability Government. The sessions witnessed levels of wellbeing, made up of families who areas for the development of the sector index according to the World Economic participation from Emirati representatives are aware of the requirements of the next including, early education, general education, Forum report, first regionally on the Burden of the various segments of the community, phase. Investing in people is also important, higher education, extended axes, research of Government Regulation index according notably youth, senior , parents, including solidifying future generations’ and development, and strengthening the to the World Economic Forum report, people of determination, retirees, and adherence to their national identity and capabilities and participation of the national first regionally on the Transparency of business leaders. The meetings were aimed Emirati ethics, and reinforcing values of workforce in the labor market. Government Policymaking index according at developing the annual meetings’ agenda modesty and service to the nation. to the Legatum Institute report, and first and proposing focus topics and challenges On the economic sector, the UAE regionally on the e-Government and to direct and plan the creation of the Government held consultative meetings to e-Participation Index according to the future in line with the goals of the "UAE discuss the future of economy in the UAE at How did the UAE Government develop the Global Competitiveness Report and the Centennial 2071". the “Economic Environment” and “Economic “UAE Centennial 2071” Strategy? Global Innovation Index. Model and Sectors” levels, in support of H.H. Sheikh Mohammed bin Rashid Al the advancement of this sector through Maktoum and H.H. Sheikh Mohamed How has the UAE Government brought in its development plans and the design of trends What were some of the initial steps taken by bin Zayed Al Nahyan launched the "UAE full force to prepare for a 5-year plan? for the next 50 years. the UAE Government to lay the foundation Centennial 2071" Strategy at the conclusion Within the framework of government The meetings discussed developing the for “UAE Centennial 2071”? of the first edition of Annual Meetings of the initiatives aimed at enhancing government future of the community sector, by focusing UAE Government in September 2017. In 2016, the UAE Government began laying integration and cooperation country-wide, on family and youth issues, sports, culture, the foundation for the future government, The meetings witnessed the launch of many and laying down the main plans and visions and the values of Emirati society. In addition, through a ministerial reshuffle, which was long-term initiatives, programs, policies for the next 50 years, the UAE Government special meetings were held to discuss the announced by H.H. Sheikh Mohammed and strategies focused on the challenges held consultative meetings in preparation for future of the country’s healthcare and bin Rashid Al Maktoum. The adjustment facing the country’s development process, the next 50-year plan. The meetings, which medical services and ways of developing included a new vision for government discussing government priorities in various were attended by a number of ministers, an advanced healthcare system based directions that are primarily future- sectors, and introducing appropriate plans government officials, secretaries-general of on providing smart medical services and oriented and forward-looking in all areas and programs. The meetings also seek to executive councils, heads of departments, adopting national frameworks for health of government work, youth engagement, align and coordinate between Federal and directors general, leaders, experts, officials prevention and community education, in the happiness portfolio, and tolerance local government strategies and mark the and employees from Federal and local order to enhance the UAE’s leadership and portfolio. Ministries have been renamed and start of planning for the "UAE Centennial government entities, focused on laying down competitiveness globally. new portfolios were added for the UAE to 2071". Moreover, the meetings shed light future trends and visions along six main areas. ensure that national priorities and goals are on the outcomes related to the national The consultative meetings were part of achieved including a community prevention indicators and national agenda, and follow up What measures has the UAE Government initiatives of the 50-Year Development Plan portfolio for the Ministry of Health and a on efforts to achieve goals and results within used to track its progress in key areas? Committee, led by H.H. Sheikh Mansour bin climate change portfolio to consolidate the "UAE Vision 2021". Zayed Al Nahyan, Deputy Prime Minister The UAE emerged among the top countries UAE’s position as a key player on climate The meetings focused on highlighting key and Minister of Presidential Affairs, to worldwide in key indicators of global issues. Furthermore, the Ministry of Public challenges and scenarios expected during the strengthen government integration at the competitiveness for 2020. It ranked first Work has been renamed as the Ministry of next five decades and the development of federal and local levels and intensify efforts globally in 110 indicators and first in the Arab Infrastructure Development. appropriate plans in partnership with the UAE in setting the pillars and components of the region in 473 indicators. In addition, the UAE H.H. Sheikh Khalifa bin Zayed Al Nahyan, community, while paying attention to their UAE Centennial Plan 2071. ranked among the top 5 countries globally President of the UAE, also approved ideas, proposals and visions for the future. in 202 indicators and in the top 10 globally The consultative meetings on "The Future another ministerial reshuffle adding in 327 indicators. In government sector The second Annual Meetings, held in of Government Work" focused on three new portfolios that deal with artificial indicators, the UAE ranked first for public- November 2018, reviewed the efforts and main topics: the future of governments, intelligence, well-being, advanced science, private sector partnership according to the programs undertaken to meet the "UAE the sustainability of financial resources and advanced skills, and food security, to form IMD report, first globally for finance skills in Vision 2021" and set targets for the next a long-term fiscal strategy, in addition to an agile government to transition the the government sector according to the IMD media and government communication. The country towards the Centennial. report, first globally for the country's capacity 12 Special Feature Special Feature 13

INDUSTRY EXPERT INSIGHTS 14 Industry Insights 15

IN CONVERSATION WITH DR ABDULLA AL KARAM DIRECTOR GENERAL, KNOWLEDGE AND HUMAN DEVELOPMENT AUTHORITY (KHDA)

With the pandemic having accelerated Some students may want to study at more the uptake of distance learning and than one school; some teachers may also virtual classrooms, there were multiple prefer to teach at more than one school. innovations in education delivery. How did Distance learning has made it possible for you see educational institutions ensuring this to happen. excellent education is delivered virtually? Distance learning has served its original What does the KHDA envisage future purpose of ensuring that education classrooms to be like, will students return continues through a pandemic. As time to wholly physical classrooms or would we goes on, its purpose is also evolving. see hybrid blended learning classrooms? Online learning will offer schools, teachers, The pandemic has challenged students and their parents greater expectations of what education should flexibility in how, when and where learning be and can be. Future-focused school is delivered. More than ever, physical leaders have told us that the goals of schools will be places for students and staff their five-year innovation strategies were to improve their physical and emotional met in just six months. Practices that we wellbeing; to build friendships and to have thought would take months or years, such fun – an essential tenet of education. as an alternative to examinations, came about in days. Students have become more independent learners; parents are The UAE Vision 2021 set the goal of more involved in their children’s learning, creating a first-rate education system with and teachers are able to create more mathematics, science, reading and Arabic customised learning plans for each of language attainment targets. With the their students. School leaders, teachers agenda coming to an end this year, what and parents have collaborated to adapt achievements and weaknesses in schools and innovate learning for younger and have you identified? How will these feed older students, and for students of into the achievement of the Centennial determination. Plan 2071? Future classrooms may not be classrooms Six years ago, the leadership of the UAE at all. When teachers and students are announced ambitious National Agenda able to connect virtually, learning can targets for Dubai private schools, which happen whereever they are. The exclusive included scoring among the Top 10 relationship that has traditionally existed countries in the world in the international between schools and students, and assessment Trends in Mathematics and schools and teachers, is also changing. Science Study (TIMSS). 16 Industry Expert Insights Industry Insights 17

Our education community has never Education operates much like an eco- With our friends at Dubai Tourism and backed away from a challenge. Ever system, with many different individuals universities themselves, we are working on since Dubai first participated in its first and organisations playing equally an initiative to attract more students from TIMSS cycle in 2007, schools have made important roles that are vital to the health specific regions – such as China - to Dubai. consistent and significant improvement. and success of the system as a whole. Dubai’s 50-year charter, announced by What started out as an ambitious target Social media is a fun and effective way H.H. Sheikh Mohammed bin Rashid Al soon became a reality. to bring these different groups together Maktoum, Vice President and Prime towards the shared goal of world-class In the latest round of TIMSS undertaken in Minister of the UAE and Ruler of Dubai, education in Dubai. 2019, students from Dubai private schools focuses in part on higher education have met UAE National Agenda targets Through social media, we’re able to and building a competitive knowledge and scored among the top 10 in the world. engage with students, parents and economy. Under the charter, national teachers. They have direct access to the and private universities will become free These results are testament to the regulator, which enables them to feel a zones, where students can carry out dedication, commitment and love that greater sense of belonging to the whole their economic and creative businesses. Dubai’s principals and teachers have for education community in Dubai. Likewise, Integrated creative and economic zones their students, their schools, and their we can use social media to gauge public will be established next to universities city. They are also a reflection of Dubai’s opinion or to ask for specific feedback. to support students in education, promise to provide students with a world- research, and finance while setting up class education that values wellbeing as Through the accessible language, tone their businesses. The end goal is not only well as academics. and messaging we use on social media, graduating students but also coming up we have built positive relationships with In response to each of the four main pillars with companies. our community. This not only brings our of the UAE Centennial Plan, we continue own community closer together, but also to work with international partners shows the qualities of Dubai’s private and local schools education sector to the wider world. to improve and “Our social integrate wellbeing into education in media presence While the UAE is becoming an education Dubai. In March we destination for students in the MENA and is part of will be announcing South Asian regions, what steps are you our overall the results of the encouraging universities and schools to take commitment fourth year of the to appeal to students worldwide, in line with Dubai Student to meaningful the UAE’s Centennial 2071 aim to become a Wellbeing Census, engagement with competitive knowledge economy? as well as the third our community.” Adults@School Dubai is home to 36 international branch Wellbeing Survey. campuses, the most in the world. The focus has always been on quality – while each these universities are accredited by KHDA has been creatively using social their home countries, their programmes media to connect with students and are also quality-assured by the University teachers. What benefits has KHDA seen Quality Assurance International emerging from this engagement and how Board (UQAIB) and recognised by the does it see its increasing engagement help . towards achieving excellent education? The latest data from Dubai’s private Our social media presence is part of higher education sector shows that 25 our overall commitment to meaningful per cent of university students have engagement with our community. Our come to Dubai specifically to study, approach is human-centred: we don’t attracted by its location, security and regard ourselves as a ‘government employment prospects. Responding to authority’ communicating with market demands, the sector has seen an ‘stakeholders’; rather, we are humans 11 per cent uptake in computer science communicating with other humans. and technology programmes in the last academic year. 18 Industry Insights 19

IN CONVERSATION WITH HASSAN AL HASHEMI VICE PRESIDENT OF INTERNATIONAL RELATIONS, DUBAI CHAMBER

How will the Dubai Chamber of Commerce and startups. The timing of the recent & Industry (Dubai Chamber) focus on stimulus and business-friendly measures promoting the interests of its business is ideal given that multinational companies community over the next 50 years? are now looking to relocate their supply chains and prepare for the post-COVID Dubai Chamber is fully committed to recovery. In this regard, Dubai has become supporting businesses in Dubai as they a destination of choice offering vast adapt to a new reality and providing competitive advantages. access to new opportunities in the next phase of growth. In line with Dubai’s vision for the next 50 years, Dubai Chamber is How did the Dubai Chamber’s wide range expanding its range of smart services of e-services and policy advocacy efforts that improve ease of doing business and ensure business continuity during the enhance economic competitiveness. We pandemic? What are the lessons for are increasing our focus on key sectors the future? that are driving Dubai’s sustainable growth, such as e-commerce and digital economy, Dubai Chamber’s wide range of smart blockchain, artificial intelligence, high- services have become a necessity for tech industries, logistics, agribusiness, businesses during COVID-19, while its sustainability, mobility, innovation and advanced digital infrastructure enabled space industry. Meanwhile, we are exploring it to carry out all of its operations new gateways and facilitating international remotely and efficiently. Over 667,000 cooperation that can drive and diversify e-transactions were processed by Dubai Dubai’s foreign trade and strengthen its Chamber in 2020 as it position in the global arena. offered 98% of its core “Dubai Chamber services online and utilised digital platforms is expanding its In terms of maintaining the competitiveness to host the vast range of smart of Dubai as an international business hub, majority of its meetings services that what are the key steps that need to be and events. Keeping improve ease of taken? all this in perspective, doing business.” the Chamber plans to As Dubai maps out its vision for the next continue investing in 50 years, it has a real opportunity to create advanced technologies and cutting-edge a new narrative – one that draws on its solutions that improve ease-of-doing strengths and positions the city as a global business in Dubai, create value for its hub for the future economy and a magnet members and boost its competitiveness in for the world’s most innovative companies a fast-changing business landscape. 20 Industry Expert Insights Industry Insights 21

As a bridge between government and Why was it important to launch the Dubai Female entrepreneurship and participation business, Dubai Chamber of Commerce Start-up Hub (the entrepreneurship arm of in the labor force has been high on the and Industry is playing a crucial role Dubai Chamber) and how will this hub grow? Dubai Chamber’s agenda. Dubai Business in facilitating public-private sector Women’s Council, under the umbrella of Since its establishment in 2016 as an cooperation and advocating on behalf of the Dubai Chamber has played an active initiative of Dubai Chamber of Commerce companies in Dubai to ensure a favourable role in enhancing gender diversity. How and Industry, Dubai Startup Hub has business environment. In addition to will this role grow in the next 50 years? grown rapidly and expanded its offerings engaging in an open dialogue with and network in line with the unique and The entrepreneurial landscape for women members of business groups and business changing needs of Dubai’s maturing has changed a lot here in the UAE over council in Dubai, the Chamber has put has entrepreneurial community. What the last decade. Women were already several initiatives in place that businesses began as an online interactive portal highly educated and working in the public in the emirate are leveraging to voice offering resources and information and private sectors, but what happened their concerns, address issues of common has evolved over the last few years to in recent years is that many of them interests and share policy become a one-stop shop acquired enough skills and experience recommendations. for all things startup, and capitalised on the opportunities this Over the last year, we “As a bridge between providing entrepreneurs great country is offering by launching learned many valuable government and with an ideal platform their own ventures – many of which meet lessons as a chamber, business, Dubai Chamber for knowledge market needs. including the importance sharing, mentorship, of Commerce and Women entrepreneurship has long been a of leadership, innovation, training, development, top priority for Dubai Chamber. Not only digital preparedness Industry is playing a competitions, knowledge are we empowering women in business and close public-private crucial role in facilitating sharing, collaboration, through our initiative – the Dubai Business sector cooperation in networking or growth public-private sector Women Council (DBWC). responding effectively to opportunities. cooperation.” Established in 2002 unprecedented challenges Over the last few years, we under the umbrella of “Women were already highly and enhancing economic have seen a sharp uptick the Dubai Chamber of educated and working in the competitiveness. in the number of international startups Commerce and Industry, public and private sectors, that are joining Dubai Startup Hub with DBWC has dedicated but what happened in recent the intention of entering the Dubai market its efforts to enhancing The UAE’s Bankruptcy law was a major years is that many of them and leverage the emirate to expand their gender parity in society step forward in modernising the UAE’s footprint in the Middle East. In an effort and encouraging women acquired enough skills and insolvency law allowing for the early to cater to different types of startups and to play an active role in experience and capitalised on restructuring of indebtedness for their unique needs, we have launched building the country and the opportunities this great distressed companies. What key legal other programmes such as Market Access stimulating sustainable changes does the Dubai Chamber see country is offering by launching which is designed to facilitate business development. The as having the most impact for the Dubai their own ventures – many of deals between leading companies in DBWC organises tailored business community in the future? Dubai and promising startups that can workshops and training which meet market needs.” Following several business-friendly solve their market challenges. sessions for its members measures rolled out by the government to provide them with valuable information, Today, Dubai Startup Hub has truly last year, including 100% foreign ownership best practices and skill set to excel in their become a platform of collaboration for and the amendment of the bankruptcy field of work. city ecosystem. For instance, our annual law, the UAE is now opening citizenship Networking Series features incubators We also provide tailored support to select foreigners including investors, and accelerators as guest speakers, and guidance to aspiring women specialised talents and professionals, as while the annual Dubai Smartprenuer entrepreneurs through Dubai Startup well as their families. Competition is supported by public and Hub’s various programmes and working This move is game changing for many private sector stakeholders including closely with our international offices reasons. It will attract top talent with Smart Dubai, venture capitalists, to provide them with access to global expertise needed to support the UAE’s incubators and accelerators. growth opportunities. There is vast sustainable development and transition potential for the UAE to align its efforts to a knowledge-based economy. At the with other progressive countries to same time, it will elevate the country’s expand bilateral cooperation in the status in the global arena and enhance its area of women entrepreneurship and value proposition. build partnerships to expand support to women-led businesses. 22 Industry Insights 23

IN CONVERSATION WITH KHALFAN BELHOUL CEO, DUBAI FUTURE FOUNDATION

What are the top three priorities of of the way forward supported by a firm implementing the Centennial Plan for foundation of evidence-based analysis Dubai Future Foundation? and quantitative and qualitative reporting to enable stakeholders and key decision- Our leadership has always been ambitious, makers to anticipate and better navigate wise and foresighted, with a vision to the future, guide policy-making and place Dubai as the leading city of the develop key strategic initiatives and future. H.H. Sheikh Mohammed bin Rashid strategies. The Dubai Future Accelerators Al Maktoum, Vice President and Prime programme connects government and Minister of the UAE and Ruler of Dubai private sectors with talents and innovators launched the foundation with the aim of from around the world to allow them to institutionalising the future and that’s how solve future challenges and use Dubai as our story started. a testbed for their innovations, to be part Our priorities at DFF are set to fully of creating a high quality of life for the support the implementation of the 4 people of Dubai and the UAE, and further main pillars of the UAE centennial plan, solidify Dubai’s position as a leading city which are: creating a Future-focused of the future. government – a priority that we support through many initiatives such as the future-focused courses that we launch Considering the ambitious Centennial throughout the year at the Dubai Plan for the UAE, how does the Dubai Future Academy, the academic arm of Future Foundation engage with the youth Dubai Future Foundation, which offers and empower the next generations of government employees courses that UAE Leaders? fortify the most sought after future skills Dubai Future Foundation is all about that allow them to imagine and design youth empowerment and engagement the future in line with the vision of our in creating an inclusive society. We have leaders. Our very own unique ecosystem, launched a number of programmes AREA 2071, is one of the most dynamic and initiatives that do not only focus on innovation hubs in the region, attracting educating the youth with the knowledge talents and entrepreneurs from around of the future and the skills they need the globe, supporting their growth to lead the future, through the Dubai into being positive contributors to the Future academy courses, but also on future, and supporting Dubai's diversified actual engagement of this significant knowledge economy. At The Dubai Future segment of society in creating the future. Research, our research arm, continues to In line with the vision of H.H. Sheikh produce insights and recommendations 24 Industry Expert Insights Industry Expert Insights 25

