EU foreign policy chief Josep Borrell welcomed developments in Libya. Reuters
EU foreign policy chief Josep Borrell welcomed developments in Libya. Reuters
EU foreign policy chief Josep Borrell welcomed developments in Libya. Reuters
EU foreign policy chief Josep Borrell welcomed developments in Libya. Reuters

G7 talks: EU's Borrell hails 'good news' in Libya as ceasefire holds


Tim Stickings
  • English
  • Arabic

The EU’s foreign policy chief Josep Borrell said the continuing ceasefire in Libya was “good news” after G7 foreign ministers discussed the country's future in London.

Mr Borrell said he was optimistic about the situation in Libya, where a truce last October was followed by the establishment of a unity government in March that was welcomed by the EU, US and Britain.

Following the G7’s talks on Libya, US Secretary of State Antony Blinken said he had renewed Washington’s support for new elections in December.

He also called for the immediate withdrawal of foreign forces, after the Biden administration in January accused Russia and Turkey of breaching the ceasefire deal that ordered all foreign troops and mercenaries out of Libya.

“We stand with the Libyan people to find a UN-facilitated political solution to the conflict,” Mr Blinken said on Tuesday.

Foreign ministers discussed a series of global issues in London, including China, Russia and Iran, but Mr Borrell named Libya as one of the bright spots.

“Libya is good news; the ceasefire is still lasting and I think that we can be optimistic about the situation,” he said.

“So, you see, in general terms things are not going better, but there are some places, Iran can be one of them, Libya another, where we can have certain hope that things will improve.”

UK Foreign Secretary Dominic Raab also held talks on Libya and the Eastern Mediterranean with his Italian counterpart, Luigi Di Maio.

The Italian foreign ministry said Mr Raab and Mr Di Maio had given their support to a “common positive agenda” on the region.

Italy holds the rotating presidency of the G20, while Britain currently leads the G7, which was holding its final day of talks in London on Wednesday.

Italy, the former colonial power in Libya, is trying to reassert its role as a prominent ally of Tripoli.

Italy's Prime Minister Mario Draghi visited Tripoli last month and urged Libya’s interim leader Abdul Hamid Dbeibah to ensure that the ceasefire was strictly observed.

Mr Dbeibah took office in March at the head of a UN-backed unity government with a mandate to prepare for the planned December election.

It replaced two warring governments that had ruled eastern and western regions of Libya, which had been in turmoil since the fall of Muammar Qaddafi in 2011.

One of the rival administrations, in Tripoli, had relied heavily on Turkish military backing and Syrian mercenaries provided by Ankara.

They supported the Tripoli government against an offensive launched by Field Marshal Khalifa Haftar, who was backed by powers including Russia and Egypt.

Tripoli on Monday urged Turkey to co-operate over the withdrawal of troops from Libya.

G7 ministers wrap up talks ahead of leaders' summit 

G7 diplomats also discussed Russia, China, Syria, Iran and Myanmar during their three-day talks in London, their first in-person meeting since the onset of the pandemic.

On Wednesday, they were due to discuss Covid-19 as wealthy nations face growing pressure to share vaccines worldwide.

Rich nations' efforts are mainly directed through Covax, a UN-backed programme to help distribute vaccines to the poorest nations.

But analysts say that Covax will not achieve herd immunity because it will cover no more than 20 per cent to 30 per cent of poorer countries' populations.

Mr Raab said the issues were a “really good opportunity for the G7, together with our Indo-Pacific partners, to talk all of that through and come up with positive answers”.

The summit will set the stage for a G7 leaders’ summit in Cornwall, south-west England, next month.

More on G7 ministers' meeting

Anthony Blinken: G7 urges political solution to Syrian conflict

UK foreign secretary Dominic Raab says reports of release of Nazanin Ratcliffe-Zaghari are inaccurate

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
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MATCH INFO

Uefa Champions League semi-final, first leg

Tottenham 0-1 Ajax, Tuesday

Second leg

Ajax v Tottenham, Wednesday, May 8, 11pm

Game is on BeIN Sports

'Shakuntala Devi'

Starring: Vidya Balan, Sanya Malhotra

Director: Anu Menon

Rating: Three out of five stars

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Scores in brief:

Day 1

New Zealand (1st innings) 153 all out (66.3 overs) - Williamson 63, Nicholls 28, Yasir 3-54, Haris 2-11, Abbas 2-13, Hasan 2-38

Pakistan (1st innings) 59-2 (23 overs)

The specs

Engine: 6.2-litre supercharged V8

Power: 712hp at 6,100rpm

Torque: 881Nm at 4,800rpm

Transmission: 8-speed auto

Fuel consumption: 19.6 l/100km

Price: Dh380,000

On sale: now 

Manchester City transfers:

OUTS
Pablo Zabaleta, Bacary Sagna, Gael Clichy, Willy Caballero and Jesus Navas (all released)

INS
Ederson (Benfica) £34.7m, Bernardo Silva (Monaco) £43m 

ON THEIR WAY OUT?
Joe Hart, Eliaquim Mangala, Samir Nasri, Wilfried Bony, Fabian Delph, Nolito and Kelechi Iheanacho

ON THEIR WAY IN?
Dani Alves (Juventus), Alexis Sanchez (Arsenal)