Iran's Azadi tower is illuminated with pictures of the late supreme leader Ayatollah Ruhollah Khomeini, to mark the 33rd anniversary of his death, in Tehran on June 3. AFP
Iran's Azadi tower is illuminated with pictures of the late supreme leader Ayatollah Ruhollah Khomeini, to mark the 33rd anniversary of his death, in Tehran on June 3. AFP
Iran's Azadi tower is illuminated with pictures of the late supreme leader Ayatollah Ruhollah Khomeini, to mark the 33rd anniversary of his death, in Tehran on June 3. AFP
Iran's Azadi tower is illuminated with pictures of the late supreme leader Ayatollah Ruhollah Khomeini, to mark the 33rd anniversary of his death, in Tehran on June 3. AFP

Iran releases video of two captured French 'spies'


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Iran claims to have captured two French citizens who purportedly confessed to acts of espionage, and published a video showing the prisoners on Thursday.

The arrests come as Iranian leaders seek to portray continuing anti-government protests as a foreign plot instead of widespread anger over the death of a Iranian woman, 22, detained by the country’s "morality police".

A woman identified as Cecile Kohler, a high school teacher and educational trade union official, and her partner Jacques Paris were shown in the the video released by the state-run Irna news agency.

France’s government issued a rebuke to the accusations and called the detained citizens “state hostages”.

Iran, which has long used detained westerners as bargaining chips in negotiations, has previously offered no public evidence to support the spying accusations.

The French Foreign Ministry said the “supposed confessions extracted under duress” of the detained French nationals in the video was “outrageous”.