Mohammed bin Rashid Al Maktoum, Vice accelerate innovation and its application era, increasing its contribution to the The UAE has three of the most dynamic President and Prime Minister of the UAE throughout all sectors. Hence, in January national economy by means of advancing ecosystems in the region. They have and Ruler of Dubai, to inspire innovation 2019, we launched the regulation lab innovation and future technologies within succeeded in putting the UAE among the and creativity amongst students as (RegLab), a revolutionary approach on the government. top most open and welcoming incubators an integrated part of their higher behalf of the UAE in the legislation and globally: AREA 2071, Fazaa Center for education, we launched the University application of emerging technologies. Business Incubators and Accelerators, Entrepreneurship Program to create a The lab works closely with regulators, the In light of all the developments and and Hub 71. suitable environment for innovation and private sector, innovators, and business ambitious plans for the UAE, how will In addition to these dynamic hubs, and entrepreneurship and prepares young leaders to co-create legislation that is in you ensure that the country’s values and inspired by the vision of our insightful students for the future by developing step with innovation speed. Regulations heritage are preserved? leadership DFF has set new and flexible their entrepreneurial capabilities. passed too early may stifle new Our strategy at DFF is based on our legislation for future technologies to innovations, while those that come too leaders' vision, and as we move forward to mitigate any adverse effects that may late may have already negatively impacted implement the UAE centennial plan, we result from the application of these What is the University Entrepreneurship people and markets. That is why RegLab draw strength from Dubai's story. technologies in an unsafe manner and Program? works in the regulation space to align to enhance the exchange of expertise regulation speed with innovation speed. In 1970 an airport was commissioned by Aiming to achieve the goals of the Fifty- and knowledge while keeping up with the a ruler of a small emirate – Dubai, with Year Charter’s 6th Article, the Dubai Future RegLab was launched as part of the UAE's accelerating innovation in technologies. sand cleaved to run concrete runways. In Foundation has taken the essential step pathway to becoming a global innovation around 60 years, this airport became the RegLab aims to provide a set of flexible in realising the comprehensive vision incubator and a testing ground for future world's busiest. In 1961, a full decade before laws and legislation by working closely announced by H.H. Sheikh Mohammed technologies and their applications the UAE was formed, Khor Dubai, or the with policymakers from federal and local bin Rashid Al Maktoum, Vice President shaping human life and activity in the , was dredged to allow larger government authorities as well as the and Prime Minister of the UAE and future, such as mobility, health, 3D printing, vessels in to welcome the world. In 1971, private sector and business leaders to Ruler of Dubai, in creating economic and AI, and more. a unified nation was created out of tribal develop legislation governing vital future creative free zones in universities that This initiative aims to create an agile and lands by leaders of vision and foresight, sectors that positively impact societies allow students to carry out innovative conducive legislative environment that and the United Arab was born. and support the UAE's role as a global businesses and creative activities as an pioneers “regulation innovation” as we In 1979, and with our leadership's visionary incubator of innovations and creative integrated part of their higher education, develop new or existing legislation around foresight, a gateway hub and a global trade projects in four main areas: mobility; health; the University Entrepreneurship Program emerging technologies in line with UAE's link of the world is born in Dubai: 3D printing; and artificial intelligence. (‘UEP’) creates a suitable environment for Centennial 2071 plan. Port became the largest man-made port innovation and entrepreneurship, employs in the world, connecting global markets modern technology in various vital and In addition to the RegLab, we enable and facilitating trade. In 2016, H.H. Sheikh How does AREA 2071 embody the UAE future sectors, and prepares young and support government entities across Mohammed bin Rashid Al Maktoum, Vice Centennial 2071’s plan? students for the future by developing their Dubai through many initiatives such President and Prime Minister of the UAE entrepreneurial capabilities through five as Dubai Future accelerators, which AREA 2071 is a fast-growing ecosystem and Ruler of Dubai established the Dubai main stages: learning about successful facilitates collaborations between with physical and, more recently, virtual Future Foundation to institutionalise experiences; identifying opportunities and government entities activations and events that continuously future foresight. Our initiatives are areas of entrepreneurship; developing and innovative aim to connect government, private human-centric and tackle all aspects of personal capabilities and talents; surveying start-ups to solve “RegLab works sector, and start-ups beyond commercial human life, yet our leaders' vision, wisdom, potential business opportunities; and challenges of the engagements and programmes The in the regulation and foresight are embedded in our DNA implementing ideas and projects. future. Through the objective of these activations is to space to align and in everything we do as an institution Centre for Fourth regularly share information regarding the 12 local and national universities are taking regulation speed that specialises in imagining, designing, Industrial Revolution partner programmes, successful founders, part in the UEP program. So far, the UEP and executing the future. (C4IR), we aim to with innovation and start-ups in the ecosystem and has supported more than 550 students develop the tools speed.” inspire and support new entrepreneurs in various ways including prototyping and and applications of and students to start their own journeys. investment opportunities. Do you think that the UAE will be the top the Fourth Industrial AREA 2071 hosts a myriad of different incubator for innovative ideas worldwide? Revolution in the UAE and work towards events to transform the ecosystem into a developing governance frameworks, The foresight of our leadership, and the collaborative and supportive community. What are the steps currently being protocols, and best practices both vision to place Dubai as the leading city of Each member of this community is given taken by the Dubai Future Foundation to regionally and globally. the future and a leading hub for tourism, the opportunity to learn, engage and accelerate the adoption of technologies finance, technology and innovation has grow through the exchange of knowledge, and digital transformation? The Centre further aims to support the furnished for Dubai and the UAE to building networks, and collaboration. UAE's strategy for the Fourth Industrial The need to enable new business activities become a leading incubator for talented These events include workshops, one-on- Revolution and further strengthens based on agile regulations emerged to innovators from around the globe. one talks, panel discussions, pitch events, its position as a global hub for this align with the vision of our leadership to 26 Industry Expert Insights Industry Insights 27

hackathons, and open networking events. focused district and part These events are driven by the needs of of our unique ecosystem, the community and cover technology, AREA 2071. The district innovation, entrepreneurship, youth connects DIFC, Emirates enablement, education, legal, investment, Towers, and Dubai World Trade fundraising, soft skills, and women Centre, and houses an economy empowerment, to name a few. research centre, incubators and accelerators, and innovative space Over the years, with over 26 thousand for future economy pioneers. participants from around the globe, AREA 2071 hosted thousands of Workshops, The new district aims at placing presentations, and talks with guest Dubai as the world's capital of the speakers sharing their knowledge, skills, new economy and provides financing expertise on specific topics as well as and legislative facilities and options for one-to-one meetings, networking events, businesses from around the globe. With and casual conversations to enable the offerings that vary from accommodations exchange of personal experience, stories to simplified licensing plans to visas, to and growth tips, in addition to special unique opportunities to grow unique sessions with mentors, founders, and presence for businesses across the region, technology experts to work with start-ups the Dubai Financial District will shift on their challenges and help them explore Dubai's foreign trade through stimulation market opportunities, industry prospects, and revitalisation with the continuous and insights. development of all the logistical, legislative and service tools, in addition to building new international partnerships. From your personal perspective, what current project are you working on that you are most excited for, or do you feel has the greatest potential to assist the futuristic UAE government? I believe that every single initiative, big or small, launched by DFF is impactful, insightful, and bears great potential for progress in our society. We are anticipating the opening of the Museum of the Future soon, which aims at further cementing Dubai as a hub for innovation and a “Our leadership testbed for emerging technologies and has always been exploring the future of ambitious, wise science, technology, and and foresighted, innovation. In addition with a vision to to becoming a major place Dubai as tourist destination, the Museum will the leading city offer a platform to of the future.” demonstrate and test the latest inventions and prototypes from emerging start-ups as well as technology giants. We are also launching the Dubai Future District, announced in 2020 by HH Sheikh Mohamed bin Rashid Al Maktoum. DFD is the Middle East's biggest future economy- 28 Industry Insights 29

IN CONVERSATION WITH PADDY PADMANATHAN PRESIDENT AND CEO, ACWA POWER

The UAE has an established track record as Second Party Opinion (SPO) of Vigeo Eiris a proponent of sustainable development, for the Taweelah water desalination power and is committed to implementing the plant being built in Abu Dhabi. In addition, United Nations’ Sustainable Development through our work on the NOOR 1 Energy Goals (UN SDGs). It is no surprise, therefore solar power project, which is a phase of to see the sustainability motif echoed in the Mohammed Bin Rashid Solar Park, we the UAE’s Centennial plan. How has ACWA have also qualified for the Climate Bond Power imbibed these priorities into its Initiative certification. business plan? We believe that by aligning ourselves to the ACWA Power has been supporting the SDGs as a strategic lens at the core of our UAE in its journey towards sustainability operations, we support the advancement for well over a decade by pioneering of our host nations on the global goals and, the development and cost reduction of ultimately, their national contributions to renewable power generation and water the Paris Agreement. desalination projects. Our sector plays a vital role in achieving the United Nations Sustainable Development Goals (SDGs). By ACWA Power operates in multiple Gulf delivering cost-effective renewable energy countries and is accustomed to operating and energy-efficient water desalination for in markets that have traditionally been oil- the UAE, we are contributing to affordable centric. How do you see the energy sector energy access and clean water supplies in the Middle East changing over the next as well as climate action through reducing 50 years? the country’s carbon footprint. Beyond our core operations we are also focused on Countries in the GCC are signatories to fostering continuous learning for our local the COP 21 Paris Agreement and have operations and workforces by providing recognised the need to reduce carbon training and education opportunities to emissions as fast as possible to contain our employees, and gender equality and climate change. In addition, the cost woman empowerment in the communities of renewable energy has decreased we serve. dramatically in the last few years, allowing Furthermore, we are ensuring that the us to supply a significant segment of energy projects we work on are in line with global consumed each day cost competitively, sustainability standards and are proud to regardless of whether a country is an oil and have obtained the world’s first sustainable gas producer or importer. and social accreditation based on the 30 Industry Expert Insights Industry Expert Insights 31

Based on these facts, GCC governments the UAE's economy by delivering power The UAE’s Water Security Strategy 2036 promote sustainable access to resources have all announced ambitious plans to and water reliably, sustainably and at sets ambitious targets for the use and and efficient utilisation of services to meet 30 to 50 per cent of their energy the lowest cost possible. In addition, treatment of water in a number of areas, maximise value creation. ACWA Power is needs through renewable energy within by deploying clean energy plants and including increasing the reuse of treated able to lead the way by reliably delivering the next decade. With the right policies energy efficient water projects, we are water to 95 per cent and reducing total such vital inputs, electricity and water, at in place and by leveraging public-private also supporting the reduction of the demand for water resources by 21 per cent. the lowest possible cost. partnerships, these governments have country’s carbon emissions in line with its How is ACWA Power prioritising its medium- already seen major projects materialise, commitment to the Paris Agreement. term strategy to meet these targets? with many under construction and in Many of the initiatives that fall under the Beyond that, by adopting policies to Without waiting until 2036, ACWA Power operation today. umbrella of delivering sustainable energy maximise local content development and is already embracing the circular economy and water resources are extremely costly By generating low-cost renewable procurement and by creating valuable approach of the 4 Rs; reduce, reuse, due to the need to advance infrastructure energy and using the electricity intensive employment opportunities for citizens recycle and remove. We have progressively and technological innovation. Are there electrolysis process, we are now also able through the activities of developing, been reducing energy intensity of any more accessible ways the SMEs and to contemplate splitting water molecules constructing, operating and maintaining desalination and individuals can contribute to the UAE’s to produce hydrogen. As such we can these significant assets, ACWA Power is recovering and “We are also sustainability? deliver green hydrogen to replace fossil able to contribute to the health, wealth and pioneering the reusing energy to fuels for hard-to-abate transportation happiness of the countries we serve. further reduce net Renewable energy and water desalination and industrial uses to further reduce recovery of consumption. We technology and the construction of carbon emissions. economically are evaluating what, utility-scale plants rely on the smallest ACWA Power is involved in delivering one valuable elements till recently, has of components and the actions of Utilising our experience and expertise of the UAE most precious resources: water. been the practice individuals – demonstrating the potential is critical for our endeavors in the GCC from brine, which What involvement does ACWA Power of disposal of for including smaller players in the value region. We are challenging costs and is the waste have in planning for the UAE’s other long- membranes used chain. In the case of renewable energy accelerating the energy transition by term objectives that involve water supply, stream of the in the process. We projects, we are already able to show more undertaking pioneering projects in the such as agriculture and food security, desalination are also pioneering than 40 per cent of local content. While a region such as the Mohammed Bin happy communities, and regional stability? process.” the recovery of more targeted effort is required, the scope Rashid Solar Park, the NEOM Green economically for SME involvement is considerable. Hydrogen project and The Middle East, and valuable elements from brine, which is the Furthermore, the ability to generate the Red Sea Project. The specifically the UAE “By generating low-cost waste stream of the desalination process. power from solar resources at roof top Red Sea Project is the and KSA, are the largest renewable energy and has opened a massive market for SMEs first tourism project in desalinated water producers Finally, while ACWA Power is not directly to get involved in supply, installation and the world on this scale using the electricity in the world, given the involved in reuse of end product water, maintenance for domestic, commercial spanning an area the size intensive electrolysis scarcity of the natural we continue to champion water reuse, and even industrial consumer segments. of Belgium where all utility process, we are now also resource in this region. recognising the environmental and social services are to be entirely able to contemplate Ensuring the provision of benefits. powered by sustainable, an adequate water supply splitting water From your perspective, what is the most zero emission energy in and the most efficient use promising development that has the addition to adopting a zero molecules to of that vital resource in food ACWA Power is involved in multiple greatest potential to propel the UAE waste and zero plastics produce hydrogen.” supply are both critical for projects with the UAE authorities, and is towards its 2071 vision in terms of water approach. these countries. ACWA a strategic partner in delivering utilities security and sustainable energy? Power is focused on producing potable to the UAE population. Do you think the water in a sustainable manner; which in private sector has an obligation to assist Continuous development and deployment The main pillars of the UAE’s future vision the case of the UAE means using reverse the government in providing sustainable of renewable energy, expansion of are built around strength in economy, osmosis technology to desalinate sea access to these resources? sustainable water desalination and happiness, government and education. How water, minimsing energy use in the process, production of cost-competitive green Given that ACWA Power and others does ACWA Power’s work in sustainability and transitioning to renewable energy hydrogen will be the “collective key” to serving the sector are very much in the interact with these areas? for that electricity required, while also deliver on the UAE’s 2071 water security business of investing significant capital minimising waste disposal and chemical and sustainable energy ambitions. ACWA With reliable, adequate and affordable to construct plants and recover those usage. By continuing to reduce the cost Power is committed to partnering with the electricity and water being essential for investments and risk related returns of desalinating water, which would in turn UAE to propel the country so it continues economic growth and social welfare, and over decades, economic growth is vital facilitate the use/adoption of technologies to lead the energy transition while as a developer, co-owner and operator of to ensure our own viability. It is very like hydroponics, ACWA Power may in benefitting from everything the ensuing power and water assets, ACWA Power is much in our interest and the collective time be able to also contribute to the food green economy will provide. proud and privileged to be a partner with responsibility of all market participants to security agenda. the UAE to fulfill its vision. We support 32 Industry Expert Insights Industry Expert Insights 33

The UAE Federal Competitiveness and bring out the best in the private sector presence. While we can cite numerous role to play in bringing down the cost of Statistics Authority delivered a report in by encouraging it to keep innovating and examples, two that are particularly electricity, thus laying the foundations 2019 which revealed that advancements keep challenging costs. This is already noteworthy in this context are Morocco for human and industrial activity to in sustainable communities and cities being effectively demonstrated at each and South Africa, where ACWA Power has be “fuelled” by zero carbon electricity. was the UAE’s fastest area of progress in successive procurement been activating CSR initiatives and has My personal vision for ACWA Power its SDGs. What innovations in water and for renewable energy “We are generated W+ standard, which quantifies by 2071 is to make headway towards energy can be partially attributed with this and desalinated water in ensuring that women's empowerment and channels sharing prosperity by reducing the gap success? the UAE. ACWA Power is projects we funds directly to women developed by between the haves and the have-nots committed to this cause WOCAN global women-led organisations. by enabling reliable, affordable access to Given that communities and cities by continuously leveraging work on are in We are also proud and privileged to have electricity and water to all people on earth, advance when quality of life improves, and our operational excellence line with global been recognised by our peers in this while preserving the planet for future the central driver of that enhancement is and technical know-how field, among else through an award as a generations. the reliable delivery of sustainable power sustainability to support communities sustainable role model in 2019 by the Gulf and water, a range of innovation and standards.” and governments that Sustainability and CSR Committee. evolution of technology in both areas has we serve to encourage more sustainable made a significant contribution to socio- projects, generate awareness and support economic progress. In the renewable economic development by finding smarter Despite the promise of big sky thinking energy sector, we see continuous and better ways to achieve these goals. and investment, the Centennial plans improvements in the efficiency of PV are hugely ambitious and sometimes, modules and the discovery of bifacial barriers and obstacles can frustrate modules. Bifacial modules allow us to Water and energy security and long-term plans. What areas pose the harvest solar energy not just from the sustainability issues are not the sole greatest challenge to ACWA reaching its surface of the panel that faces the sun concern of the authorities and large sustainability goals and why? but also from the back of the panel, private sector companies working in these taking advantage of the reflection of Given that many entities have recognised sectors. What cross-sector initiatives the rays as they bounce off the ground. the urgency and benefits of reducing and developments are you seeing that Beyond these improvements we are also the carbon footprint of all human contribute to success in these goals? refining methods of construction as well and industrial activity, the biggest as the architecture of plants, while taking We see that development and training hurdles are already behind us. “My personal vision for ACWA advantage of big data, machine learning of local talent, increasing valuable job However, implementing the energy Power by 2071 is to make headway and artificial intelligence to enhance creation, higher levels of industrialisation transition and ensuring that towards sharing prosperity by operations and maintenance. and knowledge transfer, and countries retain the maximum maximisation of local spend and value value and build solid foundations reducing the gap between the In the case of desalination, significant retention are all critical to focus on to for the green economy will require haves and the have-nots by advances in material science and deliver benefits to the wider economy committed, passionate and enabling reliable, affordable methods of manufacture have incased such as increased wealth. capable professionals at higher the efficiency of RO membranes, using access to electricity and water numbers than before. While our low power and delivering cleaner water, to all people on earth, while part of the world is blessed with a while reducing reject brine. In addition, ACWA has aligned its sustainability efforts disproportionately high percentage preserving the planet for future the ability to use renewable energy to to the UN SDGs. Outside of the UAE’s of young people, the challenge that generations.” further reduce the consumption of more Centennial plans, how is ACWA working needs to be managed is to train expensive fossil fuel generated electricity towards other goals such as reduced and develop them to contribute to is also starting to lower the overall cost inequalities, ending poverty, and peace, this massive task ahead of us, so they can and the carbon footprint of desalination. justice and strong institutions? ultimately benefit from it as well. Power and water projects are generally The report further stated that the UAE located in remote areas, where companies Strategic visions like the Centennial 2071 could reach the Top 10 in the SDG Index like ACWA Power make significant can have a secondary benefit of showing the by 2023 by focusing on improvements in investments and operate assets for value in advance planning, and having bright, clean water, responsible consumption and periods ranging from 20, 30 and even ambitious optimism for the future. What is production, and climate action. How are 40 years. It is therefore critical that we your personal vision for ACWA by 2071? private sector entities being encouraged have an implicit social contract with the to contribute to these objectives? local communities by providing training, As a company driving the energy education and equal opportunities. This transition through the expansion of Private public partnerships for the will also encourage other economic renewable energy and sustainable provision of utility services procured activities which can grow alongside our desalination as well as the propagation through transparent competitive tenders of green hydrogen, we have an important 34 Industry Insights 35

