Janine di Giovanni is executive director at The Reckoning Project and a columnist for The National
November 28, 2021
Nearly three decades ago, the international community left Bosnia to bleed out. Under the eyes of the western powers, who might have intervened early on and deflected an all-out humanitarian catastrophe and a genocide, the country underwent nearly four years of conflict.
All wars are cruel, but the Bosnian war was a template for misery. The capital, Sarajevo, once the site of the 1984 winter Olympics and a symbol of multicultural, multi-faith communities, was subjected to a medieval siege. Its inhabitants – intellectual, cosmopolitan Europeans who enjoyed cafe society, classical music and poetry – were starved, bombed, sniped and deprived of any contact with the outside world. Hundreds of thousands of people died, many of them children.
The war concluded after a genocide in the town of Srebrenica, which could have been prevented had irresponsible diplomacy and inertia not prevailed. In July 1995, nearly 8,000 Muslim men and boys were separated from the women under the eyes of UN peacekeepers who stood by and failed to defend them. They were loaded onto trucks, not knowing they were being sent to death, and then hunted down in forests or gunned down en masse in factories. Some of their bodies have never been recovered.
Finally, in the wake of that tremendous sorrow, then US president Bill Clinton ordered air strikes and American diplomats arm-wrestled former the warring parties to a shaky peace agreement, the Dayton Accords. It was a cynical move on Mr Clinton's part: he waited until the last possible moment to intervene, strategically deflecting attention from his own domestic political turmoil.
The Dayton Accords were never meant to last decades. They were insufficient, and in many ways, rewarded the perpetrators of that war, which included the Bosnian Serbs and their masters in Belgrade: then Serbian president Slobodan Milosevic and his cronies. There were few provisions for constructive transitional justice, and that meant most of the victims – of concentration camps, rape camps, or ethnically cleansed villages – never saw justice.
Bosnian Serb general Ratko Mladic in 1995, who was jailed for life for genocide, war crimes and crimes against humanity. Getty
Even though there were concentration camps in the heart of Europe and women were herded off to former gymnasiums and hotels and raped multiple times a day, Bosnia was still meant to heal. The post-war years were spent trying to rebuild the country, but also to provide for those who had been pushed out of their homes and villages to attempt to live in the new state of Bosnia and Herzegovina.
This state now consists of two entities, Republika Srpska and the Federation of Bosnia and Herzegovina. To make it even more confusing, the latter consists of 10 separate "canons" each with their own legislatures and governments.
From the beginning, those of us watching the Balkans carefully knew there would be trouble, and that the Dayton Accords that were meant to foster peace would actually foster a deepened resentment and ethnic divides. The provisions that divided the entities also carved deep ethnic and religious divisions.
In cities such as Mostar – bitterly fought in the summer of 1993 when those besieged in the eastern part of the city existed on cherries from the trees and little else – the former frontlines continue to mark a boundary between Muslims and Croats. In divided Bosnia, segregated schools sprung up – essentially two schools under one roof. In Travnik – a medieval central town that witnessed heavy fighting early on in the war, and where thousands of refugees flooded for safety – children go to the same building but study two different textbooks, two different "languages". Catholic Croatian children learn Croatian; Muslim Bosniaks learn Bosnian. Pre-war, there was one language known as Serbo Croat.
Last October, in Banja Luka – the capital of Republika Srpska – Milorad Dodik, the Bosnian Serb leader and ultra-nationalist, announced plans to withdraw the republic from major state institutions. He wants to set up separate tax offices, army and security apparatus. This is effectively secession. As it was secession that launched the former Yugoslavian wars back in the early 1990s – first Slovenia, then Croatia, finally Bosnia – this news sends a terrifying message to the country. So do reports that pro-Serb police are training on Mount Jahorina – a ski resort outside Sarajevo that was used as the base to shell and snipe the city – seen as provocation. The chief international representative in Bosnia, Christian Schmidt, in a report to the UN, says Bosnia is facing "its greatest existential threat of the post-war period".
Are we headed for another war?
"See you in 20 years," my Bosnian friends quipped in 1995 after the war ended, meaning it would all start up again. It seemed absolutely improbable then, but today, Europe is on shaky ground. There are concerns about a military standoff between Russia and Ukraine, Belarus and Poland are involved in a migrant crisis, and now Republika Srpska maybe trying to break away. Those who care about Bosnia must, therefore, act quickly to avoid another potential bloodbath.
US President Joe Biden has effectively signalled that he is shifting America's focus away from so-called trouble zones (aside from Taiwan). The collapse of Afghanistan has led to a new wave of refugees, some freezing to death in forests on the Poland-Belarus border. But the US is reeling from the pandemic, racial tensions and a resurgent Republican Party ahead of the 2022 midterm election. Bosnia will be the last thing on Mr Biden's mind.
And yet, Bosnia must not be abandoned again.
Mostar is famous for its bridge diving competitions. Reuters
Thirty years ago, the country died slowly because Europe and America could not agree on who should save it. This was not the case in Kosovo, in 1999, when rapid Nato-led air strikes ended the aggression. Kosovo was a guilt war – the world acted fast because of the Srebrenica genocide. Since Dayton, the "care" and long-term stability of Bosnia was largely put in the EU's hands. But the bloc has struggled, and Bosnia is a long way off from being admitted. With a vacuum like this, nationalism, hate rhetoric and ethno-political divisions are stronger than ever.
In 1992, the British envoy David Owen painfully told the Bosnian people: "Don't dream dreams. The West is not going to come in and save you." His words are a harbinger of what Bosnia could become: a failed state in the centre of Europe, vulnerable to becoming a harbour for terrorist groups and traffickers, and a road for refugees on their way to "Fortress Europe". But it has also meant allowing Moscow to extend its sphere of influence and opening the door to Iran, Turkey and possibly China.
The years I spent in Bosnia were amongst the most painful of my life. To see a country disintegrate before one's eyes, when it could have been saved early on, was perhaps the most vital lesson we learnt to prevent future wars. If you walk through the graveyards of Sarajevo – at one point, there were so many dead that the football pitch was turned into a cemetery – you will see the markers of young men and women born in the 1980s who died during those three-and-a-half years of siege. They did not have to die. They could be alive today.
This time, the international community cannot afford to look away.
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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What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany - At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people - Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed - Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest - He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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