The Islamic State is, US administration officials now admit, a terrorist threat on a magnitude not seen before. AP Photo
The Islamic State is, US administration officials now admit, a terrorist threat on a magnitude not seen before. AP Photo
The Islamic State is, US administration officials now admit, a terrorist threat on a magnitude not seen before. AP Photo
The Islamic State is, US administration officials now admit, a terrorist threat on a magnitude not seen before. AP Photo

America is waging war in the Middle East once more


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Although most Americans don’t know it, and certainly haven’t endorsed it, the United States is back at war in the Middle East. Its latest, and most hideous, antagonist is the monstrous aberration that calls itself the Islamic State. And no matter what the present intentions, there seems no way this conflict in Iraq and Syria can fail to metastasise.

For the past year or so, the Islamic State has been on a roll and a rampage, sweeping across huge sections of northern Syria and, more recently, western Iraq. Nobody did much of anything to stop them, and American intelligence officials have acknowledged that they were taken aback by the lightning speed of the Islamic State’s advance.

Last week, the Islamic State presented the Obama administration with an impossible two-fold conundrum. On the one hand, it had driven thousands of Yazidi religious minorities onto an isolated mountaintop where they faced certain death if not relieved. On the other hand, it was threatening to advance towards the Kurdistan Regional Government capital of Ebril where the United States has a consulate and numerous offices. From both a humanitarian and a practical point of view, the president had no choice.

Barack Obama interrupted his holiday to inform Americans he had authorised the first US air strikes in Iraq in years, to address both problems. In the event, they turned out to also be acting in direct support of a counter- offensive by elite Iraqi troops and Kurdish fighters aimed at seizing control of the strategically vital Mosul Dam from Islamic State terrorists. The US has now flown dozens of sorties and Mr Obama says the retaking of the dam was successful.

No one was quite sure where that left matters, but subsequent events seem to have answered all questions. First, the use of American air power against the terrorists continues. Second, Islamic State fanatics, apparently operating in their Syrian stronghold, beheaded a captured American journalist, James Foley, on video. They openly said it was retaliation for the American air strikes and threatened to murder more captured Americans, at least one of whom was displayed on camera. They also threatened to drown westerners with blood and issued similar blood-curdling threats.

It is often said that the Islamic State is a crafty and calculating organisation. There is no sign of that here. Had they been intelligent, the fanatics would have allowed the American system to produce its own push back against Mr Obama’s initiative to challenge them. There was, and still is, a good deal of scepticism in Congress and among the public against any further American military engagement in Iraq or anywhere else in the Middle East.

But with the Foley murder, and particularly the gruesome video and photographs they distributed, the Islamic State poked the lion in the eye.

The Islamic State seemed to be sending a series of calculated messages with the video: if you attack us, we will murder you. You didn’t pay the $132 million ransom for this guy we demanded, so it’s only natural that we kill him, especially if you are attacking us. I’m speaking loudly and clearly in a distinctly British accent, so understand that we can very easily come to you. And don’t forget that our main base is in Syria, and you’re not coming here.

If I had wanted to give the followers of the new “caliphate” terrible advice, I couldn’t have come up with anything more foolish than that. It strongly suggests that the Islamic State just doesn’t know what it’s dealing with in the United States. Such threats will only provoke Americans, particularly the implicit threat to carry out terrorist attacks in the West and, especially, in the United States itself.

Given the way that the stakes have been raised by both sides very quickly, it’s hard to imagine that they will not continue to escalate. It’s true that a month ago, few Americans would have been ready to embrace the current conflict, and many still are not. But they’re getting there quickly. The threat, and even more, the reality of terrorist attacks against Americans will only increase that determination.

This is, after all, very much already Mr Obama’s war. In campaigning for the nomination and the presidency, he emphasised his opposition to the war in Iraq and the nation-building programme in Afghanistan, contrasting them with the war on terrorism that he strongly supported. And he’s proven that during his presidency with covert actions and drone attacks that have been controversial, but gained such scalps as Osama bin Laden.

The Islamic State is, US administration officials now admit, a terrorist threat on a magnitude not seen before. It seems a combination of the worst of the Taliban and the worst of Al Qaeda rolled together, in the heart of the Middle East and with a growing contingent of international fanatical volunteers, including many westerners.

How, precisely, to roll them back without relying on sectarian Shiite forces in Iraq or, even worse, aiding Syrian dictator Bashar Al Assad, are conundrums inherent in the mission. But America’s new war in the Middle East is a necessary, and not optional or avoidable, one.

Hussein Ibish is a senior fellow at the American Task Force on Palestine and blogs at www.ibishblog.com

On Twitter: @ibishblog

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

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Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

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Transmission: 10-speed auto

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What is safeguarding?

“Safeguarding, not just in sport, but in all walks of life, is making sure that policies are put in place that make sure your child is safe; when they attend a football club, a tennis club, that there are welfare officers at clubs who are qualified to a standard to make sure your child is safe in that environment,” Derek Bell explains.

RESULTS

Main card

Bantamweight 56.4kg: Mehdi Eljamari (MAR) beat Abrorbek Madiminbekov (UZB), Split points decision

Super heavyweight 94 kg: Adnan Mohammad (IRN) beat Mohammed Ajaraam (MAR), Split points decision

Lightweight 60kg:  Zakaria Eljamari (UAE) beat Faridoon Alik Zai (AFG), RSC round 3

Light heavyweight 81.4kg: Taha Marrouni (MAR) beat Mahmood Amin (EGY), Unanimous points decision

Light welterweight 64.5kg: Siyovush Gulmamadov (TJK) beat Nouredine Samir (UAE), Unanimous points decision

Light heavyweight 81.4kg:  Ilyass Habibali (UAE) beat Haroun Baka (ALG), KO second round

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  • Premier League-standard football pitch
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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.”

The Kites

Romain Gary

Penguin Modern Classics

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

England XI for second Test

Rory Burns, Keaton Jennings, Ben Stokes, Joe Root (c), Jos Buttler, Moeen Ali, Ben Foakes (wk), Sam Curran, Adil Rashid, Jack Leach, James Anderson

What are the GCSE grade equivalents?
 
  • Grade 9 = above an A*
  • Grade 8 = between grades A* and A
  • Grade 7 = grade A
  • Grade 6 = just above a grade B
  • Grade 5 = between grades B and C
  • Grade 4 = grade C
  • Grade 3 = between grades D and E
  • Grade 2 = between grades E and F
  • Grade 1 = between grades F and G

The Freedom Artist

By Ben Okri (Head of Zeus)

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7.40pm Maiden Dh165,000 (D) 1,600m

8.15pm Handicap Dh190,000 (D) 1,600m

8.50pm Handicap Dh175,000 (D) 1,400m

9.25pm Handicap Dh175,000 (D) 2,000m

 

The National selections:

6.30pm Underwriter

7.05pm Rayig

7.40pm Torno Subito

8.15pm Talento Puma

8.50pm Etisalat

9.25pm Gundogdu

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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