The baptism site of Jesus Christ on the Jordan River in the West Bank, pictured in 2016. Once surrounded by hundreds of mines laid during the 1967 Arab-Israeli war, an operation by The Halo Trust to remove them ended successfully in April 2020. Heidi Levine for The National
The baptism site of Jesus Christ on the Jordan River in the West Bank, pictured in 2016. Once surrounded by hundreds of mines laid during the 1967 Arab-Israeli war, an operation by The Halo Trust to remove them ended successfully in April 2020. Heidi Levine for The National
The baptism site of Jesus Christ on the Jordan River in the West Bank, pictured in 2016. Once surrounded by hundreds of mines laid during the 1967 Arab-Israeli war, an operation by The Halo Trust to remove them ended successfully in April 2020. Heidi Levine for The National
The baptism site of Jesus Christ on the Jordan River in the West Bank, pictured in 2016. Once surrounded by hundreds of mines laid during the 1967 Arab-Israeli war, an operation by The Halo Trust to r


Defence and aid are two sides of the same coin


James Cowan
James Cowan
  • English
  • Arabic

May 21, 2025

This month marks the tenth anniversary of the takeover of the Syrian town of Palmyra by ISIS, where fighters destroyed and looted parts of Syria’s ancient heritage site. Staff from The Halo Trust, the landmine clearance charity I run, have just conducted reconnaissance work there, with a view to clearing the site of mines and explosives so it can be protected and one day welcome tourists again.

In similar vein, Halo has made safe Afghanistan’s historic Bala Hissar fort in Kabul and the 15th-century Musalla Minarets in Herat. We also removed hundreds of mines laid in 1967 around the baptism site of Jesus on the River Jordan, allowing the return of pilgrims and tourists. This work removing explosives not only saves lives but protects precious heritage, allowing people to rebuild their countries and develop their economies.

And it has never been in greater demand. From Myanmar to Central Asia, the Caucasus, the Sahel, the Middle East and Ukraine, war stalks the earth.

Analysis by the Peace Research Institute Oslo suggests that the number, intensity and length of conflicts worldwide is at its highest level since before the end of the Cold War. The study found that there were 55 active conflicts. In all, around two billion people live in areas affected by conflict.

At the same time, multilateral peace processes have stalled. Local actors are more powerful, and geopolitics more divided. And nothing drives people into poverty, danger and displacement more than endless cycles of armed violence.

In this insecure world, budgets for humanitarian aid are being slashed or repurposed for defence. This has happened first in the US and UK, with other western donor governments expected to follow suit.

As a former soldier and now chief executive of Halo, I am the only ex-general running a UK NGO. I do not come from a traditional humanitarian background, and I do not necessarily subscribe to humanitarian orthodoxies. My view of the world is necessarily rooted in my experience as a soldier. I certainly believe that Europe does need to defend itself. I therefore believe in rearmament as a means to protect democracy and sovereignty.

Organisations like Halo need to make the case that defence and aid are two sides of the same coin – both make donor nations safer, while alleviating suffering

Last month, I addressed the Dubai International Humanitarian Aid and Development conference and called on the aid community to develop innovative thinking rather than simply bemoan reductions in foreign aid. Halo, like other organisations, needs to adjust to the new reality and set out a role for humanitarian organisations in a multipolar world.

Innovative thinking on aid must include the premise that defence spending and humanitarian intervention are linked. Defence is the projection of hard power. Aid is often portrayed as soft power. The mine-clearing and bomb disposal work of the Halo Trust sits somewhere between the two – helping clean up after the use of hard power. But both aid and defence help to make for a safer and more stable world.

It helps to think of the three elements of foreign affairs: defence, diplomacy and development. These might be defined as the coercive, the persuasive and the altruistic means by which governments can achieve their foreign policy objectives.

The theory of change that previously justified the money spent on overseas aid was that, in acting altruistically, donor countries could help address evident wrongs in beneficiary countries – reducing poverty and infant mortality, improving the lives of women, giving children access to education and a host of other outcomes with evident moral value enshrined in the Sustainable Development Goals.

But with the consensus on aid fracturing, the question therefore arises whether donor countries should move altruistic aid expenditure closer to the coercive and persuasive branches of government. In essence, would aid money be better utilised if better integrated with defence and diplomacy, helping to stabilise the many countries of the world now subject to conflict?

A Ukrainian sapper takes part in a demining operation in the Kharkiv area on March 12.EPA
A Ukrainian sapper takes part in a demining operation in the Kharkiv area on March 12.EPA

Organisations like Halo need to make the case that defence and aid are two sides of the same coin – both make donor nations safer, while alleviating suffering. Halo’s work clearing mines and managing weapons stops them falling into the wrong hands, fuelling endless cycles of violence and instability.

We also need to think more creatively about the sources of funding for humanitarian action. One of the reasons I was in Dubai is because the reduction in funding from western donors is an opportunity for new players, with their own strategic priorities to wield more influence on the direction and delivery of aid.

The Gulf is increasingly the crossroads for partnerships and action in tackling the issues of our time. We can’t do more with less, but we can do things differently through innovation, new alliances and smart, compassionate action to help those in need while also fostering stability and prosperity.

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.”

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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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Living in...

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The biog

Birthday: February 22, 1956

Born: Madahha near Chittagong, Bangladesh

Arrived in UAE: 1978

Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.

Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”

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Watford 1 (Deulofeu 80' p)

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Try out the test yourself

Q1 Suppose you had $100 in a savings account and the interest rate was 2 per cent per year. After five years, how much do you think you would have in the account if you left the money to grow?
a) More than $102
b) Exactly $102
c) Less than $102
d) Do not know
e) Refuse to answer

Q2 Imagine that the interest rate on your savings account was 1 per cent per year and inflation was 2 per cent per year. After one year, how much would you be able to buy with the money in this account?
a) More than today
b) Exactly the same as today
c) Less than today
d) Do not know
e) Refuse to answer

Q4 Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.”
a) True
b) False
d) Do not know
e) Refuse to answer

The “Big Three” financial literacy questions were created by Professors Annamaria Lusardi of the George Washington School of Business and Olivia Mitchell, of the Wharton School of the University of Pennsylvania. 

Answers: Q1 More than $102 (compound interest). Q2 Less than today (inflation). Q3 False (diversification).

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Updated: May 21, 2025, 2:00 PM