Supporter of Santiago Abascal and the Vox party during an election rally in Madrid last Friday. Bloomberg
Supporter of Santiago Abascal and the Vox party during an election rally in Madrid last Friday. Bloomberg
Supporter of Santiago Abascal and the Vox party during an election rally in Madrid last Friday. Bloomberg
Supporter of Santiago Abascal and the Vox party during an election rally in Madrid last Friday. Bloomberg


Victorious liberal voters around the world ought to be careful what they wish for


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July 26, 2023

In October 1993, the Progressive Conservative party of Canada faced one of the worst routs in political history. In government since 1984, the party lost 154 of its seats in the 295-member House of Commons, and was left with only two MPs. So astounding was the defeat that there was widespread speculation about how other right-wing governments would fare if they faced the “Canada effect”. In the UK, I remember it turned out that only the then prime minister John Major and one other would have remained as Conservative MPs.

But those on the left, both then and now, would be unwise to gloat. For when mainstream conservative parties flail or implode, the effect is frequently to empower much more right-wing forces. That was what happened in Canada. The Progressive Conservatives lost their votes to the more socially conservative Reform Party and the pro-independence Bloc Quebecois.

France is another case in point. The inability of mainstream conservatives to impress the electorate has led to a dramatic increase in support for the National Front, or the National Rally as it has been known since 2018. Once considered a pariah party, its long-term leader Marine le Pen made it into the second round of the French presidential election in both 2017 and 2022. In the first instance, I warned in these pages about complacency over the result – Ms Le Pen had won 34 per cent to Emmanuel Macron’s 66 per cent. It was no great victory, I wrote. “Why didn’t he crush a contender whose party is treated with revulsion by much of the world?” And sure enough, by 2022 Ms Le Pen’s share of the vote had increased to 41.5 per cent.

Many will find that a discomfiting trend, relieved only (and perhaps temporarily) by the news this week that the far-right Vox party seems unlikely to enter government with the centre-right People’s Party, as had been expected, after the two parties combined failed to win a majority in the Spanish general election held last Sunday.

France's far-right National Front leader Marine Le Pen delivers a speech during the party's annual celebration of Joan of Arc. Getty Images
France's far-right National Front leader Marine Le Pen delivers a speech during the party's annual celebration of Joan of Arc. Getty Images
Mainstream conservative parties may never be loved by those opposed to the status quo – for which these parties naturally stand

In Malaysia, where I live, some are nervously eyeing parallels of sorts as the country prepares for elections in six of the country’s 13 states in mid-August. Much hinges on the performance of the United Malays National Organisation (Umno), the conservative Malay party that helmed all the country’s governments from 1957 to 2018.

It would be fair to say that for the past two decades that Umno was in power, the progressives who followed the current prime minister Anwar Ibrahim – particularly those who geographically or mentally were part of the so-called “Bangsar bubble”, named after an ultra-liberal area of Kuala Lumpur – weren’t just opposed to the party. They loathed Umno, and were delighted by its defeat in 2018.

Mr Anwar’s Pakatan Harapan coalition was only able to take power after last November’s election, however, with the support of the rump Umno has been reduced to. And the party’s former supporters have not gone over to Mr Anwar’s band of reformists and technocrats – but to the opposition, an alliance between an ultra-Malay chauvinist party, Bersatu, and the Islamist PAS, which is now the biggest party in parliament.

If, as some fear, Umno does disastrously in the state polls, it should not in theory affect Mr Anwar’s parliamentary majority. But he will be a very worried man if Umno does crash and burn. The multi-ethnic coalitions he has led have only managed to win general elections when they have had a conservative Malay party in their ranks, in order to reassure the country’s dominant ethnic group. Umno, in other words, is indispensable for their future success. And its humbling thus far has only empowered an opposition that may contain some prominent and serious politicians, but is far more right-wing, by any measure.

