Prime Minister Habib Essid may not have been the solution to Tunisia’s problems but neither was he the reason for them. Hassene Dridi / AP Photo
Prime Minister Habib Essid may not have been the solution to Tunisia’s problems but neither was he the reason for them. Hassene Dridi / AP Photo
Prime Minister Habib Essid may not have been the solution to Tunisia’s problems but neither was he the reason for them. Hassene Dridi / AP Photo
Prime Minister Habib Essid may not have been the solution to Tunisia’s problems but neither was he the reason for them. Hassene Dridi / AP Photo

Tunisia’s new direction is anything but clear


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Like an insect caught in amber, Tunisia is a country trapped in a slogan and its newest political theatre seems to be of a piece with that permanently aspirational status. On Sunday, the birthplace of the Arab Spring removed its prime minister by means of a parliamentary vote, hailing the process as a political first for the country and the region. Tunisian politicians and constitutional experts quickly chalked up another successful score in the “test of democracy” and stressed Tunisia’s importance as a role model for the Arab world.

The claims are self-regarding but true enough, at least in terms of Habib Essid’s orderly removal and the impeccable civility that marked the event. Parliamentarians lavished praise on Mr Essid, giving him a standing ovation even as they sacked him. And despite the fierce criticism of his 18-month-old government, the outgoing prime minister displayed imperturbable good humour, even praising the robust debate as a consecration of Tunisia’s nascent democracy.

So, two cheers for democracy, as E M Forster said. One because it admits variety and two because it permits criticism. The first is assured. The new prime minister, Youssef Chahed, is the seventh since the 2011 fall of dictator Zine El Abidine Ben Ali, and Beji Caid Essebsi, post-revolution Tunisia’s first democratically elected president, had less than a week to find him. There is a growing tendency to see the drama of democratic ways and means as an end in itself, however directionless and futile.

However, the vote of no confidence in Mr Essid is a mark of continuing instability rather than democratic strength six years after the Jasmine Revolution. The parliamentary rebuke to Mr Essid, a technocrat nominated to his post by Mr Essebsi’s Nidaa Tounes party, is a dismal indicator of divisions within the ruling party rather than a welcome push in a new direction. Tunisia is struggling to do several things at once – attract foreign investment, provide jobs and opportunities to young people, fight terrorism and secure its border with Libya – and it badly needs stable governance focused on reform and continuity. It’s unclear how a change of government will help at this juncture.

Mr Essid may not have been the solution to Tunisia’s problems but neither was he the reason for them. What difference might his summary dismissal make to the country’s prospects? There is little clarity other than Mr Essebsi’s declared objective that the next step is a government of national unity. He proposed the idea in June and managed to secure agreement from all the major political parties and trade unions a month later. This would be heartening if it represented a viable consensus on the agenda for government and a clear timeline for action. Instead, the deal struck between Mr Essebsi and the other players made only broad reference to themes such as fighting terrorism and corruption, increased development, youth employment and administrative reform.

It’s unclear how the unity government would work towards even these vague aspirations. The risk is that Mr Essebsi’s insistence on a united plan for governance will lead to sclerosis rather than glorious harmony around the tough decisions urgently waiting to be made. A watching world fears a period of prolonged dithering, both economically and politically, with weeks of negotiations lengthening into months of impasse.

Meanwhile, there is growing wariness about the dynastic ambitions of members of the president’s family. Earlier this year, Mr Essebsi’s son Hafedh made a controversial bid for greater prominence within the party and government, triggering accusations of cronyism and nepotism and leading to a damaging split that reduced Nidaa Tounes to second place in the legislature. Hafedh, who assumed control of the party nevertheless, has been critical of Mr Essid, adding to the impression of an ouster forced through for short-sighted and politically expedient reasons.

What might this mean for Tunisia in the long term? For now, it can take some comfort in the fact that it has kept to democratic procedures rather than allow its historic uprising to degenerate into conflict or a coup as happened elsewhere in the Arab world. But what use are democratic processes if they fail to produce the results expected by the people – namely greater investment in human capital, the promotion of competition and innovation, and the building of responsive institutions?

In Tunisia’s case, there is little democratic dividend other than the process of orderly governmental change. The new prime minister is expected to have an altered role. Ministerial portfolios will also change, as will the structure of government. But that may solve nothing, least of all Tunisia’s lengthening list of pressing problems. These include a soaring public wage bill forced on the country by its trade unions, a system of crony capitalism that prevents investment and economic growth, and pervasive corruption and onerous regulation that inhibit entrepreneurship. The World Bank’s spring economic report recorded GDP growth of just 0.8 per cent last year and the contraction or stagnation of most sectors of the economy not least chemical industries, oil refining and non-manufacturing industries. Unemployment remains high at 15 per cent. A sense of discontent hangs like a pall.

In the midst of all this, what does changing prime ministers matter, even if by a democratic parliamentary mechanism? There can never be too much democracy but an excess of democratic posturing is not the answer either.

Rashmee Roshan Lall is a writer on world affairs

On Twitter: @rashmeerl

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Benefits of first-time home buyers' scheme
  • 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
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 DETAILS

Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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Name: Dr Hassan Mohsen Elhais

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

Company profile

Name: Back to Games and Boardgame Space

Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)

Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)

Based: Dubai and Abu Dhabi 

Industry: Back to Games (retail); Boardgame Space (wholesale and distribution) 

Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space  

Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019

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Golden Shoe top five (as of March 1):

Harry Kane, Tottenham, Premier League, 24 goals, 48 points
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