Insight and opinion from The National’s editorial leadership
September 22, 2021
A recently released video by k-pop group BTS performing their song "Permission to Dance" in the UN General Assembly (UNGA) hall has garnered millions of views. It is intended to raise awareness ahead of the 76th annual meeting of UNGA, for which over 100 heads of government and state, in addition to many more officials, are gathered in New York this week. Fears over Covid-19 mean this year’s assembly has been scaled down, but it is the biggest global gathering of officials since the pandemic, as last year's UNGA was mainly virtual. Of course, the issues up for discussion are as big as ever.
Instability in the Middle East and further afield are at the forefront of the agenda and, as is often the case, risk dominating it. There are other, longer-term but nonetheless vital issues on the world’s plate. One is climate change. Keeping the environment at the top of delegates' minds is crucial. In a matter of weeks, the UK will hold the UN Climate Change Conference (Cop26), where countries are set to gather to discuss ways to achieve a zero-carbon future by 2050.
Khalifa Shaheen Al Marar, Minister of State, delivers a speech before the 76th session United Nations General Assembly. Photo: UAE Mission to the UN
Khalifa Shaheen Al Marar, Minister of State, delivers a speech before the 76th session United Nations General Assembly. Photo: UAE Mission to the UN
Yemen's Foreign Minister Ahmad Awad bin Mubarak addresses the 76th Session of the United Nations General Assembly in New York. EPA
Abdullatif bin Rashid Alzayani, minister for Foreign Affairs of Bahrain, addresses the general debate of the General Assembly’s seventy-sixth session. Photo: United Nations
Syria's foreign minister Faisal Mekdad addresses the 76th Session of the United Nations General Assembly. AP Photo
Saudi Arabia's King Salman bin Abdulaziz speaks in a prerecorded video during the United Nations General Assembly in New York. Bloomberg
Luis Abinader, the Dominican Republic's president, also speaks via live stream. Bloomberg
A sign informs United Nations employees of coronavirus protocols. AFP
Ukraine President Volodymyr Zelenskiy speaks during the scaled-back meeting. Bloomberg
Nicolas Maduro, Venezuela's president, speaks in a prerecorded video. Bloomberg
Turkish President Recep Tayyip Erdogan addresses the UN General Assembly. AP Photo
Egypt's President Abdel Fattah El Sisi sent a recorded message. AP Photo
South Korea's President Moon Jae-in and First Lady Kim Jung-sook outside the UN headquarters in New York. Reuters
Peruvian President Pedro Castillo speaks at the assembly. AP Photo
Poland's President Andrzej Duda leaves the stage after delivering his speech. Reuters
US President Joe Biden addresses the session. AP Photo
A member of the New York City Fire Department outside the UN headquarters. AP Photo
Ecuador's President Guillermo Lasso speaks during the meeting. Reuters
Bulgaria's President Rumen Radev addresses world leaders by video. Reuters
Qatari ruler Sheikh Tamim addresses the session. AP Photo
Streets near the UN headquarters in New York were closed ahead of the meeting. AFP
Maldives President Ibrahim Mohamed Solih gets ready to address the annual UN General Assembly. AP Photo
Xi Jinping, the Chinese president, addresses the UN General Assembly. Bloomberg
Brazil's President Jair Bolsonaro speaks to world leaders. AP Photo
Delegates listen to speeches. AP Photo
President Recep Tayyip Erdogan announces Turkey's willingness to ratify the Paris Agreement on climate change. EPA
Iranian President Ebrahim Raisi attended the session by video from Tehran. AFP
UN Secretary General Antonio Guterres speaks. AFP
US President Joe Biden and UN Secretary General Antonio Guterres meet at the UN General Assembly. AFP
US Secretary of State Antony Blinken meets British Foreign Secretary Liz Truss. AP
UK Prime Minister Boris Johnson greets Amazon founder Jeff Bezos and his girlfriend, Lauren Sanchez. AP
China's President Xi Jinping addresses the UN General Assembly session in a recorded video. AP
UK Prime Minister Boris Johnson arrives to meet Amazon founder Jeff Bezos. AP
Brazil's President Jair Bolsonaro, centre, walks outside his hotel while in New York for the UN General Assembly. Reuters
Protesters block 2nd Avenue near the UN's headquarters, calling on US President Joe Biden and the international community to help provide wider access to Covid-19 vaccines. EPA
UN staff remove British flags from a podium after UK Prime Minister Boris Johnson addressed the media at the UN General Assembly. AP
President of South Korea, Moon Jae-in, speaks during the General Debate in the UN General Assembly Hall. EPA
Members of South Korean K-pop band BTS appear at a Sustainable Development Goals meeting during the UN General Assembly. AP
UN Secretary General Antonio Guterres speaks at a Sustainable Development Goals event. Reuters
In an interview with The National, President of Cop26 Alok Sharma said that climate change is “the biggest security risk for the world”. And yet, as British Prime Minister Boris Johnson recently expressed, determination to tackle the issue is flagging among countries with the biggest responsibility to do so. "It is the biggest economies in the world that are causing the problem, while the smallest suffer the worst consequences. And while progress is being made all over the world, the gulf between what has been promised, what is actually being delivered remains vast," Mr Johnson said.
Many of the countries with most to lose from international disengagement are smaller ones, unable to forge ahead on climate action without the initiative of larger economies. The Middle East's location already makes it an early flashpoint for many different environmental crises, including decreasing soil quality – a risk to food security – water shortages and rising summer temperatures. Of the 17 most water-stressed countries in the world, 11 are in the Mena region. It is also warming at twice the global average rate.
Similar challenges extend across the developing world. We will have to wait and see if great powers listen –including those that call publicly for dramatic change.
Geopolitical tensions among powerful countries will not help to create the necessary atmosphere of collaboration. An ongoing dispute over Australia's plans to acquire nuclear submarine technology with the help of the US and UK has destabilised further the West's relations with China. It is even driving a significant wedge between France and its old anglophone allies. It is, however, too early to be sure that this year's climate progress is well and truly scuppered. Countries should remember, as Mr Sharma stressed, that climate change, with its huge ramifications, ultimately trumps all strategic interests, even military ones.
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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.”
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Power: Combined output 920hp
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Transmission: 8-speed dual-clutch automatic
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On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
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On sale: Now
Price: From Dh149,900
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 v Zimbabwe A, 50 over series
Fixtures
Thursday, Nov 9 - 9.30am, ICC Academy, Dubai
Saturday, Nov 11 – 9.30am, ICC Academy, Dubai
Monday, Nov 13 – 2pm, Dubai International Stadium
Thursday, Nov 16 – 2pm, ICC Academy, Dubai
Saturday, Nov 18 – 9.30am, ICC Academy, Dubai
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood. Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues. Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity. Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