A picture of Umno president Ahmad Zahid Hamidi at the party headquarters in Kuala Lumpur. AP Photo
A picture of Umno president Ahmad Zahid Hamidi at the party headquarters in Kuala Lumpur. AP Photo

Some argue that being in government tempers far-right parties; that the realities and constraints of being in power make them hew more moderate. Giorgia Meloni, whose Brothers of Italy party has led the country’s most right-wing administration since the Second World War after last October’s election, is held up as an example. In France, the National Rally’s rebranding (from the National Front) was part of an attempt to reassure voters and move away from its far-right roots. For myself, I hope that is to some extent genuine, not just window-dressing, as I have a friend who is standing as a National Rally candidate for the French senate, and I would rather think of him as a “robust conservative” than an extremist.

Nevertheless, it is no wonder that many are alarmed at the position that has been gained by parties that had previously been considered beyond the pale. Just last Sunday Friedrich Merz, leader of Germany’s Christian Democratic Union, said that his conservative party would be willing to work with the far-right Alternative fur Deutschland at a local political level. Mr Merz had to contradict himself the very next day after a backlash, but by that point DW, the country’s state-owned international broadcaster, had published a commentary stating: “The 'firewall' to Germany's far right is crumbling.”

There may be many reasons for this trend in the countries where it is observable, but the decline of traditional mainstream conservative parties is definitely one of them. They may never be loved by radicals, youth impatient for change, dreamers, revolutionaries, and those opposed to the status quo – for which these parties naturally stand: the clue is in the name “conservative”. But their critics may miss them when they’re gone. It’s readily apparent who benefits from their weakening or destruction.

FIGHT INFO

Men’s 60kg Round 1:

Ahmad Shuja Jamal (AFG) beat Krisada Takhiankliang (THA) - points 
Hyan Aljmyah (SYR) beat Akram Alyminee (YEM) - retired Round 1
Ibrahim Bilal (UAE) beat Bhanu Pratap Pandit (IND) - TKO Round 1

Men’s 71kg Round 1:
Seyed Kaveh Soleyman (IRI) beat Abedel Rahman (JOR) - RSC round 3.
Amine Al Moatassime (UAE) walk over Ritiz Puri (NEP)

RIVER%20SPIRIT
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3ELeila%20Aboulela%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Saqi%20Books%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20320%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A

6.30pm: Al Maktoum Challenge Round-3 Group 1 (PA) | US$95,000 | (Dirt) 2,000m
7.05pm: Meydan Classic Listed (TB) ) | $175,000) | (Turf) 1,600m
7.40pm: Handicap (TB) ) | $135,000 ) | (D) 1,600m
8.15pm: Nad Al Sheba Trophy Group 3 (TB) ) | $300,000) | (T) 2,810m
8.50pm: Curlin Handicap Listed (TB)) | $160,000) | (D) 2,000m
9.25pm: Handicap (TB)) | $175,000) | (T) 1,400m
10pm: Handicap (TB) ) | $135,000 ) | (T) 2,000m

COMPANY%20PROFILE
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If you go

The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

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 Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

Naga
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Fitness problems in men's tennis

Andy Murray - hip

Novak Djokovic - elbow

Roger Federer - back

Stan Wawrinka - knee

Kei Nishikori - wrist

Marin Cilic - adductor

The specs

Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder

Power: 220 and 280 horsepower

Torque: 350 and 360Nm

Transmission: eight-speed automatic

Price: from Dh136,521 VAT and Dh166,464 VAT 

On sale: now

The Birkin bag is made by Hermès. 
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.

What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Key fixtures from January 5-7

Watford v Bristol City

Liverpool v Everton

Brighton v Crystal Palace

Bournemouth v AFC Fylde or Wigan

Coventry v Stoke City

Nottingham Forest v Arsenal

Manchester United v Derby

Forest Green or Exeter v West Brom

Tottenham v AFC Wimbledon

Fleetwood or Hereford v Leicester City

Manchester City v Burnley

Shrewsbury v West Ham United

Wolves v Swansea City

Newcastle United v Luton Town

Fulham v Southampton

Norwich City v Chelsea

UAE currency: the story behind the money in your pockets
Updated: July 26, 2023, 5:00 AM