Ekrem Imamoglu, Istanbul mayor and the Republican People's Party candidate, after claiming victory in Istanbul, Turkey. AFP
Mr Imamoglu addresses his supporters in front of the Istanbul Metropolitan Municipality in Istanbul, Turkey. Reuters
Opposition Republican People's Party supporters celebrate outside the main municipality building following municipal elections across Turkey, in Istanbul. AFP
Turkey's main opposition party claimed big election victories in the main cities of Istanbul and Ankara. AFP
Mr Imamoglu's supporters celebrate the closing of the polls in the local elections in Istanbul, Turkey. EPA
Turkish President and leader of Justice and Development Party Recep Tayyip Erdogan with his wife Emine Erdogan after the local elections in Ankara. AFP
Supporters of Justice and Development Party cheer as Mr Erdogan delivers a speech after the elections, in Ankara. AFP
Ankara's Mayor and Republican People's Party candidate Mansur Yavas, waves to supporters in Ankara. AFP
A man holds a portrait of Mr Yavas in Ankara. AFP
Supporters of Mr Yavas listen to his victory speech in Ankara, Turkey. AFP
David Lepeska is a global affairs contributor for The National
April 01, 2024
The main opposition Republican People’s Party (CHP) topped the governing Justice and Development Party (AKP) in the overall vote and in many key races in Sunday’s local elections, reasserting its relevance in stunning fashion with its best national result in nearly half a century.
With the CHP receiving nearly 38 per cent to the AKP’s 35 per cent, this marked the first time that the former won Turkey’s total vote tally since 1977. It’s all the more impressive in the wake of its stunning double defeat last May, followed by the contentious ouster of longtime leader Kemal Kilicdaroglu, who was replaced by the untested Ozgur Ozel.
Adding to the feat, Turkey’s elections have for years been widely seen as mostly free but less than fair, as candidates for the governing party tend to receive exponentially more coverage on predominantly government-friendly media outlets. And this year, the AKP brought out the big guns.
Those expecting early general elections or Mr Erdogan becoming a lame duck might want to pause for breath
President Recep Tayyip Erdogan, as usual, campaigned across the country for months. But more so than in the past, the AKP sent cabinet ministers to events in major cities across Anatolia and the south-east. A few weeks ago, a prominent Islamist with more than three million followers on social media even told Turks that it would be a sin to not vote for AKP.
None of it was enough in the end, with Turkish democracy and the opposition emerging as big winners. “Voters decided to establish a new politics in Turkey,” Mr Ozel, who aced his first big political test, said as the results came in.
We might have taken it as a sign of things to come when Devlet Bahceli, the venerable leader of the AKP’s parliamentary partner, the nationalist Nationalist Movement Party (MHP), showed up to vote with welts on his face and his arm in a sling. The parties in power ended up taking a beating, and most ascribe the CHP’s red wave to a few factors.
The first is low voter turnout of 78 per cent, about 10-12 per cent below the norm. Maybe Turks tired of politicians’ aggressively polarising rhetoric over the past decade while seeing no end to the years-long economic crisis? It’s hard to say for sure.
Turkish President Recep Tayyip Erdogan with his wife Emine in Ankara on Sunday after the municipal elections. AFP
Second, a major surprise was the performance of the Islamically conservative New Welfare Party (YRP). Polling at 3 per cent a few weeks ago, YRP took more than double that – 6.19 per cent – stealing a sizeable chunk of likely AKP voters.
Lastly, the six-party alliance that the CHP embraced last year may have eroded its support, rather than boosted it. Some Kemalists may have been turned off by a union with ultra-nationalists and potential supporters of the Kurdistan Workers’ Party, or by pre-election bickering between party leaders. Standing alone, the CHP had more of a chance to shine.
As a result, its candidates cruised to easy victories in Izmir and Ankara, and in Istanbul, where incumbent mayor Ekrem Imamoglu took Turkey’s largest city by 12 points in what was widely expected to be a dogfight. Mr Imamoglu immediately becomes Mr Erdogan’s chief rival and the presumptive CHP candidate in the next presidential election, though his appeal of a conviction that would levy a political ban is set to resume this month.
With the CHP now in control of 35 of Turkey’s 81 provinces to the AKP’s 24, AKP foes stepped into a changed political landscape as Monday dawned – their most hopeful moment in decades. But those expecting early general elections or Mr Erdogan becoming a lame duck might want to pause for breath.
The CHP’s path to power remains problematic. Start with YRP, which after polling as the fifth or sixth-most popular party came in third overall. Clearly, Islamism remains a powerful force in Turkish politics – not great news for the mainly secular opposition.
YRP attracted voters by hammering home the suffering of Palestinians in Gaza; championing persecuted Muslims has long been an Erdogan calling card. With a few concessions, the AKP will probably bring its former parliamentary partner back onside for the next vote.
Next, Meral Aksener’s IYI Party, a former CHP partner, received less than 4 per cent after polling as high as 13 per cent a few years ago. Ms Aksener has called a party congress, and if IYI dissolves, as some fear, those nationalist votes could revert back to the MHP.
And let’s not forget that nationalism, perhaps the most powerful force in Turkish politics in recent years, was not on the ballot. Your municipality is responsible for garbage pick-up, public transport, and local infrastructure, not for the direction of the economy or foreign policy positions that evoke national pride. This may explain why the CHP did so well in local elections in 2019, yet under-performed last year.
Another difference is that nearly four million Turkish citizens living abroad are able to vote in national elections, but not in local elections, as they do not reside in any of the relevant municipalities. Put it all together and the AKP could add 10-12 points in the general election set for 2028 – a game-changing total.
“This is not an end for us but a turning point,” the President said late on Sunday night, after suggesting a few weeks ago that this election would be his last. “We’ll evaluate the messages given by our people and make the necessary changes.”
Is it possible that national sentiment has changed, that Turkish voters no longer view the AKP as capable of taking the country in the right direction, and that March 31 marked the start of a new political age? Of course it is possible – all reigns eventually end.
But until we see that clearly expressed in a vote to choose the country’s national leadership, it’s unwise to view this as the beginning of the end for the AKP. Few politicians in history have proved to be as resilient as Turkey’s longtime leader.
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
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
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
