TEL AVIV // The United States president, Barack Obama, has repeatedly declared his unflinching support for the security of Israel, Washington's closest ally in the Middle East.
Israelis such as Avi Vakhnin, 50, a house painter from a suburb of Tel Aviv, are unconvinced by Mr Obama's approach towards Israel and would prefer to see him defeated by the Republican challenger, Mitt Romney.
"In the last four years, Obama hasn't shown that he is doing enough for Israel. We should try Romney now," said Mr Vakhnin, donning a paint-stained white shirt and shorts as he ate a cucumber in a fruit and vegetable shop on a midday break from work.
Israeli public opinion has shifted against Mr Obama, partly because of the Israeli government's perception that the US leader is not doing enough to stop Iran's nuclear programme and is applying too much pressure on Israel to curb settlement growth, analysts say.
Those views have not gone unnoticed by the campaigns of both Mr Obama and Mr Romney. Analysts say the candidates recognise that the views of Israeli Jews could reflect the sentiments of US Jews and the pro-Israel constituencies of evangelical Christians.
A poll released this week by Tel Aviv University and the Jerusalem-based research body, Israel Democracy Institute, showed that 57.2 per cent of Israeli Jews prefer Mr Romney to win, while 21.5 per cent back Mr Obama. In contrast, the survey also showed that 45 per cent of Israel's Arab minority preferred Mr Obama while 15 per cent opted for Mr Romney.
Yossi Alpher, an Israeli political analyst, said Israeli Jews' support for Mr Romney was "a reflection of the overall drift in Israel to the right".
The Israeli right tends to harbour hostility towards Israel's Muslim neighbours and towards Israel's Arab minority, which is predominantly Muslim.
They view Mr Obama's bid to improve US relations with Muslim countries with suspicion. For Israelis, Mr Obama's middle name, Hussein, has helped spur such distrust.
Echoing long-time speculation that Mr Obama, a practising Christian, is a Muslim, Mr Vakhnin said: "He doesn't like us, and that's also probably because he is Muslim. Isn't his name Mohammed or Mahmoud or something like that?"
Mr Vakhnin quieted down for a moment as a man came into the shop, saying afterward that the man "looked Arab" so he did not want to voice condemnation of Mr Obama near him.
Analysts say Israeli Jews' preference for Mr Romney has also been influenced by criticism about Mr Obama not having visited Israel during his presidency despite travelling to Muslim countries such as Egypt and Turkey.
The US and Israeli media has also reported that Benjamin Netanyahu is rooting for Mr Romney, a close friend with whom the Israeli premier shares powerful friends, including a key US financial backer, the billionaire Sheldon Adelson.
In the meantime, Jewish voters in the US are also appearing less supportive of Mr Obama - a trend that analysts said was being manipulated by the Republican Party.
"Never in the history of US election campaigns has Israel occupied such a prominent place," said Eytan Gilboa, an expert on US-Israeli ties at Israel's Bar-Ilan university. "That's because Republicans think Obama has become vulnerable on the issue of Israel."
In 2008, Mr Obama garnered about 75 per cent of the total Jewish American vote, reflecting the tradition that most Jewish voters typically vote for Democrats.
In this campaign, polls suggest that Jewish backing for Mr Obama is waning in crucial swing states such as Ohio and Florida.
In Israel, however, that drop in support for the US president is most evident because many believe that Mr Romney would be hawkish on Iran - viewed by the Israeli government as the biggest threat to the country's security - and would put less pressure on settlement activities.
Some experts, however, say that expectation could prove false on crucial issues such as the Israeli-Palestinian conflict.
"History tells a different story. Whenever the United States has put sustained pressure on Israel's leaders - from the 1950s on - it has come from Republican presidents, not Democratic ones," the former head of Israel's Mossad spy agency, Efraim Halévy, wrote in The New York Times last week.
According to Mr Halévy, that includes the administration of George W Bush, Mr Obama's predecessor, officially adopting the 2003 so-called "road map" for Israeli-Palestinian peace talks that included a halt to settlement activity despite Israeli opposition to the plan.
It also includes the same Bush administration putting pressure on Israel to allow Hamas to run in the 2006 Palestinian legislative elections, apparently failing to anticipate its victory, Mr Halévy said.
Israel views Hamas as a terror organisation.
foreign.desk@thenational.ae
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The specs
Price: From Dh529,000
Engine: 5-litre V8
Transmission: Eight-speed auto
Power: 520hp
Torque: 625Nm
Fuel economy, combined: 12.8L/100km
The years Ramadan fell in May
RESULT
Esperance de Tunis 1 Guadalajara 1
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 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
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
States of Passion by Nihad Sirees,
Pushkin Press
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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.
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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Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
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
French Touch
Carla Bruni
(Verve)
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
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East