Mahsa Amini protests around the world - in pictures

  • Demonstrators chant slogans during the March of Solidarity for Iran in Washington. AFP
    Demonstrators chant slogans during the March of Solidarity for Iran in Washington. AFP
  • Another group of demonstrators at the march. AFP
    Another group of demonstrators at the march. AFP
  • A protest in support of Iranian women in Barcelona. Reuters
    A protest in support of Iranian women in Barcelona. Reuters
  • Iranian citizens and locals joined in the Barcelona protest. Reuters
    Iranian citizens and locals joined in the Barcelona protest. Reuters
  • People attend a demonstration in solidarity with Mahsa Amini and other Iranian women in Castello Square, Turin. EPA
    People attend a demonstration in solidarity with Mahsa Amini and other Iranian women in Castello Square, Turin. EPA
  • A person places a candle during the demonstration in Turin. EPA
    A person places a candle during the demonstration in Turin. EPA
  • A protester holds a pre-Islamic Revolution Iranian flag during a demonstration in Brussels in support of the Iranians fighting for their freedom. AFP
    A protester holds a pre-Islamic Revolution Iranian flag during a demonstration in Brussels in support of the Iranians fighting for their freedom. AFP
  • A protester wearing a top with a logo that reads 'No to an Islamic state" as she takes part in a rally in support of the Iranian people, in Brussels. AFP
    A protester wearing a top with a logo that reads 'No to an Islamic state" as she takes part in a rally in support of the Iranian people, in Brussels. AFP
  • People wave the Shah-era Iranian flag during a protest in Paris. AFP
    People wave the Shah-era Iranian flag during a protest in Paris. AFP
  • A woman shows her true colours in the protest against the Iranian government, in Paris. AFP
    A woman shows her true colours in the protest against the Iranian government, in Paris. AFP
  • A woman holds a flag, as people protest against the Iranian regime outside Iran's embassy in central London. Reuters
    A woman holds a flag, as people protest against the Iranian regime outside Iran's embassy in central London. Reuters
  • Supporters of the Kurdistan Workers' Party (PKK) carry placards and wave party flags in Beirut, during a protest against the death of Ms Amini. EPA
    Supporters of the Kurdistan Workers' Party (PKK) carry placards and wave party flags in Beirut, during a protest against the death of Ms Amini. EPA
  • People demonstrate against the Iranian government outside the Houses of Parliament in London following the death of Amini. Reuters
    People demonstrate against the Iranian government outside the Houses of Parliament in London following the death of Amini. Reuters
  • A mural in Paris depicts women cutting their hair to show support for Iranian protesters. AP
    A mural in Paris depicts women cutting their hair to show support for Iranian protesters. AP
  • People take part in a rally against the Iranian government in Vancouver, Canada, on Saturday. AP
    People take part in a rally against the Iranian government in Vancouver, Canada, on Saturday. AP
  • Protesters take to the streets of Tehran. EPA
    Protesters take to the streets of Tehran. EPA
  • Iranian protesters run after clashing with with police. EPA
    Iranian protesters run after clashing with with police. EPA
  • A protester shaves their head outside the Houses of Parliament in London. Reuters
    A protester shaves their head outside the Houses of Parliament in London. Reuters
  • Iranians living in Athens hold a protest in solidarity. AFP
    Iranians living in Athens hold a protest in solidarity. AFP
  • People take part in a rally in The Hague. AFP
    People take part in a rally in The Hague. AFP
  • A woman cuts her hair during a demonstration in Santiago, Chile, by feminist groups and Iranian migrants in support of Iranian women following the death of Amini. AFP
    A woman cuts her hair during a demonstration in Santiago, Chile, by feminist groups and Iranian migrants in support of Iranian women following the death of Amini. AFP
  • Members of feminist groups and Iranian migrants during the protests in Santiago. AFP
    Members of feminist groups and Iranian migrants during the protests in Santiago. AFP
  • Iranian activists shout slogans during a protest against the government in Tehran, in Amsterdam, The Netherlands. EPA
    Iranian activists shout slogans during a protest against the government in Tehran, in Amsterdam, The Netherlands. EPA
  • A protester holds a painted portrait of Mahsa Amini in Berlin, Germany. EPA
    A protester holds a painted portrait of Mahsa Amini in Berlin, Germany. EPA
