Madagascar opposition leader Andry Rajoelina parades through the streets of Antananarivo last month, following a successful military coup.
Madagascar opposition leader Andry Rajoelina parades through the streets of Antananarivo last month, following a successful military coup.
Madagascar opposition leader Andry Rajoelina parades through the streets of Antananarivo last month, following a successful military coup.
Madagascar opposition leader Andry Rajoelina parades through the streets of Antananarivo last month, following a successful military coup.

Still crazy after all these years


  • English
  • Arabic

Two new books embody divergent approaches to understanding the woes that continue to plague Africa. Andrew Rice considers what's missing from the great debate over how to fix the continent.
Wars, Guns, and Votes: Democracy in Dangerous Places Paul Collier Harper Dh99
The Antelope's Strategy: Living in Rwanda After the Genocide Jean Hatzfeld tr. by Linda Coverdale Farrar Straus and Giroux Dh92 When I was a boy, there was a minor character on the children's show Sesame Street named Dr Nobel Price. A Muppet scientist, he was always summoning cameras to his island laboratory to unveil some invention or discovery. In one memorable installment of the recurring sketch, Dr Price announced he had found a new species of animal that he called "The Great Poonga-Poonga" - a furry creature with a "wiggly little nose" and "two little sharp teeth for biting". The joke was that Price's discoveries invariably turned out to be familiar things. When the scientist whisked away a sheet draped over a cage - asking aloud, "Are you ready, mankind?" - the Poonga-Poonga was revealed to be a rabbit.

Reading Paul Collier's War, Guns and Votes, I couldn't help thinking of Dr Price. An eminent Oxford economist, Collier believes he has hit upon a new explanation for the conflicts that plague the developing world. For the first three decades of the post-independence era, Africa was full of flamboyant military dictators, but since the end of the Cold War, elections have spread across the continent. You might think that you recognise the routine of campaigns and sunny slogans, ballot boxes and inked thumbs as democracy. But Collier argues this is, in fact, a new and malignant phenomenon: his book employs exhaustive economic analysis to prove that most poor countries have bad governments, that bad governments conduct unfair elections, that unfair elections make people unhappy and prone to fight, and that civil wars make such countries even poorer. In countries with the most flawed political systems - what Collier, in an italicised flourish, dubs "democrazy" - he calculates that incumbent presidents have an 88 per cent chance of winning reelection. This is, needless to say, not a huge surprise, but there's no shame in explaining the obvious.

For better or worse, Collier is staking out his own position in an academic argument that, against all odds, has recently sparked a publishing boomlet. The topic of the debate is "What's the matter with Africa?" Most of its contestants, like capos in rival crime families, are aligned behind two New York dons: Jeffrey Sachs of Columbia, who believes that massive amounts of foreign aid can solve Africa's problems, and William Easterly of NYU, who thinks that such assistance only exacerbates the root problem of political corruption. Collier purports to be taking the middle ground, by acknowledging that rich nations can't morally cut off aid, while recognising that charity will be wasted on countries that can't govern themselves. "Self-deluding thinking has bedeviled issues of development for decades," he writes. "We have to work within the world as it is, rather than the world we would wish."

In Collier's estimation, bad political behaviour is economically disastrous, but good behaviour isn't always rewarded. Expanding on arguments he first brought to a general audience in his 2007 book The Bottom Billion, Collier divides the world into two unequal parts. In many places, he says, democracy makes life better. But in the countries he's concerned about - he cites a list of 68, most of them in Africa - elections tend to promote many counterproductive habits. With tweedy enthusiasm, Collier recounts his expeditions into thick forests of data, which have told him that African elections are characterised by bribery, violence and tribal appeals.

He has, in fact, unearthed some suggestive relationships. A country that has presidential term limits, for instance, is half as likely to experience a coup. An estimated 40 per cent of military spending by poor countries flows from redirected foreign aid, but for nations with a history of conflict, buying guns actually decreases security, raising the statistical probability of reversion to war. Even these relationships, however, may not be what they appear. In a detailed critique of Collier's previous book, William Easterly questioned whether the economist had fallen victim to the common trap of confusing correlation and causation: is it guns that create wars and term limits that prevent coups, or could it be that term limits are a by-product of wise government, while arms buying is just one symptom of instability?

