The massive foreign aid bill that President Joe Biden signed into law on Wednesday will help to replenish the Ukrainian military's depleted stocks of weapons and ammunition at a crucial time.
Included in the $61 billion package are big-ticket items such as fighting vehicles, long-range missiles and air defence interceptors.
Experts say they will help Ukraine to avoid defeat against Russia, which invaded in February 2022 and has made territorial gains as US Republicans dithered for six months over providing more funding.
“I'm making sure the shipments start right away,” Mr Biden said.
“In the next few hours – literally in the next few hours – we are going to begin sending in equipment to Ukraine, for air-defence munitions, for artillery for rocket systems, and armoured vehicles.”
A US defence official said the first shipments would be sent by the end of the day, and Ukrainian forces could start to receive aid “within days”.
When and where weapons are distributed will be decided by Kyiv. The $61 billion will be disbursed over a period of months, with an initial $1 billion tranche released on Wednesday.
Ukrainian President Volodymyr Zelenskyy said Kyiv had been working closely with US officials to work out details of that package to ensure it contained “exactly the weapons that our soldiers need”.
“During recent days we were actively working with our American friends, at all levels, to fill in this package with those weapons our warriors need,” Mr Zelenskyy said in his regular address to the nation.
“We will do everything to compensate that half a year, which was spent in debates and doubts.”
Ukrainian and US officials acknowledged for the first time that the latest US assistance includes the longer-range version of a tactical ballistic missile system known as ATACMS, which Ukraine has long desired in a push to strike deeper into occupied territory.
White House National Security Adviser Jake Sullivan confirmed to reporters that a "significant number" of the missiles had already been sent to Ukraine under a previous authorisation, and "we will send more."
The missiles were used for the first time in the early hours of April 17, when they were launched against a Russian airfield in Crimea that was about 165km from the Ukrainian front lines.
The longer-range missiles are crucial. Not only can they be used to strike deep inside occupied territory, they can force Russian helicopter bases, logistics centres and fighting forces back from the front lines, reducing Moscow's ability to launch offensives.
“Anything that creates long-range fire is important,” said Dr Jan Kallberg, a senior fellow at the Centre for European Policy Analysis and a fellow at the Army Cyber Institute at West Point.
Ukraine has for months been rationing its artillery ammunition against Moscow's relentless bombardment along front lines in southern and eastern Ukraine, where Russian forces have been making steady gains as they use drones from Iran and missiles and munitions from North Korean.
The defence official told The National that some artillery rounds and missiles are expected to arrive quickly, with larger items such as armoured vehicles taking longer.
But Ukrainian opposition politician Vadym Ivchenko, a member of the Ukrainian Parliament’s national security, defence and intelligence committee, said logistical challenges and bureaucracy could delay shipments to Ukraine by two to three months, and it could be even longer before they reach the front line.
Aside from battlefield impacts, the latest US aid is likely to have a profound effect on Ukrainian troop morale, Dr Kallberg told The National.
“Feeling abandoned is one of the worst things for a soldier's perspective,” he said.
“Feeling like you're stuck and abandoned in a dire spot breaks down morale pretty quick, and this is a direct boost.”
Initial military aid flows to Ukraine included a lot of older equipment from the 1990s, Dr Kallberg noted.
But the weapons in the latest aid package include top-of-the-range gear that the Ukrainians already know how to use, such as the Bradley fighting vehicles that have shown to be effective in taking out Russian tanks.
Russian President Vladimir Putin’s military is now focused on Kharkiv, Ukraine’s second-largest city, with a bombing campaign that Ukrainian and western officials see as an attempt to force the evacuation of civilians.
Weapons wanted by Ukraine – in pictures
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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MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham 0-1 Ajax, Tuesday
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Game is on BeIN Sports