Indian-American business executive Ajay Banga was selected on Wednesday as the World Bank's new president as the organisation undergoes an evolution with a greater focus on climate change and as it continues its core focus of reducing global poverty.
Mr Banga's five-year term will begin on June 2, the World Bank's 25-member board said, one day after current president David Malpass steps down.
Mr Malpass was scheduled to speak at the Milken Global Institute Conference later on Wednesday.
“The board looks forward to working with Mr Banga on the World Bank Group Evolution process,” the board said in a statement after the vote.
The former MasterCard chief executive will be the first Indian American to lead the organisation.
“Ajay Banga will be a transformative leader, bringing expertise, experience and innovation to the position of World Bank President,” US President Joe Biden said in a statement.
In nominating Mr Banga, Mr Biden said the executive's Indian upbringing gives him a unique perspective on tackling challenges faced by developing countries.
Borne in Pune, India, Mr Banga received his bachelor's degree in economics from Delhi University. He is also a graduate of the Indian Institute of Management in Ahmedabad.
His confirmation as World Bank president comes during a time of reform for the organisation, which has come under increasing pressure to better meet global challenges such as climate change.
Mr Biden, who nominated Mr Banga for the position in February, said the executive's knowledge and experience would be crucial in helping the World Bank towards its goal of poverty reduction.
The new World Bank chief's selection, however, comes at a time of reform, when the organisation will be scrutinised over how it tackles climate change, public health and debt distress
The US Treasury is the World Bank’s largest shareholder, and Treasury Secretary Janet Yellen said steps have been taken to improve the organisation’s operational model.
This includes a $50 billion lending boost over the next 10 years, she said at the World Bank's spring meetings in Washington.
Ms Yellen said the new World Bank president would be instrumental in its reform, noting his record of creating partnerships between private sector, public sector and non-profit organisations.
“Ajay understands that the challenges we face — from combating climate change, pandemics, and fragility to eliminating extreme poverty and promoting shared prosperity — are deeply intertwined,” she said in a statement after Mr Banga's confirmation.
Mr Banga, in an interview with Bloomberg, said the private sector must do more to alleviate extreme poverty.
The business executive submitted his resignation to Exor on Tuesday before the World Bank’s board vote.
A US citizen has held the position of World Bank president since it was founded in 1944.
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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Uefa Champions League semi-final, first leg
Tottenham v Ajax, Tuesday, 11pm (UAE).
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Ajax v Tottenham, Wednesday, May 8, 11pm
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Match info
Uefa Nations League Group B:
England v Spain, Saturday, 11.45pm (UAE)
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
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
Tamkeen's offering
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It's up to you to go green
Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.
“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”
When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.
He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.
“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.
One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.
The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.
Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.
But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”
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