Collier claims throughout Wars, Guns and Votes that he's taken care with his calculations. "I do not like these results," he writes at one point. But sadly, he concludes, the "societies of the bottom billion may simply be lacking the preconditions" for democracy, so it's up to richer countries to assure they have proper governance. Collier recommends that his bottom billion nations submit to universal election conduct standards and "forensic scrutiny" of their budgets, in return for the international community's commitment to provide vastly increased aid and its promise to intervene militarily if a subscribing government is threatened by revolt. He proposes that adherence to his system could be enforced by a threat: if a president doesn't sign up, the international community will welcome a military coup.

"The international community is going to provide a guidance system that transforms the missile of the coup d'etat into a domestic restraint on misgovernance," Collier writes. This idea, he says, is the book's "core proposal", so it's worth scrutinising. How will Western policymakers feel about picking and protecting leaders in restive African nations? They will be convinced, Collier says, once they see the numbers: reducing the risk of a civil war by one percentage point, he writes, results in a long-term cost savings of $200 million. And what about Africans - won't they object? Their leaders, Collier suggests, have not necessarily earned the right to do so: national sovereignty, he declares, "is not to be a virility symbol with which presidents strut on the world stage". Continuing with this line of thinking, he cites analyses that show small countries are less stable than large ones, and therefore recommends that some nations be urged to federate and create a more manageable Africa. And so, a handful of world powers will sweep aside troublesome local rulers, bringing civilisation and prosperity to a dark continent. Have we seen this invention before?

It's clear there are some practical impediments to building the good-governance contraption that Collier envisions. Luckily, there's another way out of the condition of democrazy: poor countries can get richer. Collier sets down a precise dividing line: in countries that have a per capita GDP greater than $2,700, democracy helps matters, while below that level it makes things worse. He is particularly concerned about the effect of elections on the most vulnerable nations, those just emerging from wars. He writes that post-conflict societies that inherit repressive governments are safe compared to those that have some freedom, which have a 70 per cent chance of slipping back into fighting. "This does not, of course, mean that repression is all right," he hastens to add, but it "can be undesirable without making a society more dangerous."

Post-conflict situations, however, defy unifying theories: some countries end up democratic and chaotic, some dictatorial and stable and most somewhere in between. Collier ignores cases that might add nuance to his account, such as Mozambique, which has an estimated per-capita GDP of $500 and a brutal history of civil war, and where the former combatants, transformed into political parties, have since contested three competitive presidential elections. Though Collier repeatedly says he is not in favour of autocracy, his thought process keeps ending up there. Practically the only sitting African leaders for whom he has laudatory words are two military strongmen, Yoweri Museveni of Uganda and Paul Kagame of Rwanda.

The latter country, Rwanda, provides an interesting case study. At one point in his book, Collier breaks down the factors associated with civil wars: tiny countries are more dangerous, as are those with disproportionately young populations, religious and ethnic diversity, a profusion of natural resources and mountainous geography favourable to rebellion. Collier calculates that outside of the kind of Great Power security umbrella he envisions, a country with all of his risk factors has a 99 per cent chance of reverting to conflict. Rwanda is not resource-rich, but otherwise it fits the description exactly.

Yet somehow Rwanda has remained at peace since the genocide of 1994, in which an estimated 800,000 people perished. Its economy has improved dramatically, at least by African standards, growing at an average rate of around seven per cent a year. Western tourists have fanned out across the country's proverbial thousand hills. Most remarkable of all, many of the perpetrators of the genocide - thousands of Hutu villagers who picked up machetes on higher orders and hacked apart their Tutsi neighbors - have been allowed to return to their homes after stints in prison or in exile.

Collier doesn't extensively explore Rwanda, attributing its success entirely to Kagame's policies, which he calls "the leading African example of effective state building." The former leader of a Tutsi rebel army, Kagame holds elections, but he makes sure they don't get crazy. Political opposition is often equated with promoting genocide, and internal critics are sometimes jailed on charges of "divisionism". At first glance, this would seem to bolster Collier's view that a strong hand ensures more security. But perhaps there are other explanations.

The French journalist Jean Hatzfeld presents a far more subtle view of the Rwandan recovery in The Antelope's Strategy. Published in France two years ago, but just translated into English, Hatzfeld's account is narrowly focused on the genocide's enduring effects on a single Rwandan community. The book is the third in a series, and Hatzfeld, focusing on a single town called Nyamata, describes the changes on the ground that have come with postwar economic development. It shows up in the appearance of pharmacies, microloan banks and white SUVs, and in the opening of new bars, including one named Gacaca, after the outdoor courts where freed genocidaires recount their crimes in the name of reconciliation.

