The UK’s global influence will be diminished if it chooses to disengage from the EU, says Stephen Blackwell. Niklas Halle'n / AFP
The UK’s global influence will be diminished if it chooses to disengage from the EU, says Stephen Blackwell. Niklas Halle'n / AFP
The UK’s global influence will be diminished if it chooses to disengage from the EU, says Stephen Blackwell. Niklas Halle'n / AFP
The UK’s global influence will be diminished if it chooses to disengage from the EU, says Stephen Blackwell. Niklas Halle'n / AFP

It’s not just Britain who will lose if it leaves the European Union


  • English
  • Arabic

With Britain’s referendum on European Union membership only a few days away, opinion polls suggest the vote is too close to call. Aside from the intense debate over the political and economic merits of the leave case, a “Brexit” would also have a significant impact on Britain’s contribution to maintaining international security. Although the legacy of empire and worldwide interests are an integral part of the country’s self-image, the UK’s global influence will be diminished if it chooses to disengage from the EU.

This would be particularly evident in the Middle East. Through trade, diplomacy and military intervention, Britain has been heavily involved in the region since the collapse of the Ottoman Empire after the First World War. London’s ongoing commitment to the security of the Arabian Gulf is demonstrated by its commitment to build a new naval base in Bahrain, which could provide support to the two new aircraft carriers that will be available for deployment in the Indian Ocean and elsewhere after 2021.

After the failure of the EU to effectively respond to the Iraqi invasion of Kuwait in 1991, a Belgian government minister described the Union as “an economic giant, a political dwarf and a military worm”. Much has changed since then, not least due to an active British role in leading military operations and post-conflict stabilisation work. To take one example, the UK and other EU members are helping to stabilise Somalia through anti-piracy operations, training military and police forces, and funds for an African Union peacekeeping force.

More important than providing military aid, London has also exerted effective influence in the region through concerted diplomatic action with its EU partners. In 2003, Britain, France and Germany took the lead in initiating diplomatic contacts to resolve the dispute over the Iranian nuclear programme, a process that was eventually expanded to include the US, Russia and China as the P5+1 powers negotiating with Tehran.

Economic power rather than military threats explain why the European powers were able to play a key role in the deal eventually reached with Iran in 2015. The EU economy is worth approximately $18 trillion (Dh66tn)and constitutes nearly a quarter of the world’s nominal GDP. EU sanctions and Iran’s exclusion from the “Swift” banking system provided significant inducements to the Tehran regime to seek a diplomatic compromise.

It is hard to see Britain exerting the same kind of global diplomatic clout if the country decides to isolate itself from Europe. In the event of a decision to leave, Britain would, of course, continue to contribute to western security cooperation through Nato. But this would be scant compensation, given that military power can only be effective if supported by economic strength along with the acceptance that the international system must be underpinned by agreed rules if conflicts are to be avoided.

The EU has played a leading role in the creation and observance of a range of international initiatives including the International Criminal Court, the Comprehensive Test Ban Treaty and the UN Convention on the Law of the Sea. Indeed, the very concept of the western alliance assumes a community of states based on the principles of liberalism, rights and the rule of law. However, although ascendant in the aftermath of the Soviet Union’s collapse, the western system of values was first undermined by the US-led invasion of Iraq in 2003 and then severely damaged by the fallout from the 2008 global financial crisis.

The emergence of a multipolar world has long been forecast, and several emerging powers, seeking dominance in their regions and fearful of what they see as the corrupting influence of liberalism and multilateralism, will hope to see Nato and the EU weaken and fragment. Undermining these alliances is a key strategic objective of the Russian regime led by Vladimir Putin. In the Far East, the Beijing government’s airfield building on disputed islets in the South China Sea has unnerved US allies such as Malaysia, the Philippines and Taiwan and signals, potentially, a direct challenge to Washington itself.

In view of these emerging challenges, it is no surprise that a host of leaders, including Barack Obama, have expressed dismay at the prospect of Brexit. A British decision to leave the EU would suggest that the western alliance is losing the will to cooperate in promoting its values and protecting its interests. After the unhappy experience of recent interventions in Iraq, Afghanistan and Libya, increased discord among Nato and EU members could reduce their willingness to cooperate on urgent regional problems including ISIL, the Syrian civil war and the instability in Libya and Yemen.

European Council president Donald Tusk recently warned that Britain’s departure from Europe “could be the beginning of the destruction of not only the EU but also western political civilisation in its entirety”.

Brexit would undermine both the EU as one of the pillars of the international system and the notion of a world order based on western values. The likely result will be greater scepticism about the value of multilateralism and an increased emphasis on power as the ultimate arbiter in international affairs, with obvious implications for intensifying regional rivalries and potential future conflicts.

Stephen Blackwell is an inter­national politics and security ­analyst

The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.

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

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

THE%20HOLDOVERS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EAlexander%20Payne%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Paul%20Giamatti%2C%20Da'Vine%20Joy%20Randolph%2C%20Dominic%20Sessa%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204.5%2F5%3C%2Fp%3E%0A
GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

Director: Athale

Rating: 4/5

Teams

Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq

Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi

Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag

Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC

Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC

Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium

Format 10 overs per side, matches last for 90 minutes

Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals

If you go

The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.

The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.

RACE CARD

6.30pm Mazrat Al Ruwayah – Group 2 (PA) $36,000 (Dirt) 1,600m

7.05pm Handicap (TB) $68,000 (Turf) 2,410m

7.40pm Meydan Trophy – Conditions (TB) $50,000 (T) 1,900m

8.15pm Al Maktoum Challenge Round 2 - Group 2 (TB) $293,000 (D) 1,900m

8.50pm Al Rashidiya – Group 2 (TB) $163,000 (T) 1,800m

9.25pm Handicap (TB) $65,000 (T) 1,000m

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”.

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

Tips for taking the metro

- set out well ahead of time

- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines

- enter the right cabin. The train may be too busy to move between carriages once you're on

- don't carry too much luggage and tuck it under a seat to make room for fellow passengers

Dhadak

Director: Shashank Khaitan

Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana

Stars: 3

Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)

Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
Sarina Wiegman (England)

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.