I’m ashamed to say I hadn’t been to Baku, my wife’s hometown, for a few years. But last week I made the short two-hour flight across Iran and the Caspian to the capital of Azerbaijan, and what a transformation.
Maybe it was the huge investment made by the government to get the city ready at short notice to stage the Eurovision song contest in 2011; maybe it’s the steady stream of oil revenue flowing through the energy capital of western Asia. Whatever the reason, Baku, I can confirm, is well and truly booming.
Others in the UAE have also noticed this. This year the Dubai Chamber of Commerce led a delegation to the city, which its regards as the gateway to central Asia and eastern Europe and opened a representative office there, its first outside the UAE.
I wonder if the DCC party took in the spanking new five-lane highway from the Heydar Aliyev airport to downtown? Or the 65,000-seater stadium under construction for the inaugural European Games to be held in the city next year? Or the nearly-completed Trump Tower? Or the horizon-defining skyscraper that will be the new home of Socar, the Azerbaijan energy sovereign wealth fund?
I wonder if they clocked the squadrons of expensive cars – big SUVs, BMWs, Mercedes – still driving like maniacs on the wide downtown streets, where once the eternal Lada was all there was to be seen?
Did the DCC executives stop to shop at the grande luxe brand shops – Vuitton, Chanel, Prada – that seem to have taken over the retail spaces, where just a few years ago were tatty souvenir stalls and fast food outlets? Or meander around Fountain Square, transformed from a rundown wasteland into a delightful urban concourse?
The whole of “new” central Baku, the part that nestles beside the fascinating medieval Islamic fort called the Isheri Sheher, has undergone a dramatic makeover. Always full of architectural jewels, from the days when oil barons hot-footed it from Europe to exploit the city’s oil reserves and each built their own palatial home, the centre of the city is now a visual joy.
On a warm early summer evening, you could almost imagine yourself in Paris, with tree-lined boulevards and baroque frontages at every turn.
Another UAE organisation that has realised Baku’s potential is Jumeirah. While I was there, I paid a visit to one of the Dubai hotel chain’s newest projects, the Jumeirah Bilgah Beach hotel, ahead of its first official high season.
On the north side of the Absheron peninsula, about an hour’s drive from Baku through countryside “peppered with oil pumps and framed by pipelines” (in the lyrical turn of one Jumeirah executive), the Bilgah stands atop a limestone cliff overlooking the Caspian.
It’s doing a fair impersonation of the wave-like motif of the Jumeirah Beach Hotel in Dubai, on which its architect no doubt borrowed heavily for inspiration in design.
The best beaches were always on this side of the peninsula, but suffered from their proximity to the old Soviet petrochemicals plant at Sumgayit, a few kilometres to the west.
Sumgayit was once named the “most polluted place on Earth” by environmentalists, but the Azeris have cleaned up the mess admirably, at least around Bilgah. The area is now the summer playground for Baku’s growing number of wealthy entrepreneurs, with villas and hotels dotted along the horizon.
Take the lift down to the beach, slip off your shoes and have a paddle in the crisply cold Caspian while tiny crustaceans nibble away ticklishly in a natural pedicure. Magical.
fkane@thenational.ae
Follow us on Twitter @Ind_Insights
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Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
LA LIGA FIXTURES
Friday Valladolid v Osasuna (Kick-off midnight UAE)
Saturday Valencia v Athletic Bilbao (5pm), Getafe v Sevilla (7.15pm), Huesca v Alaves (9.30pm), Real Madrid v Atletico Madrid (midnight)
Sunday Real Sociedad v Eibar (5pm), Real Betis v Villarreal (7.15pm), Elche v Granada (9.30pm), Barcelona v Levante (midnight)
Monday Celta Vigo v Cadiz (midnight)
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
more from Janine di Giovanni
ICC men's cricketer of the year
2004 - Rahul Dravid (IND) ; 2005 - Jacques Kallis (SA) and Andrew Flintoff (ENG); 2006 - Ricky Ponting (AUS); 2007 - Ricky Ponting; 2008 - Shivnarine Chanderpaul (WI); 2009 - Mitchell Johnson (AUS); 2010 - Sachin Tendulkar (IND); 2011 - Jonathan Trott (ENG); 2012 - Kumar Sangakkara (SL); 2013 - Michael Clarke (AUS); 2014 - Mitchell Johnson; 2015 - Steve Smith (AUS); 2016 - Ravichandran Ashwin (IND); 2017 - Virat Kohli (IND); 2018 - Virat Kohli; 2019 - Ben Stokes (ENG); 2021 - Shaheen Afridi
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
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