Construction continues at the Olympic Park for the Rio 2016 Olympic Games in the Barra da Tijuca neighborhood on February 24, 2015 in Rio de Janeiro, Brazil. The Olympic Park will occupy 1.18 million square meters hosting 16 Olympic disciplines and will be the heart of the games. Mario Tama / Getty Images
Construction continues at the Olympic Park for the Rio 2016 Olympic Games in the Barra da Tijuca neighborhood on February 24, 2015 in Rio de Janeiro, Brazil. The Olympic Park will occupy 1.18 million square meters hosting 16 Olympic disciplines and will be the heart of the games. Mario Tama / Getty Images
Construction continues at the Olympic Park for the Rio 2016 Olympic Games in the Barra da Tijuca neighborhood on February 24, 2015 in Rio de Janeiro, Brazil. The Olympic Park will occupy 1.18 million square meters hosting 16 Olympic disciplines and will be the heart of the games. Mario Tama / Getty Images
Construction continues at the Olympic Park for the Rio 2016 Olympic Games in the Barra da Tijuca neighborhood on February 24, 2015 in Rio de Janeiro, Brazil. The Olympic Park will occupy 1.18 million

Battered Brazil vows spectacular Rio 2016 despite severe cost-cutting measures


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RIO DE JANEIRO // Brazil may not know who its president will be in eight months’ time, and Olympic athletes will not have TVs in their rooms because of the country’s recession, but Rio de Janeiro is still promising a “spectacular” 2016 Games.

With its budget in tatters because of the economic crisis and the nation shamed by not cleaning pathogenic sewage from Guanabara Bay – the Rio venue for Olympic regattas – criticism has been rife.

Organisers have preferred to stress that the work to host the August 5-21 Olympic Games and 10,000 athletes from 206 countries has been without delays, and improvements to Rio’s public transport network will be a lasting legacy.

“Rio today is 80 per cent ready, in April it will be 100 per cent, and during the Games it will be 120 per cent,” boasted the communications director for the Rio 2016 organising committee, Mario Andrada, in an interview with Agence France-Presse. “The Olympics are going to be spectacular.”

Unsaid is the organisers’ hope that the political chaos in South America’s biggest country, wrought by the threat of impeachment for deeply unpopular President Dilma Rousseff over allegedly fiddled public accounts, will be settled by then.

Or that at least anti-government discontent will not spill out into the streets as it did in 2013, a year before Brazil hosted the football World Cup.

Faced with its worst recession in decades, double-digit inflation, swelling unemployment, and a corruption scandal sinking the state oil company Petrobras, the Rio 2016 committee has pledged to spend only “the money we have,” Andrada said.

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That means slashing five to 20 per cent from the US$5billion (Dh18.36bn) budget, for example by not installing televisions in athletes’ rooms, getting by with fewer computer printers, and offering Brazilian meat-beans-and-rice dishes to invited VIPs instead of fancy meals.

“The country is going through an enormous crisis. We can’t be sending out a different message, [or] leaving debts to be paid by the government or, worse, by society,” Andrada said.

However, Rio 2016 will cut back “nothing from the tracks, nothing from the sports, nothing from the ceremony, nothing from the legacy”.

After the Paris attacks in which Islamist gunmen killed 130 people, Brazil is to oversee the biggest integrated security operation in its history: 85,000 police, soldiers and agents, in coordination with 80 countries.

“We are constantly working as if a threat were imminent,” the head of the Brazilian intelligence service, Wilson Trezza, told Agence France-Presse.

The Rio 2016 committee also assured that “Rio will be the safest city in the world during the Games”.

But there have been some unsettling security issues of late, such as the breaking up of a ring producing falsified birth certificates that allowed dozens of Syrians to obtain Brazilian passports between 2012 and 2014. Several of the Syrians are still fugitives.

But beyond the security, what many in Rio, dubbed “the marvellous city” but over the past few years converted into a giant construction site, want to know is, will it be a better place to live after the Olympics?

Lamartine Pereira da Costa, an Olympic Games expert at Rio’s State University, believes the answer is yes, based on the urban improvements seen in Barcelona after it hosted the 1992 Games.

“Things here work so badly that they can’t get any worse,” he said.

“For example, the percentage of the population using public transport will go from 38 per cent to 66 per cent after the Games – it’s the great achievement of Rio de Janeiro.”

But the People’s Committee for the Cup and the Olympics, a citizens’ group critical of the Games, predicted that Rio will end up more “segregated” afterward.

It pointed to the forced relocation of more than 4,000 families to make room for the Olympic works, as well as skyrocketing real estate prices benefiting only a handful of wealthy businessmen, insufficient and inefficient transport, and a violent and racist police force.

“This will be an Olympiad of exclusion,” predicted Orlando Santos Junior, a university professor coordinating the group’s efforts.

“We are losing opportunities to promote social integration. Unfortunately the city will be neither fairer nor more democratic” after August 2016, he said.

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Favourite parkour spot in Dubai: Residence towers in Jumeirah Beach Residence

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.”

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The Specs

Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
On sale now

SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%202-litre%204-cylinder%20turbo%20and%203.6-litre%20V6%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20automatic%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20235hp%20and%20310hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E258Nm%20and%20271Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh185%2C100%0D%3Cbr%3E%3C%2Fp%3E%0A
Credits

Produced by: Colour Yellow Productions and Eros Now
Director: Mudassar Aziz
Cast: Sonakshi Sinha, Jimmy Sheirgill, Jassi Gill, Piyush Mishra, Diana Penty, Aparshakti Khurrana
Star rating: 2.5/5

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

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How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Insomniac%20Games%0D%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20%20Sony%20Interactive%20Entertainment%0D%3Cbr%3E%3Cstrong%3EConsole%3A%20%3C%2Fstrong%3EPlayStation%205%0D%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
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The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

The biog

Marital status: Separated with two young daughters

Education: Master's degree from American Univeristy of Cairo

Favourite book: That Is How They Defeat Despair by Salwa Aladian

Favourite Motto: Their happiness is your happiness

Goal: For Nefsy to become his legacy long after he is gon

Calls

Directed by: Fede Alvarez

Starring: Pedro Pascal, Karen Gillian, Aaron Taylor-Johnson

4/5

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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Titanium Escrow profile

Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue  
Stage: Early stage
Investors: Founder's friends and Family

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UAE currency: the story behind the money in your pockets
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