“Did you lose your ships in the Black Sea?” asks an old Turkish expression. It’s traditionally directed at a friend lost in thought or struggling with some mental conundrum, but it might be posed to Istanbul Mayor Ekrem Imamoglu in a slightly more literal way.
Much like Istanbul, Turkey’s north-eastern Black Sea region has an outsized impact on the country’s discourse and political fortunes. President Recep Tayyip Erdogan and several of his fellow AKP founders, along with many of their top deputies and staunchest supporters, hail from the region, as does the Istanbul Mayor.
Back in May, Mr Imamoglu toured his home province of Trabzon, as well as neighbouring Rize, Mr Erdogan’s home province, over the Eid Al Fitr holiday. He drew adoring crowds, but came under sharp criticism when a photo of his press pool revealed that he had brought along a former pro-AKP journalist widely thought to have unfairly persecuted government critics.
The Mayor probably made matters worse with his response to the complaints. “There may be some people who want to sacrifice me over one photo,” he said. “I do not care at all.”
Mr Imamoglu’s political star – for years the brightest in the opposition firmament – has since seemed to fade with each passing day. Weeks later, during Eid Al Adha, he was again away from Istanbul – this time on holiday along the Turkish Riviera – when the city was hit with major floods, and again faced strong criticism from his supporters.
Around that time, reports emerged that the longtime leader of Mr Imamoglu’s main opposition CHP, Kemal Kilicdaroglu, would run as the party’s candidate in next year’s presidential election. Mr Imamoglu and his fellow CHP Mayor, Mansur Yavas of Ankara, have consistently outperformed their boss, as well as Mr Erdogan, in head-to-head polls.
An election based on security issues, as in 2015, favours the governing coalition
In fact, none of the likely opposition candidates has polled as poorly against Mr Erdogan as Mr Kilicdaroglu. The CHP and its six-party opposition alliance have yet to choose their candidate, and just last week a top opposition MP expressed concerns that Mr Kilicdaroglu would be unable to win. So there may still be hope for Mr Imamoglu.
Yet, he happens to be on trial at the moment, facing a potential political ban and up to four years in prison for insulting Turkey’s top election board. The verdict could come any day, and many expect the popular Istanbul Mayor to be found guilty despite the questionable charges.
As if all this weren’t enough, two days after his trial began, Istanbul’s main pedestrian thoroughfare was struck with a bomb blast that killed six people and injured dozens, recalling for many the politically driven violence that shook the country in 2015-16.
Istanbul and Turkey suffered half a dozen major attacks in this period, as well as intense fighting between the government and the Kurdistan Workers’ Party (PKK), which has led a decades-long insurgency in the country’s south-east and is labelled a terror group by the US, EU and Turkey.
In June 2015, weeks before the violence began, the AKP lost its parliamentary majority for the first time since coming to power. But the vote resulted in a hung parliament, so Mr Erdogan called for a redo. Five months later, with the militant PKK under military assault and nationalist sentiment running high, the AKP regained its majority.
Within hours of the latest bombing, Turkish authorities arrested a Syrian Arab woman as the main suspect and blamed the attack on the PKK and its Syrian ally, the YPG. Both have denied involvement, and observers have wondered why a trained terrorist would be caught on camera planting a bomb then return to her home rather than flee, and why an Arab woman would commit such a brazen and deadly crime for a Kurdish group.
On Saturday authorities made further arrests, including a few Moldovans, which would seem to point in another direction. Even so, early on Sunday Ankara launched fresh strikes on northern Syria, killing at least two YPG fighters. On Monday, the YPG appeared to retaliate, as Turkish outlets reported three civilians killed in strikes in the border province of Gaziantep.
Many also expect the government to move against the Kurdish-led HDP, with arrests or even a blanket ban, and Interior Minister Suleyman Soylu has vowed to reveal links between terror groups and the Imamoglu-run Istanbul municipality this week. However cynical all this might seem, it’s also politically astute. Amid rampant inflation and growing poverty, an election based on security issues, as in 2015, favours the governing coalition a great deal more than one centred on the economy.
The AKP will gain a further boost from its newly enhanced ability to control the flow of information. Immediately after the bombing, authorities blocked top social media platforms Twitter, Instagram, YouTube and Facebook for more than 10 hours. Along with a recently passed censorship law that makes just about any troubling statement a potentially jailable offence, the space for public discussion and debate has shrunk.
Add it all up and the outlook for the Istanbul Mayor, and perhaps the opposition more broadly, is dimmer than it’s been since his June 2019 electoral victory. Of course, this would all turn around in an instant if Mr Imamoglu is acquitted then named the opposition candidate.
For now that seems unlikely. A year ago, I detailed the many parallels between Mr Erdogan and Mr Imamoglu. We may soon add one more: banned from politics while serving as Istanbul Mayor and sent to prison. That would surely mark Mr Imamoglu’s political ship being lost at sea.
But in Mr Erdogan’s case, the conviction and four-month jail stint gave him the heroic air of a martyr, and three years after his release his new party came to power. Could lightning strike in prison again? In Turkish politics, anything is possible.
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.”
COMPANY%20PROFILE
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Off-roading in the UAE: How to checklist
How to vote
Canadians living in the UAE can register to vote online and be added to the International Register of Electors.
They'll then be sent a special ballot voting kit by mail either to their address, the Consulate General of Canada to the UAE in Dubai or The Embassy of Canada in Abu Dhabi
Registered voters mark the ballot with their choice and must send it back by 6pm Eastern time on October 21 (2am next Friday)
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
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Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
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Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
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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The five pillars of Islam
German intelligence warnings
- 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
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
New schools in Dubai
Checks continue
A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.
Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.
Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Museum of the Future in numbers
- 78 metres is the height of the museum
- 30,000 square metres is its total area
- 17,000 square metres is the length of the stainless steel facade
- 14 kilometres is the length of LED lights used on the facade
- 1,024 individual pieces make up the exterior
- 7 floors in all, with one for administrative offices
- 2,400 diagonally intersecting steel members frame the torus shape
- 100 species of trees and plants dot the gardens
- Dh145 is the price of a ticket