Syrian refugee children on the outskirts of Mafraq, Jordan. AP
Syrian refugee children on the outskirts of Mafraq, Jordan. AP
Syrian refugee children on the outskirts of Mafraq, Jordan. AP
Syrian refugee children on the outskirts of Mafraq, Jordan. AP

UN to cut food aid for Syrian refugees in Jordan amid huge funding shortfall


Khaled Yacoub Oweis
  • English
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The United Nations World Food Programme will cut food stipends to hundreds of thousands of Syrian refugees in Jordan by a third, partly due to having to accommodate aid requirements stemming from the war in Ukraine, the group tells The National.

The cuts, due to take effect next month, are the first tangible sign of international focus on Ukraine undermining aid to Syrian victims of a civil war, with the Middle East increasingly confined to the shadows as the war in Europe takes centre stage.

The WFP said in response to written questions from The National that Ukraine and other "competing requirements", as well as surging global food and fuel prices, had "made it difficult for WFP to raise the required resources to maintain the level of assistance".

The refugees receive other supplies of aid outside of the WFP, but the organisation is nonetheless predicting a shortfall.

The King Salman Humanitarian Aid and Relief Centre announced on Friday it would be donating over $3 million in medical aid to Syrian refugees in Jordan and last month, the UAE's Emirates Red Crescent announced a package of aid to the Mrajeeb Al Fhood camp, which hosts Syrian refugees.

Refugees started flooding into Jordan and other neighbouring countries in 2011, when a peaceful revolt against five decades of Assad family rule erupted in March. The uprising was militarised towards the end of that year in response to violent suppression by the regime that killed thousands.

The WFP said the cuts would affect "353,000 vulnerable refugees" in Jordan living outside two refugee camps. They are mostly Syrian but also include some Iraqis, Yemenis and Sudanese.

The stipends given to refugee families living in the two camps in Jordan will continue at the same level of $32 per month "while funding is available", the organisation said.

The camps near the Syrian border, Zaatari and Azraq, house 17 per cent of the 667,000 Syrian refugees in Jordan. The rest of the Syrian refugees in the kingdom live mostly in urban centres in the middle of Jordan and in the north.

The WFP sent text messages to refugees in Jordan this month saying “food assistance will be reduced to all beneficiaries outside the camps and that is because of a shortage of financial resources”.

The organisation says it needs a record $22.2 billion for this year to help 152 million people it describes as "food insecure", compared with the $4.8bn it has obtained, with the US being the largest contributor.

The Zaatari refugee camp in Jordan is home to vast numbers of Syrian refugees. Getty
The Zaatari refugee camp in Jordan is home to vast numbers of Syrian refugees. Getty

"Never has WFP’s funding gap been so wide," its statement said. "Needs outstrip resources, WFP has been forced to take from the hungry to feed the starving."

In Jordan, about 500,000 Syrian refugees are on the WFP stipends. Those outside the camps receiving $32 a month in food stipends will experience a drop to $21. Other refugees, deemed not as needy, will receive $14 a month, compared with $21 before the cut.

Diplomats say the humanitarian focus on Ukraine could further undermine the overall aid to Syrian refugees.

“The picture will become clearer by the end of this year when it will be known how much of the Syrian aid pledges has been realised,” a European diplomat said.

One refugee who lives in Zarqa, Jordan’s second city, said the reduction is making him think more seriously of moving with his wife and three children to Azraq, the smaller of the two refugee camps.

He might receive more money for food in Azraq and save on rent, he said, adding he has been contemplating the move for a while as food prices soar and the stipends he and his wife receive lost value.

“The problem is that I don’t know [whether] we will be allowed into the camp,” he said.

Another diplomat in contact with UN agencies in Jordan said the Zaatari camp was full and investment in Azraq wad needed before more refugees could be hosted.

“Funding would be needed to expand Azraq,” the diplomat said. “That has not been on the cards.”

In May, a Syrian aid conference in Brussels, the sixth since the conflict began, produced multi-year pledges for $6.7bn, compared with $6.4bn pledged at the same venue in 2021.

The money is earmarked to fund aid inside Syria proper, as well Syrian-related aid in Jordan, Lebanon, Turkey, Iraq, and Egypt — countries the EU regards as the most affected by the conflict.

Even if the aid pledges for Syria are met this year, a European-based diplomat said the Ukraine war has further reduced any chances of western countries paying for the reconstruction of Syria, as Russia has been urging them to do.

“There has been a fairly united European position that there will be no outright reconstruction funding without a political transition in Syria,” the diplomat said.

“The Ukraine war has also made that a practical impossibility.”

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Champions League Last 16

 Red Bull Salzburg (AUT) v Bayern Munich (GER) 

Sporting Lisbon (POR) v Manchester City (ENG) 

Benfica (POR) v Ajax (NED) 

Chelsea (ENG) v Lille (FRA) 

Atletico Madrid (ESP) v Manchester United (ENG) 

Villarreal (ESP) v Juventus (ITA) 

Inter Milan (ITA) v Liverpool (ENG) 

Paris Saint-Germain v Real Madrid (ESP)  

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

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

What you as a drone operator need to know

A permit and licence is required to fly a drone legally in Dubai.

Sanad Academy is the United Arab Emirate’s first RPA (Remotely Piloted Aircraft) training and certification specialists endorsed by the Dubai Civil Aviation authority.

It is responsible to train, test and certify drone operators and drones in UAE with DCAA Endorsement.

“We are teaching people how to fly in accordance with the laws of the UAE,” said Ahmad Al Hamadi, a trainer at Sanad.

“We can show how the aircraft work and how they are operated. They are relatively easy to use, but they need responsible pilots.

“Pilots have to be mature. They are given a map of where they can and can’t fly in the UAE and we make these points clear in the lectures we give.

“You cannot fly a drone without registration under any circumstances.”

Larger drones are harder to fly, and have a different response to location control. There are no brakes in the air, so the larger drones have more power.

The Sanad Academy has a designated area to fly off the Al Ain Road near Skydive Dubai to show pilots how to fly responsibly.

“As UAS technology becomes mainstream, it is important to build wider awareness on how to integrate it into commerce and our personal lives,” said Major General Abdulla Khalifa Al Marri, Commander-in-Chief, Dubai Police.

“Operators must undergo proper training and certification to ensure safety and compliance.

“Dubai’s airspace will undoubtedly experience increased traffic as UAS innovations become commonplace, the Forum allows commercial users to learn of best practice applications to implement UAS safely and legally, while benefitting a whole range of industries.”

COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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

Updated: August 21, 2022, 4:35 PM