  • A protester shows red paint on her face, resembling blood splatters and bloody handprints next to the national Iranian emblem, during a rally in Berlin. EPA
    A protester shows red paint on her face, resembling blood splatters and bloody handprints next to the national Iranian emblem, during a rally in Berlin. EPA
  • Iranian protesters shout slogan during a protest in Istanbul, Turkey. EPA
    Iranian protesters shout slogan during a protest in Istanbul, Turkey. EPA
  • A woman holds a sign during a protest against the Iranian government, in front of the country's embassy in Madrid, Spain. The protests were triggered by the death of a young Iranian woman, Mahsa Amini, in police custody. Reuters
    A woman holds a sign during a protest against the Iranian government, in front of the country's embassy in Madrid, Spain. The protests were triggered by the death of a young Iranian woman, Mahsa Amini, in police custody. Reuters
  • A woman cuts her hair during the protest in front of the Iranian embassy in Madrid. Reuters
    A woman cuts her hair during the protest in front of the Iranian embassy in Madrid. Reuters
  • Israelis show their support for women in Iran as they hold up placards of Amini during a protest in Jerusalem. EPA
    Israelis show their support for women in Iran as they hold up placards of Amini during a protest in Jerusalem. EPA
  • Amini, 22, was arrested in Tehran on September 13, 2022, by the morality police. She fell into a coma while in police custody and was declared dead on September 16. EPA
    Amini, 22, was arrested in Tehran on September 13, 2022, by the morality police. She fell into a coma while in police custody and was declared dead on September 16. EPA
  • People walk by graffiti in support of the protests triggered by Amini's death, in Jerusalem. EPA
    People walk by graffiti in support of the protests triggered by Amini's death, in Jerusalem. EPA
  • A protest in Nantes, western France, after the death of Amini in Iranian police custody. AFP
    A protest in Nantes, western France, after the death of Amini in Iranian police custody. AFP
  • Women gather for a demonstration in Barcelona, Spain. AFP
    Women gather for a demonstration in Barcelona, Spain. AFP
  • Demonstrators in Nantes. Amini's death has sparked a global protest movement. AFP
    Demonstrators in Nantes. Amini's death has sparked a global protest movement. AFP
  • Women protest outside the town hall in in Montpellier, southern France. AFP
    Women protest outside the town hall in in Montpellier, southern France. AFP
  • A woman at a protest in Catalunya Square, Barcelona. Reuters
    A woman at a protest in Catalunya Square, Barcelona. Reuters
  • Campaigners and football fans protest at a Champions League match between Porto and Bayer Leverkusen at the Dragao stadium in Portugal. EPA
    Campaigners and football fans protest at a Champions League match between Porto and Bayer Leverkusen at the Dragao stadium in Portugal. EPA
  • People hold placards during a demonstration in solidarity with the Iranian people near the European Parliament in Strasbourg, France. EPA
    People hold placards during a demonstration in solidarity with the Iranian people near the European Parliament in Strasbourg, France. EPA
  • An Iranian woman living in Turkey with 'Freedom' written on her forehead takes part in a protest near the Iranian consulate in Istanbul. Reuters
    An Iranian woman living in Turkey with 'Freedom' written on her forehead takes part in a protest near the Iranian consulate in Istanbul. Reuters
  • In Barcelona, protesters take part in a demonstration in support of Iranian women. AFP
    In Barcelona, protesters take part in a demonstration in support of Iranian women. AFP
  • A Lebanese activist takes part in a protest in Beirut, triggered by the death of Amini, 22. AP
    A Lebanese activist takes part in a protest in Beirut, triggered by the death of Amini, 22. AP
  • A Turkish protester takes off her head scarf while giving a performance in Instanbul during a protest against Iran over Amini's death. Getty
    A Turkish protester takes off her head scarf while giving a performance in Instanbul during a protest against Iran over Amini's death. Getty
  • A woman in Istanbul cuts her hair during a protest against Iran. Getty
    A woman in Istanbul cuts her hair during a protest against Iran. Getty
  • A Lebanese activist holds a poster depicting Amini during a protest in Beirut organised by feminist groups in support of women protesters in Iran. EPA
    A Lebanese activist holds a poster depicting Amini during a protest in Beirut organised by feminist groups in support of women protesters in Iran. EPA
  • Demonstrators in Los Angeles, California, hold the Iranian flag during a protest against the government in Tehran. AFP
    Demonstrators in Los Angeles, California, hold the Iranian flag during a protest against the government in Tehran. AFP
  • Demonstrators hold placards in Mexico City during a protest against Iran. Reuters
    Demonstrators hold placards in Mexico City during a protest against Iran. Reuters
  • People demonstrate in Montreal, Canada, during a protest triggered by Amini's death. AFP
    People demonstrate in Montreal, Canada, during a protest triggered by Amini's death. AFP
  • Iranian Americans participate in a rally in central Los Angeles, in solidarity with women in Iran. AP
    Iranian Americans participate in a rally in central Los Angeles, in solidarity with women in Iran. AP
  • Demonstrators march during a protest in Los Angeles, California. AFP
    Demonstrators march during a protest in Los Angeles, California. AFP
  • A woman with the colours of the Iranian flag painted on her face participates in a rally as thousands demonstrate in support of Iranian women in Los Angeles. EPA
    A woman with the colours of the Iranian flag painted on her face participates in a rally as thousands demonstrate in support of Iranian women in Los Angeles. EPA
  • Australians protest over Amini's death in Melbourne. EPA
    Australians protest over Amini's death in Melbourne. EPA
  • Police block protesters from entering Iran's embassy in Oslo, Norway. EPA
    Police block protesters from entering Iran's embassy in Oslo, Norway. EPA
  • Demonstrators in front of the European headquarters of the UN in Geneva, Switzerland, during a rally against Iran. EPA
    Demonstrators in front of the European headquarters of the UN in Geneva, Switzerland, during a rally against Iran. EPA
  • A candlelight vigil for Amini in Los Angeles. AFP
    A candlelight vigil for Amini in Los Angeles. AFP
  • Afghan women hold placards as they take part in a protest in front of the Iranian embassy in Kabul. AFP
    Afghan women hold placards as they take part in a protest in front of the Iranian embassy in Kabul. AFP
  • Protestors take part in a rally outside the Iranian consulate in Istanbul. AFP
    Protestors take part in a rally outside the Iranian consulate in Istanbul. AFP
  • An Iranian woman shows a lock of hair she cut off during a protest outside the Iranian consulate in Istanbul. EPA
    An Iranian woman shows a lock of hair she cut off during a protest outside the Iranian consulate in Istanbul. EPA
  • Demonstrators outside the Iranian consulate in Istanbul. Getty
    Demonstrators outside the Iranian consulate in Istanbul. Getty
  • Iranian Americans rally on Capitol Hill in Washington to show support for protesters in Iran. AFP
    Iranian Americans rally on Capitol Hill in Washington to show support for protesters in Iran. AFP
  • Protesters on Capitol Hill hold a sign condemning the crackdown by Tehran. AFP
    Protesters on Capitol Hill hold a sign condemning the crackdown by Tehran. AFP
  • German demonstrators gather in Berlin after the death of Amini in Iranian police custody. AP
    German demonstrators gather in Berlin after the death of Amini in Iranian police custody. AP
  • A protester cries during a rally in Berlin. Reuters
    A protester cries during a rally in Berlin. Reuters
  • A demonstration in Madrid, Spain. Thousands have gathered in cities across Europe to support protests in Iran. AP
    A demonstration in Madrid, Spain. Thousands have gathered in cities across Europe to support protests in Iran. AP
  • Demonstrators gather outside the Iranian embassy in Madrid. Reuters
    Demonstrators gather outside the Iranian embassy in Madrid. Reuters
  • People take part in a protest in Lausanne, Switzerland. EPA
    People take part in a protest in Lausanne, Switzerland. EPA
  • Protesters hold signs featuring images of Amini during the protest in the western Swiss city. EPA
    Protesters hold signs featuring images of Amini during the protest in the western Swiss city. EPA
  • Demonstrators in front of the Iranian embassy in Buenos Aires, Argentina. EPA
    Demonstrators in front of the Iranian embassy in Buenos Aires, Argentina. EPA
  • An activist outside the Iranian embassy in Buenos Aires, Argentina, with a sign that reads 'Justice for Mahsa Amini'. AFP
    An activist outside the Iranian embassy in Buenos Aires, Argentina, with a sign that reads 'Justice for Mahsa Amini'. AFP
  • A demonstration against violence in Iran is held in Quito, Ecuador. The Iranian community in Ecuador protested outside the Iranian embassy. EPA
    A demonstration against violence in Iran is held in Quito, Ecuador. The Iranian community in Ecuador protested outside the Iranian embassy. EPA
  • Protesters at a demonstration outside the Iranian embassy in Quito, Ecuador. EPA
    Protesters at a demonstration outside the Iranian embassy in Quito, Ecuador. EPA

