For old-fashioned CDs and DVDs, there is no hope


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Customers of Zain, the pan-Arabian telecommunications network operator, can download songs from Ehh fi Amal (Yes, There is Hope), the latest album from Fairuz, the iconic Lebanese singer.

Zain, whose tagline is "A wonderful world", has positioned itself as close to the cutting edge of popular culture as is possible for a company from an ostensibly conservative region.

It has embraced the mobile phone's multimedia elements and, through its Zain Create service, on which the CD is listed, offers its customers, of which I am one, a whole assortment of downloads - audio and video - that quite frankly are too complicated for someone in their 40s, like me, to totally comprehend.

The Fairuz agreement was a coup. Zain wants to appeal to Arabian youth with its latest offering (even though it is mildly ironic that the latest technology still seeks out a 75-year-old singer to position a young and dynamic brand) and it knows that the phone will soon surpass the basic MP3 player as the personal hi-fi of choice (in the same way that many people who decades ago would have taken bad pictures with a Kodak instamatic now snap away with their Nokia or Motorola).

But despite Zain's apparent energy and vision, the fact remains that the digital age has brought with it a host of moral quandaries. Simply, the concept of asking people to pay for content is not easy in a digital world in which no one pays for anything unless they have to.

Take my kids. They create playlists and download individual tracks from the internet without paying a penny. Do not ask me how; I don't really want to know, but I suspect they get their music from YouTube. They certainly don't buy CDs and it is not hard to see why sales in the region have dropped by 30 per cent in the past decade. In Beirut, Virgin is the only retail chain that sells original CDs and DVDs - and even there, as far as I could see, the aisles are depressingly empty.

The local DVD store seems to be taking a bigger hit. One of my children's favourite shops is a dubious-looking outlet around the corner from where we live in Beirut. The shop window, or vitrine, as they say in this part of town, is "disguised" with beach towels and garish soft toys, but once inside the customer is confronted by row upon row of pirated DVDs on sale for a mere US$1.30 (Dh4.77).

It is, if you like, their corner candy shop, where they spend their allowance.

The originals at Virgin cost about 10 times more so. Given that price difference, my kids are unlikely to dwell upon - even though they are aware of it - the argument that every time they buy a knock-off film they are denying the owners a slice of the action.

"But we wouldn't watch it in the cinema or by an original DVD," they argue whenever I try to make a token public service announcement on the matter. "In a way it's a good way for us to get to know actors and then maybe we would go and see their films in the cinema or buy the DVDs," they add with a triumphant flourish.

Before you say it, I know I should be more draconian in not allowing them to engage in black market activities. And yes, much of the proceeds from illegal digital content is said to fund terror groups, organised crime and drug syndicates, while the US film industry is said to lose about $3 billion every year because of it. The trouble is, I buy them too.

And I am not alone. My colleague makes regular trips to his "man" in Beirut's southern suburbs - although to be fair similar "men" can be found all over town. Last month he "ordered" the entire 11 seasons of Frasier. He is a father and committed environmentalist, possessing strong moral fibre. And yet he is, if we are to follow the industry trailer (that ironically also appears on many of the rip-off movies), prepared to steal. "I have no problem," he shrugged. "What do I care about some Hollywood producer losing a few bucks? It's not an issue for me."

For the Lebanese, it's also a non-issue. They see the government lining its own pockets, while environmental genocide, wholesale corruption, the destruction of the nation's cultural heritage and the rule of the gun are rampant.

Why then pick on a guy, such as the owner of the DVD shop, who is very polite and, in the eyes of the Lebanese at least, an enterprising young man?

My kids may have a point when they argue that Hollywood should just accept the losses and write them off as free marketing. James Cameron's Avatar is a not a movie that I would pay to see in the cinema, much less buy on DVD. However, I picked it up at the towel shop the other week and whiled away an afternoon. Nothing to write home about, but its grandeur and special effects did remind me how me how much I enjoyed Titanic and the Terminator series.

Surely that's got to be good in the greater scheme of things? Or have I been living in the Third World for too long?

Michael Karam is a communication and publishing consultant based in Beirut

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The Specs:

Engine: 2.9-litre, V6 twin-turbo

Transmission: 8-speed automatic

Power: 444bhp

Torque: 600Nm

Price: AED 356,580 incl VAT

On sale: now.

UAE currency: the story behind the money in your pockets
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Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
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Venue: Sharjah Cricket Stadium

Date: Sunday, November 25

MATCH INFO

Juventus 1 (Dybala 45')

Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')

Red card: Rodrigo Bentancur (Juventus)

Match info

Uefa Nations League Group B:

England v Spain, Saturday, 11.45pm (UAE)

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Auron Mein Kahan Dum Tha

Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar

Director: Neeraj Pandey

Rating: 2.5/5

How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

UAE currency: the story behind the money in your pockets
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

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law