Leisurewear is an alien import on the British political scene but one man has used it as armoury throughout 2020.
Prepping for the ruling Conservative party conference speech last week, Rishi Sunak posted on Instagram a picture of himself stood at the lectern while wearing grey joggers. Chic as the sweatpants were, I doubt that any other Conservative frontline politico would do that in public.
Mr Sunak's has been a meteoric success in a year filled with dying stars crashing to Earth. His Indian-born parents arrived in Britain, built a business and their bright son managed to go to Winchester School, one of the world’s oldest, on a scholarship.
Today, the fate of the British economy rests on his slender shoulders. The Covid-19 infection rate does not fall in his purview, so Mr Sunak has sought to shape the economic response with his own fresh personal touches.
Early in the crisis when Prime Minister Boris Johnson was hospitalised with Covid-19, Mr Sunak posted the first of the hoodie pictures wishing his leader back to health.
Ever since, clothing has sent signals.
Few would have picked a slim man on "the Tube", London's underground rail network, as the holder of the UK's purse strings in early September. He was wearing a face mask, unusual at the time in London when it was not compulsory on public transport. An hour later, he was at an event wearing a custom-made hoodie to launch the Kickstart jobs retraining scheme to respond to the pandemic.
Rarely has a politician made such a big impression with the public in such a short period of time.
Mr Sunak pitched into the job, which involves living in No 11 Downing St next to the boss, in February. Now 40, he married Akshata Murthy in 2009 after they met at Stanford University. She is the daughter of a legend of Indian business, Narayana Murthy, who is co-founder of Infosys, an IT company.
The Covid-19 crisis is nowhere near a turning point. Having pursued a lockdown and then allowed a social-focused reopening that neglected clear guidance on the workplace, the British government presides over an economy that remains almost 10 per cent smaller than it was in February.
As Chancellor of the Exchequer, Mr Sunak has not attracted opprobrium but, instead, has zoomed to the top of the confidence charts in public polling.
The MBA graduate has sought to maintain confidence that recovery is still in touch. Yet, he also commits to strong public finances and warns of "hard choices". "This doesn't mean a horror show of tax rises with no end in sight," he told the party conference when he appeared at the event in sober dark blue suit. "But it does mean treating the British people with respect, being honest about the challenges and showing them how we plan to correct our public finances."
Mobilising the power of the English language has been a key tenet of his work. Schemes such as the Kickstart training programme have been presented with pinpoint sharpness. A drive to ensure that people emerged from the lockdown confident about social interaction was brilliantly packaged.
More than 100 million meals were claimed through the government’s dining discount programme. Reuters
The Eat Out to Help Out scheme picked up half the food bills for meals on Monday-Wednesday and was a shot in the arm for hospitality. On Friday, he announced a Winter Economic Plan to withstand the rolling shutdown under way as infections grow.
For those with a dystopian view of the world, the pandemic can sometimes seem like branding exercise. But Mr Sunak’s efforts are far more accessible and encouraging than the government’s overall social distancing and public health slogans.
Beyond the words, Mr Sunak has also proven a savvy operator in how to mobilise the government machine. One former senior ambassador told a meeting last week that there was no coincidence that Mr Sunak’s high poll numbers came after he established a good relationship with his officials.
William Hague pointed out that Rishi Sunak was a model for the type of talented cabinet minister that Mr Johnson needed around him
The Treasury department is the undeniable gorilla in the British government machine. It not only raises taxes but expects other departments to justify how the funds are spent. While there is resistance from other departments – known to insiders as "consent and evade", or knowing to quietly disavow what is agreed upon – it is generally true that Treasury rules prevail.
A well-liked minister who is not at war with his officials draws dividends from a smooth functioning machine behind his every move. William Hague, the former foreign secretary and a sage observer of the Conservative party, last week made a comment on Mr Sunak, who followed in his footsteps by winning the very safe House of Commons seat of Richmond in Yorkshire.
Mr Hague pointed out that Mr Sunak was a model for the type of talented cabinet minister that Mr Johnson needed around him. “The government needs more Rishi Sunaks,” he said. “It needs to look in a couple of years like it’s a team of brilliant ministers directing hard-working advisers.”
As for the man himself, Mr Sunak was definite last week that he did not want to move on the top job. "God, no. Definitely not."
Damien McElroy is the London bureau chief of The National
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Priority access to new homes from participating developers
Discounts on sales price of off-plan units
Flexible payment plans from developers
Mortgages with better interest rates, faster approval times and reduced fees
DLD registration fee can be paid through banks or credit cards at zero interest rates
Company Profile
Name: Thndr Started: 2019 Co-founders: Ahmad Hammouda and Seif Amr Sector: FinTech Headquarters: Egypt UAE base: Hub71, Abu Dhabi Current number of staff: More than 150 Funds raised: $22 million
THE SPECS
Aston Martin Rapide AMR
Engine: 6.0-litre V12
Transmission: Touchtronic III eight-speed automatic
Power: 595bhp
Torque: 630Nm
Price: Dh999,563
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
UAE currency: the story behind the money in your pockets
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
UAE currency: the story behind the money in your pockets
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Dubai Creek Open in numbers
The Dubai Creek Open is the 10th tournament on this year's Mena Tour
It is the first of five events before the season-concluding Mena Tour Championship
This week's field comprises 120 players, 21 of which are amateurs
15 previous Mena Tour winners are competing at Dubai Creek Golf and Yacht Club
First Person
Richard Flanagan
Chatto & Windus
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Who has been sanctioned?
Daniella Weiss and Nachala Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
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.”
