Activists in Lebanon call for a boycott of companies that support Israel. Photo: Abbas Atout
Activists in Lebanon call for a boycott of companies that support Israel. Photo: Abbas Atout
Activists in Lebanon call for a boycott of companies that support Israel. Photo: Abbas Atout
Activists in Lebanon call for a boycott of companies that support Israel. Photo: Abbas Atout

Disillusion with the West amid Israeli strikes on Gaza fuels Arab boycott of brands


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Arabs across the region are boycotting western businesses, particularly American ones, reflecting anger over their perceived support for Israel in the Gaza war.

Disillusionment with the West, much of which has offered unconditional support to the right-wing government of Benjamin Netanyahu and its actions in Gaza, is also a factor in this movement.

The boycott has, over the little time it has been in force, picked up pace.

Outlets of brands such as Starbucks, McDonald's and Domino's Pizza sit empty or are lightly frequented in Arab cities such as Cairo, Amman, Beirut, Kuwait and Doha, indicating the depth of anger felt by many Arabs over the war.

It is harder to ascertain the effect the boycott has had on popular US products such as Pepsi and Coca-Cola, although a top regional executive from one of the two global brands told The National that stocks held by local distributors have increased in past weeks.

It may not be a game-changer and it may not last long enough to inflict serious damage, but it drives the point home that we, like the Israelis, are human beings whose lives matter just as much
Hany,
former sales executive for a US IT company

In some cases, he said, local employees have quit their jobs in protest.

“It may not be a game-changer and it may not last long enough to inflict serious damage, but it drives the point home that we, like the Israelis, are human beings whose lives matter just as much,” said Hany, a former sales executive in a US IT company.

Scenes coming out of Gaza showing small children killed or wounded in Israeli air strikes; or the helplessness painted on the faces of tens of thousands walking to supposedly safer parts of the Gaza Strip to escape Israeli bombardment, has left many angry.

Israel's relentless bombardment of Gaza since October 7 has killed more than 11,000 people, including at least 4,000 children, according to the Health Ministry in Gaza. It has also displaced about half the coastal enclave's 2.3 million residents and wiped out entire blocks in urban areas.

A sign reading: 'Warning: This product is boycotted. The choice is yours. ' is seen at a supermaket in Amman. Reuters
A sign reading: 'Warning: This product is boycotted. The choice is yours. ' is seen at a supermaket in Amman. Reuters

The bombardment is in response to a deadly rampage in southern Israel by Hamas militants that killed about 1,400 people. Israeli strikes have been branded as a “collective punishment” and a breach of international law by several Arab leaders.

More recently, Israel's aerial campaign and the subsequent ground offensive led to calls by western governments to Israel to reduce civilian casualties.

Often frustrated by the discord among their governments or their lack of effective action, ordinary Arabs had, in the past, tried to make their voices heard by boycotting western businesses, but not on the scale of the present one.

The boycott has revived scores of local brands in Egypt that have previously vanished or relegated to a negligible slice of the market after the market was opened to foreign products in the 70s.

“Last night, I had eight of my son's friends staying over. Normally, I would have ordered pizza from Papa Johns or Domino's for everyone,” said Hany, a father of two. “Instead, I ordered shawarma.”

People watch from inside a Starbucks in Washington, as demonstrators march in support of Palestinians in Gaza. Reuters
People watch from inside a Starbucks in Washington, as demonstrators march in support of Palestinians in Gaza. Reuters

Brands such as Spiro Spathis, a fizzy drink founded in 1920 by one of the thousands of Greeks who made Egypt their home, have made a notable comeback after decades of limited distribution in a market dominated by Coca-Cola and Pepsi.

So much is the demand on Spiro Spathis that the company has advertised 2,000 new jobs on its social media.

“It's a golden opportunity to revive local industries that were weakened or died altogether in the 1980s,” said Negad Borai, a prominent rights lawyer and a member of the board of trustees of the “national dialogue”, an inclusive panel of experts, academics and politicians tasked by President Abdel Fattah El Sisi to chart Egypt's economic and political future.

“What's so special about the boycott movement, too, is that it's an effective grass roots movement launched away from government interference and is spontaneously growing,” he told The National.

A sign reading: ' Warning: This product is boycotted. The choice is yours. ' is seen at a supermaket in Amman. Reuters
A sign reading: ' Warning: This product is boycotted. The choice is yours. ' is seen at a supermaket in Amman. Reuters

But the boycott across the Arab world is also raising questions on whether it could cost hundreds of thousands of jobs of those employed by local companies who own US and European franchises.

It's also raising questions on whether local franchise owners should be penalised for the perceived pro-Israeli policies of their mother companies.

Last month, people stormed several McDonald’s outlets across Lebanon, which shares a border with its long-time nemesis Israel. The protest did not take into account that the Lebanese franchise is not owned by the same company as the one in Israel, which announced free meals for Israeli soldiers.

In response to the controversy, the global fast food chain’s parent company last week rejected “inaccurate reports” over its position on the Gaza war.

“McDonald's Corporation is not funding or supporting any governments involved in this conflict, and any actions from our local development licensee business partners were made independently without McDonald's consent or approval,” it said.

