Mansour Mall in Baghdad, Iraq. Hadeel Al Sayegh / The National
Mansour Mall in Baghdad, Iraq. Hadeel Al Sayegh / The National
Mansour Mall in Baghdad, Iraq. Hadeel Al Sayegh / The National
Mansour Mall in Baghdad, Iraq. Hadeel Al Sayegh / The National

How to conquer Baghdad: open up a new shopping mall


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Retail heaven has come to Baghdad.

The capital's commercial district has been transformed with the arrival of Mansour Mall.

On Sunday, hundreds of people were walking in droves leading up to the giant structure, in their best dress, with women glammed up in make-up and high heels and ready for a night on the town.

It was like a carnival, or a parade.

"All of Baghdad is here," my dad said, chuckling, as we strolled through the place. "In the past, they would drive all the way north to Erbil to go to Majdi Mall."

The mall's entranceway would be most peculiar anywhere else in the world. Women and men had to part and enter different doors to get through security checks and show their bags to officials. Once through, they would meet again in the main entrance only to pass through an electric scanner.

It was a cool surprise when I saw a giant billboard that said: "Palm of Babylon, reserve this space by calling this number."

I thought to myself: kudos to my Iraqi friend Mays Wisam, a Dubai-based entrepreneur who founded Palm, an advertising and marketing business in Baghdad. I was astounded by the amount of people walking in the mall. There must have been 2,000 people eyeing the 60-plus shops. For many, this was probably the first time they had walked into a western-style shopping mall in their lives.

And there are plenty of reasons to go.

There's electricity and air conditioning, a luxury in central Iraq amid the searing 45°C temperatures.

Finally, there is a place where people can hang out indoors and keep away from the summer heat.

And for the first time in at least two decades, recognised brands are being stocked in the stores. There's Koton, LC Waikiki, Ecco, Clarks and Geox, but those stores are alongside a fake "Aldoo". That goes the same for food: there's a "Krunchy Fried Chicken K.F.C".

Talk about contrasts: the sham poultry purveyors caught my attention as we walked by a shop that had Rolex and Raymond Weil watches on display.

But despite the spiked interest, regional apparel brands appear to be an "accustomed taste" for Iraqis. The hands of the thousands of people who circled the mall - to this observer, it was easily comparable to a religious pilgrimage - were empty of shopping bags.

In the food court, however, it was a different story.

There was no place to sit.

"I think the apparel prices are still a bit expensive for Iraqis," my dad said. "But they won't mind spending their money on food."

In addition to the shops and food outlets, Mansour Mall has an indoor amusement area with a carousel, bumper cars and a roller coaster. A few steps away, women stood in front of a giant bouncy slide anxiously waiting to take pictures with their iPhones as their kids free-fell to the ground.

While it's a carnival atmosphere inside, the nearby shops outside are grumpy about the new mall, which opened at the start of Ramadan.

Across the street, a manager at a fake "pizza hut" told me his restaurant has suffered a 50 per cent drop in footfall.

The store near his, he says, was able to maintain its customer base due to his offering of nargeela (shisha), which is currently unavailable at the mall.

"If they introduce it in the mall," the pizza man said, "he's done."

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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