Lebanese President Michel Aoun and French President Emmanuel Macron during a welcome ceremony at Beirut International airport. AFP PHOTO / HO / DALATI AND NOHRA
Lebanese President Michel Aoun and French President Emmanuel Macron during a welcome ceremony at Beirut International airport. AFP PHOTO / HO / DALATI AND NOHRA
Lebanese President Michel Aoun and French President Emmanuel Macron during a welcome ceremony at Beirut International airport. AFP PHOTO / HO / DALATI AND NOHRA
Lebanese President Michel Aoun and French President Emmanuel Macron during a welcome ceremony at Beirut International airport. AFP PHOTO / HO / DALATI AND NOHRA

A pivotal birthday for Lebanon


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The Lebanese have found themselves looking to France, their former colonial ruler, for solutions in the weeks after a devastating blast shattered much of their capital and claimed nearly 200 lives.

On Monday, on the eve of Lebanon’s centennial, French President Emmanuel Macron arrived in Beirut for a much-anticipated visit.

This visit is Mr Macron’s second in less than a month; his first was in the immediate aftermath of the August 4 blasts, caused by an unsecured stockpile of ammonium nitrate. At the time, he promised to help Lebanon find workable answers to a host of problems including the investigation into the blast, a disastrous financial crisis and a dysfunctional political system. As part of that effort, he gave Lebanese leaders until September 1 to form a “new political pact” to save the nation.

Mr Macron’s push for change was welcomed by an overwhelming majority of Lebanese. Last month, a petition even circulated demanding a new French mandate for Lebanon, garnering 60,000 signatures. Far from suggesting a colonial renaissance, however, these popular overtures to Paris rather indicate the extent to which Lebanese politicians have failed.

No political leader has accepted responsibility or even apologised for Beirut’s man-made tragedy. Nearly a month on from the blast, the cause of the fire that started it and – importantly – who exactly is responsible for the stockpiling of flammable materials for years at the port remain unknown. In the hours before Mr Macron’s arrival, political leaders scrambled to find a suitable replacement for former prime minister Hassan Diab, who resigned days after the explsion. Later that day, they settled on Mustapha Adib, a career diplomat who was soon confirmed as Mr Diab’s successor.

The fact that political leaders were forced to expedite the process is a positive development. It gives some sense that change is in the air. In Lebanon, nominating a new prime minister and forming a government can take months, or even years.

As the Lebanese have often witnessed, however, it can be the case that the more things change, the more they stay the same.

While Mr Adib has promised change and the swift formation of a new Cabinet of “experts”, his close ties to the establishment have left many Lebanese sceptical. Mr Adib was an adviser to former prime minister and billionaire businessman Najib Mikati. Protesters see his nomination as the continuation of business as usual, and have greeted Mr Macron with chants of “No to Adib”, urging the French President not to support the new Cabinet. If France is to continue to play a positive role in Lebanon, it must refrain from giving automatic legitimacy to what may become yet another failed government.

There is still hope that Lebanon can view the next 100 years with a sense of optimism as the start of a new era

International pressure exerted by allies of Lebanon, such as the US and France, must continue so that the country can come to distance itself from Hezbollah, the Iran-backed militia whose grip on Beirut has had ruinous effects on the country. International pressure is also crucial to push the new government to negotiate a deal with the International Monetary Fund. Hezbollah does not favour such an agreement, although it is the only way to save Lebanon from economic collapse and ensure the enacting of much-needed reform.

Local pressure from civil society and protesters advocating better governance from within has also been a pivotal driver of change. Peaceful protesters must be protected from violence and arbitrary detention by security forces. They are Lebanon’s future, and if the international community continues to support them, there is still hope that Lebanon can view the next 100 years with a sense of optimism as the start of a new era.

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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

The biog

Age: 32

Qualifications: Diploma in engineering from TSI Technical Institute, bachelor’s degree in accounting from Dubai’s Al Ghurair University, master’s degree in human resources from Abu Dhabi University, currently third years PHD in strategy of human resources.

Favourite mountain range: The Himalayas

Favourite experience: Two months trekking in Alaska

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Mary Beard

Profile Books and London Review of Books 

The biog

Name: Greg Heinricks

From: Alberta, western Canada

Record fish: 56kg sailfish

Member of: International Game Fish Association

Company: Arabian Divers and Sportfishing Charters

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

MATCH INFO

Uefa Champions League last 16, second leg
Liverpool (0) v Atletico Madrid (1)
Venue: Anfield
Kick-off: Thursday, March 12, midnight
Live: On beIN Sports HD

THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

TRAP

Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue

Director: M Night Shyamalan

Rating: 3/5

LIGUE 1 FIXTURES

All times UAE ( 4 GMT)

Friday
Nice v Angers (9pm)
Lille v Monaco (10.45pm)

Saturday
Montpellier v Paris Saint-Germain (7pm)
Bordeaux v Guingamp (10pm)
Caen v Amiens (10pm)
Lyon v Dijon (10pm)
Metz v Troyes (10pm)

Sunday
Saint-Etienne v Rennes (5pm)
Strasbourg v Nantes (7pm)
Marseille v Toulouse (11pm)

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
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From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

'Gold'

Director:Anthony Hayes

Stars:Zaf Efron, Anthony Hayes

Rating:3/5

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.”

Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi

Yadoo’s House Restaurant & Cafe

For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.

Golden Dallah

For the cappuccino, luqaimat and aseeda.

Al Mrzab Restaurant

For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.

Al Derwaza

For the fish hubul, regag bread, biryani and special seafood soup. 

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