US President Donald Trump at an election rally in Arizona in February. Change is under way around the world even as nations keep an eye on the US election in November. AFP
US President Donald Trump at an election rally in Arizona in February. Change is under way around the world even as nations keep an eye on the US election in November. AFP
US President Donald Trump at an election rally in Arizona in February. Change is under way around the world even as nations keep an eye on the US election in November. AFP
Whether Trump wins the US election or Biden, change is afoot around the world
Amidst geopolitical uncertainty until November, people are turning to the arts, culture and education to find solutions to humankind's more profound problems
America's inadequate response to the coronavirus pandemic may have shocked the rest of the world and perhaps even dimmed the allure of its model, at least in the minds of some. The killing of an African-American man, George Floyd, in police custody exposed the bitter political divisions that already exist in the country. Furthermore, the pandemic left economic devastation in its wake.
There might be a feeling of schadenfreude among some critics of the US, while many others will be pondering on the implications of the country’s current problems for the international community.
The world is, therefore, keeping an eye on the presidential election in November. Some observers believe that Donald Trump will be re-elected, even though polling numbers show Mr Trump lagging behind his opponent, Joe Biden. The President could enjoy a resurgence in September and October based on two factors: probable recovery of the US economy and Democratic rival Mr Biden's weaknesses as a candidate.
Anticipating a shift in the wind, many Democrats are hoping that by naming a female African-American running mate, Mr Biden would secure the minority vote. They will also be intent on underscoring the dysfunctional state of the country under Mr Trump.
In this June 11, 2020, photo, Democratic presidential candidate Joe Biden speaks during a roundtable in Philadelphia. Mr Biden’s search for a running mate is under way. AP Photo
This race is one that is being closely watched around the world, especially by the country's supposed adversaries.
I am given to understand that Russia would prefer to have Mr Trump back in the White House because Moscow enjoys fair to middling relations with the current administration. There might also be concerns that Mr Biden would be tougher on Russia, just as Hillary Clinton, fellow Democrat and 2016 presidential candidate, was expected to be had she won.
China is holding its cards close to its chest. It is not clear which candidate Beijing prefers, even though Mr Trump's rhetoric regarding the superpower has been confrontational.
For its part, Iran is hoping for Mr Trump's defeat, given his decision to impose, and even expand, sanctions on Tehran. Recent punitive measures targeting more than 50 oil tankers, especially those operating between Venezuela and Iran, have led to discussions among the regime's generals about launching another "tanker war", like the one we witnessed last year.
All this could translate to even greater unrest in many parts of the world until the election is over, especially because resolutions to many an international conflict will be put on hold until the end of the year. The bigger problem is that in the intervening period, we could see great instability not just on the geopolitical and economic fronts but also in the personal lives of many.
In such circumstances, it has come to my notice that individuals around the world are turning to arts, culture and education to restore balance to their lives. But how do politics, economics and culture overlap in the human experience even as individuals seek to find reassurance in a world struggling to deal with disease, unemployment and unrest?
The sixth e-policy circle of the Beirut Institute Summit in Abu Dhabi tried to tackle this question in a session titled Stability redefined: Who authors the future?
Prof Mikhail Piotrovsky, director of the Saint Petersburg Hermitage Museum, said the world is in a state of division – a trend that would continue beyond the pandemic as nations retreat in order to tend to their wounds, while people distance themselves from one another. Prof Piotrovsky argued that culture might already offer a "cure" to the effects of such isolation.
Before the Covid-19 outbreak, for example, the Hermitage Museum used to receive five million visitors every year. In the space of just two months since the outbreak, the number swelled up to 34 million – all of them virtual. Another example is that of Zayed University in Abu Dhabi, which has remotely delivered lessons to 7,000 students even as efforts are under way to develop its courses to suit a post-coronavirus world.
These trends are encouraging because it shows that people and institutions are thinking creatively and, in the process, trying to reinvent themselves.
Of course, it is also true that there is a yearning to return to normality. To be sure, some things will never change. As pointed out by Noura Al Kaabi, UAE’s Minister of Culture and Knowledge Development, humans will never lose the urge to use their five senses and to keep in touch with their surroundings. But the question that arises is whether we will go back to our flawed ways of living as well. Lebanese filmmaker Nadine Labaki said we should not miss the opportunity to reform existing systems many of which have been built on the foundations of corruption, greed, over-consumption and disregard for nature. This is, perhaps, where our politics will play an important role.
Artists perform in front of screens showing audience via the Zoom application during the first six-hour online music festival at a studio in Bangkok earlier this month. Reuters
French Education Minister Najat Vallaud-Belkacem expressed hope that our awareness of the fragility of those systems would lead us to capitalise on the solidarity that we have witnessed during these difficult times, and turn this experience into something positive over the long term.
It is fascinating, therefore, to imagine what the world might look like in the distant future. But one thing is for sure: changes are already under way in how we live our lives – whatever may be the result of the US election, although that outcome could perhaps have a bearing on the pace and direction of these changes.
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute
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
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
Engine: Direct injection 4-cylinder 1.4-litre Power: 150hp Torque: 250Nm Price: From Dh139,000 On sale: Now
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
The rules on fostering in the UAE
A foster couple or family must:
be Muslim, Emirati and be residing in the UAE
not be younger than 25 years old
not have been convicted of offences or crimes involving moral turpitude
be free of infectious diseases or psychological and mental disorders
have the ability to support its members and the foster child financially
undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The studios taking part (so far)
Punch
Vogue Fitness
Sweat
Bodytree Studio
The Hot House
The Room
Inspire Sports (Ladies Only)
Cryo
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.”
Key facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills