The symbolism could not have been clearer. Gathered together in a castle that had stood for 500 years, the Cabinet declared its willingness to build a foundation for the country that would last for hundreds of years.
It was symbolic of two things that the country remembers this National Day: the past and the legacy of Emirati forefathers, and the vision and ambition of this generation.
Both were embodied in the person of the founding father, Sheikh Zayed, who had the vision and ambition to bring together seven emirates into one nation, while also recalling and building on the legacy of those who went before him. That is a vision and a legacy worth recalling.
Next year, 2015, will be a year of innovation. Already, in a few short decades, the UAE has gone from being a small, proud country on the Arabian Gulf, to a world leader, shaping events across the world and even – as the Vice President Sheikh Mohammed bin Rashid made clear – preparing to make its mark on space.
Innovation, the country’s leadership made clear in remarks yesterday, comes in many forms. In his National Day statement, the Crown Prince of Abu Dhabi, Sheikh Mohammed bin Zayed, spoke of the need for the country to continue its “search for energy alternatives through supporting scientific innovations and research projects”. His views were echoed by the Vice President, who celebrated the nation’s “sons and daughters” who qualified in nuclear science and other advanced technologies, and promised the country would “prepare and equip our generations” to contribute to a technological future.
But Sheikh Mohammed bin Rashid also gave prominence to a “happiness” index that ranked the UAE as the happiest country in the Arab world. This is the second aspect of innovation, making sure that the technology, whether created here or imported, works in the service of the people, and not merely the other way around.
It is particularly important today to reflect on the “Emirati model”, in a region beset by problems, by conflicts and by tensions. Even countries blessed with natural resources, in both our region and elsewhere, have not been able to avoid the curses of instability and tensions with neighbours. The “Emirati model” is not merely about using wealth and resources wisely. It is also about allowing the flourishing of its citizens.
This year, Major Mariam Al Mansouri, the UAE’s first female fighter pilot, received wide acclaim when it was revealed she was leading the UAE’s mission against ISIL targets. Maj Al Mansouri is a symbol of the changing reality of women in the Middle East and the opportunity to flourish in the UAE. No country in the region offers such opportunity to its female citizens and the results speak for themselves: the UAE has women at the top of government, business and the arts. They are literally high-fliers, bombing the warped ideologies of ISIL.
That message has been conveyed quietly through actions at home and institutions such as the UN. But Maj Al Mansouri’s work was a powerful way of demonstrating the UAE’s commitment to gender and it resonated around the world. Taking to the skies, after all, requires a firm foundation at home on the ground.
Internationally, as the President, Sheikh Khalifa bin Zayed Al Nahyan, pointed out on the eve of National Day, the UAE is “among the ranks of the world’s most advanced nations”. This is the proud reality, 43 years on, as demonstrated by the happiness index and other benchmark assessments of quality of life, social cohesion and security and stability.
Doing well and doing it right is a fairly unbeatable combination and makes for deep contentment at home and quiet confidence abroad. This is not lost upon the wider world, which is increasingly dropping in for consultations on some of the region’s most intractable and troubling problems because, as has often been said, the UAE wants for all Arabs what it wants for itself.
And then there is the UAE’s growing self-assurance on the world stage, whether it be a fearless and principled participation in the international alliance to fight terrorism or the consistent championship of efforts to boost development in the Arab region and beyond.
Indeed, it is this country’s commitment to development that is increasingly seen as one of the great success stories in a region that has perilously few. “Development and terrorism,” as Sheikh Khalifa emphasised, “are like parallel lines that will never meet … Development is the essence of security.”
This is so, even in a world that is changing with dizzying rapidity. Sheikh Mohammed bin Zayed has said that our world is so much smaller now and so much more interconnected that our interests are “increasingly shared”. The UAE cannot isolate itself from the rest of the world – not that it would ever want to – and it is in our interest as much as everyone else’s that the region’s security challenges be seen in the context of developmental issues.
This is why the Arab world desperately needs Egypt to be stable and successful; for legitimate state institutions to be bolstered in Libya, Yemen and Somalia; for Iraq to achieve broader reconciliation in its quest for security, and for the Syrian bloodshed to stop in concert with the start of a political transitional solution.
But for peace to truly break out, Iran would need to meddle less in the affairs of the region and be less stubborn about its nuclear programme. For now, Tehran continues to pursue a policy agenda that is profoundly unhelpful.
Sheikh Khalifa summarised foreign policy as follows: “Our state occupies an advanced place in the network of forces for good in the world.” This is a big achievement for a small country in a fractious region but as our far-sighted forebears realised, it is our unity that anchors us firmly as we bring the Emirati way of dialogue and development to the world’s chanceries.
The symbolism of the Fujairah fort could not be clearer. Creating a fortress of security requires planning and hard work and cannot be undertaken by one person or one group. The same applies today to building the UAE’s future: it will take Emiratis pulling together, hand in hand across the emirates, to build the future they aspire to and the future they deserve.
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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.
RESULTS
6.30pm: Handicap (rated 95-108) US$125,000 2000m (Dirt).
Winner: Don’t Give Up, Gerald Mosse (jockey), Saeed bin Suroor (trainer).
7.05pm: Handicap (95 ) $160,000 2810m (Turf).
Winner: Los Barbados, Adrie de Vries, Fawzi Nass.
7.40pm: Handicap (80-89) $60,000 1600m (D).
Winner: Claim The Roses, Mickael Barzalona, Salem bin Ghadayer.
8.15pm: UAE 2000 Guineas Trial (Div-1) Conditions $100,000 1,400m (D)
Winner: Gold Town, William Buick, Charlie Appleby.
8.50pm: Cape Verdi Group 2 $200,000 1600m (T).
Winner: Promising Run, Patrick Cosgrave, Saeed bin Suroor.
9.25pm: UAE 2000 Guineas Conditions $100,000 1,400m (D).
Winner: El Chapo, Luke Morris, Fawzi Nass.
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
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
SPECS
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Zayed Sustainability Prize
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
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Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
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
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Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
Trolls World Tour
Directed by: Walt Dohrn, David Smith
Starring: Anna Kendrick, Justin Timberlake
Rating: 4 stars
'Dark Waters'
Directed by: Todd Haynes
Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper
Rating: ****