A popular boycott of places like McDonald’s would devastate Lebanese supply chains. McDonald’s buys bread from Lebanese businesses, as well as chicken. It also employs around 1,400 Lebanese, according to Tony Nehme, a consultant and member of the Lebanese Franchise Association.

“The public needs to understand that boycott affects the Lebanese economy first and foremost before it affects anything else. The investors are Lebanese, the employees are Lebanese, the investment is money from Lebanon, and the supply chain is Lebanese.”

The aftermath of an Israeli strike in a residential area of Rafah. Reuters
The aftermath of an Israeli strike in a residential area of Rafah. Reuters

But Rami Salami of the Campaign to Boycott Supporters of Israel, Lebanon’s leading boycott campaign, explained that the issue goes beyond local economic consequences.

“Franchises in Lebanon should put pressure on the parent companies [that provide franchise licences]. It’s on them to find a solution to the problem – because simply put, they are tied to a company that supports Israel,” he told The National.

But Mr Borai, the Egyptian rights lawyer, believes boycotting McDonald's and Starbucks, regardless of the local consequences, affects only a small segment of the population in a country like Egypt.

“The loss of jobs will not be tragic either. Those who can fry chips and flip burgers can do that for local franchises,” he said.

In Jordan, the world's third-largest recipient of US aid after Israel and Egypt, some of the busiest McDonald's and Starbucks outlets in the capital Amman had a handful of people on Thursday night, usually the week's busiest time.

A large segment of Jordan's 10 million people are the second generation of Palestinian refugees who fled their homes to come to Jordan around the time Israel was created in 1948 and in the aftermath of the 1967 Arab-Israeli war when Israel captured the West Bank, Syria's Golan Heights and the Sinai Peninsula in Egypt.

Jordan in 1994 became the second Arab nation to sign a peace treaty with Israel after Egypt 15 years earlier.

Rana, a Jordanian mother of a teenage son, said she and her boy not only boycotted American brands but also French ones because of what she said was a rise in “French racism against Arabs” since the Gaza war began.

“We stopped going to Carrefour. We are buying local goods from a small grocery near the house,” said Rana.

A Palestinian child sits on the rubble of a home destroyed in Israeli strikes in Rafah. AFP
A Palestinian child sits on the rubble of a home destroyed in Israeli strikes in Rafah. AFP

Many small supermarkets in Amman have stopped stocking Pepsi and Coca-Cola. Instead, they are offering a brand of fizzy drink called Matrix, which is manufactured in Jordan and Iraq.

One manager at a private company in Amman who ordered food and Coca-Cola Zero on the popular delivery app Talabat said she received Matrix instead of Coca-Cola.

“They did not tell me,” she said.

The boycott movement also speaks to anti-western sentiments sustained by decades of heavy-handed handling of the Palestinians by Israel and the West's perennial failure to get it to accept the will of the international community and give them an independent state of their own in the occupied West Bank and Gaza.

These sentiments were revived by the war in Gaza.

“I regret the years I lived while convinced that the West offered an example to follow when it comes to respect of human rights, justice and transparency,” said a prominent Egyptian artist whose paintings and installations earned her lavish accolades in Europe.

“Say what you will about us, but now I am convinced that we are the better people, the more civilised and compassionate.”

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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

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

Profile

Company name: Jaib

Started: January 2018

Co-founders: Fouad Jeryes and Sinan Taifour

Based: Jordan

Sector: FinTech

Total transactions: over $800,000 since January, 2018

Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups

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.”

Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

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Engine 3.0L V6 turbo

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Power 345hp @ 5,000rpm

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Know your Camel lingo

The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home

Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless

Asayel camels - sleek, short-haired hound-like racers

Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s

Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival

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360Vuz PROFILE

Date started: January 2017
Founder: Khaled Zaatarah 
Based: Dubai and Los Angeles
Sector: Technology 
Size: 21 employees
Funding: $7 million 
Investors: Shorooq Partners, KBW Ventures, Vision Ventures, Hala Ventures, 500Startups, Plug and Play, Magnus Olsson, Samih Toukan, Jonathan Labin

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Results

2pm: Serve U – Maiden (TB) Dh60,000 (Dirt) 1,400m; Winner: Violent Justice, Pat Dobbs (jockey), Doug Watson (trainer)

2.30pm: Al Shafar Investment – Conditions (TB) Dh100,000 (D) 1,400m; Winner: Desert Wisdom, Bernardo Pinheiro, Ahmed Al Shemaili

3pm: Commercial Bank of Dubai – Handicap (TB) Dh68,000 (D) 1,200m; Winner: Fawaareq, Sam Hitchcott, Doug Watson

3.30pm: Shadwell – Rated Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Xavier Ziani, Salem bin Ghadayer

4pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,600m; Winner: Rakeez, Patrick Cosgrave, Bhupat Seemar

4.30pm: Al Redha Insurance Brokers – Handicap (TB) Dh78,000 (D) 1,800m; Winner: Capla Crusader, Bernardo Pinheiro, Rashed Bouresly

SPECS
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The biog

Name: Timothy Husband

Nationality: New Zealand

Education: Degree in zoology at The University of Sydney

Favourite book: Lemurs of Madagascar by Russell A Mittermeier

Favourite music: Billy Joel

Weekends and holidays: Talking about animals or visiting his farm in Australia

Updated: November 23, 2023, 6:27 AM