President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington. Biden is armed with an ambitious agenda. EPA
President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington. Biden is armed with an ambitious agenda. EPA
President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington. Biden is armed with an ambitious agenda. EPA
President Joe Biden walks on the South Lawn of the White House before boarding Marine One in Washington. Biden is armed with an ambitious agenda. EPA

How Biden is already showing he's an old man in a hurry


David Frum
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It’s not 100 days yet, and the administration of US President Joe Biden has already passed the most ambitious legislation in more than a decade. The huge spending package that has now passed both houses of Congress is much more than a Covid-19 relief package. It’s a major healthcare bill, a childcare bill and a state-government financial stabilisation bill. Almost all families with children will receive thousands of dollars in federal assistance, even if neither parent lost a job in the pandemic. If Mr Biden retired right now, he would already have met a full term’s worth of Democratic Party priorities.

But, of course, Mr Biden is not retiring now. He is turning to his next priorities – and those are likely to be more contentious, not only for the opposition Republican Party, but also within his own coalition of Democrats.

The exact order of what comes next will depend on Democratic leadership in the two legislative houses – the House of Representatives and the Senate. They are looking at several issues, and all of them matter not only for the US, but also the global economy.
Mr Biden has already announced principles for a big immigration bill. He wants to offer some kind of legal status in the US to people who entered the country illegally, and to make it easier and faster to gain asylum.

Mr Biden also wants to enact a big infrastructure programme: not only the traditional roads, bridges and airports spending, but also the acceleration of the drive to a post-petroleum economy. In a video interview on March 9, White House chief of staff Ron Klain pledged that an infrastructure bill would fund hundreds of thousands of new charging stations for electric vehicles.

Boosting US manufacturing and out-competing China on trade are popular policies with American voters from both major parties. Getty
Boosting US manufacturing and out-competing China on trade are popular policies with American voters from both major parties. Getty
Biden has already passed the most ambitious legislation in more than a decade

Meanwhile, Democrats in Congress are itching to challenge China on trade and manufacturing. The Senate majority leader, Chuck Schumer, wants the party’s very next priority to be a bill that would support US supply chains and assert US control over global 5G mobile networks.

Looming behind all of these proposed legislative items is the existential challenge of climate change. Mr Biden rejoined the Paris climate accords at the very beginning of his administration. Now he has to devise ways to honour his commitments.

Those big four commitments – immigration, infrastructure, competing with China and tackling climate change – all come attended by risks and costs. Mr Biden’s early signals on immigration have already summoned a huge flow of unauthorised migration to the US: 100,000 people crossed the border with Mexico illegally in February, followed by almost 5,000 a day thus far in the month of March.

While liberal voters in pro-Democrat states generally welcome more immigration, and are unfazed even by unauthorised immigration, the prospect of a huge, unauthorised flow is very upsetting to swing voters along the border – very much including Hispanic voters. The Rio Grande Valley along the border with Mexico is majority Hispanic. Democratic presidential candidate Hillary Clinton won the valley in the 2016 election by massive, double-digit margins. But in 2020, Donald Trump’s tough-on-illegal-immigration policies cut the Democratic margin in the area dramatically. Zapata County, just south of the Texan city of Laredo, is 85 per cent Hispanic, and Trump won it outright – the first Republican to win the county since the aftermath of the 19th-century Civil War. In the state of Arizona, which is split between Democrat and Republican supporters, the newly elected Democrat senator Mark Kelly faces his first re-election campaign in 2022. Uncontrolled unauthorised migration into the state could cost his party that seat – and with it, control of the Senate.

Modernising US public infrastructure has long been a talking point for Democratic Party election candidates. AFP
Modernising US public infrastructure has long been a talking point for Democratic Party election candidates. AFP
Biden has announced big plans to make asylum applications easier for undocumented migrants. AFP
Biden has announced big plans to make asylum applications easier for undocumented migrants. AFP

Mr Biden’s infrastructure programme is already behind schedule. It was originally supposed to be second in line after Covid-19 relief. But the Covid-19 bill has been signed into law now – and there is no infrastructure bill in sight. Cost issues are a worry, but an even bigger problem is the argument over who gets what, and how much. An infrastructure bill is also more vulnerable to Republican obstruction in Congress – unless Mr Biden can find ways to rent the votes of 10 Republican senators. Despite four years of promising, his predecessor Mr Trump never managed even to write an infrastructure bill, never mind bring one to a vote. Can Mr Biden do better? The clock is ticking.

If not, the anti-China bill could displace the infrastructure bill. Mr Trump started trade wars against half the world. Mr Biden has suspended the Trump administration’s punitive tariffs upon the UK, but many Democrats are in no hurry to end Mr Trump’s trade quarrels with China. During the 2020 campaign, Mr Biden repeatedly vowed to insert “Buy American” provisions into all government procurement – upsetting not only close trading partners like Canada and Mexico, but raising shadows over all world trade. Since the global financial crisis of 2008-2009, global trade has grown more slowly than world economic output. Economists have called the 2010s the era of “slowbalisation”. Mr Biden seems in no hurry to change this, to the cost of the whole planet.

Even costlier to the planet is inaction on climate change. Over the past decade, the US has moved sharply away from burning coal. By 2022, the US will burn half as much coal as in the peak year, 2007. There are early indicators that 2018 will prove to have been the peak year for US consumption of crude oil. Mr Biden wants to hurry that transition along. But how? A cap-and-trade scheme collapsed in the Democratic-controlled Congress the last time a Democrat, Barack Obama, was in the White House. Carbon taxes are obvious targets for Republican attack. Encouraging and subsidising new green technology does not get the job done anything like fast enough. Yet if Mr Biden does nothing, he’ll rip apart a Democratic party in which the base increasingly sees the environment as the important issue once Covid-19 is overcome.

William Ewart Gladstone, who dominated 19th-century British politics into his 80s, was once mocked by a political opponent as “an old man in a hurry”. That opponent was onto something. The older Gladstone got, the faster he moved. Something similar seems to be happening with President Joe Biden, another old man in a hurry. He can count on control of Congress for only two years. He’s already crammed through a lot. More, more, more seems on the way.

David Frum is a writer at the Atlantic who was speechwriter and special assistant to former US president George W Bush

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UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
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Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

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%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
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UAE SQUAD FOR ASIAN JIU-JITSU CHAMPIONSHIP

Men’s squad: Faisal Al Ketbi, Omar Al Fadhli, Zayed Al Kathiri, Thiab Al Nuaimi, Khaled Al Shehhi, Mohamed Ali Al Suwaidi, Farraj Khaled Al Awlaqi, Muhammad Al Ameri, Mahdi Al Awlaqi, Saeed Al Qubaisi, Abdullah Al Qubaisi and Hazaa Farhan

Women's squad: Hamda Al Shekheili, Shouq Al Dhanhani, Balqis Abdullah, Sharifa Al Namani, Asma Al Hosani, Maitha Sultan, Bashayer Al Matrooshi, Maha Al Hanaei, Shamma Al Kalbani, Haya Al Jahuri, Mahra Mahfouz, Marwa Al Hosani, Tasneem Al Jahoori and Maryam Al Amri

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

Long read

Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

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

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.