When the announcement of a possible bid for Harman International was published on July 20 by a Kuwaiti newspaper Al Watan and the online business portal AME Info, the audio systems company's shares jumped 33 per cent in pre-market trading.
Harman immediately denied the report and its shares dropped 17 per cent. AME Info quickly withdrew the article from its website, but the damage had been done.
It was not the first time false reports on mergers and acquisitions have found their way into headlines.
On Thursday, after Gulf Keystone Petroleum denied talks of a takeover by Indian companies as reported in the Indian newspaper The Hindu, its shares fell 20 per cent.
And in April, a hoax offer for the US conglomerate Textron by an unknown Middle East group was published by a Kuwaiti newspaper and sent the company's shares up by 58 per cent, the highest in 28 years.
A bogus statement referring to Emulex, a networking solutions company, in 2000 claimed its chief executive would be stepping down. The story was carried by a number of news organisations and led share prices to fall more than 50 per cent.
Mohamed Elzubeir, the chief executive of the media analysis company Mediastow, said the secret nature of mergers and acquisitions, coupled with the competition within the media, could lead to news agencies overlooking basic details.
"Sometimes the story is so good that fact-checking takes a back seat," Mr Elzubeir said. "I would blame the media for the end results."
Some news companies did look twice. When Reuters reporter Ransdell Pierson received a call and fax about the Harman buyout, he immediately became suspicious about the lack of contact details.
"It was plausibly well written, so I did not dismiss it out of hand," Pierson said on the news agency's DealZone blog, "But I was sceptical."
Pierson, who included a copy of the original press release in the blog, wrote that while the business logo for Arabian Peninsula Group, the supposed buyer, looked legitimate, there was no reference to the company on Google or by any major news organisation.
He called his editor, who said such a deal in the downturn would be unlikely.
Mr Elzubeir, who has researched media coverage and stock movement, used a report on the UAE's property sector to illustrate the relationship between the two.
He noted that when companies such as Aldar Properties and Sorouh Real Estate sent out positive messages of keeping employees and having enough finances for projects, their stocks went up. But as soon as Emaar Properties announced job cuts and cancelled some plans, Mr Elzubeir saw a fall in share prices.
"First thing in the morning, investors read the news and if something does not smell very good, they react to that," he said. "It's really psychological."
Ali Khan, a director at Arqaam Capital, said incidents of hoaxes being published should remind the media of their responsibilities when handling business news.
"If there is any info that's price sensitive, it needs to be regulated," Mr Khan said. "That still doesn't stop individuals and it puts more onus on the media."
Vyas Jayabhanu, the head of Al Dhafra Financial Brokerage, said he expected and hoped investors would become more wary of what the media releases.
"They have to realise, for investors, the media is the very root of communication about the stocks," Mr Jayabhanu said.
Mr Elzubeir said that in the case of mergers and acquisitions, the media could not be held completely accountable for the leaks that took place.
In his studies, he found the details of such deals were so shrouded in secrecy and lacking in public relations that it led to negative press.
Mr Elzubeir said even though the Harman scandal ended quickly, he would not rule out that it could happen again unless the media changed its tactics and stopped publishing press releases.
"It will happen," he said. "It's how many times it will happen is what the media can control. I would say check your sources."
business@thenational.ae
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
First Person
Richard Flanagan
Chatto & Windus
In numbers
1,000 tonnes of waste collected daily:
800 tonnes converted into alternative fuel
150 tonnes to landfill
50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Who is playing New England Patriots v Los Angeles Rams
Where Mercedes-Benz Stadium in Atlanta, United States
When Sunday (start time is 3.30am on Monday UAE time)
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
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
UAE currency: the story behind the money in your pockets
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
We weren’t supposed to survive but we did.
We weren’t supposed to remember but we did.
We weren’t supposed to write but we did.
We weren’t supposed to fight but we did.
We weren’t supposed to organise but we did.
We weren’t supposed to rap but we did.
We weren’t supposed to find allies but we did.
We weren’t supposed to grow communities but we did.
We weren’t supposed to return but WE ARE.
Amira Sakalla
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
