So, who’s winning the transfer window, that imaginary spin-off from real football that fills speculative hours between seasons? Business in the selling and buying of elite players has seldom seemed more dispersed from the central, monied hub of Europe, with the significant sums spent by Saudi Arabia’s Pro League clubs and some headline recruitment in the American MLS.
But, with nine days left of July, the eye is drawn to the turnover, the profit margins and the yield of adept scouting at RB Leipzig, where on Friday they were ready themselves for a potentially record-breaking sale.
Should Josko Gvardiol finalise a likely move from Leipzig to Manchester City, he may well clock in as the most expensive defender in the sport’s history. A fee close to €100 million would also push the Bundesliga club’s income just up behind Chelsea’s €250 million in sales so far this summer.
But where Chelsea are selling off players as urgently as they splurged on would-be future stars in the last winter transfer window, the Leipzig model is not so volatile.
For supporters of a club with a startling recent history of rising up the sport’s hierarchy – and a deep unpopularity across the rest of the Bundesliga for the corporate takeover by soft-drink conglomerate Red Bull that enabled four promotions achieved in six seasons after 2010 – the trading routines are eerily predictable.
Leipzig, Champions League regulars since 2017, meet a bigger rival in Europe and that rival then swoops for one of their classy defenders. Paris Saint-Germain did it. When Leipzig went all the way to a European Cup semi-final, losing 3-0 to PSG, they had 22-year-old Nordi Mukiele at right-back. He is now a PSG player.
After Liverpool beat them 4-0 on aggregate in the last-16, the victors bought Ibrahima Konate the following summer. City defeated Leizpig by a margin of seven goals in March. They still had enough admiration for Gvardiol, who scored in the drawn first leg of that tie, to pursue their interest in the Croatian even when the asking price was set at €100 million.
That’s a very steep shift in his value. Gvardiol, who won a bronze medal with his country at the last World Cup, joined Leipzig as a 19-year-old only two years ago. He cost less than €19 million.
Konate was recruited as a teenager and sold for a €40 million profit to Liverpool four years later. In the same summer, Konate’s fellow France international defender, Dayot Upamecano, joined Bayern Munich for a marginally higher fee.
Upamecano had followed a familiar transfer trampoline up to a superclub, one that propels young talent through the Red Bull network. He had moved to Leipzig from RB Salzburg in Austria.
Likewise Dominik Szoboszlai, the 22-year-old Hungarian playmaker whose €70 million move to Liverpool had already boosted Leipzig’s treasury when talks over Gvardiol accelerated, a deal made hot on the heels of striker Christopher Nkunku formalising his €60 millon transfer to Chelsea.
The profit on Nkunku, 25, Leipzig’s leading scorer last season, amounts to €47 million. He was bought from PSG for €13 million in 2019.
And the same big clubs keep going back to Leipzig, confident it is a fine setting for talent to develop. Liverpool shopped there for Naby Keita in the past, Chelsea for Timo Werner, and if neither of those costly signings fulfilled every expectation in the Premier League – Werner rejoined the east German club a year ago – the faith in the Leipzig method remains.
Chelsea hired Leipzig’s former technical director Christopher Vivell last year, as the London club’s new owners embarked on an extravagant winter buying spree and set down plans to establish links with potential nursery clubs, along the lines of the Leipzig-Salzburg relationship. Chelsea’s owners took a majority stake in France’s Strasbourg last month.
Liverpool, meanwhile, have loaned to Leipzig the exciting Fabio Carvalho, 20, believing Carvalho will benefit from having more game-time in a competitive side used to trusting in youth. Xavi Simons, the precocious Netherlands international, has also joined Leipzig on loan from PSG.
There are vacancies for them to fill. Szobolszlai’s creative influence will be missed, as will Nkunku’s goals, and the midfield drive of Konrad Laimer, who allowed his contract to run down and has joined Bayern on a free transfer.
Here, the Salzburg conveyor belt has been busy. Nicolas Seiwald, a midfielder, and Benjamin Sesko, a centre-forward, have moved from one RB club to the other.
Leipzig have also broken their own transfer record to bring in the Belgian international striker Lois Openda, from Lens, who he spearheaded to runners-up position in Ligue 1. Openda has cost €43 million. He’s only 23 – the buying club are banking, as ever, on his value rising steadily.
TCL INFO
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
When December 14-17
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.”
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%3A%20%3C%2Fstrong%3EWafeq%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJanuary%202019%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ENadim%20Alameddine%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cstrong%3E%3Cbr%3EIndustry%3A%20%3C%2Fstrong%3Esoftware%20as%20a%20service%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%20%3C%2Fstrong%3E%243%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3ERaed%20Ventures%20and%20Wamda%2C%20among%20others%3C%2Fp%3E%0A
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
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%203S%20Money%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20London%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ivan%20Zhiznevsky%2C%20Eugene%20Dugaev%20and%20Andrei%20Dikouchine%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%245.6%20million%20raised%20in%20total%3C%2Fp%3E%0A
THE BIO
Favourite place to go to in the UAE: The desert sand dunes, just after some rain
Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude
Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE
Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally
Favourite subjects in school: Mathematics and science
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
The Bio
Ram Buxani earned a salary of 125 rupees per month in 1959
Indian currency was then legal tender in the Trucial States.
He received the wages plus food, accommodation, a haircut and cinema ticket twice a month and actuals for shaving and laundry expenses
Buxani followed in his father’s footsteps when he applied for a job overseas
His father Jivat Ram worked in general merchandize store in Gibraltar and the Canary Islands in the early 1930s
Buxani grew the UAE business over several sectors from retail to financial services but is attached to the original textile business
He talks in detail about natural fibres, the texture of cloth, mirrorwork and embroidery
Buxani lives by a simple philosophy – do good to all