Nuclear arms control is one of the world’s greatest success stories, at least for now. The world’s nuclear stockpile shrank from an estimated 70,000 warheads in 1986 to about 12,000 today. But all that may be going in reverse. At the start of the Russian invasion of Ukraine in February 2022, Russia’s President Vladimir Putin refused to rule out the idea that nuclear weapons might at some point be used. This was assumed to mean “tactical” or “battlefield” nuclear weapons, but even this so far unrealised prospect sounds chilling.
By 2023 the “Doomsday Clock” of the Bulletin of Atomic Scientists was set at 90 seconds, the shortest it has ever been. Former British prime minister Gordon Brown, writing in a British newspaper issued his own uncharacteristically grim warning a few days ago: “At no time since the Cuban missile crisis of 1962 has the world looked so dangerous, nor has an end to its 56 conflicts, according to the Global Peace Index – the highest number since the Second World War – seemed so distant and so difficult to achieve.”
Even thinking of a nuclear strike anywhere, ever, would assure mutual destruction
In the US, it was revealed earlier this month that in March, US President Joe Biden approved a new top secret nuclear strategic plan called “Nuclear Employment Guidance”. Reports of the contents are – for obvious reasons – vague but the new strategy is said to include a focus on China’s expansion of its nuclear arsenal. It was also reported to involve preparations for the US to face nuclear challenges from China, Russia and North Korea simultaneously.
What we do know – according to American experts – is that of those 12,000 warheads currently in existence about 2,000 are said to be on “high alert”. That means in the event of conflict some of them could reach targets in fewer than 30 minutes.
Nine countries have nuclear weapons, including Israel, India and Pakistan. A handful of other countries have moved towards acquiring nuclear weapons technology, although that’s difficult to do clandestinely.
The old Cold War term about a nuclear arms race is Mad – mutually assured destruction. It dates from the 1960s and a strategist at America’s Hudson Institute, Donald Brennan. Mr Brennan pointed out that any attempt by one nuclear power to surprise an enemy with a “first strike” would result in immediate retaliation and a second strike that would destroy both powers and perhaps much of the planet, the northern hemisphere in particular.
In the 1980s there were various scary TV dramas involving a “nuclear winter” caused by massive amounts of debris in the atmosphere after a nuclear catastrophe. Back in the 1950s, American school children were taught to “duck and cover”, to hide under their desks if a nuclear air raid alarm sounded. It’s not clear what hiding under a desk might achieve, beyond terrifying children, their parents and teachers. Mr Brennan was correct to call the whole thing mad.
But perhaps there is another wave of madness in the world right now. There is so much conflict and hostility that we need to consider how best to extend arms control treaties.
Former US President Barack Obama in 2009 spoke optimistically of seeking “a world without nuclear weapons”. In 2022 Biden administration officials suggested more realistically that it might be possible to reduce the role of nuclear weapons in US strategy. As recently as last June, the US State Department insisted that “the New Start Treaty” to limit strategic nuclear weapons between the US and Russia would continue in force until February 2026.
Both sides were reported to be operating within the treaty’s agreed limits. Even so, the current souring of international relations by the Ukraine war, the weakness of international agencies including the UN and the pause in international diplomacy linked to political uncertainty about November’s US presidential elections, mean that it is reasonable to fear a growing level of nuclear anxiety. And so what can be done?
Well, it is always useful first to recognise that there is a problem. Continuing and extending arms control treaties would remove some of the fear, although treaties can be broken and monitoring demands a degree of trust. International organisations can monitor nuclear arsenals but realistically cannot enforce agreements. Yet it’s also important not to despair.
Rational governments under rational leaders do not want to destroy their own nations. Moreover, no matter how many peace-loving people might wish that nuclear weapons had never been invented, they are not about to be disinvented or banned. The best that we can hope for is that the Ukraine war, Gaza, and those dozens of other conflicts around the world do not tempt a desperate leader in a nuclear-capable power to become the first to use nuclear weapons since the 1945 American bombings of Hiroshima and Nagasaki.
In Japan, at the Hiroshima Peace Memorial, the Genbaku Dome looms like a ghost. It’s the only structure left standing in the area where the first atomic bomb exploded on 6 August 1945. There is a chilling emptiness about this memorial. That emptiness should remind us all that Mad really does mean mutually assured destruction. It is also a reminder we would be mad in its most literal sense to contemplate a nuclear strike anywhere, ever.
UAE Rugby finals day
Games being played at The Sevens, Dubai
2pm, UAE Conference final
Dubai Tigers v Al Ain Amblers
4pm, UAE Premiership final
Abu Dhabi Harlequins v Jebel Ali Dragons
What is Diwali?
The Hindu festival is at once a celebration of the autumn harvest and the triumph of good over evil, as outlined in the Ramayana.
According to the Sanskrit epic, penned by the sage Valmiki, Diwali marks the time that the exiled king Rama – a mortal with superhuman powers – returned home to the city of Ayodhya with his wife Sita and brother Lakshman, after vanquishing the 10-headed demon Ravana and conquering his kingdom of Lanka. The people of Ayodhya are believed to have lit thousands of earthen lamps to illuminate the city and to guide the royal family home.
In its current iteration, Diwali is celebrated with a puja to welcome the goodness of prosperity Lakshmi (an incarnation of Sita) into the home, which is decorated with diyas (oil lamps) or fairy lights and rangoli designs with coloured powder. Fireworks light up the sky in some parts of the word, and sweetmeats are made (or bought) by most households. It is customary to get new clothes stitched, and visit friends and family to exchange gifts and greetings.
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.”
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Scoreline:
Everton 4
Richarlison 13'), Sigurdsson 28', Digne 56', Walcott 64'
Manchester United 0
Man of the match: Gylfi Sigurdsson (Everton)
UAE currency: the story behind the money in your pockets
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
Tu%20Jhoothi%20Main%20Makkaar%20
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ELuv%20Ranjan%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ERanbir%20Kapoor%2C%20Shraddha%20Kapoor%2C%20Anubhav%20Singh%20Bassi%20and%20Dimple%20Kapadia%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
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
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
UAE currency: the story behind the money in your pockets
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Fixtures and results:
Wed, Aug 29:
- Malaysia bt Hong Kong by 3 wickets
- Oman bt Nepal by 7 wickets
- UAE bt Singapore by 215 runs
Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman
Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal
Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore
Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong
Thu, Sep 6: Final
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