IN CONVERSATION WITH DR RAJA EASA AL GURG VICE CHAIRPERSON AND MANAGING DIRECTOR, EASA SALEH AL GURG GROUP

Is the Centennial Plan already being core areas of strength, the Group has included into your objectives? implemented sound business practices anchored on loyalty, transparency and As a significant contributor to the honesty. economy with six decades of business acumen and expertise, several elements • Raising productivity of the national of the Centennial plan will be part of Easa economy. Operating across diverse Saleh Al Gurg’s strategic objectives this sectors that seamlessly integrate year and beyond. both expertise and product variation, we continue to offer solutions that As a multifaceted conglomerate ESAG support the country’s evolving continues to evolve, while balancing infrastructure within the Industrial, emerging global challenges that shape Retail, Consumer as well as Building & future progress. We believe in being at Construction sectors. the forefront in aligning our operations to cohesively match the trade and economic • Enhancing society's cohesion. Our goals of the nation. ongoing CSR initiatives focus on giving back to the community and wellness within our own workforce; the What are the top three priorities of Al Gurg Charity Foundation is an able implementing the Centennial Plan in and reliable partner of government the Al Gurg Group? initiatives that focus on establishing a secure, empathetic and ethical society Our priorities based on the draft plan besides offering a better quality of life would focus on: to those who require assistance. • Building Emirati values and ethics for the future generations. This ties in with the intrinsic DNA of our Group and the What is the most challenging element values instilled more than six decades of implementing a 50 year plan into your ago by our Chairman and founder HE objectives now? Easa Saleh Al Gurg. Over the decades To keep constantly evolving to meet ESAG has built an admirable portfolio future needs and build successful and of complementary businesses and valued business outcomes. To optimally partnerships that are reflective of balance Artificial Intelligence and Social its values. Adopting a strategy of Intelligence within our leadership and sustainable, organic growth in its staff, which requires greater creativity and partnering with like-minded organisations. 36 Industry Expert Insights Industry Insights 37

There is less time to play it safe and a How can the government best influence need to move to a position of learning the private sector to align with the goals of from new realities. The future focus will the plan? need to encompass skills of adaptability, Dubai is a leading example of a city that innovation, and courage. has fast tracked economic development through close public-private sector co- operation. For instance, the emirate’s Dubai is on the global map of business success in dealing with COVID-19 and cities: what must we keep in mind to the gradual reopening of the economy progress and remain on this map in the would not have been possible without new normal and beyond? the seamless collaboration between One of the factors government and that distinguishes business stakeholders Dubai from other “Our ongoing CSR initiatives who aligned their global business focus on giving back to the efforts to ensure hubs is the strong community and wellness within compliance and value proposition it our own workforce; the Al Gurg develop effective offers to companies, solutions. investors and top Charity Foundation is an able and As a bridge between talent from around reliable partner of government Dubai’s government the world. The initiatives that focus on and businesses, emirate continues establishing a secure, empathetic Dubai Chamber to drive global plays a crucial role interest by adding and ethical society besides in facilitating public- new competitive offering a better quality of life to private sector advantages and those who require assistance.” partnerships that incentives. foster economic The government’s forward-looking vision growth and innovation. While our and proactive approach in adapting to leadership lays the groundwork for UAE’s changing market dynamics has resulted in post-COVID-19 economic recovery and several measures being introduced. These prepares for the next 50 years, we are now include long-term residency exploring new ways to involve the private visas, a virtual working programme and sector in important discussions and plans most recently, a strategic move to grant that will shape the nation’s future. UAE citizenship to select foreigners. Going forward, start-ups and SMEs are expected to play a much bigger role in fostering a culture of innovation and supporting Dubai’s transition to a digitally driven economy in the post-COVID era. In the Dubai of the future, innovation, knowledge and intangible assets will be the key growth drivers and elevate the emirate’s standing in the global arena. 38 Industry Insights 39

IN CONVERSATION WITH SULTAN AHMED BIN SULAYEM GROUP CHAIRMAN AND CEO, DP WORLD

DP World plays a protagonist role in the How do you think global freight transport UAE’s trade and logistics sector. What is will evolve over the next 50 years the UAE vision for trade and where does considering the shift in both consumer and DP World see itself involved in achieving business behaviour? this vision? There have been shifts in business DP World has been taking big strides on behaviour during the COVID-19 pandemic its journey of transformation into a global from which the industry as a whole has provider of end-to-end logistics solutions, derived lessons for the future. We have backed by one of the world’s largest always been planning ahead, as we operate networks of ports, economic zones, feeders an extensive and geographically diverse and inland transportation assets operating network in both developed and emerging in 60 countries across six continents. Our economies. We have multiple trade- vision revolves around ‘Smarter Trade. enabling businesses, from deep seaports Better Future’. One of our strategic and marine terminals to industrial parks, objectives has been to develop innovative and logistics and economic zones to logistics solutions, and this involves making maritime services. DP World is always supply chains more efficient determined to find solutions by lowering costs, increasing to solve the challenges of speed and transparency, and “We believe our customers and partners, mitigating the environmental digitalisation is and our focus is on enabling impact. Innovation is at the core the way forward the most efficient movement of our business, as we adopt for ports, logistics of cargo globally, through innovative ways to enhance and supply chain the access we provide to efficiency and help keep trade production and consumption flowing. The company is now industry in the centres. We offer digital end- geared up to help build the next region and to-end supply chain solutions, phase of the global economy the world.” and we have been developing to accelerate growth. We innovative digital platforms believe digitalisation is the way forward for to make the movement of cargo more ports, logistics and supply chain industry efficient from the point of origin to in the region and the world to overcome the point of consumption. We believe the challenges in a post-pandemic world. digitalisation is the way forward for ports, Innovative digital platforms making the logistics and supply chain industry in the movement of cargo more efficient is an region and the world to overcome the inseparable part of our strategy. challenges in a post-pandemic world. 40 Industry Expert Insights Industry Expert Insights 41

How is DP World digitalising the supply tools, routes and services, and enabling businesses, and ultimately keep countries infrastructure works within Phase I of the chain? What does this mean for the future? them to do more business anytime, supplied with the vital goods they need. residential and commercial development anywhere. Our new platforms, including DP World’s growing global network of at . The completion DP World has been adopting an innovative the Digital Freight Alliance, will contribute ports, terminals and economic zones is expected in the first quarter of 2021. approach to enhance efficiency and help to opening new commercial opportunities is the bedrock of the business with 128 It will provide DMC with an efficient and keep trade flowing. The company is now for our customers, even during the sudden units in 60 countries. The digital trade and sustainable infrastructure to support geared up to help build the next phase economic downturn. This technology is a logistics’ platforms will leverage this vast a modern business community, and of the global economy to accelerate direct business enabler. network of real-world infrastructure to enable the vision of sub-developers. The growth. As part of its strategy to become offer end-to-end supply chain services. development consolidates DMC’s status the world's leading end-to-end logistics An example of our efforts is the recent as a leading maritime services provider. provider, DP World has launched cutting- Do you think that innovation will meet the inauguration of the expansion of the edge online logistics tools and services, evolution of on-demand logistics? main berth at the DP World Caucedo covering sea, land and air shipping around port terminal. The project is part of With increasing economic diversification the world. The connected ecosystem of Innovation has always been the key driver the company´s plan for growth in the and shifts to digitalised services, will the platforms enables freight forwarders and for growth in international logistics, and DP Dominican Republic, with the objective of maritime industry remain a key element of any business, to book shipments of cargo World is at the forefront of tech innovation directly contributing to the transformation the UAE’s economy? from and to anywhere in the world, by in the transport and logistics industry. of the country into the principal logistics’ any combination of sea, land and air. The DP World is a data-driven global logistics The maritime industry is part of the hub of the Americas. The expansion adds initiative represents a major step forward provider, creating end-to-end supply chains, history and heritage of Dubai and the 450 metres of berth. in digitising the management of logistics backed by innovative digital platforms. UAE, and will always remain a key element to increase the efficiency, visibility and DP World’s vision is to digitalise supply in UAE’s economy. DP World and Free the resilience of global chains leveraging our Zones, including Jebel Ali Port and JAFZA, What opportunities are there for further supply chains. DP World worldwide infrastructure contribute some 33 per cent to Dubai's “Innovation has always maritime development and expansion and has accelerated the of ports, terminals, GDP. DP World has played an instrumental is there any region in focus for the future? already planned roll-out been the key driver for economics zones and part in Dubai's emergence as one of of the platforms to help growth in international other assets. As we seek We continue to seek opportunities the most connected cities both in the companies meet the logistics, and DP World to develop futuristic in this area wherever they may be. A region and the world and the emirate's challenge of the COVID-19 is at the forefront of tech means to boost trade, recent example is Drydocks World diversification and growth strategy. and evidence of this is our joining a consortium of superyacht crisis and keep trade innovation in the transport flowing including vital food investment in hyperloop marina development in Montenegro. and medical supplies. and logistics industry.” technology. DP World The consortium and operating Group In November 2020, you went to Nevada has been a key enabler of Adriatic Marinas (‘ADM’ - fully owned by in the US to witness the testing of the developing this technology for deployment. the Investment Corporation of Dubai first new mode of mass transportation; Do you think that the demand for digital Hyperloop systems would not only support (‘ICD’) and Damen, the Dutch shipbuilding the Virgin Hyperloop. Do you believe this supply chains will increase? passengers, but also high-priority, on- Group, have agreed that Damen’s role in technology will prove to be a game changer demand goods, allowing deliveries to the redevelopment of the former Bijela for the movement of people and goods? Digitising trade will help companies be completed in hours versus days with Shipyard, Boka Bay, Montenegro should do more business, more efficiently. It It’s a game changer, being the first new greater reliability and fewer delays. It will now be taken up by a new consortium will also support the global imperative mode of mass transportation in over 100 expand freight transportation capacity by member, Drydocks World - Dubai, to keep trade moving during crises years. We have made a multi-million- connecting with existing modes of road, a leading provider of yacht service, to help meet the demand of world dollar investment for the research and rail, ports, and air transport, and will provide maintenance, repair and refit as well as markets. Modernising the processes development of hyperloop technology, greater connectivity with manufacturing marine and offshore services to by which logistics operate is critical to leading to the historic parks, economic zones, distribution centres, the shipping, oil, gas and energy building more robust and more efficient “It’s a game milestone. We are one step and regional urban centres. sectors. By forging a consortium supply chains which will help economic closer to ushering in a new of this nature between Adriatic changer, being development and generate more era of ultra-fast, sustainable Marinas and Drydocks World, the first new prosperity. To elaborate, the acceleration movement of people and goods. Is it necessary to expand the ports we are bringing together of the already planned roll-out of the mode of mass DP World and Dubai are at and terminals’ investment platforms the considerable combined platforms followed DP World’s acquisition transportation in the forefront of technological considering the new era of digitalisation? resources and expertise to of SeaRates.com, a digital platform that over 100 years.” innovation in the transport develop a world-class facility in enables customers to transport cargo Real-world infrastructure remains an and logistics industry. The Montenegro which will support worldwide at the click of a mouse, along indispensable asset. Our new platforms world has been changing quickly and we the economy of the country. with LandRates.com and AirRates.com. DP are moving the management of moving wanted to be involved in the potential this World has also created the Digital Freight cargo online. It will enable our customers Another example is the development of mode of mass transportation presents, Alliance which is an online association that to be more efficient and increase the Dubai Maritime City. In early Novemner to connect markets and economies, keep brings freight forwarders globally onto visibility and predictability of supply 2020, we announced the overall trade flowing and help build the global one platform, giving them access to new chains. This will help them to grow their completion of 70 per cent of the road and economy’s next phase to accelerate 42 Industry Expert Insights Industry Insights 43

growth. This historic testing milestone Jebel Ali Port is already one of the most Expanding the perspective beyond the will pave the way for the certification of significant shipping hubs in the world. How UAE, shipping and logistics are the ties hyperloop systems around the world – a do you see the ports in the UAE evolving that connect countries and continents key step towards commercial projects, over the next 50 years to help meet the across the world. Which region or countries including those in Saudi Arabia and United UAE’s Centennial objectives, whether this do you expect to be leading and innovating Arab Emirates. is in relation to sustainability, innovation or the industry in the coming decades? trade security? DP World has been at the forefront Innovation has always been the key driver of efforts to connect countries and Following the Peace Treaties between Israel for growth in international logistics, and continents. DP World’s growing global and the UAE and Bahrain, do you believe DP World is at the forefront of tech network of ports, terminals and economic that trade in the Middle East region is innovation in the transport and logistics zones are the bedrock of the business, set for a significant boost with the routes industry. For example, at DP World, we and we deliver our services becoming shorter and trade easier? invested US$4 billion over four years in through an interconnected We are confident that the Abraham digital technology and – in a contrast to global network of 128 business “Our aim is to be active Accords will yield great results for trade the decline in the rest of the industry. units in 60 countries across six participants in the in the region. We estimate at least US$5 Today we are well prepared to emerge continents, with a significant unification of minds billion trade in the beginning between stronger from the COVID-19 crisis, but presence both in high-growth and visions to achieve the UAE and Israel and it will increase we need to continue to keep ahead of and mature markets. Wherever as there are many opportunities. From the curve. That approach covers all our we operate, we integrate innovation and to be in the technology side, we see huge disciplines. sustainability and responsible ship-shape to meet the opportunities. We never looked at it corporate citizenship into our requirements of a new earlier, but port facilities will allow us to activities, striving for a positive phase of development link our ports in Europe to the Middle East. Sustainability is an obvious focus of the contribution to the economies in the UAE.” Israel is a very well-established market UAE’s strategic vision. What methods and communities where we with traders. will DP World and other global shipping live and work. The digital trade companies use to help reduce the global and logistics platforms will leverage this carbon footprint of the industry? vast network of real-world infrastructure The geographical proximity of Israel and to offer end-to-end supply chain services. As an industry leader, DP World has the UAE offers significant advantages committed to a zero-carbon future by for fresh agricultural products, which can 2050. Our approach is to decarbonise now be transported directly from Israel to The Centennial plan is a sweeping plan our operations through implementing markets in the UAE and beyond. What will with the kind of optimistic and blue-sky applicable and future reduction measures, the UAE investigate to develop more rapid vision that has become emblematic of which are grouped into five pillars: 1) means of delivery in the future? the UAE’s national spirit, but what is your equipment electrification and efficiency; personal hope for the UAE’s success over People can look at the UAE as an 2) process efficiency & digitalisation; 3) the new 50 years? important place to reach bigger markets. renewable energy supply 4) Low carbon Within three hours of a flight from Dubai, fuel supply; and 5) carbon compensation We are determined to make our presence you can reach two billion people. And through blue carbon initiative under DP felt in ‘Designing the Next 50’ project you find several flights from Dubai and World Ocean Enhancement Programme. and shaping the future of the UAE. Our other emirates daily to access these DP World’s current operations are aim is to be active participants in the markets. You can fly and ship anything heavily reliant on fuels, particularly in unification of minds and visions to achieve at any time of the day from the UAE to the maritime division, decarbonising the innovation and to be in ship-shape to anywhere in the world. The Fresh Market fuel supply is essential to achieve the meet the requirements of a new phase of in Dubai’s Ras Al Khor area opened organisation’s zero-carbon future. Part of development in the UAE. the first-ever display of Israeli produce our long-term approach, we see hydrogen recently. The introduction of Israeli as both an energy source and a maritime produce adds to Dubai’s drive to diversify fuel. Hydrogen can be used in fuel cells the sources of imported produce in the to power electric vehicles and vessels in UAE. The geographical closeness and the the long term. Also, Hydrogen Electrolysis speed with which the products can be have an opportunity to capture surplus transported directly to markets in the UAE renewable energy and store it for long is a great advantage. durations for reuse when needed. SECTOR INSIGHTS 46 Artificial intelligence Artificial intelligence 47

