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
“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
“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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Ahmed Saadawi
Penguin Press
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.”