Turkish President Recep Tayyip Erdogan with Qatar's Emir Sheikh Tamim in Doha on Otober 7, 2020. AFP / Turkish Presidential Press Service
Turkish President Recep Tayyip Erdogan with Qatar's Emir Sheikh Tamim in Doha on Otober 7, 2020. AFP / Turkish Presidential Press Service
Turkish President Recep Tayyip Erdogan with Qatar's Emir Sheikh Tamim in Doha on Otober 7, 2020. AFP / Turkish Presidential Press Service
Turkish President Recep Tayyip Erdogan with Qatar's Emir Sheikh Tamim in Doha on Otober 7, 2020. AFP / Turkish Presidential Press Service

Turkey and Qatar's brotherhood of the boycotted


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Last week, Turkey finally responded to the two-year-old, semi-official Saudi embargo on its imports, investment and tourism. “We just laugh at some countries’ boycotts and move on,” Numan Kurtulmus, deputy chair of the ruling Justice and Development Party (AKP), said in an interview.

The laughter in Ankara must be increasingly nervous these days, as the boycott now stretches far beyond the Kingdom and is starting to bite at the worst possible time.

Turkish contractors in the Middle East have lost an estimated $3 billion in the past year, the head of the Turkish Contractors Union noted last week. Fashion retailers Mango and Zara are looking to move production out of Turkey because Saudis and other Gulf citizens are refusing to buy clothes made there.

Qatar's Emir welcomed the Turkish President with open arms in Doha earlier this month. AFP / Turkish Presidential Press Service
Qatar's Emir welcomed the Turkish President with open arms in Doha earlier this month. AFP / Turkish Presidential Press Service

In Saudi markets, more goods from Egypt, Morocco and Greece are popping up as Turkish items disappear. Earlier this month officials in Rabat approved an amendment to the Morocco-Turkey Free Trade Agreement that increased tariffs up to 90 per cent on 1200 Turkish goods. Meanwhile, Armenia and Armenians in the diaspora have launched their own "boycott Turkey" campaigns in response to Ankara's military support for Azerbaijan in the South Caucasus.

None of this is doing Turkey's troubled economy any favors. Foreign arrivals fell nearly 75 per cent in the first 8 months of the year. Emre Deliveli, an economist who owns a hotel on the Aegean coast, says his resort has brought in about 30 per cent of last year’s revenue. Last week, Ankara announced a 10bn lira rescue package for the tourism industry, but Mr Deliveli says the interest rates on the loans, up to 14.5 per cent, are too high to be of much help. The Turkish lira is on its worst streak in more than 20 years, regularly hitting record lows against the dollar, and Covid-19 cases are again on the rise, which may explain why economists are predicting an economic contraction of 3.4 per cent in Turkey this year.

Enter Qatar. Turkish President Recep Tayyip Erdogan visited Emir Tamim bin Hamad Al Thani in Doha a fortnight ago, shortly after a Qatari official announced the imminent expansion of bilateral co-operation. Also this month, a pro-government Turkish columnist quoted Sheikh Tamim as saying he views Mr Erdogan as a father to whom he owes undying loyalty, days after Turkey inaugurated a training warship built especially for Qatar's navy. "Both countries act as one heart, one fist in close co-operation and coordination on regional issues," Turkish Defence Minister Hulusi Akar said at the event.

That co-operation traces back to June 2017, when most Gulf states and Egypt severed trade and transport links with Qatar. Turkey swooped in to provide food, supplies and military support. Doha has since been returning the favour. When Turkey faced a sharp economic downturn in 2018, Qatar fast-tracked a $3bn currency swap and $15bn in investment. Trade between the two leapt 85 per cent that year. More recently, Turkey has expanded its military footprint, opening a new base outside Doha last year that hosts 5,000 Turkish troops.

“The Turkish military presence in the Arab Gulf is an emergency,” the UAE's Minister of State for Foreign Affairs, Dr Anwar Gargash, said last week.

It's one of a handful of pressing issues between the rivals. In northeastern Syria, Turkey-backed rebels launched a series of attacks on Kurdish positions this week. Any re-intensification of violence in northeast Syria is unlikely to calm regional waters. As I have written in these pages previously, Egypt last month urged its allies to join forces to counter Turkish aggression, particularly in Syria.

Turkey is a main backer of the Tripoli-based GNA in the Libyan civil war. EPA
Turkey is a main backer of the Tripoli-based GNA in the Libyan civil war. EPA
Sheikh Tamim says he views Erdogan as a father

In Libya, where Turkey and Qatar back the Tripoli-based Government of National Accord, Mr Erdogan last week questioned the credibility of the latest ceasefire, suggesting that the civil war there is set to continue for some time. Sudan's allies in the Gulf have sought to counter any Turkish influence there for years, and the recent decision of the transitional military council in Khartoum to normalise relations with Israel suggests that those efforts are proving successful.

Turkey has developed a formidable domestic defence sector over the past decade, and has displayed its weapon-making prowess in Libya and Syria. While it signed a significant defence co-operation deal with Ukraine this month, however, Turkey’s arms exports took a hit this year, falling more than 26 per cent through August as a result of embargoes by European states. And Ankara's position as a puchaser and key figure in the supply chain for US F-35 fighter jets is now in doubt in the wake of its purchase of Russian S-400 missile defences.

Turkey's procurement of the S-400 missile defence system from Russia has upset its Nato allies. AP
Turkey's procurement of the S-400 missile defence system from Russia has upset its Nato allies. AP

Ongoing competition between regional powers in the Middle East and North Africa has taken on greater urgency as US President Donald Trump has drawn down American commitments there. That may or may not continue in the months ahead. But regardless of who wins next week’s US presidential election, Washington in 2021 seems pre-disposed to continue its harsh stance toward Turkey because of the latter's positions on the Muslim Brotherhood and Israel, in addition to its defence procurement from Russia and aggressive moves in the eastern Mediterranean.

In a discussion a year ago on the Turkey-Qatar alliance, King's College lecturer David Roberts explained to me that geography would win out in the end and that the Gulf states would find a way to resolve the crisis, sharply reducing the need for close Turkey-Qatar ties. Yet as 2020 draws to a close, any resolution seems far away. The Turkey-Qatar embrace grows ever tighter, deepening their isolation – and possibly giving their rivals the last laugh.

David Lepeska is a veteran journalist who has been covering Turkey for the past decade

Gran Gala del Calcio 2019 winners

Best Player: Cristiano Ronaldo (Juventus)
Best Coach: Gian Piero Gasperini (Atalanta)
Best Referee: Gianluca Rocchi
Best Goal: Fabio Quagliarella (Sampdoria vs Napoli)
Best Team: Atalanta​​​​​​​
Best XI: Samir Handanovic (Inter); Aleksandar Kolarov (Roma), Giorgio Chiellini (Juventus), Kalidou Koulibaly (Napoli), Joao Cancelo (Juventus*); Miralem Pjanic (Juventus), Josip Ilicic (Atalanta), Nicolo Barella (Cagliari*); Fabio Quagliarella (Sampdoria), Cristiano Ronaldo (Juventus), Duvan Zapata (Atalanta)
Serie B Best Young Player: Sandro Tonali (Brescia)
Best Women’s Goal: Thaisa (Milan vs Juventus)
Best Women’s Player: Manuela Giugliano (Milan)
Best Women’s XI: Laura Giuliani (Milan); Alia Guagni (Fiorentina), Sara Gama (Juventus), Cecilia Salvai (Juventus), Elisa Bartoli (Roma); Aurora Galli (Juventus), Manuela Giugliano (Roma), Valentina Cernoia (Juventus); Valentina Giacinti (Milan), Ilaria Mauro (Fiorentina), Barbara Bonansea (Juventus)

COMPANY%20PROFILE
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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

MATCH INFO

Final: England v South Africa, Saturday, 1pm

The Bio

Favourite place in UAE: Al Rams pearling village

What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft

Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans

Best time to swim in the sea: When there is enough light to see beneath the surface

Why seagrass matters
  • Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
  • Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
  • Biodiversity: Support species like sea turtles, dugongs, and seabirds
  • Coastal protection: Reduce erosion and improve water quality
MATCH INFO

Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

UAE currency: the story behind the money in your pockets
Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

The%20specs
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%20Ramez%20Gab%20Min%20El%20Akher
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What is an ETF?

An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.

There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.

The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.

There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.

While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash. 

What is graphene?

Graphene is extracted from graphite and is made up of pure carbon.

It is 200 times more resistant than steel and five times lighter than aluminum.

It conducts electricity better than any other material at room temperature.

It is thought that graphene could boost the useful life of batteries by 10 per cent.

Graphene can also detect cancer cells in the early stages of the disease.

The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.

UAE currency: the story behind the money in your pockets
In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

The specs

Engine: 2.0-litre 4-cyl

Power: 153hp at 6,000rpm

Torque: 200Nm at 4,000rpm

Transmission: 6-speed auto

Price: Dh99,000

On sale: now

LA LIGA FIXTURES

Saturday  (UAE kick-off times)

Leganes v Getafe (12am)​​​​​​​​​​​​​​

Levante v Alaves (4pm)

Real Madrid v Sevilla (7pm)

Osasuna v Valladolid (9.30pm)

Sunday

Eibar v Atletico Madrid (12am)

Mallorca v Valencia (3pm)

Real Betis v Real Sociedad (5pm)

Villarreal v Espanyol (7pm)

Athletic Bilbao v Celta Vigo (9.30pm)

Monday

Barcelona v Granada (12am)

Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt

Date started: January 2017, app launched November 2017

Based: Dubai, UAE

Sector: Private/Retail/Leisure

Number of Employees: 18 employees, including full-time and flexible workers

Funding stage and size: Seed round completed Q4 2019 - $1m raised

Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels

Company profile

Company: Eighty6 

Date started: October 2021 

Founders: Abdul Kader Saadi and Anwar Nusseibeh 

Based: Dubai, UAE 

Sector: Hospitality 

Size: 25 employees 

Funding stage: Pre-series A 

Investment: $1 million 

Investors: Seed funding, angel investors  

'My Son'

Director: Christian Carion

Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis

Rating: 2/5

Masters%20of%20the%20Air
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Russia's Muslim Heartlands

Dominic Rubin, Oxford

Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

ZIMBABWE V UAE, ODI SERIES

All matches at the Harare Sports Club:

1st ODI, Wednesday - Zimbabwe won by 7 wickets

2nd ODI, Friday, April 12

3rd ODI, Sunday, April 14

4th ODI, Tuesday, April 16

UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding

Profile of MoneyFellows

Founder: Ahmed Wadi

Launched: 2016

Employees: 76

Financing stage: Series A ($4 million)

Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund

Bookshops: A Reader's History by Jorge Carrión (translated from the Spanish by Peter Bush),
Biblioasis

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.