Prime Minister Narendra Modi’s Bharatiya Janata Party won the most seats in the high-stakes election for the legislature in India’s federal capital region, including New Delhi, for the first time in more than two decades.
The BJP won 48 seats in the 70-member assembly that includes India’s capital of 20 million people, ousting the Aam Aadmi Party, or AAP, which ruled New Delhi since 2015. The AAP won 22, according to the election commission.
In a major upset, AAP founder and leader Arvind Kejriwal, and his deputy Manish Sisodia, lost their seats, despite their party having built widespread support through its welfare policies and anti-corruption movement.
Supporters of the BJP, waving party flags and posters of Mr Modi, chanted slogans and danced outside its headquarters in the capital as vote results began trickling with most exit polls predicting the party's win.
Amit Shah, India's powerful Home Affairs Minister and the BJP leader, said his party's victory showed that "people can’t be misled with lies every time”.
“Our victory is a sign of the people’s faith in Prime Minister Modi’s vision of progress,” he added.
More than 60 per cent of the more than 15 million eligible people voted in the local government elections on Wednesday.
Saturday’s victory is being seen as a big boost for the BJP after it failed to secure a majority on its own in last year’s national election but formed the government with coalition partners. It regained some ground by winning two state elections in northern Haryana and western Maharashtra states last year.
Mr Modi’s party slashed income taxes on the salaried middle class, one of its key voting blocs, in the federal budget announced days before the election.
Both Mr Modi and Mr Kejriwal offered to revamp government schools and provide free health services and electricity, along with a monthly stipend of more than 2,000 rupees (about $25) for poor women.
Mr Kejriwal was arrested last year along with two key party leaders on charges of receiving bribes from a liquor distributor. They have rejected the accusations as being part of a political conspiracy.
The Supreme Court allowed the release of Mr Kejriwal and other ministers on bail. Mr Kejriwal later relinquished the chief minister’s post to his most senior party leader, Atishi, who won her seat on Saturday.
Opposition parties widely condemned Mr Kejriwal’s arrest, accusing Mr Modi’s government of misusing federal investigation agencies to harass and weaken political opponents. They pointed to several raids, arrests and corruption investigations of key opposition figures before the national election.
Mr Kejriwal, a former bureaucrat, formed the AAP in 2012 after tapping into public anger over corruption scandals. His pro-poor policies have focused on fixing state-run schools and providing cheap electricity, free health care and buses for women.
The AAP won 62 out of 70 seats in a landslide victory in the previous election in 2020, leaving the BJP with eight and the Congress party, which controlled the Delhi legislature for 15 years after defeating the BJP in 1998, with none.
Mr Modi declared that "development had won" after his party emerged as the frontrunner during the vote count on Saturday.
"We will leave no stone unturned in ensuring the overall development of Delhi and making the lives of residents better," he said in a post on social media.
Mr Kejriwal, one of the key pillars of an opposition block formed ahead of the general elections last year, conceded after losing his seat.
"We accept the verdict and congratulate the BJP," he said in a video statement.
Mr Kejriwal's defeat in his stronghold puts the BJP "back in a very strong position", said Rahul Verma, of the Centre for Policy Research think-tank in New Delhi.
"Now it seems what happened in general elections was a temporary lapse," Mr Verma said. "And it has put AAP in a difficult position going ahead."
Despite hectic weeks-long campaigning, little was said about the capital's crippling air pollution crisis, which smothers the city for months in hazardous fumes.
New Delhi is regularly ranked the worst capital in the world for choking smog, which often surges to as much as 60 times the World Health Organisation's recommended daily maximum.
Years of piecemeal government initiatives have failed to measurably address the problem, with the smog blamed for thousands of premature deaths annually and particularly impacting the health of children and the elderly.
With reporting from agencies.
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
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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
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Brighton and Hove Albion v Southampton (5.30pm)
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UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
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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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