Opposition faces uphill battle as Turkey confirms run-off presidential vote


Holly Johnston
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Turkey's most critical election yet ended in uncertainty as neither incumbent President Recep Tayyip Erdogan nor his rival Kemal Kilicdaroglu won more than 50 per cent of votes by Monday.

A final result rests on a second run-off, on May 28, the first in Turkey's history, despite turnout reaching a record high of 88.8 per cent on Sunday.

With exit polling banned in Turkey, the race remained on a knife edge for most of the evening.

Both candidates were confident of victory, but as votes arrived, Mr Erdogan's edge slimmed. By 11pm, state media predicted he had fallen short of the threshold for outright victory.

On Monday morning, the country's supreme election board said Mr Erdogan had won 49.4 per cent of the vote, with 99 per cent of domestic ballot boxes opened and more than 86 per cent of overseas ballot boxes counted.

It later confirmed that a second-run off would take place on May 28.

While both were certain of a first-round victory, Mr Erdogan and Republican People's Party (CHP) leader Mr Kilicdaroglu have accepted the uncertainty, with the President saying a second round is “welcome” if it is the will of the people.

“We will definitely, definitely win this election in the second round … and bring democracy,” said Mr Kilicdaroglu.

  • People walk under posters showing Mustafa Kemal Ataturk, founder of modern Turkey, in Ankara. The country is holding its first presidential run-off election after neither candidate earned more than 50 per cent of the vote in the May 14 election. Getty
    People walk under posters showing Mustafa Kemal Ataturk, founder of modern Turkey, in Ankara. The country is holding its first presidential run-off election after neither candidate earned more than 50 per cent of the vote in the May 14 election. Getty
  • A couple walk under a poster of Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, the day after the general election, in Ankara. EPA
    A couple walk under a poster of Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, the day after the general election, in Ankara. EPA
  • People sit on a bench by posters showing Mr Kilicdaroglu in Ankara. Getty
    People sit on a bench by posters showing Mr Kilicdaroglu in Ankara. Getty
  • The bustling Taksim area of Istanbul. Turkey will hold its first presidential run-off election after neither candidate earned more than 50 per cent of the vote this week. Getty
    The bustling Taksim area of Istanbul. Turkey will hold its first presidential run-off election after neither candidate earned more than 50 per cent of the vote this week. Getty
  • People eat ice cream in Istanbul as the country prepares for an election run-off later this month. Getty
    People eat ice cream in Istanbul as the country prepares for an election run-off later this month. Getty
  • People stand in front of the Guven Monument in Ankara. Getty
    People stand in front of the Guven Monument in Ankara. Getty
  • The second round of voting will be held on May 28. Getty
    The second round of voting will be held on May 28. Getty
  • A passenger reads a newspaper on a ferry across the Bosphorus in Istanbul. Bloomberg
    A passenger reads a newspaper on a ferry across the Bosphorus in Istanbul. Bloomberg
  • Politics dominates the headlines in Istanbul on the day after the presidential elections. AP
    Politics dominates the headlines in Istanbul on the day after the presidential elections. AP
  • A billboard featuring presidential candidate Mr Kilicdaroglu in Istanbul. AP
    A billboard featuring presidential candidate Mr Kilicdaroglu in Istanbul. AP
  • A run-off for the presidency was expected to lead to volatility for the Turkish lira. AP
    A run-off for the presidency was expected to lead to volatility for the Turkish lira. AP
  • Supporters of President Recep Tayyip Erdogan gather at the AK Party's headquarters in Istanbul on election night. Getty
    Supporters of President Recep Tayyip Erdogan gather at the AK Party's headquarters in Istanbul on election night. Getty
  • Mr Erdogan, accompanied by his wife Emine, addresses supporters in Ankara. Photo: Turkish Presidential Press Office
    Mr Erdogan, accompanied by his wife Emine, addresses supporters in Ankara. Photo: Turkish Presidential Press Office
  • Election officials count ballots in Diyarbakir after polls closed in Turkey's presidential and parliamentary elections. AFP
    Election officials count ballots in Diyarbakir after polls closed in Turkey's presidential and parliamentary elections. AFP
  • Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, speaks to the media in Ankara. EPA
    Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party, speaks to the media in Ankara. EPA
  • Mr Erdogan's supporters wave flags outside the AK Party's headquarters in Ankara. Reuters
    Mr Erdogan's supporters wave flags outside the AK Party's headquarters in Ankara. Reuters
  • Mr Erdogan casts his vote in Istanbul on Sunday. Getty
    Mr Erdogan casts his vote in Istanbul on Sunday. Getty
  • Mr Kilicdaroglu votes in Ankara. Getty
    Mr Kilicdaroglu votes in Ankara. Getty
  • People wait for Mr Erdogan outside a polling station in Istanbul. Reuters
    People wait for Mr Erdogan outside a polling station in Istanbul. Reuters
  • A man holds a ballot at a polling station in Hatay. Reuters
    A man holds a ballot at a polling station in Hatay. Reuters
  • A ballot paper featuring candidates for Turkey's presidential and parliamentary elections. Reuters
    A ballot paper featuring candidates for Turkey's presidential and parliamentary elections. Reuters
  • Voting began in Turkey's presidential election on Sunday morning. Reuters
    Voting began in Turkey's presidential election on Sunday morning. Reuters
  • A voter casts a ballot at a polling station in Hatay. Reuters
    A voter casts a ballot at a polling station in Hatay. Reuters
  • Hatay is one of the Turkish regions that were worst-affected by February's earthquake. Reuters
    Hatay is one of the Turkish regions that were worst-affected by February's earthquake. Reuters
  • Voters take a closer look at the candidates on the ballot, in Ankara. Getty
    Voters take a closer look at the candidates on the ballot, in Ankara. Getty
  • A ballot paper with Mr Erdogan, Muharrem Ince, Mr Kilicdaroglu and Sinan Ogan. Getty
    A ballot paper with Mr Erdogan, Muharrem Ince, Mr Kilicdaroglu and Sinan Ogan. Getty
  • Voters queue outside a polling station in Istanbul. Reuters
    Voters queue outside a polling station in Istanbul. Reuters
  • Bags containing blank ballots are stored at a temporary polling station in the courtyard of a quake-damaged school in Hatay. Reuters
    Bags containing blank ballots are stored at a temporary polling station in the courtyard of a quake-damaged school in Hatay. Reuters
  • An election worker prepares a temporary polling station in Hatay. Reuters
    An election worker prepares a temporary polling station in Hatay. Reuters

How the next few weeks will unfold is unclear. More than three million people voted from abroad at overseas diplomatic missions and airport customs.

They will now have to vote again, as will the more than 60 million eligible domestic voters — as long as voter apathy does not take hold.

One clear result emerging from Sunday's vote is the power yielded by nationalist presidential candidate Sinan Ogan, who managed to secure more than 5 per cent of the vote.

Mr Ogan said he would not back the opposition unless Mr Kilicdaroglu provides assurances that he would not give concessions to Kurdish parties, who have backed the CHP leader against Mr Erdogan.

“We will consult with our voter base for our decision in the run-off. But we already made clear that the fight against terrorism and sending refugees back are our red lines,” he told Reuters on Monday.

Why did Kilicdaroglu come second?

Analysts have told The National it will be difficult for the opposition to make a strong enough comeback to secure the presidency.

The result has surprised many, including Prof Mesut Yegen, a researcher at the Reform Institute in Istanbul, who said he expected Mr Kilicdaroglu to secure more votes than Mr Erdogan, if not enough for a majority.

“It's rather difficult for Kilicdaroglu to win and Erdogan to lose,” he said, citing a 4.5 per cent margin between the two rivals and the likelihood of most votes for Sinan Ogan going to the incumbent leader on May 28.

Reasons for Mr Kilicdaroglu's failure to clinch a victory are varied, he said, including the AKP's efforts to link the opposition to the Kurdistan Worker's Party (PKK), designated a terror group in Turkey.

“Erdogan has been quite successful in convincing Turkish voters, or the majority of them, that there is a link between the PKK and Kilicdaroglu, While we were expecting the first topic on the agenda would be the economy and inflation rates, Erdogan managed to change the agenda,” he told The National.