Hatzfeld's method is oral history, but his Rwandans speak like no interviewees I've ever heard - more like the chorus in a Greek tragedy, or the retainers of Haile Selassie in Ryszard Kapuscinski's The Emperor, a book that appears to be his stylistic model. As in Kapuscinski's work, the reader has to wonder about fact and fiction, and in a late chapter Hatzfeld admits to "directing and editing the giving of evidence" (the italics are his) as a means of "transforming the witnesses into characters". Some readers will feel cheated by the evident use of poetic license, but Hatzfeld argues that his method is "effective for transmitting information from one point to another when the direct path ? is blocked." And indeed, no one can question his commitment to exploring the incomprehensible. Having spent more than a decade in conversation with both survivors and killers, he has compiled an extraordinarily layered description of a post-conflict society, with a nuance that Collier's extensive economic analyses lack.

Nyamata is at peace, Hatzfeld writes, but any visitor who spends time there will "feel a growing uneasiness". Hutus and Tutsis reside next to one another but live separately. They broach the subject of the killings only at the gacaca courts, or in bars when they're drunk. This policy of silence is enforced not so much by the central government, which is a feared but distant force, but rather by something less tangible, a societal consensus that it's time to move on. "Reconciliation would be the sharing of trust," a Tutsi school principal named Innocent Rwililiza tells Hatzfeld. "The politics of reconciliation, that's the equitable division of mistrust."

Rwililiza is one of the book's major figures - and its guiding spirit, I suspect, in more ways than one. In 1994, his wife and young son were butchered inside the Nyamata church, where they'd gone to seek haven. As Hatzfeld's interpreter, Rwililiza has heard many of the killers of his town recount their atrocities, some of them with shame, others with blunt remorselessness. "Talking is a wind that blows neither forgiveness nor forgetting; that - impossible," Rwililiza says. "But the soothing of peace, yes." At this remove, he heartbreakingly explains, he doesn't recall the killing that much. What comes back to him is the memory of his wife, whom he feels guilty for leaving in the church, where he'd thought she'd be safe, while he ran. "The more reconciled one is with oneself," Rwililiza adds, "the more one thinks of reconciling with others."

This is a simple truth, but one that is impossible to enumerate. In focusing solely on cold measures of economics and governance, Collier - like most of the far-off voices in the great African aid debate - misses something fundamental. It's not that the quality of the president or the economy has no relevance: as one of Hatzfeld's witnesses tells him, it's "when a drought settles in, when money goes into hiding, when food becomes scarce" that "all the memories of the genocide come swarming back to plague us". But questions of peace and war, and especially peace after war, appear to be decided by a calculus that is infinitely complex. Reading Hatzfeld's book won't bring you to any definitive conclusions, except one: that a better African future, if it comes, won't be the product of a professor's devising. It will come into being through the unrecorded accumulation of countless human decisions, made freely by Africans on their own.

Andrew Rice is a journalist based in New York. His book about a Ugandan murder trial, The Teeth May Smile but the Heart Does Not Forget, will be published in May.

Defence review at a glance

• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

• Invest in the resilience of military space systems.

• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

RESULTS

6.30pm: Maiden (TB) Dh 82,500 (Dirt) 1.600m
Winner: Miller’s House, Richard Mullen (jockey), Satish Seemar (trainer).

7.05pm: Maiden (TB) Dh 82,500 (D) 2,000m
Winner: Kanood, Adrie de Vries, Fawzi Nass.

7.50pm: Handicap (TB) Dh 82,500 (D) 1,600m
Winner: Gervais, Sandro Paiva, Ali Rashid Al Raihe.

8.15pm: The Garhoud Sprint Listed (TB) Dh 132,500 (D) 1,200m
Winner: Important Mission, Royston Ffrench, Salem bin Ghadayer.

8.50pm: The Entisar Listed (TB) Dh 132,500 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.

9.25pm: Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.

'The Woman in the House Across the Street from the Girl in the Window'

Director:Michael Lehmann

Stars:Kristen Bell

Rating: 1/5

The specs

Price, base / as tested Dh135,000

Engine 1.6L turbo

Gearbox Six speed automatic with manual and sports mode

Power 165hp @ 6,000rpm

Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds

Top speed 420 kph (governed)

Fuel economy, combined 35.2L / 100km (est)

How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

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.”

