• Germany's Toni Kroos during their 3-3 Uefa Nations League draw against Switzerland on Tuesday, October 13. EPA
    Germany's Toni Kroos during their 3-3 Uefa Nations League draw against Switzerland on Tuesday, October 13. EPA
  • Switzerland's Remo Freuler finishes past Germany goalkeeper Manuel Neuer to make the score 2-0 in Cologne. EPA
    Switzerland's Remo Freuler finishes past Germany goalkeeper Manuel Neuer to make the score 2-0 in Cologne. EPA
  • Switzerland goalkeeper Yann Sommer cannot stop Germany's Serge Gnabry levelling the score at 3-3. EPA
    Switzerland goalkeeper Yann Sommer cannot stop Germany's Serge Gnabry levelling the score at 3-3. EPA
  • Switzerland's Granit Xhaka alongside Antonio Rudiger of Germany. EPA
    Switzerland's Granit Xhaka alongside Antonio Rudiger of Germany. EPA
  • Germany manager Joachim Low. EPA
    Germany manager Joachim Low. EPA
  • Germany's Timo Werner, centre, celebrates after scoring their opening goal against Switzerland. EPA
    Germany's Timo Werner, centre, celebrates after scoring their opening goal against Switzerland. EPA
  • Germany defender Antonio Rudiger. AP
    Germany defender Antonio Rudiger. AP
  • Germany's Serge Gnabry celebrates after scoring. EPA
    Germany's Serge Gnabry celebrates after scoring. EPA
  • Toni Kroos won his 100th cap for Germany - a milestone marked on the front his shirt. AP
    Toni Kroos won his 100th cap for Germany - a milestone marked on the front his shirt. AP
  • Germany's Antonio Rudiger cannot stop Mario Gavranovic scoring for Switzerland. EPA
    Germany's Antonio Rudiger cannot stop Mario Gavranovic scoring for Switzerland. EPA
  • Timo Werner of Germany. Getty
    Timo Werner of Germany. Getty
  • Germany's Lukas Klostermann, left, was critcised by former captain Lothar Matthaus after the match. EPA
    Germany's Lukas Klostermann, left, was critcised by former captain Lothar Matthaus after the match. EPA
  • Dejected German players after the game. Getty
    Dejected German players after the game. Getty
  • Germany defender Robin Gosens. AFP
    Germany defender Robin Gosens. AFP

Pressure grows on Joachim Low as defensive woes and absent faces haunt Germany


Ian Hawkey
  • English
  • Arabic

Toni Kroos celebrated his 100th cap for Germany on Tuesday evening, a great milestone for an outstanding footballer and a symbolic moment for a nation.

Kroos was born in what used to be East Germany, and as the united country marks 30 years since East rejoined West, he stands out as a rare superstar from what used to be the land behind a very hard border.

His century was greeted with muted ceremony as Germany took Switzerland in the Uefa Nations League behind closed doors. But the game itself produced something Kroos has been unused to through most of his decade as an international: Germany conceded three goals, their fifth, sixth and seventh in the space of a week.

Kroos owned up to some responsibility for one of the Swiss goals, the Real Madrid midfielder giving away the ball carelessly and exposing a fragile back four.

Remo Freuler, with one of the excellent finishes that were a feature of an otherwise untidy night of, took advantage, to put the Swiss 2-0 up with barely a quarter of the game gone.

For Joachim Low, the Germany manager, the good news was that his team came back from behind.

The Chelsea pair – Timo Werner and Kai Havertz – scored fine virtuoso goals to bring the scores level, but no sooner was Low sighing with relief than Germany were undone again, a repeated failure to clear the ball inviting Mario Gavranovic to score his second.

Serge Gnabry quickly equalised, to earn Germany a point that, with Spain losing to Ukraine on the same night gives them a chance still to win Group A4 of the Nations League.

As for the principal target, which Low on Tuesday set as reaching at least the last four of next summer’s European Championship, there is homework to do.

Germany, who have been drawn in a first-round group with world champions France and holders Portugal, have won only one of their last four matches. France’s Kylian Mbappe and Cristiano Ronaldo of Portugal will have rather enjoyed watching the clips of some of Germany’s defending in the last few days.

The 3-3 draw is now becoming their standard: last week, Turkey equalised three times against a Germany who, however Low sets them up, keep springing leaks.

He lined-up a back four against the Swiss; Turkey racked up their goals against a back three, with wing-backs. “It is good for us to learn and improve with two different systems, because we cannot only have one system of playing,” Low said.

Some of Low’s critics, who have become more numerous and more noisy during this international break, believe the current Germany are not solid enough for tinkering, or experimentation.

Lothar Matthaus, who played 150 times for his country and captained the 1990 World-Cup winning West Germany team, told Bild: "The team looks more comfortable with three at the back, but Low wanted to test out something new. That has to stop."

________________________________________________

Gallery: Germany training ahead of Switzerland game

  • Germany forward Timo Werner takes part in a training session on the eve of the Uefa Nations League match against Switzerland at the Rheinenergie Stadium in Cologne. AFP
    Germany forward Timo Werner takes part in a training session on the eve of the Uefa Nations League match against Switzerland at the Rheinenergie Stadium in Cologne. AFP
  • German manager Joachim Low, left, watches Kai Havertz during a training session prior the Uefa Nations League match against Switzerland. AP Photo
    German manager Joachim Low, left, watches Kai Havertz during a training session prior the Uefa Nations League match against Switzerland. AP Photo
  • Toni Kroos and Antonio Rudiger take part in a training session on the eve of the Uefa Nations League match between Germany and Switzerland at the Rheinenergie Stadium in Cologne. AFP
    Toni Kroos and Antonio Rudiger take part in a training session on the eve of the Uefa Nations League match between Germany and Switzerland at the Rheinenergie Stadium in Cologne. AFP
  • Germany's Serge Gnabry (L), Leon Goretzka and Niklas Suele (R) take part in a training session on the eve of the Uefa Nations League match against Switzerland at the Rheinenergie Stadium. AFP
    Germany's Serge Gnabry (L), Leon Goretzka and Niklas Suele (R) take part in a training session on the eve of the Uefa Nations League match against Switzerland at the Rheinenergie Stadium. AFP
  • Julian Draxler, Toni Kroos, Niklas Suele, Joshua Kimmich and Serge Gnabry (L-R) take part in a training session. AFP
    Julian Draxler, Toni Kroos, Niklas Suele, Joshua Kimmich and Serge Gnabry (L-R) take part in a training session. AFP
  • Antonio Rudiger takes part in a training session at the Rheinenergie Stadium. AFP
    Antonio Rudiger takes part in a training session at the Rheinenergie Stadium. AFP
  • Germany goalkeeper Manuel Neuer takes part in a training session at the Rheinenergie Stadium. AFP
    Germany goalkeeper Manuel Neuer takes part in a training session at the Rheinenergie Stadium. AFP
  • Toni Kroos (C) takes part in a training session in Cologne. EPA
    Toni Kroos (C) takes part in a training session in Cologne. EPA
  • Germany manager Joachim Low talks to his players during a training session at the Rheinenergie Stadium. AFP
    Germany manager Joachim Low talks to his players during a training session at the Rheinenergie Stadium. AFP
  • Germany players warm up during a training session at the Rheinenergie Stadium. AFP
    Germany players warm up during a training session at the Rheinenergie Stadium. AFP
  • Germany manager Joachim Low arrives to oversee a training session at the Rheinenergie Stadium. AFP
    Germany manager Joachim Low arrives to oversee a training session at the Rheinenergie Stadium. AFP
  • Toni Kroos and Joshua Kimmich take part in a training session at the Rheinenergie Stadium. AFP
    Toni Kroos and Joshua Kimmich take part in a training session at the Rheinenergie Stadium. AFP
  • Joshua Kimmich (L) and Marcel Halstenberg (R) attend a training session in Cologne. EPA
    Joshua Kimmich (L) and Marcel Halstenberg (R) attend a training session in Cologne. EPA
  • Germany players attend a training session in Cologne. EPA
    Germany players attend a training session in Cologne. EPA

________________________________________________

Matthaus singled out Lukas Klostermann, the RB Leipzig defender, for “schoolboy” defending, and accused Low of choosing the wrong man for the wrong system in selecting Atalanta’s Robin Gosens at left-back – “he only ever plays as a wing-back for his club”.

He might have added that in the centre of defence against the Swiss was a player who has not been given a single moment of action for his club this season, Chelsea’s Antonio Rudiger.

Matthaus hardly needed to add that there are more active, more experienced and more decorated alternatives available.

Players who won the 2014 World Cup under Low, namely Mats Hummels, 31 and Jerome Boateng, 32, of Borussia Dortmund and Bayern Munich.

Last year, Low told those totems of his long time in charge of the national team they were no longer required. He said the same to 31-year-old Thomas Muller, who, like Boateng, helped Bayern win the Champions League in August.

Low’s decision – made on the grounds that he wanted to rejuvenate the squad – to discard that trio remains a focus of debate.

As Matthaus points out: “As long as Botaeng, Hummels and Muller are putting in top performances for their clubs, it will be an issue. And when players without match practice are being picked in the national team, he will be confronted with the fact he kicked those three out.”

The German Federation’s loyalty to Low is also coming under renewed scrutiny.

After Germany's defence of their World Cup title ended at the group stage of the 2018 tournament, a historically early exit, the hmanager  kept his position, to the surprise of many.

Since then, in 10 competitive matches against other countries who have qualified for next summer’s Euros, Germany have won just two. That is not the form of a team heading for the semi-finals.

Champions parade (UAE timings)

7pm Gates open

8pm Deansgate stage showing starts

9pm Parade starts at Manchester Cathedral

9.45pm Parade ends at Peter Street

10pm City players on stage

11pm event ends

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
HER%20FIRST%20PALESTINIAN
%3Cp%3EAuthor%3A%20Saeed%20Teebi%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%C2%A0House%20of%20Anansi%20Press%3C%2Fp%3E%0A

Sting & Shaggy

44/876

(Interscope)

Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

Spider-Man%202
%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
Test series fixtures

(All matches start at 2pm UAE)

1st Test Lord's, London from Thursday to Monday

2nd Test Nottingham from July 14-18

3rd Test The Oval, London from July 27-31

4th Test Manchester from August 4-8

Coming soon

Torno Subito by Massimo Bottura

When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.

Akira Back Dubai

Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as,  “an innovative Japanese cuisine prepared with a Korean accent”.

Dinner by Heston Blumenthal

The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems. 

Key developments

All times UTC 4

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

The%20Kitchen
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EDaniel%20Kaluuya%2C%20Kibwe%20Tavares%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3EKane%20Robinson%2C%20Jedaiah%20Bannerman%2C%20Hope%20Ikpoku%20Jnr%2C%20Fiona%20Marr%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%C2%A0%3C%2Fp%3E%0A
'The Lost Daughter'

Director: Maggie Gyllenhaal

Starring: Olivia Colman, Jessie Buckley, Dakota Johnson

Rating: 4/5

COMPANY PROFILE

Name: Rain Management

Year started: 2017

Based: Bahrain

Employees: 100-120

Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund

Fixtures

Wednesday

4.15pm: Japan v Spain (Group A)

5.30pm: UAE v Italy (Group A)

6.45pm: Russia v Mexico (Group B)

8pm: Iran v Egypt (Group B)

Champions League Last 16

Red Bull Salzburg (AUT) v Bayern Munich (GER) 

Sporting Lisbon (POR) v Manchester City (ENG) 

Benfica (POR) v Ajax (NED) 

Chelsea (ENG) v Lille (FRA) 

Atletico Madrid (ESP) v Manchester United (ENG) 

Villarreal (ESP) v Juventus (ITA) 

Inter Milan (ITA) v Liverpool (ENG) 

Paris Saint-Germain v Real Madrid (ESP)  

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

PFA Premier League team of 2018-19

Allison (Liverpool)

Trent Alexander-Arnold (Liverpool)

Virgil van Dijk (Liverpool)

Aymeric Laporte (Manchester City)

Andrew Robertson (Liverpool)

Paul Pogba (Manchester United)

Fernandinho (Manchester City)

Bernardo Silva (Manchester City)

Raheem Sterling (Manchester City)

Sergio Aguero (Manchester City)

Sadio Mane (Liverpool)

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

The%20Roundup
%3Cp%3EDirector%3A%20Lee%20Sang-yong%3Cbr%3EStars%3A%20Ma%20Dong-seok%2C%20Sukku%20Son%2C%20Choi%20Gwi-hwa%3Cbr%3ERating%3A%204%2F5%3C%2Fp%3E%0A
Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

Packages which the US Secret Service said contained possible explosive devices were sent to:

  • Former first lady Hillary Clinton
  • Former US president Barack Obama
  • Philanthropist and businessman George Soros
  • Former CIA director John Brennan at CNN's New York bureau
  • Former Attorney General Eric Holder (delivered to former DNC chair Debbie Wasserman Schultz)
  • California Congresswoman Maxine Waters (two devices)
Match info

Costa Rica 0

Serbia 1
Kolarov (56')

The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
AIR
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EBen%20Affleck%3Cbr%3E%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EMatt%20Damon%2C%20Jason%20Bateman%2C%20Ben%20Affleck%2C%20Viola%20Davis%3Cbr%3E%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
HOW TO WATCH

Facebook: TheNationalNews 

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TikTok: @thenationalnews   

'Downton Abbey: A New Era'

Director: Simon Curtis

 

Cast: Hugh Bonneville, Elizabeth McGovern, Maggie Smith, Michelle Dockery, Laura Carmichael, Jim Carter and Phyllis Logan

 

Rating: 4/5

 
Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%0D%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%0D%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%0D%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%0D%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%0D%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%0D%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%0D%3C%2Fp%3E%0A
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

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.