Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
July 24, 2022
In Tehran last week, Turkish President Recep Tayyip Erdogan made it clear to Russian President Vladimir Putin that he is categorically opposed to Moscow’s plan to outsource its Syria mission to Iran. This is according to sources familiar with the talks at the Russia-Turkey-Iran summit convened under the pretext of reviving the Astana Peace Process for the war-torn country.
Mr Erdogan softened his warning to the Iranians, saying that Ankara would not accept Tehran’s expansion of its support to the Assad regime. These designs are mere wishes with no real prospects, he added. But Mr Erdogan also stressed that any attempt by Iran to dominate Syria would be in direct contradiction with Turkey’s national interests – and that Ankara is very serious about its national interests.
The Iranian leadership, meanwhile, confirmed to Mr Putin that it is ready to take control of Syria. Mr Putin acknowledged that Russia’s role in the country is waning due to its preoccupation with Ukraine. While accepting Mr Erdogan’s warning on Iran, the Russian President told the Iranian leaders that Moscow remains a strategic ally to Tehran, and that it grants the latter the mandate to replace Russia in Syria at this juncture – regardless of Mr Erdogan’s views and threats. Mr Putin went further, according to my sources, accepting that Lebanon’s future is subject to Iran’s calculations, as the Kremlin understands Tehran’s interests in that country.
Contrary to some perceptions, the Tehran summit was not convened in response to the GCC+ summit in Jeddah earlier this month. It was designed to try to reach a trilateral division of roles in Syria. And while they all agreed to continue the dialogue, no agreement was found.
Russian President Vladimir Putin, Iranian President Ebrahim Raisi and Turkish President Recep Tayyip Erdogan pose for a photo in Tehran before holding a meeting on Syria. AFP
The meeting followed the so-called Astana Format discussions on Syria. AFP
It was Mr Putin's first overseas trip outside Russia since his country's invasion of Ukraine began in February. AFP
Mr Putin was also expected to discuss the Ukraine war with Mr Erdogan at the meeting. Reuters
The meeting comes only days after Russian and Ukrainian officials met Turkish officials to mediate an agreement on grain exports. AFP
Mr Putin was also expected to discuss the stalled international discussions on reviving the 2015 nuclear agreement with Iranian officials. AFP
The connection between Russia and Iran has deepened as they both support Syria's President Bashar Al Assad while Turkey, by contrast, backs rebel factions in the north-western parts of the country. AP
The US issued a warning last week that Iran was preparing to send Russia hundreds of drones, including models capable of carrying weapons, amid significant losses by Moscow’s military as Mr Putin's war approaches its sixth month. Reuters
Iranian supreme leader Ayatollah Ali Khamenei holds talks with Mr Putin and Mr Raisi in Tehran. EPA
Mr Putin is in Iran to deepen ties with regional heavyweights as part of a challenge to the US and Europe, which have imposed sanctions on Moscow over its war in Ukraine. AP
Mr Erdogan showed little interest in co-operating with Russia in Syria. While he did tell Mr Putin that he was keen to find a common language to avoid confrontation, he also reaffirmed that Turkey’s assessment of its interests has not changed – and that Ankara will continue to carry out military operations in Syria when needed. Moscow understands that Ankara is even more determined to create buffer zone in northern Syria, particularly as Russia is preoccupied with Ukraine and the US is preoccupied with Russia, Ukraine and Iran.
Be that as it may, Tehran considers Syria to be vital for its regional project. It seeks to extend what it considers to be its "frontline" with Israel, from Lebanon to Syria, because this would give it leverage during times of confrontation.
During their bilateral meeting, Iranian President Ebrahim Raisi requested Mr Putin to increase pressure on the other UN Security Council members involved in the talks to revive the 2015 nuclear deal with Tehran. Mr Raisi stressed to Mr Putin that Iran will not make concessions that would make it look weak, including accepting the US's refusal to delist the Islamic Revolutionary Guard Corps as a terrorist group. Whether Tehran's position negates any chances of a deal remains to be seen.
Of utmost importance to both Russia and Iran is the speedy conclusion of their pact. I am given to understand that two leaders discussed the possibility of Mr Putin returning to Tehran to sign the pact that would resemble the one the Iranian regime signed with China last year. Progress on this front shows that, even as the US continues to be in retreat from the Middle East, the China-Russia-Iran alliance is being advanced pragmatically, meticulously and resolutely.
US President Joe Biden’s visit to the region failed to reverse some Arab states' gradual shift away from Washington's orbit. And as long this trend continues, the prospects for a US-led axis in the region remain weak.
At the Tehran summit, Hezbollah may have been a notable absentee but it remains Iran’s strongest proxy in Syria and Lebanon. Mr Erdogan has traditionally not raised the issue regarding the militia group’s presence in Syria, but he could be forced to do so when Iran starts implementing its project there. Hezbollah is moving to position itself either alongside Iran’s forces or on their behalf, as and when circumstances dictate.
Iran is using its proxies in Lebanon to put pressure on Israel. AFP
In Lebanon, where the group doubles up as a political party, it is in the midst of turning the country's oil and gas resources into ammunition for its "resistance" – despite the country's economic problems and its urgent need to monetise those resources. Hezbollah is doing so by threatening to obstruct the proposed demarcation of maritime borders between Lebanon and Israel. Its two key objectives are: securing its share of Lebanon's wealth, and ensuring its unhindered movements between Lebanon and Syria by both land and sea.
It is ironic that a US-Iran-Israel deal on nuclear and security issues and the resulting de-escalation are a much better choice for the likes of Syria and Lebanon – despite the free rein this option would give to Iran and Israel – than the choice of military confrontation. It is clear that Iran and Russia have decided to commandeer Lebanon and Syria for their mutual interests and calculations related to containment of Israel when needed. The Biden administration is still caught between wishing for a deal with Iran, hesitating about pressuring Tehran and Hezbollah for fear of retaliation, threatening to restore Trump-era “maximum pressure” sanctions on the Iranian regime, and/or blaming everything on the previous administration due to its withdrawal from the deal with Iran.
In the meantime, the realignment continues amid global political chaos. Perhaps the best scenario in the Levant at this juncture is the continuation of the status quo with all its flaws.
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
First Person
Richard Flanagan
Chatto & Windus
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
The biog
Favourite book: You Are the Placebo – Making your mind matter, by Dr Joe Dispenza
Hobby: Running and watching Welsh rugby
Travel destination: Cyprus in the summer
Life goals: To be an aspirational and passionate University educator, enjoy life, be healthy and be the best dad possible.
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
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.”
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples. Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts. Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
How to wear a kandura
Dos
Wear the right fabric for the right season and occasion
Always ask for the dress code if you don’t know
Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
Wear hamdania for work, always wear a ghutra and agal
Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Saturday Benevento v Atalanta (2pm), Genoa v Bologna (5pm), AC Milan v Torino (7.45pm)
Sunday Roma v Inter Milan (3.30pm), Udinese v Napoli, Hellas Verona v Crotone, Parma v Lazio (2pm), Fiorentina v Cagliari (9pm), Juventus v Sassuolo (11.45pm)
