A trader works on the trading floor at the New York Stock Exchange. US equities, particularly Big Tech stocks, have continued to dominate despite the political issues the country faces. Reuters
A trader works on the trading floor at the New York Stock Exchange. US equities, particularly Big Tech stocks, have continued to dominate despite the political issues the country faces. Reuters
A trader works on the trading floor at the New York Stock Exchange. US equities, particularly Big Tech stocks, have continued to dominate despite the political issues the country faces. Reuters
A trader works on the trading floor at the New York Stock Exchange. US equities, particularly Big Tech stocks, have continued to dominate despite the political issues the country faces. Reuters

Why the US will continue to dominate global equity markets


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While the world asks whether the US has lost its mojo after its disastrous exit from Afghanistan, the country’s stock market continues to power on as if it doesn’t have a care in the world.

Washington’s superpower status may be under threat but after a decade of rip-roaring returns, most investors continue to believe that Wall Street is still the best place on Earth to invest their money.

US technology companies have conquered the world since the financial crisis and the country now boasts five companies worth $1 trillion or more: Apple, Amazon, Microsoft, Google owner Alphabet and Facebook.

US equities have continued to dominate regardless of the country’s political woes, Richard Hunter, head of markets at wealth platform Interactive Investor, says. “The S&P500 has risen by 105 per cent over the last year and is up 21 per cent year-to-date.”

The index of top US stocks now trades at a record high of around 4,500, while the Nasdaq technology index is regularly posting all-time highs of more than 15,000.

The strong US performance has been driven by trillions of dollars of fiscal and monetary stimulus, and historically low interest rates, Mr Hunter says. “Near-zero savings rates force investors to seek a punchier return by investing in shares.”

Yet there are also looming threats and, as the US discovered in Afghanistan, conditions on the ground can change very quickly.

Tougher regulation of technology companies and the country’s fractious relationship with China are both causes for concern, Mr Hunter says.

“The biggest worry is whether the US Federal Reserve will start tapering monetary stimulus before the end of the year and if the economy can stand on its own two feet without it,” he adds.

The biggest worry is whether the US Federal Reserve will start tapering monetary stimulus before the end of the year and if the economy can stand on its own two feet without it
Richard Hunter,
head of markets, Interactive Investor

The stimulus continues to flow and US shares are likely to continue rising for now, but Mr Hunter says rival stock markets such as the UK’s FTSE 100 are now far cheaper and potentially offer better value.

“The recent spate of M&A activity, with US private equity firms snapping up undervalued UK companies, has helped the FTSE rise by more than 10 per cent so far this year,” Mr Hunter says.

The US will continue to dominate global equity markets over the coming decade, Peter Garnry, head of equity strategy at Saxo Bank, says.

“It dominates many high-growth technologies such as cloud computing, cyber security, digitalisation, semiconductors, machine learning and biotechnology,” he adds.

The US is lacking in one key area: it is trailing the green shift to renewable power and energy efficiency, Mr Garnry says. Tougher tech regulation and rising interest rates are also threats, he says, but the US remains the one to beat.

Yet the country is in serious fiscal trouble, with debts totalling $28.7tn, more than double the country’s annual gross domestic product, Chaddy Kirbaj, vice director at Swissquote Bank in Dubai, says. “The question is, do investors have a viable alternative? To put it bluntly: the answer is no.”

The US, along with Europe and Japan, will remain the preferred option for global investors, according to Mr Kirbaj.

Investing in shares is always unpredictable and the US stock market will suffer a correction at some point, Mr Kirbaj predicts. But investors must take a long-term view and look beyond current worries.

The question is, do investors have a viable alternative? To put it bluntly: the answer is no
Chaddy Kirbaj,
vice director, Swissquote Bank

“The S&P 500 stood at around 1,200 two decades ago, today it’s above 4,500. Investors will also have generated dividends on top. That’s the timescale we should use when we think about investing,” he recommends.

However, Mr Kirbaj agrees that it may be time for cheaper, developed markets to play catch up, singling out Europe. “The US stock market is not yet finished as a superpower, but the rhythm is going to slow.”

US-listed companies make up an astonishing 60 per cent of the global stock market, evidence of the sheer clout of its major corporates, says Jason Hollands, managing director of Tilney Investment Services.

No country can hope to match its success in building companies from start-ups to multibillion-dollar firms.

“The US has a highly developed financial eco-system and deep pools of private capital, which is why so many global companies head there to raise capital,” he says.

China has a lot of catching up to do when it comes to churning out entrepreneurs and may never get there.

The country’s share of the MSCI global index is tiny compared with the US at just 4.1 per cent, Mr Hollands says.

“Providing the US does not lurch aggressively away from capitalism, it is going to remain the dominant stock market superpower for a long time yet, even if its political influence and prestige wanes,” he adds.

However, Mr Hollands believes the US may be overvalued, especially the Big Tech sector, while the Democratic Party’s “spending spree” could weaken public finances. “Right now, I see better value in markets such as the UK, Japan and Europe, where the earnings recovery still has further to run.”

Vijay Valecha, chief investment officer at Century Financial in Dubai, suggests that investors look beyond the obvious tech names like Apple and Amazon. “US technology brands such as PayPal, Oracle, Intel, Netflix, Tesla and Adobe are fast-growing companies that overshadow any other country’s big names.”

The US has suffered political and military setbacks before and its stock markets have still shone through, Mr Valecha says.

“Forget Afghanistan. Forget geopolitics. The US stock market will remain dominant. Investors can’t afford to ignore it,” he adds.

If the US stock market does crash at some point, that could be a good opportunity to get exposure for the next 20 years of action.

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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More than 2.2 million Indian tourists arrived in UAE in 2023
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Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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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

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Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

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Ruwais timeline

1971 Abu Dhabi National Oil Company established

1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants

1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed

1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.  

1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex

2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea

2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd

2014 Ruwais 261-outlet shopping mall opens

2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies

2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export

2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.

2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery 

2018 NMC Healthcare selected to manage operations of Ruwais Hospital

2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13

Source: The National

The Programme

Saturday, October 26: ‘The Time That Remains’ (2009) by Elia Suleiman
Saturday, November 2: ‘Beginners’ (2010) by Mike Mills
Saturday, November 16: ‘Finding Vivian Maier’ (2013) by John Maloof and Charlie Siskel
Tuesday, November 26: ‘All the President’s Men’ (1976) by Alan J Pakula
Saturday, December 7: ‘Timbuktu’ (2014) by Abderrahmane Sissako
Saturday, December 21: ‘Rams’ (2015) by Grimur Hakonarson

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
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Teachers' pay - what you need to know

Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

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Tamkeen's offering
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Updated: March 13, 2024, 12:34 PM