The UAE’s Strategy for Artificial Intelligence (‘AI Strategy’) launched in 2017 followed the objectives of the country’s National Innovation Strategy, which aims to use innovation as a PUSHING THE pillar to achieve the targets of the UAE’s Vision 2021, and become one of the best BOUNDARIES OF countries in the world. This year marks the realisation of this vision, as the UAE has maintained its position within THE POSSIBLE: the Global Innovation Index (‘GII’) as the leading nation for innovation in the Arab world THE GROWTH OF for the fifth consecutive year. The UAE has shown that it backs vision and strategy AI IN THE UAE with rigorous policy making, agile strategising and the adoption of disruptive technologies across key sectors. Accordingly, when it comes to the UAE’s strategies, AI is not just a buzzword. The AI Strategy aims to boost government performance on all levels, and to use AI to provide a range of services across key sectors such as health, space, transport, energy, water, technology, education, and traffic. In recognising Martin Hayward the huge cost-saving Head of Technology, Media & Telecommunications [email protected] potential of automation, the government strategy also sets the ambitious goal of saving 50 per cent of annual government costs using AI. Other core objectives set Introduction of becoming a diversified by the AI Strategy include knowledge-based economy. establishing an incubator A pioneer for innovation Accordingly, the UAE for AI-related innovations, in the Arab world, the UAE government has drawn up and employing AI in government’s Centennial various initiatives aimed the field of customer strategy recognises the at investing in emerging “When it service. Smart Dubai, pivotal role of emerging technologies and preparing the government office technologies in fostering comes to future generations with charged with the economic development, the skills and knowledge strategy, AI city’s overall digital reducing the impact of a needed to future-proof their is not just a transformation has future financial crisis, and careers within the context an AI Lab which is addressing the 21st century's buzzword.” of this changing landscape. focused on accelerating unique set of challenges. Specifically, Artificial Dubai towards In fact, innovation is at the Intelligence (‘AI’) has been becoming the smartest city very heart of the Centennial mentioned as one of the key in the world. More tangible vision for a “future-focused tools which will be used to strategies include the government” and plays a “achieve the objectives of the Autonomous Transportation central role in the UAE’s goal UAE Centennial 2071”. Strategy, which aims to 48 Artificial intelligence Artificial intelligence 49

transform 25 per cent of the To set the framework for a 1. Automated decision making In order for the UAE to take assessments” or “evidence AI, please see our article transportation in Dubai to smooth transition, the UAE by companies advantage of the full potential based methods” which titled “Artificial Intelligence: autonomous mode by 2030. has established an AI Council of AI, it needs more policy purport to predict the future Regulatory Approaches in the This could be anything from which is tasked with proposing and discussion between the behaviour of defendants. UAE and Abroad”. The strategies have led to online recruitment tools, to policies to create an AI private and public sectors to noticeable AI developments usage in credit allocation At the present stage, the The UAE recognises the friendly ecosystem, encourage clarify which laws will apply to in UAE government. For or loan processing. For UAE has opted to use AI to importance of creating an advances in research and emerging technologies. example, ‘Rashid’ is a call example, AI software is enhance, rather than replace ethical infrastructure. A set promote collaboration centre virtual agent which already increasingly being judicial decision making. of non-binding AI principles between the public and private 2. Facial recognition offers answers to customers’ used to screen resumes. For example, in Abu Dhabi & ethics guidelines have been sectors. Notably, the AI Council questions about various The algorithm in these Deep learning algorithms, Courts, judges are allowed issued by Smart Dubai’s AI has announced that it aims transactions in Dubai. tools typically uses NLP to through the use of to use machine learning lab. The principles are: to issue a government law on Another example is in recognise word patterns in convolutional neural algorithms trained on past the safe use of AI. The UAE’s healthcare, where the UAE resumes, and assess them networks (‘CNNs’), can cases (predictive analytics) to Under this National Programme for AI has 1. Fairness: against the company’s criteria. analyse visual imagery. help them in sentencing or principle, data should be also committed to initiatives As with credit decisions, Facial recognition tools can acquitting criminals. Likewise, diverse and representative and collaboration between machine learning and big data identify or verify a person by within the DIFC courts, Amna of the affected population. the private and public allow for many types of data comparing a person’s facial Al Owais, the Chief Registrar Moreover, algorithms need to sectors. Examples to be factored in. contours against previous of DIFC Courts, has said avoid non-operational bias; include the Think data patterns (training data). that they are looking to use steps need to be taken to AI Initiative, which There are two issues in this MIT researchers have found predictive analytics to help mitigate and disclose biases includes a series for policymakers. The first that there is a potential for judges in their research. inherent in datasets, and of strategic is that automated decision bias in the algorithms within significant decisions need to roundtables to making can lead to biased some facial recognition 4. Autonomous Vehicles (AVs) be provably fair. accelerate AI’s decision outcomes (often systems, where darker adoption, and a reflecting biases in the Machine learning algorithms skinned complexions were 2. Accountability: one year AI training underlying data), and the are used to make AVs less likely to be recognised. Accountability for AI lies not programme designed second is the “black box” capable of judgments in This is because the training with the system itself but for government difficulty with AI. real time and a car must sets of facial recognition with those who design it and employees. learn and adapt to the An example of the first issue tools were overwhelmingly developers should take steps unpredictable scenarios from is a recruiting tool which male and white. As such, to mitigate risk in the systems surrounding objects. A key was being used by Amazon, where the person in the that they design. Moreover, Ministry of Health and Goodbye brute force: hello concern is the safety of such where currently 74 per cent photo (the unseen data) was a AI systems need to have a Prevention (‘MOHAP’) has data bias, the black box effect algorithms and the ethical of the company’s managerial white man, the model had 99 built-in appeals procedure made use of AI in chest x-ray and machine ethics dilemmas of programming positions are held by men. per cent accuracy. where the user can challenge examinations to diagnose them. These issues must With great opportunity Therefore, an algorithm that significant decisions. certain diseases such as Officials at Dubai airport be addressed as part of comes great challenges, used NLP to recognise word tuberculosis. Within the have announced plans to use the UAE’s Autonomous and AI is in many regards patterns in resumes and : AI systems transport sector, the Road robots to detect the faces of Transport Strategy. 3. Explainability a double-edged sword compares them against the should be “as explainable as and Transport Authority wanted criminals in airports, for policymakers. While company’s predominantly technically possible”. It should (‘RTA’) has developed Dubai’s and it is expected that their automation can lead to male engineering department be possible to ascertain Autonomous Taxi, which use will grow under the UAE’s Creating an ethical increased efficiency, there to determine an applicant’s certain factors affecting a brings Dubai one step closer futuristic vision. In line with infrastructure for regulating are several ethical dilemmas fit was found to be gender- decision on an individual, and to achieving the targets this, policymakers need to Artificial Intelligence with artificial intelligence biased. the decision making process set by the Autonomous be aware of current ethical that should be carefully Despite the ethical and policy should be explained to them. Transportation Strategy. While the UAE needs to take issues with the use of facial considered. As discussed issues with the increase in legislative action to prevent recognition software and Artificial Intelligence below, the UAE is already the use of AI the UAE, like discriminatory uses of AI in draw up adequate policies 4. Transparency: Developers is expected to post a taking many of the required many jurisdictions, has yet the future, the current DIFC to address it. Proposed should build systems where monumental shift to the regulatory precautions to to enact an overarching Data Protection Law already regulations could include failures can be easily traced. pillars of our economy and effectively manage and law specifically targeted has a section on automated imposing a legal obligation to Those who use should be society. To put this into optimise the use of AI. at regulating the use of AI. individual decision making, have a diverse training data transparent about the data context, PwC estimates that Having said that, continuous However, it is worth noting whereby the data subject set. and algorithms they use AI could contribute US$96 monitoring and review of that this is not to stop has the right to object to a (within the remits of IP law billion to the UAE’s GDP in the risks associated with AI existing regulations, such and privacy law). decision which is based solely 3. Algorithmic decision 2030 (around 13.6 per cent are required to maximise its as those relating to product on automated processing making in court proceedings While this is a good start, of GDP). In this light, clear benefits within the next 50 liability, to apply to AI just as where this can produce in the future of the UAE, policy initiatives are required years. One of the most controversial they would with any other legal or seriously impactful binding regulation may well to ensure that our transition examples of the use of AI in malfunction. For a detailed The following are just a consequences. This is similar be required to encourage towards the Fourth Industrial court proceedings is through discussion of safety, liability, few examples of how AI is to other data protection laws innovative usage of AI, Revolution is as ethical and criminal Justice Algorithms: privacy and discrimination being used and some of the such as the GDPR. provide conceptual clarity, responsible as practicable. sometimes referred to as “risk laws that would apply to associated policy challenges. and manage associated 50 Artificial intelligence Artificial intelligence 51

risks. Regulators need to For example, in the EU, there 1108, H.R. 2231). If enacted, strike a balance between is a European Commission it would require covered safeguarding risks present in report on Liability for entities to conduct “impact the uses of AI without stifling Artificial Intelligence assessments” on their “high- potential advancements. and other Emerging risk” automated decision The US and EU provide Digital Technologies. This systems to evaluate the good examples that can be recommends: impacts of the system’s followed and improved upon design process and training 1. strict liability for in the UAE’s next decades. data on “accuracy, fairness, operators of technologies bias, discrimination, privacy, In the EU, there has been that carry an increased and security.” Adopting such a wealth of new guidelines, risk of harm to others. a law in the UAE could help publications, and declarations Where the risk of harm to reduce algorithmic biases from various bodies on AI is not “significant”, there in companies that rely on in recent years. Notably, should be certain duties automated decision making. the EU’s ethics guidelines such as having to choose for trustworthy AI include the right system for the Facial recognition is another similar guidelines to Smart right task and skill; sensitive use of AI where Dubai, which strive to legal clarity is essential. In the 2. persons using ensure that the use of AI is US, the Commercial Facial autonomous "trustworthy". The guidelines Recognition Privacy Act technologies should not flag that user trust is an prohibits entities from using be less accountable for essential component in “facial recognition technology harm than otherwise; the deployment of new to collect facial recognition technology. Without trust, 3. there should be liability data unless such entities: the economic and potential for manufacturers of (1) provide documentation societal benefits of AI cannot products or digital that explains the capabilities be realised as users will not content incorporating and limitations of facial- adopt it. The guidelines emerging digital recognition technology; and outline lawfulness, ethics, technology if there has (2) obtain explicit affirmative and robustness as the three been damage caused by consent from end users pillars of trust. defects in their products;

The EU’s Policy 4. it must be ensured that Conclusion and Investment victims are entitled to Recommendations for "facilitation of proof" in A “wait and see” approach Trustworthy AI set out further circumstances where an has been largely adopted by steps that governments can emerging technology governments in relation to AI take to further the adoption has caused harm but as they seek to understand and acceptance of AI. These its complex nature “i.e. how this emerging include: black box effect” makes it technology will develop and difficult to prove liability; mature and what hitherto • developing an AI- unknown risks may emerge. specific cybersecurity 5. data loss as damage: the It is a delicate balance to infrastructure; and destruction of the victim’s mitigate such risks whilst data should be regarded • redeveloping education avoiding the stifling of as damage, for which to reflect emerging innovation. Work is underway compensation should be technologies, reskilling by the World Economic available; and and upskilling the Forum’s Centre for the workforce to prepare for a 6. devices should not have Fourth Industrial Revolution change in the landscape. a legal identity as the to develop a roadmap for harm caused should be policy makers to facilitate attributable to existing discussion in regulation Managing risk and liability persons or bodies. methodology regarding AI. It will be interesting to As discussed concerning AVs see if the UAE’s leadership and algorithmic decisions, Driving accountability in the advancement of the question of liability AI will also see a focus on is increasingly important Regarding algorithmic developing policies, laws when adopting autonomous decisions, the US has and regulations that drive For further information, please systems. Well conceived laws introduced a bill for fairness, transparency contact Martin Hayward regarding the liability of AI algorithmic accountability and accountability whilst ([email protected]). systems can help manage this. “the Algorithmic maintaining trust in the use Accountability Act (S. of AI. 52 Education Education 53

overblown and whilst there is a role for blended learning models it will not replace the physical coming together of students and faculty); and • far-sighted and ambitious DESTINATION 2071: government leadership. The following are the areas where we see opportunities REIMAGINING for the UAE to make a quantum leap in world education rankings. Some EDUCATION AND of these ideas are ones that could apply to any country in GETTING UAE TO the world. K12 THE TOP OF CLASS The UAE K12 sector is already a global leader in many ways. The pandemic showed how well equipped it was to make the move to remote learning, having invested heavily in EdTech for years beforehand. We believe the school or university of the future will continue to be “The UAE education sector a physical campus is one the leading private experience, with education markets globally elements of blended learning and perhaps and represents a fascinating a minority of students Ivor McGettigan petri dish of different learning remotely. Of Partner, Head of Education curricula, brands, influences course there will be [email protected] room in the ecosystem and themes, making it the for entirely online most diverse education education delivery landscape in the world.” models but we believe this will complement and not replace the The UAE education sector the elements we believe can physical campus. is one the leading private deliver fundamental change The student experience, see education markets globally and improvement. below, will become ever more and represents a fascinating The UAE is already in a important across K12 and petri dish of different formidable position: Higher Education. curricula, brands, influences and themes, making it the • most diverse education An opportunity exists to most diverse education landscape in the world reimagine the relationship landscape in the world. with multiple curricula between the school campus: and influences; generally built at enormous Already a leader in the region, expense with state of the how does UAE meet its • world leading in K12; art facilities with the wider centennial goal to be become • many leading education community, be it using sports a world leader in education by providers already here; facilities in the evenings, adult 2071? education etc. In essence • ideal location at a global The UAE is in a fantastic placing the school campus at intersection (all the position to make that jump. the heart of the community; talk of the demise of This article explores some of not just an 8am-4pm building. the physical campus is 54 Education Education 55

Student experience Regulatory innovation Quality Collaboration order to create the impetus some of their R+D budgets in for this it will involve changing UAE? A new and imaginative Oftentimes education The UAE could decide to A related regulatory topic A critical factor that is the mind-set of students approach is required, whether institutions in the region have create the most dynamic is of course quality. The currently lacking here is and parents (who heavily it is something like the a very top-down approach and nimble regulatory UAE is already making a collaboration and addressing influence student’s course offset programme (where with insufficient focus on environment in the world. concerted effort on this front this is imperative if UAE is to choice and perceptions), deep defence contracts awarded the students, their campus The regulator mind-set and it is absolutely vital to aspire to No.1 status. engagement with industry and to foreign companies experience and the wider would need to pivot from continue to work on this if To break it down further a policy led approach from included a commitment by pastoral role of the education gatekeeper to stakeholder; i.e. UAE is to become a world we are talking about government and regulators. the company to do some of provider. Students perform it would look to see how it can leader in education. Quality collaboration between: the manufacturing for that better when they feel they support education providers does not mean, however, project in UAE), encouraging are genuinely part of an in their quest to implement that the regulator needs to • education providers: R+D private sector matching for education community rather quick and innovative changes micromanage the education competitors can also research council funding than just headcount. (whilst maintaining quality) providers or force them into collaborate on areas The countries that are top (very popular internationally) and the regulator’s KPIs would box ticking exercises that of joint interest for of the education charts, as How many education or another model. The be adjusted accordingly. keep up appearances but in the betterment of the measured by the rankings providers put the resources homegrown industrial which no-one really believes. entire sector and this is organisations, have a common required into pastoral care The long heavyweights also have an Again, if common in other leading theme of high spending on and place it at the centre of laundry lists important role to play here. we look at jurisdictions but almost research and development. the student experience? of ‘do’s and “The regulator mind- the leading non-existent here; don’ts’ that Currently in UAE there are How many education education education set would need to • education providers a handful of universities Leakage providers have reliable data markets, the providers pivot from gatekeeper and regulators: in order engaged in R+D. Funding and knowledge in relation institutions A lot of UAE K-12 students must observe to have a dynamic has traditionally been a to where their former to stakeholder; i.e. have a lot of move abroad for their higher would be collaborative relationship problem, particularly for students went to? At Higher autonomy and education. How do we radically cut it would look to see and foster regulatory private international branch Education (‘HE’) level it is a significant address leakage and keep a to the most how it can support innovation. The Ministry campuses; the vast majority very limited. This information amount of higher percentage of them essential only. of Education is making of R+D funding coming is gold from the point of education providers trust and here? If the other issues COVID-19 has strides in this regard from government (emirate view of curriculum design, latitude is discussed in this article are shown that a in their quest to which is very welcome; and federal level) and being feedback in relation to the given to those addressed, we believe it will lot of these implement quick and and pumped into a few public student experience as well as with proven lead to an uptick of resident requirements backed universities. building up a proper alumni innovative changes track records; • education providers students deciding to stay are completely programme. we think this and industry to address: Recently there have been here for university. unnecessary; (whilst maintaining is the best (i) respective needs of some positive developments the show went quality) and the model to instil education, society and in this area whereby public on without regulator’s KPIs maturity and industry and the type funding has been made Leadership them. Conclusion self-reliance in of graduates produced: available for both public Leadership within HE would be adjusted In summing up, there are lots Trust is a our education and (ii) R+D funding and and private universities institutions in the region accordingly.” of reasons to be optimistic critical part of leadership collaboration (see below). and awarded by way has been described as being that the UAE can reach the equation teams. of competitive tender. transactional rather than the top of the world class here. If the regulator moves This model bodes well transformative. There is an by 2071. It is currently in an from being a gatekeeper Vocational training for the future and if the emphasis on process and ideal position from which to it must place trust in the Skills versus competencies amounts are significantly bureaucracy as opposed to Technical and Vocational launch and all of the above education providers that increased, in association taking a lead on transforming There is a worldwide Education and Training action areas are deemed they will step up to the plate with the establishment of HE and its outputs. fascination with credentials (‘TVET’) is an area that is entirely achievable if a full and do not need to be micro- government funding agency/ as opposed to skills. The underdeveloped in the UAE blooded approach to tackle HE needs to be more managed. The institutions. in research council and a co- education system that which is surprising given them is taken. proactive and shape the turn, must show maturity and ordinated policy, it will be equips its students with the presence of so many debate about its future, rather move away from a sometimes lead to a thriving research skills will excel. This will industrial heavyweights than being reactive and just a infantile approach where environment. require a change of mind- here. Unfortunately, there passenger on the journey. they are afraid to think for set from parents, industry Public funding is the most themselves and always look is a stigma associated with and broader society. It also important factor but private Teaching methods are to the regulator for answers. vocational training around often uninspiring, delivered includes instilling cognitive the world generally with a funding from industry and in a method that our A nimble regulatory and emotional skills to better few notable exceptions like alumni is also an important grandparents would be environment with greater cope, in order to create Germany. piece in order to make familiar with. In order to autonomy for the institutions flexible and dynamic citizens funding for research more The benefits of vocational grow, there needs to be more has all the hallmarks of the of the world. sustainable in the long- training are indisputable space for creative influence, leading education systems term. How do we encourage For further information, please and will help propel key disruption and a ‘business as in the world. It will create the international corporations contact Ivor McGettigan engineering and precision unusual’ approach. space needed for innovation with offices here to spend ([email protected]). and transformation. manufacturing industries. In 56 Energy & Utilities Energy & Utilities 57

as a whole. A further area this article will focus on is how the UAE has developed its policies towards global clean energy initiatives and the challenges it faces.

