India and Pakistan traded accusations of ceasefire breaches early on Sunday, hours after US President Donald Trump announced the nuclear-armed neighbours had stepped back from the brink of war.
India's Foreign Secretary Vikram Misri said his country retaliated after Pakistan's “repeated violations” of the truce, while Pakistan said it “remains committed” to the ceasefire and that its forces were handling violations by India with “responsibility and restraint”.
On Saturday, the two countries had agreed to a full and immediate ceasefire after days of deadly jet fighter, missile, drone and artillery attacks that have killed at least 60 people and forced thousands from their homes along the border, including in divided Kashmir.
“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a full and immediate ceasefire. Congratulations to both countries on using common sense and great intelligence,” Mr Trump wrote on Truth Social.
His announcement followed intensive talks between the US and the two countries, as well as diplomacy from dozens of other nations.
Mr Misri said both sides would “stop all firing and military action on land, air and sea”. He later accused Pakistan of “repeated violations” and said the Indian armed forces “are giving an adequate and appropriate response”.
A spokesman for Pakistan's Ministry of Foreign Affairs said his country “remains committed to faithful implementation” of the truce.
We commend Prime Ministers Modi and Sharif on their wisdom, prudence, and statesmanship in choosing the path of peace
US Secretary of State Marco Rubio
“Notwithstanding the violations being committed by India in some areas, our forces are handling the situation with responsibility and restraint,” he said.
Military clashes during the past week have pushed India-Pakistan relations to the most dangerous levels in years.
The countries, which govern a divided Kashmir, fired missiles at each other on Saturday before the truce announcement, escalating the violence for a fourth day.
US Secretary of State Marco Rubio said he had been engaged along with Vice President JD Vance with senior Indian and Pakistani officials to put an end to the conflict.
“I am pleased to announce the governments of India and Pakistan have agreed to an immediate ceasefire and to start talks on a broad set of issues at a neutral site,” said Mr Rubio. “We commend Prime Ministers Modi and Sharif on their wisdom, prudence, and statesmanship in choosing the path of peace.”
The US announcement of the truce follows diplomatic efforts by several nations including Gulf states to encourage India and Pakistan to pull back from a wider conflict.
Saudi Foreign Minister Prince Faisal bin Farhan had spoken to his Indian and Pakistani counterparts on efforts to de-escalate tensions and end military confrontations. Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, also stressed the need for diplomacy and dialogue in talks with senior ministers from the two countries.
On Saturday Sheikh Abdullah welcomed the ceasefire and commended the efforts of the US. He also held phone conversations with the Indian and Pakistani foreign ministers.
UN Secretary General Antonio Guterres said the UN “stands ready to support efforts aimed at promoting peace and stability in the region”.
David Lammy, the UK Foreign Secretary, said: “Today's ceasefire between India and Pakistan is hugely welcome. I urge both parties to sustain this. De-escalation is in everybody's interest.”
Pakistan Foreign Minister Ishaq Dar had earlier told broadcaster Geo news that three dozen countries were involved in diplomacy to secure the ceasefire. Prime Minister Shehbaz Sharif said on X that his country – which has long sought international mediation in Kashmir – “appreciates” the intervention by the US.
On Saturday Pakistan reopened its airspace, cancelling a pause planned until at least Sunday. Passengers were also awaiting updates on the status of dozens of Indian airports which had been due to remain closed into next week.
The latest outbreak of cross-border violence comes after armed gunmen killed 26 people in the Himalayan tourist spot of Pahalgam in the Kashmir valley last month. India accused Pakistan of backing the attack, which Islamabad has denied.
Travellers whose plans had been disrupted by the escalating dispute were given hope that airlines will restart operations soon. The violence had forced the cancellation of many international flights, including to and from the UAE's hubs in Abu Dhabi and Dubai.
Mohammad Ali, a resident of Jhelum, in Pakistan's Punjab, was on his way to Islamabad when the news of the truce broke.
He was heading there with his family, who live in Abu Dhabi, to get closer to the airport once flights resume and to escape shelling nearby.
“Thousands want to leave the country. Finding tickets would be impossible,” he told The National.
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The 12 breakaway clubs
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
MATCH INFO
Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)
Russia 0
Killing of Qassem Suleimani
Specs
Engine: 2-litre
Transmission: Eight-speed automatic
Power: 255hp
Torque: 273Nm
Price: Dh240,000
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Upcoming games
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Brighton and Hove Albion v Southampton (5.30pm)
Leicester City v Everton (8pm)
MONDAY
Burnley v Newcastle United (midnight)
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
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
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
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.”
Killing of Qassem Suleimani
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
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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
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THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.