Soldiers from the Finnish Defence Forces operate the Tampella, a towed field gun, as they participate in the international military exercise in Norway. AFP
Soldiers from the Finnish Defence Forces operate the Tampella, a towed field gun, as they participate in the international military exercise in Norway. AFP
Soldiers from the Finnish Defence Forces operate the Tampella, a towed field gun, as they participate in the international military exercise in Norway. AFP
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
April 17, 2022
As the nearly two-month-long conflict in Ukraine rages on, a number of triggers exist that could lead to a nuclear “third world war” in Europe. Nato’s further expansion on the continent, thereby posing a further threat to Russian security, could amount to one such trigger.
In fact it is Russian fears about Ukraine’s possible induction into the US-led western security umbrella that led to war in that country in the first place.
One will recall Moscow had demanded a written guarantee last December that Ukraine, formerly an entity within the Russian Empire and the Soviet Union thereafter before becoming independent in 1991, will not seek membership of Nato. But the 30-member alliance dismissed its demands and ultimatums, which ended up becoming the spark that lit the fire.
Today, however, Nato could conceivably add Finland and Sweden to its club, prospects that are just as worrying for the Kremlin.
Finland, which shares a 1,340-kilometre-long border with Russia, will next week explore the option of joining Nato when its parliament receives an intelligence briefing. Prime Minister Sanna Marin says Finland intends to make a decision by mid-summer. Sweden may not advance towards membership at the same pace as Finland, but it appears ready to join the alliance because of the war.
'An empty shot in the air' is how Medvedev described the news coming out of Sweden and Finland
Fears about a possible nuclear conflict have been raised across the continent, particularly after recent statements from former Russian president Dmitry Medvedev and US intelligence chief William Burns.
“An empty shot in the air” is how Mr Medvedev last week described the news coming out of Finland and Sweden. The Deputy Chairman of the Russian Security Council hinted that, as a result, Moscow will consider deploying nuclear weapons out of Kaliningrad, a Russian exclave in the Baltic region that is sandwiched between Lithuania to its north and Poland to its south but, crucially for Sweden, lies a little more than 500km from its capital Stockholm.
Meanwhile, Poland, already a Nato member, is considering allowing the US to deploy nuclear weapons on its soil, prompting a Russian warning that it would respond with like-for-like measures.
Mr Burns, meanwhile, warned that a desperate Kremlin might use “tactical nukes” in Ukraine following what he described as military “setbacks” for Russia. “None of us can take lightly the threat posed by a potential resort to tactical nuclear weapons or low-yield nuclear weapons,” the CIA Director said. “Nato would intervene militarily on the ground in Ukraine in the course of this conflict.”
He, however, added that the Biden administration cares deeply about “avoiding a third world war – and about avoiding a threshold in which, you know, nuclear conflict becomes possible”.
In their statements, spokespersons for the US and Russian governments made clear the diametrical contradiction of their countries’ assessments of the expansion of Nato membership and its consequences. While the Americans see it as fostering peace and stability in Europe, the Russians see it as a provocative and destabilising move.
Dmitry Medvedev, Deputy Chairman of Russia's Security Council, has sent a warning to Finland and Sweden. Reuters
CIA Director William Burns believes Russia is capable of using tactical nuclear weapons in the war. Reuters
As to why Moscow fears Nato’s expansion more than three decades after the Cold War ended, the answer lies in the events that unfolded after the Soviet Union collapsed. One such development was former president Mikhail Gorbachev’s failure – at least in the eyes of Russia’s elites today – to seek written guarantees from Nato leaders that the alliance will not expand into Eastern Europe by adding countries that were previously in the Soviet orbit, which it did in the intervening years.
Mr Gorbachev has in the past insisted that western leaders had assured him of no expansion, but he conceded no written guarantees had been provided.
Fast forward to 2022 and Russia, it seems, is seeking to push back against what it views to be an egregious act by the West.
With last week’s statement, Mr Medvedev effectively raised the level of the nuclear threat in Europe. Beyond that, he said, Moscow will significantly shore up its territorial and naval forces, as well as air defences, in the Gulf of Finland. He added that there would not be any "nuclear-free status of the Baltic" and that Russia would seek to restore balance by, in his words, rightfully deploying nuclear weapons in the region. While these remarks were directed at Finland and Sweden, the message will have been loud and clear in the three former Soviet republics in the Baltic region – Latvia, Lithuania and Estonia – as well.
The situation in Ukraine, meanwhile, is getting more dangerous. It is set to escalate further as more advanced weaponry arrives from the West, which Russia could intercept and destroy. Amid the lack of progress in negotiations between the two countries, and increased Ukrainian military self-confidence, fighting seems to have escalated around Kyiv once again, and not just in the Donbas region in the country’s east, which Moscow has sought to liberate.
Amid these developments, it is worth pointing out that the Biden administration is showing little interest in cooling the temperatures with the Kremlin. It continues to mobilise sanctions against Russia and block any support for its leadership anywhere in the world.
Determined to exclude Russia from the G20 summit this fall, the administration has put pressure on the host nation Indonesia to disinvite Moscow. Some parties are trying to persuade Washington to make the distinction between excluding Russia and disinviting its leadership from the G20 summit to avoid further antagonising the Russian people. But so far, it is not clear whether US President Joe Biden will accept such a compromise.
Mr Biden, who has been gradually ratcheting up tensions with Moscow, has made a number of accusations against Russian President Vladimir Putin, including describing him as a thug. He has also accused the Russian army of genocide inside Ukraine. While he made the statement in personal capacity, the question being asked is whether the President may using the pretext of what he characterises as “genocide” to intervene directly in Ukraine in the future.
As the temperatures continue to simmer over the war, it isn’t at all surprising, then, that Europe and the world at large are deeply worried about nuclear escalation.
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 company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
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.”
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.
Reading List
Practitioners of mindful eating recommend the following books to get you started:
Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung
How to Eat by Thich Nhat Hanh
The Mindful Diet by Dr Ruth Wolever
Mindful Eating by Dr Jan Bays
How to Raise a Mindful Eaterby Maryann Jacobsen
SHOW COURTS ORDER OF PLAY
Wimbledon order of play on Saturday, July 8
All times UAE ( 4 GMT)
Centre Court (4pm)
Agnieszka Radwanska (9) v Timea Bacsinszky (19)
Ernests Gulbis v Novak Djokovic (2)
Mischa Zverev (27) v Roger Federer (3)
Court 1 (4pm)
Milos Raonic (6) v Albert Ramos-Vinolas (25)
Anett Kontaveit v Caroline Wozniacki (5)
Dominic Thiem (8) v Jared Donaldson
Court 2 (2.30pm)
Sorana Cirstea v Garbine Muguruza (14)
To finish: Sam Querrey (24) leads Jo-Wilfried Tsonga (12) 6-2, 3-6, 7-6, 1-6, 6-5
Angelique Kerber (1) v Shelby Rogers
Sebastian Ofner v Alexander Zverev (10)
Court 3 (2.30pm)
Grigor Dimitrov (13) v Dudi Sela
Alison Riske v Coco Vandeweghe (24)
David Ferrer v Tomas Berdych (11)
Court 12 (2.30pm)
Polona Hercog v Svetlana Kuznetsova (7)
Gael Monfils (15) v Adrian Mannarino
Court 18 (2.30pm)
Magdalena Rybarikova v Lesia Tsurenko
Petra Martic v Zarina Diyas