Like a bold uncle, Turkish President Recep Tayyip Erdogan is often the one person at a gathering to deliver the unvarnished truth, even when it hints at a civilisational clash.
“I speak freely because we do not owe Israel anything,” he said at a Friday press conference with German Chancellor Olaf Scholz in Berlin, referencing his host country’s Second World War guilt in an effort to highlight western hypocrisy on liberty and free speech. “We did not go through the Holocaust, so we are not in such a situation.”
Few would describe Turkey as a paragon of free expression. In fact, in its annual report early this month, the European Commission criticised Turkey’s increasing disregard for human rights and restrictions on free speech.
Even so, Mr Erdogan had a point. Nowhere has the Middle East’s latest war stirred up more historical sensitivities than Germany, which severely curbs criticism of Israel and Jewish people as part of its atonement for historic Nazi atrocities.
While leaders in Brazil, Malaysia, Australia, Canada, Belgium and beyond have sharply criticised Israel’s assault on Gaza in recent days, with some labelling it genocide, Germany has moved to muzzle such views. Hamburg issued a decree banning pro-Palestinian protests.
President Frank-Walter Steinmeier essentially warned Germans of Arab descent not to support Palestinians, advising them to “take a clear stand against terror”. Berlin schools barred students from wearing the keffiyeh or Palestinian flag and police in the capital blocked two dozen Gaza solidarity protests, including an event to mourn Palestinian children.
Such policies are keenly felt by Turkish officials, as many of those being silenced in Germany are their compatriots. Germany is home to more than three million people of Turkish origin, the country’s largest diaspora community. But it’s not just Turks and other Muslims that view Germany’s stance as problematic.
More than 100 Jewish intellectuals signed a letter condemning Berlin’s policy. Deborah Feldman, a bestselling author raised by Holocaust survivors who lives in Berlin, argued that German measures aim “to criminalise the public expression of Palestinian identity”.
Ironically, more than eight in 10 anti-Semitic attacks in Germany (84 per cent) are committed not by Muslims but by the far right, according to a parliamentary report. Germany’s neo-Nazi groups and anti-immigrant parties such as AfD are kept in check mainly thanks to Turkey’s willingness to keep millions of refugees from entering the EU.
Still, just as the Turkish government’s tacit acceptance of ultra-nationalists leads to the demonisation of minority groups in Turkey, Germany’s blind eye towards domestic xenophobes makes life all the more difficult for its immigrant communities.
Such policies are keenly felt by Turkish officials, as many of those being silenced in Germany are their compatriots
Nearly four in 10 German Muslims have experienced discrimination from German authorities, according to the German Centre for Integration and Migration Research. German footballer Mesut Ozil, the child of Turkish immigrants who played a key role in Germany’s 2014 World Cup-winning squad, highlighted the issue when he quit the national team in 2018: “I’m a German when we win, but an immigrant when we lose.”
Like Ozil, most Germans of Turkish origin support Mr Erdogan and his governing Justice and Development Party (AKP). This may be the driving force behind German parliament taking up a proposal last week to bar dual passport-holding German Turks from voting in Turkish elections. It’s not clear how this might be enforced short of confiscating Turkish passports, but during Turkey’s May elections, German officials faced Turkish criticism for their unwillingness to open more voting booths, resulting in hours-long wait times.
Another point of divergence is terrorism and the Middle East. Early this month, Germany banned all activities linked to Hamas, labelled a terrorist group by the EU, US and Israel. Turkey, on the other hand, has hosted Hamas leaders and activities for years and reportedly enabled investments that helped the group significantly increase its funding.
Yet both sides are likely to tread lightly due to growing economic ties. German-Turkish trade hit a record high of nearly €52 billion ($56.78 billion) last year, and Germany is Turkey’s top export market, at nearly €25 billion. Only Russia and China send more goods to Turkey than Germany.
Ankara is probably in the tougher position, with local elections looming in March, the Turkish lira continuing to lose value and major defence concerns. Turkish officials last week expressed interest in buying 40 Eurofighter Typhoon jets, which Germany helps build.
Most observers see Mr Scholz as unlikely to approve such a deal, which would leave Turkey again hoping for a thumbs-up on US-made F-16s. It may be contingent on Ankara approving Sweden’s Nato membership, which Turkey’s parliament again delayed last week.
German military exports to Israel have surged 10-fold this year, with most of the deals coming in the past six weeks. So, in response to Mr Erdogan’s press conference statements, Mr Scholz asserted Israel’s right to exist and defend itself, while also denouncing anti-Semitism.
Mr Erdogan, who has long faced accusations of anti-Semitism, said that he had been leading the fight against anti-Semitism. Mr Scholz added that the duo’s divergent views on the conflict underscored the need for dialogue.
Mr Erdogan concurred, adding that if Germany joined Turkey in calling for a Gaza ceasefire, it could be achieved. This might be accurate, but the world may not want to hold its breath waiting for Berlin to criticise Israel.
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.”
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
THE BIO
Favourite place to go to in the UAE: The desert sand dunes, just after some rain
Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude
Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE
Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally
Favourite subjects in school: Mathematics and science
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
