People around the world have begun toasting the end of 2025, with New Year celebrations taking on a sombre tone in Sydney as revellers held a minute silence for victims of the Bondi Beach shooting before fireworks lit up the city at the stroke of midnight.
A heavy police presence was in place to monitor the thousands who watched the show, which was centred on the Sydney Harbour Bridge. Many officers openly carried rapid-fire rifles, a first for the event.
“Right now, the joy that we usually feel at the start of a new year is tempered by the sadness of the old,” Australia's Prime Minister Anthony Albanese said in a video message an hour before midnight.
Pacific nations Kiribati and New Zealand were the first to see in 2026, with Seoul and Tokyo following Sydney in celebrations that will stretch to glitzy New York and the Hogmanay festival on the chilly streets of Scotland.
More than two million people are expected to pack Rio de Janeiro's Copacabana Beach for what authorities have called the world's biggest New Year's Eve party.
Indonesia and Hong Kong hold subdued events
In Indonesia, cities scaled back festivities in solidarity with communities devastated by floods and landslides that struck parts of Sumatra island a month ago, claiming more than 1,100 lives.
The capital, Jakarta, held subdued celebrations with a programme centred on prayers for victims. Concerts and fireworks on the tourist island of Bali were replaced with a cultural event featuring traditional dances.
Hong Kong was ringing in 2026 without the usual spectacle over the famous Victoria Harbour after a fire in November that killed at least 161 people. The facades of landmarks turned into countdown clocks before a light show at midnight.
Temple bells rang across Japan, and some people climbed mountains to see the year's first sunrise. Others ate noodles – a traditional way to wish for long life that references the noodle’s shape. In South Korea's capital, Seoul, bells tolled at the Bosingak Pavilion.
Displaced Gazans hope for end to war
Palestinians in Gaza said they hope the new year brings a definitive end to the war between Israel and Hamas, which has battered the enclave for two years, as negotiators push for progress on the ceasefire's challenging second phase.
“We hope that it will be a good year for our people in Palestine,” said Faraj Rasheed, noting that thousands continue to live in harsh conditions in tent camps.
Others described 2025 as a year of loss. “The war humiliated us,” said Mirvat Abed Al Aal, who is displaced from the southern city of Rafah.
Berliners celebrate in snow
Tourists and Berliners marked the end of 2025 by taking selfies and making snowmen in front of the German capital's cathedral and the Brandenburg Gate. The Berlin TV Tower was almost invisible thanks to the falling flakes and fog.
Meanwhile, Greece and Cyprus turned down the volume, replacing traditional fireworks with low-noise pyrotechnics, light shows and drone displays in capital cities. Officials said the change is intended to make celebrations more welcoming for children and pets, particularly animals sensitive to loud noise.
Additional security in New York
Police in New York City will have additional anti-terrorism measures at the Times Square ball drop, with “mobile screening teams”. This is not in response to a specific threat, according to NYPD Commissioner Jessica Tisch. After the ball drops, it will rise again, sparkling in red, white and blue to mark the US's upcoming 250th birthday.
Zohran Mamdani will take office as New York City mayor at the start of 2026. Two swearing-in ceremonies are planned, starting with a private ceremonial event around midnight in an old subway station.
*With agencies
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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
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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.”
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UAE Falcons
Carly Lewis (captain), Emily Fensome, Kelly Loy, Isabel Affley, Jessica Cronin, Jemma Eley, Jenna Guy, Kate Lewis, Megan Polley, Charlie Preston, Becki Quigley and Sophie Siffre. Deb Jones and Lucia Sdao – coach and assistant coach.
The Sheikh Zayed Future Energy Prize
This year’s winners of the US$4 million Sheikh Zayed Future Energy Prize will be recognised and rewarded in Abu Dhabi on January 15 as part of Abu Dhabi Sustainable Week, which runs in the capital from January 13 to 20.
From solutions to life-changing technologies, the aim is to discover innovative breakthroughs to create a new and sustainable energy future.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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By Kenneth Pollack (Oxford University Press)