MATCH INFO

Newcastle 2-2 Manchester City
Burnley 0-2 Crystal Palace
Chelsea 0-1 West Ham
Liverpool 2-1 Brighton
Tottenham 3-2 Bournemouth
Southampton v Watford (late)

RESULTS

Manchester United 2

Anthony Martial 30'

Scott McTominay 90 6' 

Manchester City 0

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

MATCH INFO

Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)

Russia 0

If you go

The flights
Emirates (www.emirates.com) and Etihad (www.etihad.com) both fly direct to Bengaluru, with return fares from Dh 1240. From Bengaluru airport, Coorg is a five-hour drive by car.

The hotels
The Tamara (www.thetamara.com) is located inside a working coffee plantation and offers individual villas with sprawling views of the hills (tariff from Dh1,300, including taxes and breakfast).

When to go
Coorg is an all-year destination, with the peak season for travel extending from the cooler months between October and March.

MATCH INFO

 

Maratha Arabians 107-8 (10 ovs)

Lyth 21, Lynn 20, McClenaghan 20 no

Qalandars 60-4 (10 ovs)

Malan 32 no, McClenaghan 2-9

Maratha Arabians win by 47 runs

 

 

I Care A Lot

Directed by: J Blakeson

Starring: Rosamund Pike, Peter Dinklage

3/5 stars

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%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EImelda%20Staunton%2C%20Jonathan%20Pryce%2C%20Lesley%20Manville%2C%20Jonny%20Lee%20Miller%2C%20Dominic%20West%2C%20Elizabeth%20Debicki%2C%20Salim%20Daw%20and%20Khalid%20Abdalla%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWritten%20by%3A%20%3C%2Fstrong%3EPeter%20Morgan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%20stars%3C%2Fp%3E%0A
The specs

Engine: 3.8-litre twin-turbo flat-six

Power: 650hp at 6,750rpm

Torque: 800Nm from 2,500-4,000rpm

Transmission: 8-speed dual-clutch auto

Fuel consumption: 11.12L/100km

Price: From Dh796,600

On sale: now

3%20Body%20Problem
%3Cp%3E%3Cstrong%3ECreators%3A%3C%2Fstrong%3E%20David%20Benioff%2C%20D%20B%20Weiss%2C%20Alexander%20Woo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EBenedict%20Wong%2C%20Jess%20Hong%2C%20Jovan%20Adepo%2C%20Eiza%20Gonzalez%2C%20John%20Bradley%2C%20Alex%20Sharp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
The specs

Engine: 1.6-litre 4-cyl turbo and dual electric motors

Power: 300hp at 6,000rpm

Torque: 520Nm at 1,500-3,000rpm

Transmission: 8-speed auto

Fuel consumption: 8.0L/100km

Price: from Dh199,900

On sale: now

Russia's Muslim Heartlands

Dominic Rubin, Oxford

FA CUP FINAL

Manchester City 6
(D Silva 26', Sterling 38', 81', 87', De Bruyne 61', Jesus 68')

Watford 0

Man of the match: Bernardo Silva (Manchester City)

Results:

Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.

ASHES SCHEDULE

First Test
November 23-27 (The Gabba, Brisbane)
Second Test
December 2-6 (Adelaide Oval, Adelaide)
Third Test
December 14-18 (Waca Ground, Perth)
Fourth Test
December 26-30 (Melbourne Cricket Ground, Melbourne)
Fifth Test
January 4-8, 2018 (Sydney Cricket Ground, Sydney)

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Result

6.30pm: Al Maktoum Challenge Round-3 – Group 1 (PA) $65,000 (Dirt) 2,000m; Winner: Brraq, Ryan Curatolo (jockey), Jean-Claude Pecout (trainer)

7.05pm: Handicap (TB) $65,000 (Turf) 1,800m; Winner: Bright Melody, James Doyle, Charlie Appleby

7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m; Winner: Naval Crown, Mickael Barzalona, Charlie Appleby

8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m; Winner: Volcanic Sky, Frankie Dettori, Saeed bin Suroor

8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m; Winner: Star Safari, William Buick, Charlie Appleby

9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m; Winner: Zainhom, Dane O’Neill, Musabah Al Muhairi

Meydan race card

6pm Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m 

6.35Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m
1,800m 

7.10pm Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m ,400m 

7.45pm Al Rashidiya – Group 2 (TB)  $180,000  (T) 1,800m 

8.20pm Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

8.55pm Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

9.30pm Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m  

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

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

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

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory