Janine di Giovanni is executive director at The Reckoning Project and a columnist for The National
February 14, 2022
The first casualty of war is the truth, but it is also the brutal impact of conflict on civilians who are caught between cynical governments and politicians. War dismantles societies, destroys families, burns down villages and wrecks cities. It also displaces enormous numbers of people: a tide of refugees seeking safe haven.
Should Russia go through with an alleged plan to invade Ukraine, the latter country would experience a massive demographic shift. In recent meetings with members of the US Congress, senior Biden administration officials have estimated that between one and two million refugees could flee from the fighting. This would destabilise Europe.
This wave of human souls seeking shelter would absolutely cause untold chaos. The refugees would have to go through Poland, a country with no experience of recent mass migration waves. Nonetheless, Poland has pledged solidarity with Ukraine, and will honour the Geneva Convention to protect any of these potential refugees.
There are already more than a million Ukrainians in Poland who had earlier immigrated in search of jobs; but a crisis of a million or more terrified people arriving without resources is an entirely different scale. Polish officials have been stoic, but are also painting a bleak picture. Recently, on Polish national radio, the Deputy Interior Minister, Maciej Wasik, said: “We are prepared for the worst-case scenario. And we have been taking steps for up to a million people.”
The Polish Office for Foreigners has said it has prepared places for 2,000 people in 10 different centres around the country. But this will not be nearly enough. Polish Border Guards are also working trying to make more space for refugees, though it will probably be no more than 4,000 spots.
It might help to learn from the mistakes made during the Syrian refugee crisis. The Syrian war – now in its 11th year – uprooted five to six million people, including more than two million children. This put enormous strain on nearby countries such as Lebanon, Jordan, Turkey, Iraq and Egypt. It opened up new and dangerous transit routes via Greece and the Balkans into Croatia and the EU. It sent families risking their lives on unsafe rubber boats that were doomed to capsize. When people are desperate to flee danger, they will do anything. Right now, many refugees and migrants from Afghanistan and elsewhere are trapped in icy northern Bosnia near Bihac, once the site of heavy fighting during the 1992 to 1995 war, hoping to cross illegally into Croatia and then Europe. They try, but are constantly sent back by Croatian border police, to wait in Bosnia, freezing and starving.
Syrians, as well as economic migrants and those fleeing persecution in South Asia and Africa, have also ended up marooned in Greece. Islands like Lesbos harboured thousands of refugees, not entirely successfully. After an EU-Turkey deal ended the refugee path, Greece bore enormous pressure. The deal effectively punished Greece due to its geography and put pressure onto populations inhabiting islands usually meant for 300 people. For refugees, some of these islands became like open-air prisons. It is true there were innovative pioneering aid projects that united locals and migrants. These groups aimed to create jobs and to ease tensions between locals and new arrivals. But they weren’t nearly enough.
Russian rocket launchers fire during military drills near Orenburg in the Urals, Russia, on December 16, 2021. AP
The refugees would have to go through Poland, a country with no experience of recent mass migration waves
There are doubts Poland has the capacity to take on a million more people who are likely to arrive without money, jobs or a plan of how and where to live. Poland has increased its GDP seven-fold since 1990, but the World Bank identified challenges last year, such as an ageing population and difficulty leveraging technology. Water resources are scarce in Poland, and the country is severely affected by droughts that cause the loss of crops from year to year.
Poland's history is also rooted in deep trauma. A country lying in the cross hairs of the former Soviet Union, many Poles also have dark memories of the Second World War, where they were overrun first by Germany, then by the Soviet Union. An estimated six million Poles died in the war – about 17 per cent of the population. A renewal of Cold War tensions is the last thing Poland needs. Last year, when the Belarusian government was suspected of sending many migrants and asylum seekers – many of them Afghans fleeing the recent Taliban takeover of their country – to Poland, Polish border officers pushed them back. This led to a wave of anxiety among Poles, who naturally fear any kind of incursions on their territory from the East.
And is Europe ready to absorb more refugees? With former German chancellor Angela Merkel gone, there are questions as to who will take the moral lead in Europe. Mrs Merkel allowed more than 800,000 refugees into Germany, taking a firm stand that they needed shelter. But she stepped down in October, and the new government has already indicated that they would not be involved militarily in holding back any potential Russian invasion into Ukraine. Unlike many of their Nato allies, they have sent helmets rather than weapons.
So where could Ukrainian refugees go? France and Britain took very low numbers of refugees during the Syrian crisis: even “welcoming” Scandinavian countries were less supportive than they might have been. Some wanted refugees to return to Syria long before it was safe for them to go home. So far, the lead has fallen on French President Emmanuel Macron, who led the negotiations with Russian President Vladimir Putin last week.
I recall many visits to France's "Jungle", the desperate migrant haven in Calais, where thousands of desperate people waited, trying to pass from France into Britain. Their lives were hellish. The Jungle was closed down in 2016, but before that, it was home to nearly 7,000 people, many of them unaccompanied minors.
This crisis might be different from Syria, though. Ukrainians have the right to visa-free travel to the EU. So the border police might not be able to prevent them from entering. But the initial chaos, the transit route, the dire cold and the lack of facilities will all be there.
There are already more than two million internally displaced Ukrainians, according to the UN, since the conflict began three years ago, as well as 3.5 million people in need of humanitarian aid. These numbers would swell and swell as soon as Russian tanks rolled across the border.
The next few weeks are urgent and important – not just for Russia, European powers or the US. They are critical for the millions of people in Ukraine who are gathering their documents and packing bags, ready to make the long and sad journey away from their homes.
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
Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Glenn Maxwell, Ben McDermott, Kane Richardson, Steve Smith, Billy Stanlake, Mitchell Starc, Ashton Turner, Andrew Tye, David Warner, Adam Zampa
1,000 Books to Read Before You Die: A Life-Changing List
James Mustich, Workman
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.”