It’s official. Thanks to persistent financial turmoil, Turkey’s lira just logged its worst year since the ruling AKP came to power two decades ago, shedding 44 per cent of its value in 2021 to become the worst-performing currency in emerging markets.
President Recep Tayyip Erdogan temporarily reversed the decline last month when he unveiled an economic rescue plan focused on exports and credit, sharply increased the minimum wage and urged citizens to keep their savings in lira. “The Turkish lira, our money, that is what we will go forward with,” he said last week. “Not with this foreign currency or that foreign currency.”
Yet, the Turkish economy finds itself in its worst state in 20 years. The lira fell as low as 18.4 to the dollar last month, when inflation hit a 20-year peak of 36.1 per cent, according to government data. Some observers doubt this latter figure. Over the past year, the price of flour leapt 86 per cent and pasta 114 per cent, as countless Turks struggled to pay their bills and put food on the table.
The last time the lira was this weak and inflation this high was in 2001, when protesters called for the coalition government to step down and the International Monetary Fund had to step in to stem the crisis. That turmoil led to the surprise electoral victory of the newly founded AKP in late 2002, after which Turkey embarked on more than a decade of steady economic expansion.
History may soon repeat itself, as crucial presidential and parliamentary elections loom next year and the latest polls put the AKP and its parliamentary partner, the nationalist MHP, several points behind the opposition alliance of the CHP and IYI parties.
In a survey published last week by leading pollster MetroPoll, Mr Erdogan placed fourth among possible presidential candidates. The Turkish leader, who will mark 19 years in power in March, received an approval rating of less than 38 per cent, behind IYI Party leader Meral Aksener and Istanbul’s charismatic mayor Ekrem Imamoglu, of the CHP.
The big surprise may have been the CHP’s Mansur Yavas. Not only did the Ankara mayor top the poll by a sizable margin – receiving 60 per cent support compared to 50 per cent for second-place Mr Imamoglu – but he was viewed negatively by less than one quarter of those polled, compared respectively to 53 and 55 per cent for Ms Aksener and Mr Erdogan.
So who is Mr Yavas, and how has he emerged as Turkey’s most popular politician? For starters, he had a working-class upbringing and has remained close to his roots. Born and raised in Beypazari, a small city 100 kilometres west of the capital Ankara, that’s also where he first emerged as a political force, becoming mayor in 1999.
He gained some public sympathy in 2014, when he lost the Ankara mayoral vote by a single percentage point in a result referred to the European Court of Human Rights amid accusations of fraud. Previously aligned with the MHP, he appeals to nationalists as well as the Kemalists who favour the CHP, the party of Turkey’s founder Mustafa Kemal Ataturk. When he won the Ankara mayor’s seat in March 2019, he joined friends in celebratory shouts of “Allahu Akbar", highlighting his conservative credentials as well.
His performance in office has been widely praised, notably for his anti-corruption drive. To boost transparency, Mr Yavas has live-streamed the city’s public tender decisions, including a steel pipes purchase reportedly viewed by 400,000 people. He also sold off dozens of expensive cars bought by the previous administration run by the AKP’s Melih Gokcek.
His robust pandemic response, which included using social media to raise hundreds of millions of lira for increased social assistance, has also drawn favourable reviews. Despite being in his mid-60s, he has made in-roads with younger voters, like hosting a video chat on the streaming platform Twitch that broke viewership records in Turkey. This may be crucial as Turkish citizens born after 1980 represent about one third of all voters.
Mr Yavas has also embraced an eco-friendly agenda, laying new bike lanes, electrifying public transport and reducing demand on the city’s overtaxed water system. Last week, he announced a new round of natural gas subsidies to all households, days after the government raised fuel prices.
Much time remains before the big vote, currently scheduled for June 2023
Turkey’s lira and inflationary troubles look set to continue in the coming months. Goldman Sachs expects inflation to tick above 40 per cent, while JP Morgan foresees a peak of 55 per cent in May. Such international observers may have come to doubt the acumen of those overseeing the Turkish economy. Asked last month about the latest economic data, Finance Minister Nureddin Nebati said on national TV: “Look into my eyes. What do you see?” If viewers didn’t know any better, they might think he was suggesting mass hypnosis.
Despite these favourable political winds, the CHP has yet to choose its presidential candidate. Mr Imamoglu and fellow party leader Kemal Kilicdaroglu have both signalled their interest in running, and the former seems to have significant domestic and international support. Turkey’s Interior Ministry last month launched investigations into hundreds of Istanbul officials for possible terrorist links, which could tarnish the city’s mayor, depending on the results.
Much time remains before the big vote, currently scheduled for June 2023. Mr Yavas’s surname means “slow” in Turkish, and the Ankara mayor is likely to remind voters of the common Turkish phrase, “Yavas, yavas”. It’s a reminder that developments often happen gradually, that understanding and achievement tend to arrive not in a flash, but only in good time.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
MATCH INFO:
Second Test
Pakistan v Australia, Tuesday-Saturday, 10am daily at Zayed Cricket Stadium, Abu Dhabi
Entrance is free
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MATCH INFO
Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')
Brighton & Hove Albion 1
Ulloa (20')
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
The years Ramadan fell in May
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
The specs: 2018 Bentley Bentayga V8
Price, base: Dh853,226
Engine: 4.0-litre twin-turbo V8
Transmission: Eight-speed automatic
Power: 550hp @ 6,000pm
Torque: 770Nm @ 1,960rpm
Fuel economy, combined: 11.4L / 100km
Veil (Object Lessons)
Rafia Zakaria
Bloomsbury Academic
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
WITHIN%20SAND
%3Cp%3EDirector%3A%20Moe%20Alatawi%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Ra%E2%80%99ed%20Alshammari%2C%20Adwa%20Fahd%2C%20Muhand%20Alsaleh%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
RACE SCHEDULE
All times UAE ( 4 GMT)
Friday, September 29
First practice: 7am - 8.30am
Second practice: 11am - 12.30pm
Saturday, September 30
Qualifying: 1pm - 2pm
Sunday, October 1
Race: 11am - 1pm
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
RESULT
Los Angeles Galaxy 2 Manchester United 5
Galaxy: Dos Santos (79', 88')
United: Rashford (2', 20'), Fellaini (26'), Mkhitaryan (67'), Martial (72')
Pieces of Her
Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick
Director: Minkie Spiro
Rating:2/5
The%C2%A0specs%20
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Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
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Specs%3A%202024%20McLaren%20Artura%20Spider
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COMPANY%20PROFILE
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Asia%20Cup%202022
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HIV on the rise in the region
A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.
New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.
Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.
Access to HIV testing, treatment and care in the region is well below the global average.
Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.
COMPANY%20PROFILE%20
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The specs: 2019 Subaru Forester
Price, base: Dh105,900 (Premium); Dh115,900 (Sport)
Engine: 2.5-litre four-cylinder
Transmission: Continuously variable transmission
Power: 182hp @ 5,800rpm
Torque: 239Nm @ 4,400rpm
Fuel economy, combined: 8.1L / 100km (estimated)
More from Neighbourhood Watch
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
Bareilly Ki Barfi
Directed by: Ashwiny Iyer Tiwari
Starring: Kriti Sanon, Ayushmann Khurrana, Rajkummar Rao
Three and a half stars
Sweet%20Tooth
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TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
AL%20BOOM
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The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster