A Closer Look: How tensions escalated between Israel and Gaza


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In A Closer Look, The National provides an in-depth take on one of the main stories of the week

Live updates: Follow the latest news on Israel-Palestine

Saturday's surprise attack on Israel by Hamas has dramatically escalated tensions in the region and resulted in hundreds of deaths.

Considered the worst violence between Israel and Gaza in decades, the situation continues to unfold and is beginning to have knock-on effects around the world.

Here, host Sarah Forster speaks to Arab affairs editor Ismaeel Naar to hear what caused the situation to escalate at the weekend and whether there is an end in sight to the bloodshed.

Read more

Egypt closes Gaza and Israel borders after warning over Palestinian influx

Israel-Gaza war latest: WHO calls for humanitarian corridor into the Gaza Strip

Israel - Gaza war latest – in pictures

  • Smoke near houses and buildings destroyed by Israeli strikes in Gaza city. Reuters
    Smoke near houses and buildings destroyed by Israeli strikes in Gaza city. Reuters
  • People sleep in a bomb shelter as rockets are launched from the Gaza Strip towards Israel, in Ashkelon, southern Israel. Reuters
    People sleep in a bomb shelter as rockets are launched from the Gaza Strip towards Israel, in Ashkelon, southern Israel. Reuters
  • Israeli soldiers drive in a tank by Israel's border with Gaza in southern Israel. Reuters
    Israeli soldiers drive in a tank by Israel's border with Gaza in southern Israel. Reuters
  • Palestinians inspect the massive destruction following Israeli air strikes on Gaza City's Al Rimal district. AFP
    Palestinians inspect the massive destruction following Israeli air strikes on Gaza City's Al Rimal district. AFP
  • The abandoned site of the Supernova desert music festival in southern Israel. AFP
    The abandoned site of the Supernova desert music festival in southern Israel. AFP
  • Mourners react during the funeral of Palestinians killed in the Israeli strikes, in Khan Younis, southern Gaza Strip. Reuters
    Mourners react during the funeral of Palestinians killed in the Israeli strikes, in Khan Younis, southern Gaza Strip. Reuters
  • Palestinians attend a rally in support of Hamas and the Gaza Strip in the West Bank city of Nablus. AP
    Palestinians attend a rally in support of Hamas and the Gaza Strip in the West Bank city of Nablus. AP
  • A medic tends to an injured child following Israeli air strikes in the Rimal district of Gaza city. Bloomberg
    A medic tends to an injured child following Israeli air strikes in the Rimal district of Gaza city. Bloomberg
  • Injured civilians arrive at a hospital following Israeli airstrikes in the Rimal district of Gaza City. Bloomberg
    Injured civilians arrive at a hospital following Israeli airstrikes in the Rimal district of Gaza City. Bloomberg
  • Israeli soldiers patrol a road near the border fence with Gaza. AFP
    Israeli soldiers patrol a road near the border fence with Gaza. AFP
  • Palestinians sit among rubbles of a damaged residential building, in the aftermath of Israeli strikes, in Gaza city. Reuters
    Palestinians sit among rubbles of a damaged residential building, in the aftermath of Israeli strikes, in Gaza city. Reuters
  • People gather at the site where a rocket landed in Ashdod, southern Israel. Reuters
    People gather at the site where a rocket landed in Ashdod, southern Israel. Reuters
  • Pictures of Natthaporn On-kaew, 26, a factory worker in Gaza, who has been abducted in the ongoing conflict between Israel and Hamas, at his house in Nakhon Phanom, Thailand. Reuters
    Pictures of Natthaporn On-kaew, 26, a factory worker in Gaza, who has been abducted in the ongoing conflict between Israel and Hamas, at his house in Nakhon Phanom, Thailand. Reuters
  • A fire burns among the rubble of a damaged residential building in Gaza city. Reuters
    A fire burns among the rubble of a damaged residential building in Gaza city. Reuters
  • Palestinians view aftermath of an Israeli air strike on Gaza city. EPA
    Palestinians view aftermath of an Israeli air strike on Gaza city. EPA
  • A Palestine Red Crescent Society paramedic carries a wounded child to Al Shifa hospital in Gaza city, following an Israeli air strike. EPA
    A Palestine Red Crescent Society paramedic carries a wounded child to Al Shifa hospital in Gaza city, following an Israeli air strike. EPA
  • People view a sign showing landed and cancelled flights at the arrivals hall at Ben Gurion Airport in Lod, south-east of Tel Aviv. Getty Images
    People view a sign showing landed and cancelled flights at the arrivals hall at Ben Gurion Airport in Lod, south-east of Tel Aviv. Getty Images
  • Pro-Palestinian demonstrators in Toronto, capital of Canada's Ontario province. AFP
    Pro-Palestinian demonstrators in Toronto, capital of Canada's Ontario province. AFP
  • A rally in support of Israel in Aventura, Florida. AFP
    A rally in support of Israel in Aventura, Florida. AFP
  • Israeli soldiers at the funeral of Ili Bar Sade, a soldier killed in an attack by Hamas militants, in Tel Aviv. Reuters
    Israeli soldiers at the funeral of Ili Bar Sade, a soldier killed in an attack by Hamas militants, in Tel Aviv. Reuters
  • Lightning strikes as smoke billows following Israeli bombardment of Gaza City. AFP
    Lightning strikes as smoke billows following Israeli bombardment of Gaza City. AFP
  • A fireball erupts during Israeli bombardment of Gaza city. AFP
    A fireball erupts during Israeli bombardment of Gaza city. AFP
  • Israeli artillery soldiers clean a cannon at an area on the border with Gaza, southern Israel. EPA
    Israeli artillery soldiers clean a cannon at an area on the border with Gaza, southern Israel. EPA
  • Palestinians search for survivors after an Israeli air strike on buildings in the refugee camp of Jabalia in the Gaza Strip. AFP
    Palestinians search for survivors after an Israeli air strike on buildings in the refugee camp of Jabalia in the Gaza Strip. AFP
  • Palestinians assess damage in Gaza city. EPA
    Palestinians assess damage in Gaza city. EPA
  • Israeli soldiers cordon off an area after a shooting in Hebron in the occupied West Bank. AFP
    Israeli soldiers cordon off an area after a shooting in Hebron in the occupied West Bank. AFP
  • Palestinians evacuate the area after an Israeli air strike on Al Sousi Mosque in Gaza city. AFP
    Palestinians evacuate the area after an Israeli air strike on Al Sousi Mosque in Gaza city. AFP
  • A site struck by a rocket fired from the Gaza Strip is evacuated in Ashkelon, southern Israel. AP
    A site struck by a rocket fired from the Gaza Strip is evacuated in Ashkelon, southern Israel. AP
  • Israeli troops in Merkava tanks take position near the border with the Gaza Strip in southern Israel. AFP
    Israeli troops in Merkava tanks take position near the border with the Gaza Strip in southern Israel. AFP
  • The heavily hit refugee camp of Jabalia in the Gaza Strip is littered with debris. AFP
    The heavily hit refugee camp of Jabalia in the Gaza Strip is littered with debris. AFP
  • Israeli soldiers take cover during a missile attack next to the border with Gaza, near Sderot, southern Israel. EPA
    Israeli soldiers take cover during a missile attack next to the border with Gaza, near Sderot, southern Israel. EPA
  • The rubble of a building destroyed in Israeli strikes, in Rafah in the southern Gaza Strip. Reuters
    The rubble of a building destroyed in Israeli strikes, in Rafah in the southern Gaza Strip. Reuters
  • A plume of smoke rises over Gaza city as Israeli air strikes hit. AFP
    A plume of smoke rises over Gaza city as Israeli air strikes hit. AFP
  • Grief at the funeral of Palestinians from the Shamalkh family, who health officials said were killed in Israeli strikes, in Gaza city. Reuters
    Grief at the funeral of Palestinians from the Shamalkh family, who health officials said were killed in Israeli strikes, in Gaza city. Reuters
  • Palestinians inspect damaged buildings in the aftermath of Israeli strikes at Al Shati refugee camp in Gaza city. Reuters
    Palestinians inspect damaged buildings in the aftermath of Israeli strikes at Al Shati refugee camp in Gaza city. Reuters
  • A wedding photo in the rubble of a building in Ashkelon, southern Israel. Reuters
    A wedding photo in the rubble of a building in Ashkelon, southern Israel. Reuters
  • Destruction in Gaza city's Al Shati refugee camp. AFP
    Destruction in Gaza city's Al Shati refugee camp. AFP
  • A mosque destroyed by Israeli strikes in Gaza city. AFP
    A mosque destroyed by Israeli strikes in Gaza city. AFP
  • A vigil for Israeli victims at the Stephen Wise Temple in Los Angeles. AFP
    A vigil for Israeli victims at the Stephen Wise Temple in Los Angeles. AFP
  • An Israeli soldier directs armoured vehicles heading towards the border with the Gaza Strip. Getty Images
    An Israeli soldier directs armoured vehicles heading towards the border with the Gaza Strip. Getty Images
  • A burnt out car from a battle between Israeli troops and Hamas fighters in Sderot. Getty Images
    A burnt out car from a battle between Israeli troops and Hamas fighters in Sderot. Getty Images
  • A police station that was destroyed in Sderot. Getty Images
    A police station that was destroyed in Sderot. Getty Images
  • A missile explodes in Gaza city. AFP
    A missile explodes in Gaza city. AFP
RESULTS
%3Cp%3E%0D5pm%3A%20Deerfields%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(Turf)%202%2C200m%0D%3Cbr%3EWinner%3A%20Taajer%2C%20Richard%20Mullen%20(jockey)%2C%20Salem%20Al%20Ketbi%20(trainer)%0D%3Cbr%3E5.30pm%3A%20The%20Galleria%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C600m%0D%3Cbr%3EWinner%3A%20Zafaranah%2C%20Antonio%20Fresu%2C%20Musabah%20Al%20Muhairi%0D%3Cbr%3E6pm%3A%20Wathba%20Stallions%20Cup%20%E2%80%93%20Maiden%20(PA)%20Dh70%2C000%20(T)%201%2C200m%0D%3Cbr%3EWinner%3A%20Ifahat%20Du%20Loup%2C%20Abdul%20Aziz%20Al%20Balushi%2C%20Sulaiman%20Al%20Ghunaimi%0D%3Cbr%3E6.30pm%3A%20Mazyad%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C200m%0D%3Cbr%3EWinner%3A%20AF%20Majalis%2C%20Tadhg%20O%E2%80%99Shea%2C%20Ernst%20Oertel%0D%3Cbr%3E7pm%3A%20Dalma%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(T)%201%2C400m%0D%3Cbr%3EWinner%3A%20Bassam%20Al%20Wathba%2C%20Bernardi%20Pinheiro%2C%20Majed%20Al%20Jahouri%0D%3Cbr%3E7.30pm%3A%20World%20Trade%20Centre%20%E2%80%93%20Handicap%20(TB)%20Dh80%2C000%20(T)%201%2C400m%0D%3Cbr%3EWinner%3A%20Fawaareq%2C%20Dane%20O%E2%80%99Neill%2C%20Doug%20Watson%3C%2Fp%3E%0A
Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

%20Ramez%20Gab%20Min%20El%20Akher
%3Cp%3E%3Cstrong%3ECreator%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStreaming%20on%3A%20%3C%2Fstrong%3EMBC%20Shahid%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

Kibsons%20Cares
%3Cp%3E%3Cstrong%3ERecycling%3Cbr%3E%3C%2Fstrong%3EAny%20time%20you%20receive%20a%20Kibsons%20order%2C%20you%20can%20return%20your%20cardboard%20box%20to%20the%20drivers.%20They%E2%80%99ll%20be%20happy%20to%20take%20it%20off%20your%20hands%20and%20ensure%20it%20gets%20reused%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKind%20to%20health%20and%20planet%3C%2Fstrong%3E%3Cbr%3ESolar%20%E2%80%93%2025-50%25%20of%20electricity%20saved%3Cbr%3EWater%20%E2%80%93%2075%25%20of%20water%20reused%3Cbr%3EBiofuel%20%E2%80%93%20Kibsons%20fleet%20to%20get%2020%25%20more%20mileage%20per%20litre%20with%20biofuel%20additives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESustainable%20grocery%20shopping%3C%2Fstrong%3E%3Cbr%3ENo%20antibiotics%3Cbr%3ENo%20added%20hormones%3Cbr%3ENo%20GMO%3Cbr%3ENo%20preservatives%3Cbr%3EMSG%20free%3Cbr%3E100%25%20natural%3C%2Fp%3E%0A

Film: In Syria
Dir: Philippe Van Leeuw
Starring: Hiam Abbass, Diamand Bo Abboud, Mohsen Abbas and Juliette Navis
Verdict: Four stars

Pathaan
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Siddharth%20Anand%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Deepika%20Padukone%2C%20John%20Abraham%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
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 
The specs: 2017 Ford F-150 Raptor

Price, base / as tested Dh220,000 / Dh320,000

Engine 3.5L V6

Transmission 10-speed automatic

Power 421hp @ 6,000rpm

Torque 678Nm @ 3,750rpm

Fuel economy, combined 14.1L / 100km

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills

Engine: 5.6-litre V8

Transmission: seven-speed automatic

Power: 400hp

Torque: 560Nm

Price: Dh234,000 - Dh329,000

On sale: now

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

Our legal consultants

Name: Hassan Mohsen Elhais

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

You may remember …

Robbie Keane (Atletico de Kolkata) The Irish striker is, along with his former Spurs teammate Dimitar Berbatov, the headline figure in this season’s ISL, having joined defending champions ATK. His grand entrance after arrival from Major League Soccer in the US will be delayed by three games, though, due to a knee injury.

Dimitar Berbatov (Kerala Blasters) Word has it that Rene Meulensteen, the Kerala manager, plans to deploy his Bulgarian star in central midfield. The idea of Berbatov as an all-action, box-to-box midfielder, might jar with Spurs and Manchester United supporters, who more likely recall an always-languid, often-lazy striker.

Wes Brown (Kerala Blasters) Revived his playing career last season to help out at Blackburn Rovers, where he was also a coach. Since then, the 23-cap England centre back, who is now 38, has been reunited with the former Manchester United assistant coach Meulensteen, after signing for Kerala.

Andre Bikey (Jamshedpur) The Cameroonian defender is onto the 17th club of a career has taken him to Spain, Portugal, Russia, the UK, Greece, and now India. He is still only 32, so there is plenty of time to add to that tally, too. Scored goals against Liverpool and Chelsea during his time with Reading in England.

Emiliano Alfaro (Pune City) The Uruguayan striker has played for Liverpool – the Montevideo one, rather than the better-known side in England – and Lazio in Italy. He was prolific for a season at Al Wasl in the Arabian Gulf League in 2012/13. He returned for one season with Fujairah, whom he left to join Pune.

Results

4pm: Maiden; Dh165,000 (Dirt); 1,400m
Winner: Solar Shower; William Lee (jockey); Helal Al Alawi (trainer)

4.35pm: Handicap; Dh165,000 (D); 2,000m
Winner: Thaaqib; Antonio Fresu; Erwan Charpy.

5.10pm: Maiden; Dh165,000 (Turf); 1,800m
Winner: Bila Shak; Adrie de Vries; Fawzi Nass

5.45pm: Handicap; Dh175,000 (D); 1,200m
Winner: Beachcomber Bay; Richard Mullen; Satish Seemar

6.20pm: Handicap;​​​​​​​ Dh205,000 (T); 1,800m
Winner: Muzdawaj; Jim Crowley;​​​​​​​ Musabah Al Muhairi

6.55pm: Handicap;​​​​​​​ Dh185,000 (D); 1,600m
Winner: Mazeed; Tadhg O’Shea;​​​​​​​ Satish Seemar

7.30pm: Handicap; Dh205,000 (T); 1,200m
Winner: Riflescope; Tadhg O’Shea;​​​​​​​ Satish Seemar.

A cryptocurrency primer for beginners

Cryptocurrency Investing  for Dummies – by Kiana Danial 

There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine. 

Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.

Although cryptocurrencies are a fast evolving world, this  book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.

Begin your cryptocurrency journey here. 

Available at Magrudy’s , Dh104 

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

Final results:

Open men
Australia 94 (4) beat New Zealand 48 (0)

Plate men
England 85 (3) beat India 81 (1)

Open women
Australia 121 (4) beat South Africa 52 (0)

Under 22 men
Australia 68 (2) beat New Zealand 66 (2)

Under 22 women
Australia 92 (3) beat New Zealand 54 (1)

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Our family matters legal consultant

Name: Hassan Mohsen Elhais

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

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 Profile

Name: JustClean

Based: Kuwait with offices in other GCC countries

Launch year: 2016

Number of employees: 130

Sector: online laundry service

Funding: $12.9m from Kuwait-based Faith Capital Holding

The specs: Rolls-Royce Cullinan

Price, base: Dh1 million (estimate)

Engine: 6.75-litre twin-turbo V12

Transmission: Eight-speed automatic

Power: 563hp @ 5,000rpm

Torque: 850Nm @ 1,600rpm

Fuel economy, combined: 15L / 100km

Results

Stage 7:

1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29

2. Sam Bennett (IRL) Deceuninck-QuickStep - same time

3. Phil Bauhaus (GER) Bahrain Victorious

4. Michael Morkov (DEN) Deceuninck-QuickStep

5. Cees Bol (NED) Team DSM

General Classification:

1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28

2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35

3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02

4. Chris Harper (AUS) Jumbo-Visma - 0:01:42

5. Neilson Powless (USA) EF Education-Nippo - 0:01:45

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
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Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

First Person
Richard Flanagan
Chatto & Windus 

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Profile box

Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D 
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India

if you go
How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
  • Only invest in crypto projects that you fully understand.
  • Critically assess whether a project’s promises or returns seem too good to be true.
  • Only use reputable platforms that have a track record of strong regulatory compliance.
  • Store funds in hardware wallets as opposed to online exchanges.
The biog

Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball

BIG SPENDERS

Premier League clubs spent £230 million (Dh1.15 billion) on January transfers, the second-highest total for the mid-season window, the Sports Business Group at Deloitte said in a report.

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

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Updated: March 06, 2024, 7:51 AM
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