HERE COMES Long and lonely technology development In the early stage of (MORE OF) THE SUN: development in advanced economies, new renewable energy technology, such as WHAT WILL BE LIGHTING solar, wind, wave, biofuels, was a niche market due to the disproportionate production LAMPS IN 2071 cost and need for subsidies. In 2021 much renewable energy technology has matured to provide competitive and/or cheaper alternatives to conventional power (e.g. “When it comes to energy, solar). Given that the UAE was a late entrant to the whilst global demand renewable energy sector, continues to grow, there is having only entered a clear trend in that the way within the last decade, it was able to benefit in which it is being used and from the economies of manufactured is changing, scale and advancements with renewable energy rapidly made by countries such as China. The UAE was becoming a viable alternative able to take advantage to conventional sources.” of these economies (as well as the low cost of Mark Brown Amardeep Shoker financing) and develop Partner Associate Banking & Finance Banking & Finance its solar energy infrastructure [email protected] [email protected] without the need for state support. The ‘single buyer’ model deployed by UAE *Research by Ahmed Khairi, Paralegal electricity procurers has led to a highly competitive market where world-beating low tariffs for solar projects have been When it comes to energy, renewable capacity and regularly achieved in projects whilst global demand securing reliable and efficient like the fifth and latest phase continues to grow, there is supplies of energy. Energy of the Mohammed Bin Rashid a clear trend that the way in transformation is at the Solar Park and the Noor Abu which it is being used and forefront of many government Dhabi PV Power Plant (and generated is changing, with policies and investment by recently bettered in Saudi renewable energy having now companies into clean energy Arabia for the Al-Faisaliah become a viable alternative to is paving the way for an solar scheme). At the heart conventional sources. With an accelerated transformation of the UAE government’s increased focus on minimising of the global energy system. focus on renewable energy carbon pollution and a desire This article looks at global is the “Energy Plan 2050” by countries to reduce energy trends emerging in the which launched in 2017. This imports, governments and renewables energy sector ambitious plan seeks to corporations globally have including advances in artificial increase the contribution long term targets to reduce intelligence and storage of clean energy in the total emissions, committing solutions and also some of the energy mix to 50 per cent to raising the amount of challenges facing the sector and to increase consumption 58 Energy & Utilities Energy & Utilities 59

Given that power supplemented by different batteries and energy project will focus on the Plan’s In the UAE green hydrogen context, what battery storage. from hydrogen is one of the four pillars to deliver a new initiatives are beginning in does reside key pillars of that programme. utility experience and make earnest. In 2021, ADNOC, Regulatory and financial in the UAE’s Therefore, an increased focus Dubai a global model for clean Mubadala and ADQ formed incentives are commonplace energy future? on battery storage in the energy and green economy. the Abu Dhabi Hydrogen in these countries to Three areas are UAE, coupled with greater Of note is the third pillar, Alliance for the purpose encourage the deployment of of particular private sector participation, which will seek to use artificial of creating a green battery storage solution. The interest: is likely to continue to drive intelligence to make Dubai the hydrogen economy in the incentives are particularly storage; artificial investments into large scale first city to provide AI-based UAE. Siemens Energy has generous in countries intelligence; and battery energy storage electricity and water services. announced plans to build that have energy stability green hydrogen. systems in the UAE. a solar-powered green concerns, such as Germany However, the regulatory hydrogen plant in Masdar where government has framework surrounding City and also entered into provided levy and grid artificial intelligence will need When ice is The years since it’s been here a MoU with Mubadala to tariff exemptions to energy to evolve in such a way as slowly melting produce green hydrogen. storage facility providers A further trend in the to balance the ethical need Looking regionally, the world’s Energy storage and low rate interest loans renewables’ energy market to control data against the largest green hydrogen is the need to trap generated and in Italy where the is the emergence of practical consequences of efficiency of individuals and project was unveiled earlier power pending its despatch government has offered artificial intelligence to drive applying artificial intelligence corporates by 40 per cent. this year in the Kingdom of to the grid at the required 50 per cent deductions for improvements in efficiency, to analyse data so that Ultimately, the goal of “Energy Saudi Arabia. The US$5 billion time. Storage technology has storage installations. The quality and access but also in renewable energy can work Plan 2050” is to create an plant will use four gigawatts lagged generation to date UK government has also the planning, operation and more efficiently. Whilst energy mix that combines of renewable energy and is but is key to addressing the recently changed planning control of power systems. many developing nations renewable, nuclear and clean jointly owned by Air Products, need to balance the supply legislation to encourage Investment in artificial have developed regulatory energy sources to reduce the Saudi Arabia's ACWA of energy from irregular the development of larger intelligence is poised to grow frameworks supporting data country's carbon footprint and Power and the corporate natural sources with demand batteries to store renewable rapidly over the next fifty collection, arguably these diversification of its economy arm of NEOM, a mega-city whilst ensuring a consistent energy from solar and wind years with energy suppliers, still do not go far enough to away from fossil fuel. The UAE planned in Saudi Arabia. and uninterrupted supply. farms. This contrasts to the including traditional firms protect specific uses of data. Centennial Plan is 21 years in The energy procurement According to a report UAE where specific financial such as Abu Dhabi National A notable example of existing the future to these goals so it frameworks both Federally prepared by IRENA on Utility- or regulatory incentives Oil Company, that has entered legal frameworks that can is not unreasonable to expect and in the larger Emirates are Scale Batteries, battery are not used to promote into a joint venture with an control the use of data is the further advancements after sufficiently adaptable to allow storage systems are emerging investments in grids (which Abu Dhabi-based AI and UK’s Data Protection Act and 2050. for their adoption, provided as one of the potential are all state controlled) or cloud computing company the EU’s GDPR. Currently the the technology is as cost But whilst a full switch to solutions to increase system storage solutions in the UAE. to develop AI products and UAE does not have a single effective as solar has proven renewable energy supply over flexibility as a result of their applications for the oil and gas codified set of data protection However, the UAE has one of to be more recently. the next 50 years is possible, unique capability to quickly industry, noting the significant laws and therefore the the highest solar irradiation this does not come without absorb, hold and reinject advantages that can be regulation of data protection Notwithstanding the levels in the world and we challenges. According to a electricity. Further, with gained from investment in will need close attention challenges highlighted in this expect storage solutions report prepared by IRENA on the rise of electric vehicles artificial intelligence. AI is to to support the growth of article, with clean energy at will be increasingly deployed Global Energy Transformation bringing lots more innovation be used in the development of artificial intelligence. the top of every agenda in the to manage the supply of – A roadmap to 2050, some in the battery space, declining smart machines and advanced UAE, the renewables’ energy energy as well as to meet of the biggest challenges that costs of producing batteries sensors to make more sector within the UAE is most the UAE’s clean energy the sector will face over the and improved performance accurate weather predictions, It's alright certainly poised to transform targets set out in “Energy coming years include, storage has meant that the demand the development of storage at a rapid pace over the next Plan 2050”. Typically, solar Green hydrogen is effectively and the speed of progress, for battery storage is at an units based on understanding 50 years and in line with the projects (typically PV) in the produced by renewable public policy and regulation all time high, particularly in consumption patterns and industry trends highlighted. UAE have not had battery energy splitting water and the need to increase countries such as Australia, monitor power demand to aid However, increased focus on storage attached as part of molecules into hydrogen investment into smart energy Germany, Japan, United supply and demand. Dubai’s the regulatory framework is their required design but and oxygen. One of its most systems, power grids and Kingdom, the United States government, for example, required to ensure that the the most recent Abu Dhabi important advantages is recharging infrastructure. and other European countries. is committed to artificial UAE can continue to keep project, the Noor project at that it enables the storage Further, the impact of For example, in 2020 Japan intelligence in the renewable up with the pace of energy Al Dhafra, has an optional of renewable energy in large COVID-19 has temporarily has completed one of its energy sector. In an effort transformation globally. large scale battery energy quantities for a sustained diverted attention away from first large scale solar farms to achieve the objectives of storage system with a period of time which policies relating to renewable to meet the requirements of the UAE Centennial 2071, and capacity of 300MWh which, increases energy flexibility energy and resulted in labour a local grid operator and the the focus on innovation, the once completed, will be the and inter-seasonality shortages, national and state of New South Wales Dubai Electricity and Water first power plant in the region issues. Moreover, it has international restrictions and announced the construction Authority has aligned its own which integrates solar and the potential to overcome disruptions to supply and of four large battery projects goals with UAE Centennial storage. Further, as part many difficult challenges of manufacturing chains. aimed at modernising the 2071 and has revealed plans For further information, of DEWA’s ‘Digital DEWA’ energy production such as state’s power grid by shifting to build the world’s first please contact Mark Brown programme, testing energy producing hydrogen without to renewable sources of autonomous renewable ([email protected]). storage technologies such as CO2 emissions and/or energy digital utility. The polluting particles. 60 Environment Environment 61

The UAE has adopted many of the long- term sustainability plans developed by the United Nations Sustainable Development Goals’ initiatives, including: • no poverty; • zero hunger; • good health and well-being; A SUSTAINABLE FUTURE: • quality education; • gender education; LEGAL PERSPECTIVES ON • clean water and sanitation; • affordable and clean energy; CLIMATE CHANGE AND • decent work and economic growth; • industry, innovation and THE ENVIRONMENT IN THE infrastructure growth; • reduced inequalities; • sustainable cities and communities; UNITED ARAB EMIRATES • responsible consumption and production; • climate action; • life below water; • life on land; • peace, justice and strong institutions; and • partnership for the goals. (as monitored by the Federal Competitiveness and Statistics Authority)

Climate change Andrea Tithecott Climate change and the Partner, Head of Healthcare & security of core assets Life Sciences and Regulatory required to enable the [email protected] country to function independently, is a key concern for the UAE government. Geographical considerations, increasing The UAE Centennial 2071 strategy is the commitment temperatures, changes project is the national of the government to in weather patterns, and strategy that has been put in observing international and lack of rain create a harsh place for the next 50 years regional commitments to environment in which and that will enhance the the climate change agenda, to support a successful country’s reputation, and and promoting investment economy, build and drive it to become one of in projects that are built on maintain essential utilities the best countries in the solid sustainability principles, infrastructure, allow people world by 2071. Core to this in order to achieve a better to live and work, to grow quality of life for its citizens. food and maintain adequate 62 Environment Environment 63

water supplies. Environmental Sustainable infrastructure future would be, of critical garden city with rooftop for investment. European mind-set and correspondingly experts believe these issues, assets importance to the success of gardens and green walls banks have already taken this inform the market. ESG is if not addressed urgently, the country and its economy. has made a difference as type of approach in relation also a major pillar of public A number of steps are being could cause critical security This law placed protections has become to the European Principles policy and strategic planning taken aimed at achieving of supply issues in the upon biodiversity, land and one of the most carbon for the Environment. Many for governments and, on the sustainable infrastructure near future. We are already marine areas, and required efficient countries in the international institutions global platform, is a part of the assets. In order to reduce its witnessing the government any person or company that world. Vertical food zones insist upon adherence to United Nations Sustainable carbon footprint, the UAE taking greater responsibility intended to carry out any and investment in agriculture the Equator Principles when Development Goals. monitors the emission of for critical infrastructure activity that might cause any have been important in providing project finance. gases arising from industrial assets, such as, water supply, harm to the environment shaping success activities and that contribute seawater desalination to obtain a permit from the in relation to Conclusion to the greenhouse effect, facilities, food production, environmental regulator many of the goals and as a result, has reduced “The UAE's Energy Strategy Having set a clear strategy, and more investment in clean – The Ministry of Climate which the UAE its carbon emissions policy agenda and goals, new energy projects. Change and Environment also strives to 2050 seeks to convert the significantly in recent years. regulation in relation to the (‘MOCCAE’). Since then, achieve. The Abu Dhabi National Oil country to clean energy environment and climate secondary regulation has Company has committed In the United sources by the year 2050, with change for the UAE must Clean energy been promulgated to control to reducing flaring of Kingdom, the take into consideration the various environmental risks, the following targets: Clean The UAE's Energy Strategy natural gas. Developers of government concerns and interests of and the responsibility for 2050 seeks to convert the commercial buildings and has outlined a energy 44 per cent, Gas 38 per all stakeholders, including environmental controls and country to clean energy domestic housing stock, are ten-point plan cent, Clean coal 12 per cent. government, business, and protection extended to other sources by the year 2050, required to comply with green which includes the population. The correct governmental stakeholders, Nuclear energy six per cent.” with the following targets: building codes. a number of balance of law coupled creating a collective Clean energy 44 per cent, Gas objectives with investment will ensure Measures that will improve responsibility on government 38 per cent, Clean coal 12 per including the greater use ‘Responsible investing’ is that the UAE government sustainability and tackle departments to consider cent and Nuclear energy six of nuclear power, increased the trending investment can regulate effectively environmental challenges the environmental risks and per cent. production of low carbon strategy adopted by many key and continue to encourage aimed directly at population benefits of many economic hydrogen public transport, investors seeking to account trade and tourism whilst There are however, significant behavior, and enabling and industrial activities and offshore wind power for both financial returns and protecting the natural challenges ahead to improve change at a cultural level projects. That being said, investment and 30,000 social/environmental good in environment. Close and the UAE’s current global include: taxation on higher given the pace of change at hectares of trees to be their investment decisions. effective cooperation with rankings in relation to air polluting cars; greater international and national planted every year, as part of This new investment the international community pollution and unsustainable emphasis on electric powered level in terms of the overall nature conservation efforts. approach acknowledges the and regional neighbours will groundwater extraction. A cars; and the prohibition strategy and policy agenda, The UAE is committed to relevance to the investor of also be of critical importance recent study by the UN SDSN of single use plastic items there is much to be done similar goals, having brought environmental, social and to ensuring a unified and Global Index indicated the such as bags, cutlery, bottles to develop new legislation its first nuclear power plant governance (‘ESG’) factors, consistent approach to UAE’s level of freshwater and cups. It is important that supports the strategy to operational level in August and of the long-term health effective regulation, and withdrawal from renewable for those who believe in and enables the economy, 2021 , and having completed and stability of the market to support a happy and water resources was at the importance of the business and the community significant renewable energy as a whole. Many investors cohesive society. 2346.5 per cent as opposed environment to the economy to thrive. projects, largely in solar have started to integrate ESG to a global average of 65.4 to participate in activities Legislative change typically energy projects, and is now factors into their investment per cent. Air pollution ranks that benefit everyone. starts by benchmarking also examining greater use portfolios and investment amongst the highest in existing legislation against of waste-to-energy and wind decisions when assessing the world according to the the laws of other countries projects. a potential investment Environmental Performance Legislative change that have led the way on in a company. There is a Index prepared by Yale The UAE was one of the first the environmental and noticeable confidence that University. The UAE ranks as countries in the Middle East sustainability agenda. Investing in a sustainable ESG analysis can provide fourth globally in exposure to introduce environmental Singapore is a good example future valuable insights about to particulate matter (2.5), protection legislation, of a jurisdiction that is factors having a significant which stem from highly The role played by financiers demonstrating the vision often benchmarked by impact on the financial dangerous, carcinogenic in assisting the government and leadership of Sheikh the UAE government as metrics of a company and materials from fossil fuels. to achieve environmental Zayed bin Sultan Al Nahyan, representative of the type therefore better inform The UAE has put in place goals should also not be President of the UAE, and of success which could be investment decisions and emissions’ targets that are underestimated. Whether fondly remembered as the replicated and thereafter financial performance. ESG comparable to international funding comes from ‘father of the nation’. Sheikh improved upon in the UAE, is increasingly important for standards. What is needed, sovereign wealth sources, Zayed, introduced the Federal by introducing measures investors in public companies is more assistance (financial, investors, or banks, there Law No. 24 of 1999 on the which ensure all citizens and so, to win the battle for knowledge, and technical) to should be an increased Protection and Development enjoy clean air, water and capital, public companies support industrial operators focus on borrowers meeting For further information, please of the Environment, sanitation, quality healthcare must respond by improving with compliance, and to put certain environmental criteria contact Andrea Tithecott having recognised that and education, as well as lush their ESG credentials and the infrastructure in place to before a project is approved ([email protected]). the protection of the greenery and safe common enable the targets to be met environment was, and in the spaces. The creation of a 64 Finance Finance 65

banks, two world class financial centres and a legal and regulatory regime which is constantly evolving to keep up with global standards. The UAE Centennial 2021 Project, in celebration of its Golden Jubilee, aims to make WHERE TO FROM the UAE the best country in the world by 2071. The UAE’s vision for the future is HERE? THE FUTURE established on an impressive history of development and progress that should set a OF THE UAE FINANCE solid foundation for ongoing development in the next 50 years. The UAE’s finance industry is poised to accept INDUSTRY the challenge proclaimed by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai when he stated that: “The future belongs to those who can imagine it, design it, and execute it. It isn’t something you await, but rather create.”

Embracing technology One of the reasons that the UAE has become a global Jody Waugh Dennis S. Ryan leader in finance has much Deputy Managing Partner, Senior Associate to do with it embracing Head of Banking & Finance Banking & Finance advances in technology to [email protected] [email protected] steer the finance industry to offer more efficient and enhanced products and services to meet the expectations of the digital consumer. In The UAE is celebrating its The future of finance in the Dubai Future Golden Jubilee, marking 50 UAE “The UAE is celebrating its Golden Foundation’s years since its union. Over Deliberating about the Jubilee, marking 50 years since its (‘DFF’) recent, “Life this relatively short history, future of the UAE’s finance union. Over this relatively short After COVID-19: we have seen buoyant industry, we are mindful of Financial growth in the UAE finance history, we have seen buoyant the significant developments Technologies” industry, notwithstanding in the UAE’s short history. The growth in the UAE finance industry report (the periods of dramatic volatility UAE issued its first currency notwithstanding periods of dramatic ‘Report’), it states in the global economy in 1973 and transitioned since the following: and the onset of a global volatility in the global economy and then from a trading hub for pandemic. The UAE finance “[the coronavirus] the region into one of the the onset of a global pandemic.” industry continues to is an important world’s leading financial adapt and change through opportunity for centres. From humble innovation in policy, mind- private sector entities to beginnings, the UAE has set, and technology. accelerate the digitisation of rapidly grown to be home to financial services.” over 50 onshore commercial 66 Finance Finance 67

The Report continues with and implementation of new custodians, auditors, valuers Alternate finance options reliant on digital the following observation: technologies in the finance and Shari’a boards; being platforms to As an alternative to the industry in the UAE is also onshore UAE, which is carry out their “The financial technologies collective investment funds’ “The diversification in the UAE developing a new glossary of currently regulated by the international bank industry – fintech – not only regime in the UAE, alternative terms The use of technologies Securities and Commodities transfers and of finance options through its appears to be resilient to the finance options continue to such as FinTech, internet of Authority (‘SCA’), the general banking. investment funds’ regime and risks of the pandemic, but is grow. Raising capital through things (‘IoT’), E-Wallets, Robo ADGM and the DIFC. These With the onset widely expected to emerge bonds and Sukuk remains alternate platforms demonstrate Advisors, robotic process jurisdictions provide a of coronavirus in stronger as people turn to strong, with an ever growing automation, blockchain, domestic jurisdiction for fund 2020, there has that the UAE finance industry digital-only services.” industry which includes 5G, chatbots and artificial managers and sponsors to been a significant is both creative and responsive; securitisations, supply chain intelligence (‘AI’) continue to establish an investment fund increase in the use finance, credit funds, captive key characteristics that have Funds and alternate financing be the focus for the future of while retaining appropriate of digital apps to offerings, finance leasing and propelled it to being a leading Another reason the UAE the finance industry. levels of investor protection. assist with banking crowdfunding (with the UAE has become a global leader transactions. As global financial centre.” As an alternative to recently introducing its first in finance has to do with the baby-boomer conventional banking and crowdfunding regulations it embracing diversified Virtual assets regulation generation is being finance transactions, sponsors outside of the financial free digitalise finance operations offerings from collective replaced by millennials and The UAE generally has been and investors, globally, regularly zones). and the support of the investment funds and adding centennials (aka Generation cautious when considering explore opportunities to UAE regulatory bodies, the to its ever growing creative Z, Gen Z, iGen), the argument the implementation of establish or invest in collective industry in the UAE is well alternate financing options, that digital banking will regulations on virtual investment funds that pool What lies ahead? placed to embrace this including the regulation of increase significantly in the assets, however that is investors’ contributions, change and in doing so crowdfunding initiatives, Innovation and future is certainly persuasive. slowly changing. The ADGM which are then managed by a continues to be a market insurance, securitisations, implementation of digital currently regulates the regulated fund manager based leader globally. Sukuk and the ever growing technologies Increased diversity of operation of virtual assets on a disclosed investment business of investment investment strategies and H.H Sheikh Hamdan bin under the Financial Services objective and strategy in the Clearly, the ongoing management. platforms Mohammed bin Rashid Al and Markets Regulation offering documents. digitalisation in the finance Maktoum, Crown Prince ('FSMR'), and the DFSA industry is inevitable. With The diversification in the UAE In addition to offering of Dubai, Chairman of the has recently issued its first FinTech hubs, like those of finance options through Growth of digital technologies domestic public and Executive Council, Chairman consultation paper on established in the DIFC and its investment funds’ regime professional opened-ended of the Board of Trustees at regulating digital assets the ADGM, opportunities and alternate platforms UAE digital banking and closed ended funds, each Dubai Future Foundation such as cryptocurrencies. to test and develop new demonstrates that the UAE proponents speculate that of the fund regulators in the summarised the challenges The onshore position is technologies will continue finance industry is both the shift to digital in the post UAE offers a host of specialist in creating the future we also changing with the to have a base. Further, the creative and responsive; key COVID-19 world is enhanced funds, including Islamic funds, want, which has significant crypto asset regulations expansion of venture capital characteristics that have with the ease and security fund of funds, master funds, relevance to the future of the issued by the Securities and and business incubators propelled it to being a leading of digital banking, featuring feeder funds, private equity finance industry in the UAE, Commodities Authority in together with government global financial centre. This contactless payments, online funds, property funds, real when he stated the following: relation to securities, and the programmes and Sovereign diversification of finance remittances and e-commerce estate investment trusts new crypto asset licenses Wealth investment options will continue to grow “Creating the future we want transactions. (‘REITs’), hedge funds, umbrella available in the DMCC. and promotion of new and, coupled with technology, requires determination, One of the underlying funds, money market funds, technologies are contributing alternative solutions through hard work and a specific and challenges for increased exchange traded funds (‘ETFs’) to laying the foundation for low cost easy-to-use funding advanced set of skills, tools reliance on digital banking is and venture capital funds (‘VC Growth of the collective continued growth of this platforms are likely to disrupt and technologies.” the negative consequence of Funds’). investment funds regime industry in the UAE. the conventional banking cybercrime requiring banks to Al Tamimi & Company and alternate financing There has been a steady industry. implement state-of-the-art celebrate the successes arrangements growth in the popularity of Digital banking vs bricks and security controls to protect in the growth of the UAE domiciling investment funds mortar consumers and ensure their In addition to the growth finance industry in the past in the UAE as opposed to A reason for optimism in ongoing comfort in using a of digital technologies, the Many financial pundits 50 years and we look forward establishing them offshore the growth of the financial banks’ digital platform. The UAE is showing tremendous believe that the increase in to working in this industry as in the Caribbean or the industry in the UAE growth in alternate finance it continues to excel in the UAE continues to modify its Channel Islands. Much has to digital banking in the future options including collective Leaders in the finance next 50 years and beyond. anti-money laundering and do with (i) the global standing will result in the demise of investment funds and non- industry strive to define counter terrorism legislation of the UAE regulators who the brick-and-mortar banks. fund investment and finance a vision for their finance and practices to ensure that are all IOSCO members; (ii) Others believe that this view arrangements. organisation and establish it remains at the forefront, the liquidity in the region; has been greatly exaggerated. goals to adopt and implement globally, in addressing these and (iii) investors’ preference Only time will tell. However, emerging technologies to risks in the finance industry. Collective investment funds to invest locally rather than the significant number of expatriates working in stay competitive and increase For further information, Embracing digital innovations There are three jurisdictions in some distant offshore the UAE that continue to profitability. While this is please contact Dennis S. Ryan and competition appears to in the UAE that offer a host of centre. The formation of have banking relationships not without its challenges, ([email protected]) or Jody be the principal objective in options for the establishment domestic investment funds and family in their home given the abundance of new Waugh ([email protected]). today’s finance industry to and management of is positioned to continue countries, are increasingly technologies available to achieve sustainability as a core collective investment funds to grow in the future, and initiative. The development and regulation of fund especially in the post- managers, administrators, COVID-19 world. 68 Food Security Food Security 69

• motivate innovation, technology-sharing and development in the food and agriculture sectors. In 2017, for the first time the UAE Government established a State Ministry for Food Security, which became FAO’s line Ministry by June 2019. FOOD FOR THOUGHT: The new Minister has led the new UAE National Food Security Strategy 2051, which THE FUTURE OF FOOD was approved in November 2018. It is most notable that the new strategy aspires to SECURITY IN THE UAE make the UAE top of the Global Food Security Index by 2051 and among the top 10 countries by 2021, and focuses on facilitating the global food trade, diversifying food import sources and identifying alternative supply schemes. In 2018, the UAE Government announced that the UAE stood at 31st place on the Global Food Security Index. In December 2019 the index showed that the UAE had risen 10 places to 21st position, with the National Food Security Strategy 2051 Clare Heaney proving its Associate influence Corporate Commercial “It is most notable that throughout [email protected] the new strategy aspires the year. This is an to make the UAE top of impressive the Global Food Security achievement Index by 2051 and among by the UAE the top 10 countries by and is a clear What is food security? Council (the ‘GCC’) States. indication The renewed FAO-UAE 2021, and focuses on that the UAE Food security has been partnership aims to: facilitating the global is benefiting defined by the Food and from the Agriculture Organization • improve the sustainability food trade, diversifying strategy of the United Nations (the of agriculture and food import sources and which ‘FOA’) as "all people, at all fisheries production in identifying alternative aims for its times, have physical, social, the UAE and the sub- population and economic access to region, thereby improving supply schemes.” to have sufficient, safe and nutritious nutrition, food safety and access to food that meets their food food security; safe, nutritious and affordable preferences and dietary • contribute to eradicating food for a healthy life at even needs for an active and hunger and poverty in during states of emergencies. healthy life". In July 2017, the developing countries by UAE Government agreed to Due to the UAE’s climate, improving agriculture build on its support to the water and land resources, and fisheries-based FAO Sub-regional Office it can only provide a small livelihoods; and for the Gulf Cooperation fraction of its overall food requirements. The UAE Government strives to 70 Food Security Food Security 71

develop its food producing aquaculture sector to with local authorities. It is In relation to providers and through a Cabinet Resolution sectors with key focus on enhance marine resources, the first food bank in the the registered vendors, the which is yet to be published. the aquaculture sector , to maintain their sustainability United Arab Emirates; new law imposes several Non-compliance with the facilitate its goal of achieving and guarantee food security obligations which they must • established the Food Strategic Food Security Law the UAE Vision 2021 and the for future generations. The abide by and they are as Security Research imposes significant monetary UAE Centennial 2071 Plan. report analyses consumption follows: Platform. This an online penalties including a fine of The UAE Government in the local and international portal that allows 1. maintenance of the safe no less than AED 500,000 issued Aquaculture markets, taking into account specialists to share stock subject to the (US$136,000) and not more Pulse 2020 the product quality and size. its latest findings and provisions of this Law; than AED 2 million (US$5.5 report which This strategic report aims to publications across aims for the attract investors and ensure different research the success for aquaculture themes. It aims to serve projects in the UAE, the needs of a wide range “The UAE recently introduced the Strategic highlighting the advantages of stakeholders in terms of the local produce in terms Food Security Law which was approved with of data, information and of quality and cost. knowledge on research the aim of enhancing food supplies in the Further, on 28 June 2020, and development in event of emergencies, and thereby achieving the UAE Cabinet approved sustainable food systems food sustainability. The provisions of the law the national system for across the food value sustainable agriculture to chain; and apply to the Ministry of Economy (‘MOE’), improve self-sufficiency in producer or importer and the registered • established Abu Dhabi food, enhance farms and Farmers' Services vendors with a view to ensuring adequate create opportunities to Centre responsible for ensure that the agriculture food supplies across the UAE at all times, agriculture, food safety sector is always ranked high including in the event of a disaster.” and food security affairs in the UAE. The national in Abu Dhabi. system for sustainable agriculture seeks to: 2. supply the strategic stock million) which can be imposed • improve self-sufficiency Federal Law Number 3 of food commodities on producers, importers and from the targeted of 2020 (‘Strategic Food upon request; registered vendors who are found to be in violation. agricultural crops to five Security Law’) 3. electronic connection per cent annually; The UAE recently introduced with the competent It is clear that securing • increase the average farm the Strategic Food Security entity and the authority sustainable sources of food is income to 10 per cent Law which was approved to ensure the continuous a matter of national security. annually; with the aim of enhancing follow up of quantities, The initiatives introduced by food supplies in the event of kinds and condition of the the UAE Government and • increase the workforce in emergencies, and thereby strategic stock of food the new Strategic Security the sector by five per cent achieving food sustainability. commodities; Law will further enable the annually; and UAE to achieve its vision of The provisions of the law 4. execution of resolutions becoming a leader in food • achieve a 15 per cent apply to the Ministry of issued by the competent security by 2051. annual reduction in water Economy (‘MOE’), producer or entity; used for irrigation of a importer and the registered production unit. vendors with a view to 5. distribution of ensuring adequate food commodities in case of In addition, the UAE supplies across the UAE at all emergencies according Government has also: times, including in the event to the distribution plans • established the Food of a disaster. prepared by the authority Security Dashboard of in co-ordination with the The Strategic Food Security Dubai which is capable of competent entity; and Law provides that the MOE using artificial intelligence shall prepare statistics, 6. maintenance of an to analyse indicators of reports and databases in appropriate warehouse food security e.g. stock relation to the production and for storage of the availability, production provision of food, propose commodities in the UAE. and consumption; levels; policies relevant to food The Strategic Food Security • launched the UAE Food commodities, estimate the Law also provides that Bank in 2017, which is a volume of food consumption incentives and facilities will be For further information, charitable organisation. It and availability of produce in introduced for the provider please contact Clare Heaney distributes food to those the UAE and the originating. and registered vendor ([email protected]). in need by collaborating 72 Healthcare Healthcare 73

UAE HEALTH 2071: THE FUTURE OF HEALTHCARE

“The COVID-19 pandemic puts healthcare at the forefront of human existence, and there is no time to be lost in navigating out of the crisis and putting in place a national health strategy that will defeat COVID-19, and outline the objectives for the healthcare sector that will support the UAE in becoming the best country in the world by 2071.” Andrea Tithecott Partner, Head of Healthcare & Life Sciences and Regulatory [email protected]

The Centennial 2071 project Healthcare for all citizens launched by the Cabinet of The government’s healthcare the United Arab Emirates policy is both inward and aims to place the United Arab outward looking (and Emirates (‘UAE’) as the best paraphrased) as follows: country in the world by 2071. • to develop a healthcare In order to be the best system for citizens and country in the world, the residents that delivers UAE must have a healthy good quality healthcare population with access to to international standards, the highest standards of with a focus on lifestyle healthcare in the world. The diseases; COVID-19 pandemic puts healthcare at the forefront • improvement in access of human existence, and to healthcare through there is no time to be lost e-health, smart health; in navigating out of the and crisis and putting in place a • to become a top national health strategy that destination for medical will defeat COVID-19 whilst tourism. outlining the objectives for the healthcare sector that will It is undeniable that the UAE support the UAE in becoming has built an impressive health the best country in the world infrastructure consisting of by 2071. hospitals, clinics, home care 74 Healthcare Healthcare 75

services, and diagnostic medical tourism destinations. The UAE is a comparatively With the ‘World Medical American University fund and other investment laboratories, providing for According to the Medical expensive option for medical Tourism and Global Health of Sharjah biomedical expertise, the UAE is well the healthcare needs of the Tourism Index, the world’s tourism and, with some Congress’ having taken place engineering programme, positioned to be able to population and growing new most attractive countries for variables in capacity, quality, in Abu Dhabi in 2019 the which is working in monetise the vaccine and areas of clinical expertise; medical tourism are Canada, and trust. Arguably, the UAE spotlight remains upon the collaboration Rashid Hospital offer a global solution as part for example, in diabetes the United Kingdom, Israel, only scores very well in two UAE to make the required Dubai (funded by Al Jalila of a medical tourism strategy. care, cancer treatment, and Singapore, and Costa Rica. out of four of these criteria.2 changes in its medical Foundation), to improve COVID-19 led change will cardiology services, to name Dubai is currently ranked sixth Future-proofing the medical tourism strategy that will diagnosis and treatment of force the life sciences’ but a few. The transition and Abu Dhabi eighth. With tourism strategy requires continue to make medical epilepsy by using the skills sector in the UAE to adopt a from public to private sector the UAE-Israel normalisation corrections to be made in tourism successful. of engineers, scientists and business-focused approach services has been led through of relations treaty signed in order to give the UAE a better mathematical techniques to to its development strategy, private sector investment, September 2020, the UAE has score in those areas where it localise the source of epilepsy and examine a range of insurance provision, and an opportunity to collaborate is not performing as well as 2071 - healthcare agenda for in the brain. Another project, business models and the more recently public- with Israel with a view to expected; quality and cost. change in collaboration with Johns related components needed private-partnership projects, improving its ranking and Hopkins, concerns developing We propose three new that give rise to investment currently placing the split at moving up into the top five of quantitative measures to strategic goals that could opportunities. The pace 65/35 per cent in favour of world ranked destinations for measure brain injury following The future for medical drive the UAE to become a of change across the the private sector. medical tourism. cardiac arrest through clinical tourism global leader and strategic industry and markets is now trials on intensive care Important collaborations The UAE is in a good position partner of choice for irreversible. Review the medical tourism patients. with global brands, such as to improve its global ranking. healthcare science and strategy and decide what Life sciences’ infrastructure Cleveland Clinic, Mayo Clinic, However, improvements in innovation: The Abu Dhabi Investment needs to change to make investment needs Johns Hopkins, Mediclinic, certain areas will be required. Authority and Mubadala medical tourism more 1. a national Life sciences commitment from the Imperial College , Statistics indicate that, in Investment Company applicable to the current and strategy; government. In Abu Dhabi, Kings’ College London, some cases, hospitals were each have significant life post COVID-19 environment. the DOH is regulating and amongst others, all play a either not receiving the 2. a national digital health sciences’ investments locally We recommend: supporting the development significant role in bringing care volume of tourism patients strategy; and and worldwide. Mubadala of health science innovations to international standards, that were expected, or not • addressing the issue of Investment Company, in co- using a business-orientated building trust, improving able to raise the targeted competition between 3. growing and attracting operation with a consortium approach through a Health quality of care and offering revenue from those patients. healthcare operators. talent of investors have acquired a Accelerator programme medical tourism services. There has been a disconnect There should be a clear majority stake in the Envision in partnership with the between supply and demand, and unified plan as to Pharma Group, a leading Abu Dhabi Global Market and with competition within how the healthcare Life sciences technology enabled scientific regulatory framework that Medical tourism the private sector that operators will deliver communications’ company, The UAE is investing facilities investment in has resulted in healthcare the medical tourism expanding UAE access in life Medical tourism is a key heavily in health science health-tech innovation. operators all offering similar strategy. There ought science technology across pillar of the UAE healthcare and technology, tripling services and chasing the to be consumer choice, European and Global markets. strategy. The medical tourism its research capacity and same medical tourists. but through a controlled strategy is built upon the productivity in recent years. The UAE is also making Competition for the same licensing system, for The vision for 2071 – life concept of inward tourism, significant strides in finding medical tourists has, in some example, offering a Health science institutions sciences and innovation building hospitals, some solutions to COVID-19 respects, resulted in it taking selected range of in the UAE are actively • A national life sciences operated by respected through clinical trials and longer and costing more to services that do not collaborating with a multitude and research strategy: international brands, that vaccine research. Abu Dhabi achieve strategic goals.1 compete with each of intuitions worldwide drawn up by MOHAP create a package of services state-owned G42 (in which other, and which are of on a range of life science in collaboration with (including concierge) that bring According to the Medical Mubadala recently acquired the highest caliber of projects. The Dubai Science industry stakeholders. medical tourists to the UAE for Tourism Association, the quality; Park (a dedicated free zone a stake) is collaborating with treatment. The key question reasons why people choose established to attracting both Chinese and Russian • Regulations and • developing the capability now is, ‘has this strategy been other countries instead of life science and technology state-owned enterprises on Guidelines: creating a of offering COVID-19 successful and is it the best their own countries for medical businesses) connects COVID-19 clinical trials of an regulatory framework vaccines to medical strategy for the future?’ treatment are fourfold: international health science UAE/Chinese vaccine, and that facilitates a tourists; and the Russian vaccine, Sputnik willingness to participate, There is no doubt that the • higher quality of institutions with local V. Approval has already been with robust but medical tourism strategy treatment; • a global medical tourism institutions and supports granted for the UAE/Chinese practical data access has been successful. As a vision that supports participation in research • cheaper prices; vaccine Sinopharm, with the and confidentiality result of a huge amount delivering healthcare projects and clinical trials. offer of vaccination to UAE protections, that make it of political will, and efforts • a treatment option not to the patient wherever Similarly, the Mohamed Bin residents. Phase III trials are easier to run clinical trials by both public and private available at home; and they are in the world. Rashid University of Medicine in progress on Sputnik V. but also helps patients infrastructure investment This can be achieved and Health Sciences • to undergo treatment as These measures places the and trial volunteers to in hospitals, the UAE has in parallel with digital undergraduate programme is soon as possible without UAE amongst the leading understand their rights. recently made it into the health initiatives. heavily research-focused. queues. global nations offering a top 10 list of globally ranked Recent examples of vaccine for widespread use, • Collaboration and groundbreaking research and large-scale production. integration: between projects include; the Using sovereign wealth national policy, 1 https://www.imtj.com/blog/medical-tourism-strategy-where-does-it-all-go-wrong/ 2 https://www.medicaltourism.com/mta/home 76 Healthcare Healthcare 77