“Many people bought this idea that integrity of the state is under threat.”

Secondly, he said, was the opposition's diverse six-party alliance, which, although it endorsed Mr Kilicdaroglu as its presidential candidate, is composed of a number of parties with varying political views, some of which are significantly more right-wing than the CHP.

“Erdogan is a strong candidate, and the opposition had seven or eight figures, including for vice-president. Again, he seems to have persuaded voters that there would be a crisis and governance problems if the opposition won.”

Despite the result, EU leaders have praised Turkey for the record turnout.

“It's a very clear sign that the Turkish people are committed to exercising their democratic rights to go and vote and that they value the democratic institutions,” said European Commission President Ursula von der Leyen.

Mr Erdogan has been building up to this election for years, with both he and his rival touring the country, including earthquake-hit areas, to drum up votes.

Parliamentary vote

With only two weeks until voters return to the polls, they may focus on the urban centres of Istanbul, Ankara and Izmir — often decisive in calling the election — to turn the tide in their favour.

More decisive, however, was the parliamentary vote which also took place on Sunday.

Media affiliated with the ruling Justice and Development party (AKP) proclaimed victory for Mr Erdogan in the parliament, which may give him an edge entering the second round of voting.

Galip Dalay, an associate fellow at Chatham House international affairs think tank, said Mr Erdogan's ruling alliance would go into the second round “with numeric and psychological advantages”.

“During the campaign period ahead of the run-off, Mr Erdogan is likely to emphasise stability as he already retains the majority in the parliament,” Mr Dalay told AFP.

What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.

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.”

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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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

UAE v Zimbabwe A, 50 over series

Fixtures
Thursday, Nov 9 - 9.30am, ICC Academy, Dubai
Saturday, Nov 11 – 9.30am, ICC Academy, Dubai
Monday, Nov 13 – 2pm, Dubai International Stadium
Thursday, Nov 16 – 2pm, ICC Academy, Dubai
Saturday, Nov 18 – 9.30am, ICC Academy, Dubai

Women’s World T20, Asia Qualifier

UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs

Standings (P, W, l, NR, points)

1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0

Final
Thailand v UAE, Monday, 7am

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Babumoshai Bandookbaaz

Director: Kushan Nandy

Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami

Three stars

Results

2-15pm: Commercial Bank Of Dubai – Conditions (TB) Dh100,000 (Dirt) 1,400m; Winner: Al Habash, Patrick Cosgrave (jockey), Bhupat Seemar (trainer)

2.45pm: Al Shafar Investment – Handicap (TB) Dh80,000 (D) 1,200m; Winner: Day Approach, Ray Dawson, Ahmad bin Harmash

3.15pm: Dubai Real estate Centre – Handicap (TB) Dh80,000 (D) 1,600m; Winner: Celtic Prince, Richard Mullen, Rashed Bouresly

3.45pm: Jebel Ali Sprint by ARM Holding – Listed (TB) Dh500,000 (D) 1,000m; Winner: Khuzaam, Pat Dobbs, Doug Watson

4.15pm: Shadwell – Conditions (TB) Dh100,000 (D) 1,600m; Winner: Tenbury Wells, Royston Ffrench, Salem bin Ghadayer

4.45pm: Jebel Ali Stakes by ARM Holding – Listed (TB) Dh500,000 (D) 1,950m; Winner: Lost Eden, Andrea Atzeni, Doug Watson

5.15pm: Jebel Ali Racecourse – Handicap (TB) Dh76,000 (D) 1,950m; Winner: Rougher, Pat Dobbs, Doug Watson

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PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

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The Africa Institute 101

Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction. 

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Company Profile 

Founder: Omar Onsi

Launched: 2018

Employees: 35

Financing stage: Seed round ($12 million)

Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

Switching%20sides
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SCORES IN BRIEF

New Zealand 153 and 56 for 1 in 22.4 overs at close
Pakistan 227
(Babar 62, Asad 43, Boult 4-54, De Grandhomme 2-30, Patel 2-64)

Short-term let permits explained

Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.

Tenants also require a letter of no objection from their landlord before being allowed to list the property.

There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.

Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

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What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

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While you're here
Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: May 15, 2023, 9:18 PM