For the first time in 55 years of World Economic Forum annual meetings, a Syrian official representing the government is attending Davos. Asaad Al Shibani, the country’s new Foreign Minister, arrived on Tuesday and has had a series of meetings to explain the vision of the new Syrian authorities to world leaders.
Mr Al Shibani’s attendance in Davos is part of a wider opening up by the West to Syria and his main message is that his country is open for business. However, that opening up is stalled by international sanctions, particularly from the US, still imposed on Syria.
Mr Al Shibani addressed a room packed with officials, journalists and business people on Wednesday afternoon in a moderated event. His moderator was a surprising choice, former British prime minister Tony Blair. He started the conversation by asking Mr Al Shibani how things are in Damascus, to which the minister responded with a broad smile: “It is amazing. Finally, we have our freedom."
Mr Al Shibani went on to say that “we have mini-Davoses in Damascus every day”, alluding to the many diplomatic visitors the Syrian capital has hosted since the fall of former president Bashar Al Assad's regime in December. And while Mr Al Shibani said “people are celebrating”, he also acknowledged that during the Syrian civil war “15 million people were killed and displaced - I owe my place to them”.
He was very clear about the authorities he represents being committed to a just future and representing all Syrians. However, when Mr Blair asked him about the issue of minorities, Mr Al Shibani was clear that Syria should be for all Syrians, rather than dividing the population based on ethnicity or religion. Responding to a question about whether women will be represented in government, he said: “Of course, they should be."
The Syrian official spoke of the need to rebuild the country. “We will not look at the past - [we are] looking to the future," he added. He also committed to making sure Syrians are treated fairly. “We will not repeat the past."
A key factor in the rebuilding of Syria will be the ability to bring in foreign investment, much of which relies on removing the sanctions. “We inherited a collapsed state in Syria," Mr Al Shibani said. "There is no economy. We have a big opportunity for investment."
He made it clear that Syria is open to business and drew a sharp contrast with the regime that put restrictions on businesses before the civil war. “From the first day we have a vision - the economy will be open and we will open the road for investment in Syria from all the world," Mr Al Shibani said.
He highlighted five sectors that his government is working on: energy, telecommunications, roads and airports, education and health.
While he did not go into details about the challenges facing his country, he acknowledged that many challenges exist. “We know there are high expectations, but the Syrian people are ambitious," he added. He said jokingly that US President Donald Trump took the slogan "America first" from Syrians who insist “Syria first” will be their motto.
Mr Blair said he would meet Mr Al Shibani at the next annual meeting of the World Economic Forum to determine how much of his government’s promises have been implemented.
While Mr Al Shibani had many meetings, he did not hold talks with the Iranian delegation. Tehran's Vice President Javad Zarif is attending the meeting and the two men have been seen in the same hall, but it appears they have not spoken or interacted directly.
Other officials who met the Syrian Foreign Minister and some who have been to Damascus in the past few weeks said everything they hear from the new authorities is very promising, but what will ultimately matter is the actions of those authorities. That is what they will be judged on by the international community and their own people.
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.”
ETFs explained
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ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
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
