The messages between leading US figures, exchanged in the hours leading up to American air strikes against the Houthi rebel group in Yemen, contained sensitive intelligence. Getty
The messages between leading US figures, exchanged in the hours leading up to American air strikes against the Houthi rebel group in Yemen, contained sensitive intelligence. Getty
The messages between leading US figures, exchanged in the hours leading up to American air strikes against the Houthi rebel group in Yemen, contained sensitive intelligence. Getty
The messages between leading US figures, exchanged in the hours leading up to American air strikes against the Houthi rebel group in Yemen, contained sensitive intelligence. Getty


What Signalgate says about America's attitude to Yemen


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  • Arabic

March 25, 2025

This week’s news that some of the most senior figures in America’s national security establishment were found to be using an online group chat to discuss military operations in another country has stunned many in Washington DC, as well as observers overseas. The messages, exchanged in the hours leading up to US air strikes against the Houthi rebel group in Yemen, contained sensitive intelligence. An American journalist, Jeffrey Goldberg, was "inadvertently" added to the group chat by one of the participants, apparently without anyone noticing.

During the exchange, Pete Hegseth, America’s Secretary of Defence, apparently told US Vice President JD Vance: “I think messaging is going to be tough no matter what – nobody knows who the Houthis are”. While the details of having the Signal messaging group in themselves are quite interesting, this particular message warrants reflection.

Houthi supporters in Sanaa take part in a funeral procession for a comrade who was reportedly killed in a recent US airstrike. The militants' use of child soldiers, their repression of domestic dissent and inability to govern effectively have contributed to the misery being experienced by millions of ordinary Yemenis. AP
Houthi supporters in Sanaa take part in a funeral procession for a comrade who was reportedly killed in a recent US airstrike. The militants' use of child soldiers, their repression of domestic dissent and inability to govern effectively have contributed to the misery being experienced by millions of ordinary Yemenis. AP

That “nobody knows” who the Houthis are, more than a decade after the Iran-backed militants’ violent rise to power and their direct threat to American interests, is a worrying sign for those who want to see peace in Yemen as well as an end to the group’s destabilising attacks in the Red Sea and its threat to the rest of the Arabian Peninsula. That such an admission was made amid expectations that the US is preparing to send a second nuclear-powered aircraft carrier to the Red Sea suggests a somewhat cavalier attitude among some American policymakers towards what is a highly combustible situation.

Yemen’s neighbours – and indeed the country’s long-suffering civilian population – have long understood the nature of this radical group. Over the years, the militants have attacked their Gulf neighbours, including the UAE in January 2022 and Saudi Arabia three months later. The rebels’ campaign against international shipping since October 7, 2023 – ostensibly in support of the Palestinians – has earned the group nearly $2.2 billion a year in illegal fees extorted from several shipping agencies, according to evidence heard by the UN Security Council last October. Their drone and missile attacks on Israel have drawn an overwhelming response in the form of retaliatory air strikes.

Yemen’s neighbours – and indeed the country’s long-suffering civilian population – have long understood the nature of this radical group

The Houthis’ dubious reputation deserves to be better known internationally than it currently is. Their extensive use of child soldiers, violent repression of domestic dissent and dangerous inability to govern effectively have contributed to the misery being experienced by millions of ordinary Yemenis, who must endure the world’s worst humanitarian crisis. Self-described anti-imperialists may tout such militias as “resistance groups” but in reality, the Houthis remain autocratic militarists who are wedded to an extreme ideology, carry out attacks that bring more suffering to their people and destabilise an already destabilised area.

Better international co-operation to not only frustrate the Houthis militarily but renew humanitarian efforts to support Yemen’s people and work towards a just political settlement depend upon a well-articulated and well-publicised understanding of just who the militants are. Members of the Arab Coalition that took action to try to restore Yemen’s internationally-recognised government were clear about how dangerous and extreme the Houthi organisation is. It would be better if more countries also understood – and explained – what they are dealing with.

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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 recommendations
  • Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
  • Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
  • Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
  • More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
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Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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

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Updated: March 25, 2025, 1:49 PM