Digital health AI data prediction tools, through technology-led Young students have the volumes of complex cases government institutions, machine learning algorithms and online communication opportunity of choosing to to be clustered together, and science institutes Technology will drive better for image analysis, and systems, it is very important pursue a career in medicine supporting the development aimed to improve health outcomes at a robotics will become woven that tech companies and and health sciences. There of specialists, with associated the environment for lower cost. The trends are into the fabric of the future telemedicine providers are now opportunities to medical research projects research, innovation and towards better diagnosis and vision for healthcare. The operating in the UAE study within the UAE (such as and the opportunity to clinical trials. prevention, and continuous use of AI in combination have effective and secure at the Mohamed Bin Rashid publish research results: all improvements in the • UAE or GCC regional with the increasingly popular methods of processing and University of Medicine and leading to delivery of higher management of chronic center: create a center use of wearables and storing data. Health Sciences) but the quality care and better diseases, such as though of expertise: develop remote monitoring devices majority of students must patient outcomes. remote monitoring of strong collaborations will underpin the wellness travel abroad to receive diabetes. with institutions in the and prevention agenda. Regulation for the use of education and exposure to Middle East region, The future strategy requires a Innovation is thought of e-Health working in other healthcare Conclusion United States, Europe cultural change with regards as expensive but it can be systems. There should be Regulatory reforms must In January 2020, H.H. Sheikh and around the world. to prevention of illness rather instrumental in decreasing much more investment in our support and boost the health- Mohammed bin Rashid Al This will improve the than consuming health costs over time. Upfront talent of the future. tech sector. Leaner and Maktoum, Vice President and global standing of the services after the onset technology and equipment faster regulation processes Funding of research projects Prime Minister of the UAE UAE in the life sciences’ of illness. Technology will costs lead to downstream are needed that can be is important, along with and Ruler of Dubai said that sector. enable rapid access to health benefits, less surgical quicker on approving medical having processes in place the year 2020 would be the information and prevention, complications for example, • Capacity building: devices and pharmaceuticals. for utilising and supporting year of preparing for the 50 through diagnostics, high and over the longer term the creating research Regulation and policy the research, and obtaining years ahead. quality care and treatment: investment will reap rewards training programmes, drafting departments need to the consumables needed this is key for medical tourism and reduces costs. “our responsibility is to curriculums, and be more tech-savvy, engage for research projects. It will going forward. maintain development, good clinical UAE regulators are now with innovators and create be important to create a excellence and continued practice guidelines developing AI policy models the regulations of the future. culture for research with free- growth… including in the in collaboration with setting out the essential Approval processes must be flowing dialogue between Telemedicine health… and wellbeing of health authorities and requirements of AI in an rapid; quicker at providing government and science citizens” academia. Creating The UAE has embraced the healthcare framework; ethics, medical research and clinical institutions on the core bridge programmes concept of telemedicine safety, responsibility, and trials’ approvals. Better issue of inspiring the next The healthcare vision for amongst universities, and, having already sought security implications of AI regulation, supporting the generation of doctors and 2071 must leverage the research institutions, to create a regulatory use in healthcare. use of technology, should be scientists. momentum in technology and intern programmes. framework enabling at the heart of the healthcare and innovation investment The vision for 2071 should telemedicine activities, was solution, which will translate that has emerged from the • Projects portal: a support growing and easily able to approve the Cloud technology into a reduction in costs. COVID-19 crisis, and launch consolidated website for educating local talent in urgent and widespread use a national health sciences all approved research Cloud technology offers Digital health must be at the parallel with offering funding of telemedicine services in and technology strategy and clinical trial projects, great potential for enabling core of the 2071 centennial and grants for sending the the face of the COVID-19 that prioritises digital health, with status updates on large volumes of data to be health strategy. best students abroad for pandemic, enabling health sciences, whilst approvals and progress processed and managed by the experience of working continued access to health The UAE has done much nurturing the most talented through trial phases. both regulator-controlled shoulder to shoulder with advice for those in lockdown to bridge the gap between physicians and scientists: centralised systems and internationally recognised • Champions: the UAE and allowing e-prescribing digital health technology promoting the importance healthcare entities. However, physicians and scientists. must have champions and home delivery of advances and drafting of building both human and the present policy position drawn from practising medication. There is no regulations enabling digital Retaining quality machine learning capabilities in the UAE is for data to be clinicians, scientists, and turning back. Telemedicine health, but much more needs healthcare staff remains a and knowledge, inspiring the hosted onshore on local experts. This will improve must be at the centre of the to be done. challenge. Hospitals that next generation, and enabling servers ensuring greater the UAE’s global future of healthcare delivery are undersupplied with the UAE to participate in the control and security. standing, and also act as systems for the UAE. The patients, or where there role of global health citizen. role models for the next benefits include increasing We see there being a Growing and attracting talent are insufficient volumes generation. accessibility, focus on place in a future national of patients with complex A best-in-class healthcare wellness and prevention all of healthcare strategy for the needs requiring clinical • Contractual processes: system can only succeed with which result in reduced costs. use of cloud technology in specialists, do not create streamlined to the best talent. association with adequate the environment or career make it easier for security protections. This development pathways that institutions, research The UAE government, along will be essential as cloud talented professionals look units, and research co- Artificial Intelligence with health and science technology works hand- intuitions, must recognise for in a long-term career ordinators to deliver The use of artificial in-hand with telemedicine the importance of growing destination. research projects, intelligence (‘AI’) and machine delivery systems and AI and attracting talent both protect intellectual learning in healthcare is The vision for 2071 must For further information, please solutions. With greater in clinical medicine, and in property, and support essential in order to support focus on developing centres contact Andrea Tithecott volumes of personal health research and development. the monetisation of e-health delivery systems. of excellence, enabling ([email protected]). information exchanged innovation. 78 Space Space 79

STAR LAWS: HOW UAE LAW IS BOLDLY GOING INTO THE FINAL FRONTIER

Hassan El Tahir Andrew Fawcett Senior Counsel Senior Counsel Litigation, Legislative Drafting Technology, Media & Telecommunications [email protected] [email protected]

The UAE’s Centennial prediction, navigation and Leading by example to other vision, boldly aims to make scientific exploration. Space countries in the region, the the country the “best in exploration, followed by UAE enacted the Federal Law the world by 2071”. With its the prospect of eventually No.12 of 2019 on Regulation futuristic outlook and robust becoming a multi planet of the Space Sector (‘Space government strategies, the species. could also help Law’) in December 2019, UAE is well placed to tackle us address some of the which supplemented, and some of the 21st century’s 21st century’s unique set consequently clarified many most pressing challenges. of challenges, such as of the conceptual difficulties overpopulation and climate with the treaty framework, From the first Apollo change, to name but a few. while at the same time moon landing, to Space X’s ensuring compliance. successful astronaut launch, Our changing relationship our use of space is changing. with space however, is not A unique challenge, for the Today, space is being used for reflected in the law. Unlike the UAE’s next 50 years is to all kinds of peaceful purposes 1970s, when the first space ensure that it continues to such as environmental treaties were drafted, the take the right policy and monitoring, broadcast commercialisation of space regulatory initiatives to communications, delivering travel is no longer science accommodate this change in the internet, weather fiction. the landscape.

80 Space Space 81

Earth to Mars: a multi-planet outer space is not subject a mechanism to assist For instance, today, there rise, with the potential of The UAE enacted Space legal system? to 'national appropriation'. states in classifying and are more satellites than ever, becoming a multi-billion Law in 2019 to directly tackle Moreover, it does not allow identifying space objects. The and the once farfetched dollar industry. As such, many of the challenges we The notion that our laws the establishment of military convention acknowledged idea of having accidental national laws need to step in have highlighted regarding transcend the realm of planet infrastructure, manoeuvres the importance of collisions in space is now a where the international treaty the commercialisation of earth is perhaps somewhat or the testing of any type of maintaining a register that reality. Further, almost every framework falls short. A space. The Space Law seeks surprising. weapon on planets or moons. was openly accessible to country uses information proper legislative framework to go above and beyond According to the United states and international generated from space. is needed to pave the way many other national space Nations Office for Outer 2. The Rescue Agreement organisations. Specifically, for future investments, and regulations in many respects. However, unlike the focus Space Affairs (‘UNOOSA’), “the 1968 states are required to register new opportunities within this of those treaties, the The Space Law aims to primary goals of space laws details about the orbit of sector. Elaborating on elements of majority of today’s satellite address the interest of are to ensure a rational and each space object with the the Outer Space Treaty the owners are not international private companies within responsible approach to the United Nations. Agreement on the Rescue organisations or countries, outer space, as well as many exploration and use of outer The UAE’s Space Law: of Astronauts, the Return of but rather the commercial of the other challenges space for the benefits and 5. The Moon Agreement transformational times call for Astronauts and the Return sector. Soon, the changing which have emerged from interest of all human kind”. 1979 (UAE is not party to this transformational measures of Objects Launched into cost benefit equation of our changing use of outer Agreement) As such, space law covers a Outer Space provides that satellite ownership will National laws have stepped space. Notably, the law fills in variety of diverse matters a state that is a party to the The Agreement Governing also mean that ownership in to regulate space the gaps of the international such as preservation of agreement shall take all the Activities of States on of satellites may even be operations conducted by treaty framework, which the space and earth’s possible steps to rescue and the Moon and other Celestial extended to individuals private companies where previously took precedence, environment, liability for assist astronauts in distress Bodies entered into force through the mass market the international treaty and brings much needed damages caused by space and promptly return them in June 1984, and further availability of small “mini- framework falls short in light clarity to the subject. objects, settlement of to the “launching” state, elaborated on the Outer satellites” deployed in space. of our changing use of space. The UAE had already disputes, protection of and that states shall, upon Space Treaty as applied Another major change in how International law remains inaugurated the nation’s national interests, rescue request, provide assistance to to the Moon and other we, as a species interact with the main framework for first space agency, the UAE of astronauts, sharing of launching states in recovering celestial bodies, providing outer space lies in the rise in space activities. However, it Space Agency, in 2014, which information about potential space objects that return to that those bodies should commercial asteroid mining. is national space legislation is responsible for regulating dangers in outer space, use of earth outside the territory of be used exclusively for We mentioned above that that ties the link between the and supporting the national space-related technologies, the launching state. peaceful purposes, that their the Outer Space Treaty has private space sector and the space sector. The Space Law and international co- environments should not be a non-appropriation clause. international framework. has replaced the UAE Space operation. disrupted, that the United 3. Space Liability Convention As it stands, international Agency’s establishment law 1972 Nations should be informed Accordingly, many countries To that end, on an law prohibits the sovereign but specifically provides of the location and purpose have enacted their own international level, the UAE Elaborating on parts of the ownership of celestial bodies, that the UAE Space Agency of any station established on space laws. For example, is signatory of 4 out of 5 key Outer Space Treaty, the but it is uncertain as to is tasked with overseeing those bodies. in France, space activities following treaties that govern Convention on International whether ownership by private the nation’s space sector fall under Law No. 518 of activity in space. Liability for Damage Caused In addition, the 1979 Moon bodies is equally prohibited. development and lays out June 2008 (LOI n° 2008- by Space Objects provides Agreement provides that This then leads us to the some of its objectives 518 du 3 juin 2008 relative 1. The Outer Space Treaty 1967 that a launching state shall the Moon and its natural question, who owns what in which include encouraging aux opérations spatiales), be absolutely liable to pay resources are the common space? And what property and developing the uses Entered into force on 10 which addresses issues compensation for damage heritage of mankind and rights, if any, go into the final of technology and space October 1967, the treaty linked to the privatisation caused by its space objects that an international regime frontier? The law is in need of science in the state, and to forms the main framework of of space activities, and on the surface of the Earth should be established to clarity. Furthermore, states are work to spread awareness of space law. It recognises the the authorisation and or to aircraft, govern the exploitation of already positioning “defensive” the importance of the space importance of the supervision of all space and liable for such resources when such space weaponry. Today’s sector. use and scientific operations performed by damage due exploitation is about to reality, whether we like it or exploration of “From the first French operators. Moreover, Further, it is prohibited to to its faults become feasible. not, is that contrary to the outer space for Apollo moon it takes into account the long own a “Space Object”, carry in space. The provisions of the state treaties, the benefit and term implications of space out or participate in “Space landing, to Space X’s convention outer space is militarised. interest of all activities, such as increase in Activities”, or establish, use or also includes Where to from here? Celestial countries. successful astronaut The amount of information space debris. Likewise, in the possess related facilities or the settlement property rights, cyber-attacks, launch, our use of that is generated or US, the Commercial Space utilities without obtaining an Under the treaty, procedure and other new challenges for transmitted through space Launch Act was enacted authorization from the UAE outer space is space is changing.” for damage our use of outer space is also on the rise, and so in 1984 to incentivise and Space Agency. only to be used claims. Since the enactment of the is our vulnerability to the regulate the commercial for peaceful Space exploration, followed initial space treaties, our manipulation of space data. space launch industry. Key purposes. Specifically, it 4. Registration Convention by the prospect of eventually use of space has changed Cyber-attacks in space are attributes included imposing prevents the placing of 1975 becoming a multi planet dramatically, meaning that now occurring constantly. and enforcing insurance and weapons of mass destruction species could also help Entered into force in 1976, the the international treaty financial responsibility on in orbit or on the moon Finally, despite its currently us address some of the Convention on Registration framework is now not licensees. or other celestial bodies. exorbitant cost, space 21st century’s unique set of Objects Launched into necessarily fit for purpose. The treaty also rules that tourism is currently on the Outer Space serves as 82 Space Space 83

of challenges, such as conventions and treaties includes receiving, storing, spaceflight activities. As As the number of commercial Conclusion overpopulation and climate related to Outer Space, to processing, distributing, such, the Space Law sets space launches is set to The UAE has one of the change, to name but a few. which the UAE is a party. archiving or disposing of any out certain precautions that increase, the Space Law also largest space sectors in Space Data. must be followed before a imposes the requirement of Key provisions of the Space The regulated activities which terms of size of investment, physical person is permitted registering all space objects. Law include the regulation come under the law include The territorial scope of comprising more than AED to participate in spaceflight. Space Object must be of the ownership of space the launch, the removing or application of the Space Law 20 billion (approximately For example, it imposes the registered with Space Agency objects, sending astronauts disposal of an object from applies to space activities US$5.5 billion) of national requirement of submitting and also be registered with to space and operating space the orbit, operating Space that are carried out: 1) in the investments in space to the agency. proof that the United Nation space objects, tourism flights. Objects through monitoring State’s Territory or the State’s technologies, according physical person is aware and with the Space Agency and and controlling them, satellite establishments outside the to TDRA, UAE operates 9 As such, the Space Law informed communication activities, State’s Territory, 2) from ships satellites. The UAE’s Space recognises the challenges of all risks, extracting or exploiting or aircraft registered with Law cements the country’s and opportunities posed and has “Space Resources”, space the State or Space Objects pioneering edge in the region by the commercialisation had the “The UAE’s Space Law directly tackles exploration for scientific registered by the State; or in developing its national of space travel, and aims to necessary purposes, and conducting 3) by persons who hold the many of the challenges regarding the space sector. The legislation create the right regulatory training space-related scientific nationality of the State, commercialisation of space, and aims clarifies many of the shortfalls infrastructure for achieving and experiments. or companies that have a of the international treaty the objectives of the state’s reaches the to go above and beyond other national headquarters in the State. framework and is expected national policy, which include: The Space Law sets the required space regulations in many respects.” to further boost investment, legislative framework for our Regarding environmental standard 1. stimulating investment, research and development evolving use of space in the issues, provisions of the of health within the space sector as we 2. implementing the next centennial where we are Space Law are focused on necessary also register with the United embark on the next 50 years. expected to see a surge in Space Debris mitigation by for such a flight. Such necessary safety, security Nations register to comply manned spaceflights, or even imposing a requirement on standard laws and procedures and environmental with the international treaty long-term human residence every operator to mitigate are going to be crucial measures to enhance framework. space activities; and in space. It also regulates Space Debris and reduce its in paving the way for an the construction or use of effect and to minimise risks increase in safe space travel, 3. supporting the principle facilities in space or on the of collisions. or space tourism. of transparency and Emirates Mars Mission surface of celestial bodies. the commitment of the The future of space in the The Space Law clarifies the Another important feature The Mohammed Bin Rashid State to implement the next 50 years is going to issue of liability, which is is regulating “Space Data” Space Centre (‘MBRSC’) is provisions of international see an increase in manned expected to gain relevance management activities, which a Dubai government entity as our use of space increases, working on the UAE space and the risk of collision of programme, including space space objects compounds. It satellite projects, the UAE provides for labilities between astronaut programme and contracting parties (Art 20) the Emirates Mars Mission (or and also provides that the Hope Probe). operator shall be liable for any damage caused to others The probe was launched in on the surface of the earth July 2020, and reached Mars’ or in the aircraft while flying orbit on 9 February 2021, inside or outside the State’s making the UAE the first Territory (Art 21). Damages Arab country to reach the red are defined as “any loss of life, planet. The success of the personal injury, or any other mission comes in the 50th harm to health, or the loss anniversary of the union of or damage that is caused to the UAE. The probe will study the property of the State, the the atmosphere of Mars. property of Persons, or the Goals of the mission include property of intergovernmental establishing a sustainable organisations.” The Space Law knowledge-based economy, prescribes liability for hitting promoting diversification another space object (Art.22) and encouraging innovation, and sets out the requirement elevating the UAE’s status in for adequate insurance and the space race and further guarantees caused (Art.25). widen benefits. It requires any operator to For further information, have an insurance contract please contact Hassan El Tahir with one of the insurance ([email protected]) or Andrew companies approved by the Fawcett ([email protected]). UAE Space Agency. 84 Succession Planning Succession Planning 85

PLANNING FOR THE NEXT 50: ESTATE AND SUCCESSION PLANNING IN THE UAE

Ruksana Ellahi Senior Associate Private Client Services [email protected]

H.H. Sheikh Mohammed bin following 2020. One of the Rashid Al Maktoum, Vice main objectives of the project President and Prime Minister is to build a stronger and more of the UAE and Ruler of Dubai, attractive environment for launched the United Arab generations to come, with Emirates (‘UAE’) Centennial respect to the UAE economy 2071 project to establish the and other areas in the UAE as the greatest country jurisdiction. A vision such as in the world by 2071. This vision this clearly points out the far- was endorsed by H.H. Sheikh reaching and forward-thinking Mohammed bin Rashid Al approach to be implemented Maktoum, Vice President and ahead of its time in order to Prime Minister of the UAE deal with the rapid changes and Ruler of Dubai to allow for taking place in the world further development of the currently and in the coming Emirates in the five decades years. Taking into account 86 Succession Planning Succession Planning 87

the recent announcements DIFC endeavour in providing a expensive amounting to in making the registration of in relation to estate and better living environment has AED 10,000 (approximately wills more accessible to the The DIFC Wills Service Centre succession planning, one resulted in the introduction US$2,700) plus VAT for a overall public in UAE. released new rules to allow can see the objective of of a number of crucial single Will and AED 15,000 non-Muslims to include all achieving a more efficient and amendments to several laws: (approximately US$4,000) Real Estate of their worldwide assets in straightforward regime for most notably, amendments plus VAT for mirror Wills. This a DIFC Will. The DIFC Wills The recent amendments expatriates residing in UAE, to Federal laws specifically amount is comparatively Service Centre allows eligible aimed at simplifying the to plan their estate in the relating to issues of divorce, expensive when compared non-Muslim individuals to distribution of an individual’s forthcoming years. separation and inheritance. to common law jurisdictions formally register their English estate by allowing the where there is no such Currently, there are a number language Wills according to The Personal Status Law has application of the laws of obligation to register a will. of laws and regulations the principles of testamentary undergone revisions, by way the country of which the There are over and above allowing non-Muslims to freedom, enabling them to of Federal Decree number individual is a citizen, instead costs besides the fee for the effectively distribute their choose to dispose of their 29 of 2020 ('Amended PSL'), registration estate to their loved ones. UAE or worldwide based and the Civil Code has been of the will, These options allow for non- assets upon death as they see revised, by way of Federal which include “These amendments have been Muslims to register wills with fit. The fees for registering a Decree number 30 of 2020 the fees for full testamentary capacity and single Will in DIFC amounts ('Amended Civil Code'). introduced as a positive step in the drafting a Will not be subject to the Sharia to AED 10,000 (approximately UAE Government’s continued drive The amendments allow by a legally principles of inheritance. US$2,700) + VAT. for expatriates to apply the qualified to enhance the UAE as a location The Wills can also include laws of their home country lawyer and guardianship clauses to allow Abu Dhabi for expatriates to live and work.” in relation to inheritance other charges non-Muslim expatriates to The Abu Dhabi Judicial of their UAE estate, so of translation, determine matters such as Department (‘ADJD’) has that the distribution of an stamping and enforcement. of the application of UAE custody and guardianship rules relating to succession individual’s estate will take It would be ideal to lower the law. However, under the new of minor children. If there is and inheritance matters place according to the laws registration fee in the DIFC proposed amendments the no registered Will, then the for non-Muslims holding of the country of which the to facilitate an even more same does not extend to UAE Personal Status Law will assets in the UAE. The new individual is a citizen, instead appealing standard for non- UAE real estate property. come into effect and thus Office allows non-Muslims of the application of UAE law Muslims in Dubai. This means that individuals inheritance principles based with assets in Abu Dhabi (which codifies Islamic Sharia would still have to register a on Sharia will be applied and other Emirates to have principles on inheritance). Additional Wills Registry will for their UAE real estate, to the estate. This means the option to deal with their However, an exception if they do not wish for it to be It would also be ideal to estates as they so choose. remains with respect to subjected to UAE law. In cases have a second Wills Registry It also offers flexible legal UAE real estate, which shall where an individual fails to “Currently, there are outside of the DIFC, in options, where previously continue to be subject to UAE register a will, then his or her Dubai. Currently, a two- a number of laws and there was inflexibility, to assist laws, unless a will has been assets. in respect of real estate stage process is required for regulations allowing non- non-Muslim families in the registered in the UAE. property, will be distributed retrieving an enforcement event of death. The fees for in accordance with Sharia Muslims to effectively These amendments have order by the DIFC courts registering a single Will in inheritance principles. It is been introduced as a positive in cases where the assets distribute their estate to ADJD amounts to AED 950 recommended that further step in the UAE Government’s are located outside DIFC. their loved ones.” (approximately US$259) plus amendments be introduced to continued drive to enhance A second Wills Registry legal stamping fees, since the Federal laws so as to apply to the UAE as a location for in onshore jurisdiction of Will in ADJD needs to be in immovable property, as well as that certain (prescribed by expatriates to live and work. Dubai would eliminate the bilingual format. movable property. law) legal heirs will inherit requirement for a two stage a distinct share from the process of obtaining a DIFC In following with our Ruler’s Dubai individual’s estate. The will can The future Courts’ order and then vision, it is vital that a be executed and registered The Dubai Local Courts allow further a Dubai Courts’ order structured approach be In order to further enhance within a time period of non-Muslims to notarise a for enforcement of assets followed for developing a the existing laws in relation approximately 2-3 weeks. bilingual Will before a Notary outside DIFC. This would be more cost effective service for to estate and succession Public. The fees for executing a perfect step for removing registration of wills in the UAE. planning in UAE, we highlight and notarising a Will before the prerequisite for double It is also important that more certain recommendations Will registration options the Dubai Courts amounts enforcement through both offices be located in various and steps that can be taken to approximately AED 2,000 the Dubai Courts and DIFC locations to permit easier There are different to ensure a more desirable (approximately US$545). Courts in situations where access for registration of wills. authorities and options to approach to a sensitive the assets are located Such steps would allow the register a Will in the UAE. subject. outside of DIFC. It would also UAE to remain an attractive Wills are registered either at significantly reduce the costs destination for expatriates Dubai International Financial Recent developments Costs for registration of Wills. An and their families and would For further information, Centre (‘DIFC’), Abu Dhabi With hundreds of different provide peace of mind that please contact Ruksana Ellahi Registration of a will with the equivalent of the DIFC Wills Judicial Department (‘ADJD’) nationalities residing and individuals’ assets would be ([email protected]). DIFC Wills Service Centre Service Centre, when created, or at Dubai Court. working in the UAE, the dealt with in a manner in can be seen to be relatively in an onshore jurisdiction UAE Government’s latest would be a significant factor which they would wish. 88 Taxation Taxation 89

2016 to administer, collect and enforce Federal taxes, which currently comprise excise tax and VAT. In 2015, the International Monetary Fund (‘IMF’) recommended that the GCC countries reform their existing tax systems by introducing VAT to tackle THE INTRODUCTION OF fiscal deficits and increase government revenue. The IMF estimated that the potential revenue from VAT at 5 per CORPORATE TAX IN THE UAE: cent would represent around 1.5 to 2 per cent of the gross domestic product, depending MYTH OR REALITY? on the individual country. With a view to diversifying government revenue and reducing dependence on hydrocarbons, GCC countries agreed to a common legal framework to implement excise tax on selective goods that are considered harmful to human health and VAT on the supply and import of goods and services. In line with these GCC agreements, the UAE introduced its first two taxes at the Federal level: Excise Tax at the rate of 100 per cent on energy drinks and tobacco products; and Shiraz Khan at 50 per cent Partner, Head of Taxation on carbonated [email protected] “Over the past few years the drinks from 1 UAE has taken significant October 2017 (expanded to steps to enhance tax e-smoking transparency and to facilitate devices and the exchange of information liquids at the In recent years, the UAE has tax environment and explores rate of 100 undergone significant tax the possibility of the future for tax purposes by bringing per cent and changes to modernise its tax introduction of a Federal its domestic tax rules into sweetened system to bring it in line with corporate tax in the UAE. line with international drinks at the international best practices rate of 50 per and standards and to diversify standards.” cent from 1 state revenue. Implementation of indirect December taxes Looking ahead, the UAE may 2019) and VAT consider imposing additional The introduction of VAT had at the standard rate of five taxes to help achieve its been under discussion in the per cent with effect from 1 economic vision over the GCC for more than a decade January 2018. next 50 years. This article prior to the UAE establishing discusses the UAE’s evolving the Federal Tax Authority in 90 Taxation Taxation 91

Current direct tax tax information on a bilateral “multilateral instrument”) The blueprint includes an model legislation, standard Currently most jurisdictions environment for businesses basis. In addition, the UAE has allowing the UAE to income inclusion rule and an documentation and guidance, tax income if the entity implemented the Common modify existing double tax undertaxed payments rule designing a multilateral generating the income is There are limited direct taxes Reporting Standard for the treaties without the need (known as the global anti- review process if necessary resident or has a permanent in the UAE. automatic exchange amongst for protracted bilateral base erosion (GloBE) rules) and exploring the use of a establishment in the Currently there is no corporate tax authorities of financial negotiation. The UAE also and a Subject to Tax rule. multilateral convention. country or otherwise the tax in the UAE at the Federal account information of issued initial substance The income inclusion entity derives local level, but some individual foreign tax residents. In this regulations and a cabinet rule gives countries “No country or institution can source income. A Emirates impose a limited regard, the UAE signed the resolution on country-by- the ability to include consequence of Pillar corporate tax on enterprises OECD Convention on Mutual country reporting with effect foreign income of require or force the UAE to 2 is that, subject to any engaged in exploration and Administrative Assistance in from April 2019. overseas subsidiaries introduce corporate tax. Indeed, minimum threshold production of oil and gas at Tax Matters in April 2017 and and branches in its tax countries are entitled to have (currently a EUR 750 rates up to 55 per cent and ratified the same in April 2018. base if that income million annual group on branches of foreign banks Recent international tax is taxed at below a limited or no corporate tax to consolidated revenue The UAE became a BEPS operating in the UAE at the developments minimum effective tax threshold is proposed inclusive member in May give themselves a competitive rate of 20 per cent. rate in the jurisdiction in order for the rules 2018, together with more One of the key areas of of the subsidiary or advantage and to attract foreign to be applicable to a The UAE has also established than 135 other countries, focus of the OECD BEPS branch. The undertaxed investment. As such, the right multinational enterprise), many free zones that provide committing to the project was Action 1 which payments rule increases overseas jurisdictions tax holidays and exemptions implementation of four addressed the tax challenges to introduce corporate tax is the tax base of the will be granted additional for terms of between 15 to minimum BEPS standards, of the digital economy. payer by disallowing the UAE’s sole prerogative and taxing rights where 50 years. namely countering harmful There was a concern that a tax deduction or whether or not corporate tax other jurisdictions such practices (Action 5), existing international tax requiring an adjustment as the UAE have not countering treaty abuse rules were outdated and had is ultimately adopted will be a where the payment is exercised their taxing (Action 6), transfer pricing not kept pace with the rapid UAE’s drive to modernise tax not subject to tax at sovereign decision taken by the rights or income is documentation and country- digitalisation of the global rules the global minimum UAE based on local economic and subject to low rates of by-country economy, Over the past few years the effective tax rate in the tax. reporting which has political considerations.” UAE has taken significant hands of the recipient. (Action “Clearly there are changed the steps to enhance tax The Subject to Tax rule 13) and way many The proposals under Pillar 2 transparency and facilitate benefits in introducing a denies treaty benefits and Concluding thoughts improving businesses represent a radical change the exchange of information imposes a withholding tax dispute Federal corporate tax as are to the international tax Taxes are the main source of for tax purposes by bringing or other means of source resolution it would enable the UAE structured rules and go beyond taxing revenue for most countries its domestic tax rules in taxation on payments if they mechanisms and conduct only digital businesses. globally. While taxes generally line with international to generate additional are not subject to a minimum (Action 14). business. The Previously, the OECD had help governments to standards. Many of the rate in the country of the revenue in line with its OECD work stated that the digital generate additional revenue changes in the UAE were In July 2018, recipient. diversification strategy on Action 1 economy was becoming the and fund public expenditure, driven by the Organisation the UAE is based on While there are still some entire economy itself and so there is a major difference for Economic Cooperation signed and and future vision.” two pillars political and practical specific rules designed for between direct taxes such and Development’s (‘OECD’), subsequently and has obstacles to the proposals the digital economy would as corporate tax and indirect Base Erosion Profit Shifting ratified the become known as the BEPS under Pillar 2 and building not work and, as such, the taxes like VAT and excise tax. (‘BEPS’) project which seeks Multilateral Competent 2.0 project. Pillar 1 deals with consensus amongst member digital economy cannot be to tackle international tax Authority Agreement to Although VAT and excise tax the allocation of taxing rights jurisdictions of the Inclusive ring fenced. Accordingly, if avoidance and address gaps complete the implementation are collected by businesses between jurisdictions and Framework has been a major the proposals under Pillar 2 in existing tax rules that allow of the Common Reporting on behalf of the government, nexus rules whereas Pillar 2 obstacle, the blueprint is are implemented, it would the profits of multinational Standard and to facilitate these indirect taxes are deals with the proposal for a intended as a basis for future have major implications for companies to be artificially compliance with various taxes on consumption that global minimum tax regime. agreement. A number of multinational companies BEPS transparency measures are intended to be borne shifted from high tax areas require further work headquartered or operating including the exchange of Recently the OECD issued by the final consumer. As jurisdictions to low or no tax and agreement, including in the UAE. A number of country-by-country reports a blueprint on Pillar 2 such, although there is a environments where little or the minimum tax rates (the countries have already under BEPS Action 13. which deals with the compliance burden and no economic activity takes blueprint suggests 10 per taken unilateral measures place. A 15-point BEPS Action development of global a cost for businesses in In line with its commitments cent to 12 per cent for the and implemented their own Plan was developed by the minimum tax rules to ensure accounting for indirect taxes, as a BEPS inclusive member, GloBE proposal and 7.5 digital services tax based OECD in partnership with the that worldwide income of the economic cost of VAT and the UAE has taken various per cent for the Subject to on the OECD work under G20 countries in 2013. businesses is subject to excise tax should be passed measures to implement the Tax rule). The timeline for Action 1 and Pillar 2 and it is an agreed minimum rate on to the ultimate consumer The UAE already has a wide minimum BEPS standards. reaching an agreement and possible that other countries of tax regardless of where and generally should not tax treaty network with over The UAE signed up to resolving any outstanding could implement their own they are headquartered or represent a direct cost to 90 double taxation treaties the OECD’s Multilateral issues has been set at mid- minimum tax rules based operate thereby limiting the businesses. Therefore, such in place with other countries. Convention to Implement 2021. As a next step, the on the OECD framework if a incentives for businesses to taxes are generally investment These treaties seek to Tax Treaty Related Measures Inclusive Framework will need consensus is not reached by locate functions, activities neutral. On the other hand, eliminate double taxation to Prevent Base Erosion to achieve an agreement mid-2021. and profits in low-tax corporate tax is a disincentive and facilitate the exchange of and Profit Shifting in June on the development of jurisdictions. 2018 (also known as the 92 Taxation

for foreign direct investment UAE to introduce corporate The question is, therefore, because it is directly imposed tax. Indeed, countries are whether the UAE should on the taxable profits of entitled to have limited or further expand its tax base companies. The absence of no corporate tax to give by introducing a minimum a Federal corporate tax in themselves a competitive level Federal corporate tax the UAE is very attractive advantage and to attract and realise tax revenue from for businesses operating or foreign investment. As companies that operate in seeking to invest in the UAE such, the right to introduce the UAE, or risk maintaining and the encouragement of corporate tax is the UAE’s the status quo and allow foreign investment into the sole prerogative and whether other countries to tax UAE UAE is an important part of or not corporate tax is businesses in the future domestic policy. ultimately adopted will be which would erode one of the a sovereign decision taken historical benefits of doing It is for these reasons that by the UAE based on local business in the UAE. Going the implementation of VAT economic and political forward, the introduction of and excise tax was a popular considerations. corporate tax in the UAE may choice and historically become a necessity rather limited direct taxes have However, in determining than strictly a “choice”. been maintained on whether or not to introduce businesses. While the UAE corporate tax, the UAE will has expanded its tax base also need to monitor and take with the implementation of into account international indirect taxes and Federal developments arising as a corporate tax has been under result of the OECD’s BEPS 2.0 project. In light of these radical “The question is therefore whether the changes UAE should further expand its tax base to the international by introducing a minimum level Federal tax corporate tax and realise tax revenue landscape, from companies that operate in the the UAE faces an UAE, or risk maintaining the status quo interesting and allow other countries to tax UAE policy businesses in the future which would dilemma. erode one of the historical benefits of Clearly doing business in the UAE.” there are benefits in introducing a Federal discussion in the past, it corporate tax as it would has so far been reluctant to SPECIAL THANKS enable the UAE to generate introduce a corporate tax at additional revenue in line with the Federal level. its diversification strategy ACWA Power Although the UAE introduced and future vision. In addition, substance rules and the implementation of a implemented other measures Federal corporate tax at the Easa Saleh Al Gurg Group based on its international rate of between 10 per cent commitments, this was and 15 per cent should not with a view of facilitating necessarily make the UAE DP World tax transparency and tax less competitive in the region information exchange in given that four of the six Dubai Chamber order to prevent companies GCC countries already have from avoiding taxes in other a comprehensive corporate countries by artificially tax system with Saudi Arabia Dubai Future Foundation shifting profits from those imposing corporate tax at 20 For further information, countries to the UAE with per cent, Qatar at 10 per cent, please contact Shiraz Khan Knowledge and Human Development Authority (KHDA) little or no local substance. Kuwait at 15 per cent and ([email protected]). No country or institution Oman at 15 per cent. can require or force the PROJECT LEADS

Essam Al Tamimi Ibtissem Lassoued Shriya Sanjeev Chairman Partner, Head of Advisory Brand and Creative Lead [email protected] [email protected] [email protected]

CONTENT CONTRIBUTORS

Mark Brown Omar Obeidat Martin Hayward Partner Partner, Head of Head of Technology, Media [email protected] Intellectual Property & Telecommunications [email protected] [email protected]

CREATIVE

CREATIVE LEAD ILLUSTRATIONS Shriya Sanjeev Saif Zulfiqar [email protected] [email protected] Al Tamimi & Company @AlTamimiCompany

For more information, contact us on [email protected]. www.tamimi.com