“This masquerade reveals the contempt for human dignity that characterises the Iranian authorities,” the ministry said.

It said other French citizens are also being arbitrarily held in Iran, without identifying them.

Meanwhile, the EU adopted a resolution on Thursday calling for sanctions against those responsible for the death of Mahsa Amini in the custody of Iran’s morality police, and Iran’s subsequent crackdown on anti-government protests.

The resolution, adopted by a show of hands, urges the 27-nation bloc to impose sanctions on Iranian officials and calls for an investigation into Amini’s death.

Iran protests - in pictures

  • A protest for Mahsa Amini, a woman who died after being arrested by the Islamic republic's 'morality police', in Tehran. AFP
    A protest for Mahsa Amini, a woman who died after being arrested by the Islamic republic's 'morality police', in Tehran. AFP
  • Demonstrators disperse during the protest for Amini, who died in a hospital in the capital Tehran on Friday. AFP
    Demonstrators disperse during the protest for Amini, who died in a hospital in the capital Tehran on Friday. AFP
  • The crowd chanted 'Death to the dictator', meaning Supreme Leader Ayatollah Ali Khamenei, while some women took off their headscarves. AFP
    The crowd chanted 'Death to the dictator', meaning Supreme Leader Ayatollah Ali Khamenei, while some women took off their headscarves. AFP
  • A man pulls out a police motorcycle set on fire during the protest. Amini had been detained for violating the country's conservative dress code. AP
    A man pulls out a police motorcycle set on fire during the protest. Amini had been detained for violating the country's conservative dress code. AP
  • In recent months, rights activists have urged women to remove their veils in public, a gesture that would risk their arrest for defying a dress code as the country's rulers crack down on 'immoral behaviour'. AP
    In recent months, rights activists have urged women to remove their veils in public, a gesture that would risk their arrest for defying a dress code as the country's rulers crack down on 'immoral behaviour'. AP
  • Iranians protest in Sanandaj, the capital of Iran's Kurdistan province, following the Amini's death while in custody. AFP
    Iranians protest in Sanandaj, the capital of Iran's Kurdistan province, following the Amini's death while in custody. AFP
  • Iranian police officers clash with demonstrators in Tehran. Police said Amini fell into a coma as she waited with other detained women at a morality police station, rejecting allegations that she was probably beaten. AFP
    Iranian police officers clash with demonstrators in Tehran. Police said Amini fell into a coma as she waited with other detained women at a morality police station, rejecting allegations that she was probably beaten. AFP

“Parliament strongly condemns the widespread and disproportionate use of force by Iranian security forces against the crowds,” the resolution said.

Politicians also demanded that Iran “immediately and unconditionally release and drop any charges against anyone who has been imprisoned solely for exercising their rights to freedom of expression, association and peaceful assembly, as well as all other human rights defenders.”

The outpouring of anger in Iran — largely led by young women and directed at the government’s male leadership — has created a seminal moment for the country, leading to some of the largest and boldest protests against the country’s Islamic leadership seen in years.

The clips released on Thursday resembled other videos of confessions Tehran has forced prisoners to make.

In 2020, one report suggested authorities over the past decade had aired at least 355 coerced confessions.

In the clips, Ms Kohler wears a headscarf and purportedly describes herself as an “intelligence and operation agent of French foreign security service".

Mr Paris purportedly says: “Our goals in the French foreign security service is to put pressure on Iran’s government.”

The clips are part of what is described as a coming documentary to air on Iranian state TV that will accuse them of bringing cash to the country to stir dissent.

Iranian riot police clash with university students - video

France did not immediately respond to the release of the video clips. In May, however, the French government demanded their release and condemned “these baseless arrests.”

Their visit to Iran coincides with months of protests by teachers for higher wages in the country.

Any sanctions by the EU would fall under the bloc’s “Global Human Rights Sanctions Regime.”

It was set up two years ago so the bloc could “target individuals, entities and bodies — including state and non-state actors — responsible for, involved in or associated with serious human rights violations and abuses worldwide".

Other human rights breaches or abuses can be included “if they are widespread, systematic or otherwise of serious concern".

These measures usually consist of travel bans and asset freezes on officials accused of involvement in any suspect abuses or “entities,” like banks, companies, agencies or other organisations.

It prevents EU citizens from making funds available to those listed.

Iran's President Raisi condemns 'chaos' of protests after Mahsa Amini's death - video

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

Our legal consultant

Name: Dr Hassan Mohsen Elhais

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

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Itcan profile

Founders: Mansour Althani and Abdullah Althani

Based: Business Bay, with offices in Saudi Arabia, Egypt and India

Sector: Technology, digital marketing and e-commerce

Size: 70 employees 

Revenue: On track to make Dh100 million in revenue this year since its 2015 launch

Funding: Self-funded to date

 

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

 

Company: Instabug

Founded: 2013

Based: Egypt, Cairo

Sector: IT

Employees: 100

Stage: Series A

Investors: Flat6Labs, Accel, Y Combinator and angel investors

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COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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

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.”

Updated: October 06, 2022, 10:07 PM