In the days of the new UAE, unification meant different things to different people. Some arrived in the years before 1971 to lend their expertise. Others came in search of a better life. And for some, the union meant something as simple yet vital as electricity. In the second of a three-part series to celebrate the UAE's 49th National Day, we speak to two friends from Cairo who came to Dubai in the 1960s.
Mahmoud's sad letters brought Farouq Mohamed and Mohamed Zakaria to Dubai in 1962.
The trio had studied accounting at university in Cairo during the peak of Gamal Abdel Nasser’s pan-Arabism, graduating in 1959. Within a few years, they reunited in Dubai and witnessed the decade before the formation of the UAE.
Mahmoud came to Dubai because of his uncle, a general in Nasser’s revolutionary government. The general had travelled to the Gulf with a delegation representing Egypt’s new pan-Arab government.
At the majlis of Dubai’s then Ruler, Sheikh Rashid, the envoys were asked to send young, trustworthy men from Egypt.
The airport was sabkha. No roads, no people
Mahmoud was volunteered by his uncle. But Dubai was a world removed from cosmopolitan Cairo. Homesick, he pleaded with his friends to join him.
“When he came here, he was alone, lonely,” said Mr Zakaria. “So he sent for his friend, me. He said: ‘Come join me in this desert’.” Mr Mohamed got similar letters.
“We wanted to have the same group that we had in university because it would make life better for Mahmoud,” said Mr Mohamed.
"I liked a challenge. But when I came, I came with the idea that the return ticket was in my pocket. So I said: ‘Let’s see. If I'm happy I shall stay and if I'm not happy I shall return to Cairo’.”
Mr Zakaria was offered a job and a one-way ticket to Dubai by the merchant Ali Al Owais, chairman of Dubai Refreshment Company, which made Pepsi Cola and had Dubai’s first ice factory.
When he collected his ticket from Cairo’s BOAC office, he asked where Dubai was.
The clerk unrolled a map, squinted hard and said: “There is nothing called Dubai. There are two towns only: Muscat and Sharjah.”
Days later, Mr Zakaria was aboard a 12-seater plane, peering out a window in confusion as the pilot announced they were about to land in Dubai. Mr Zakaria saw nothing but sea, sabkha salt flats and a winding creek.
“The pilot said: ‘We are now over Dubai’ and I looked down and said: ‘There is nothing I can see, absolutely nothing. Where is the airport? There is no airport there.’ I was very surprised, because the airport was sabkha. No roads, no people, no water, no electricity – nothing really.”
'Have you ever seen chicken in a can?'
Mr Zakaria and Mahmoud shared a flat in Deira and Mr Mohamed lived across the creek in Bur Dubai at the vegetable bazaar.
There was no air conditioning, so Mr Mohamed carried his mattress on to the roof each night to catch the breeze, only to be woken at dawn each morning when the vegetable auction began.
There was no water connection, so Mr Mohamed took buckets of water from a steel tank on the roof to fill his bathtub so he could have a cool bath at night. In the tub, he’d catch up on the news by reading newspapers printed days earlier in Kuwait or Egypt.
Mr Zakaria worked as an accountant at Dubai Refreshment Company, becoming chief executive in 1968. This was a hit with the fishermen and grocers who previously relied on canned goods, most of which came from Bahrain.
“By the way, have you ever seen a chicken in a can?” said Mr Zakaria. “This is how we ate chicken in 1963. Canned chicken. You opened the can and took the chicken out from inside, one full chicken.”
The factory was on the Dubai Creek, where dhows set off for India, Iraq, Kuwait and Zanzibar. It had a platform on the crowded waterway and everything arrived by dhow, including sugar, concentrate and Pepsi signs. Even the water to make cola was distilled from the creek.
Most dhows were used in the Indian gold trade, which was at its peak. As head accountant to prominent merchants and captains, Mr Mohamed oversaw accounts for the captains who commanded ships laden with gold.
“At that time, Dubai was closer to India [than Egypt],” said Mr Mohamed. “The currency was the rupee; the only foreigners here were Indian. There were also a few Pakistanis and lots of Iranians who were born here.”
Most Arabs were Egyptian teachers, supported by their government, or doctors from Egypt, Palestine and Iraq, who were supported by Kuwait in a show of pan-Arab solidarity.
“At that time, when you walked in the street you knew everyone by face and by name,” said Mr Mohamed. “When you were on the airplane, you knew everyone on the airplane. Those were the days when you had a small community and our only ambition was to meet every night for dinner.”
The British withdrawal
In 1968, the British announced plans to withdraw from the Gulf. Rulers worked to unify the emirates into a single state but Dubai’s business community was preoccupied with trade.
“The concentration was only on business,” said Mr Mohamed. “You had weekly shipments to India and when you are shipping goods to India you are waiting to get news that they have arrived. You get this news after seven days and during these seven days you are not thinking about anything except your money.
"You don't have time for concentrating on anything other than that."
“At that time, the Arab world was boiling about independence,” he said. “Nasser had nationalised the Suez Canal so the whole Arab world was pro Nasser and everyone was waiting to hear Nasser’s speeches.
“Here, they were very careful. Sheikh Rashid didn’t really want to involve himself. He said: ‘I like you but I don’t want to destroy my country.' They managed to compromise.”
'You'd look out and find black carpets'
Oil was discovered at Al Falah field in 1966 and Dubai soon had its first export. Government spending on infrastructure spurred private investment in retail, construction and property.
“The government moved towards infrastructure with Jebel Ali, the Dubai Port, the World Trade Centre,” said Mr Mohamed. “Many things started to be made by the Dubai government, which encouraged the people to spend money.”
Car dealerships were especially popular, even before paved roads. Landscapes transformed overnight.
British companies laid roads as Dubai slept.
“In the morning, you’d look out and find black carpets,” said Mr Mohamed. "Sand became black.”
The impact of unification
Unification, known as ittihad in Arabic, opened Abu Dhabi to other emirates.
“The people in Dubai, Sharjah, Ras Al Khaimah and Ajman, they were much closer together than Abu Dhabi,” said Mr Zakaria. “From the beginning, it was almost like one country, people went here and there. Except for Abu Dhabi, of course. If you didn’t have an Abu Dhabi [permit] you would never enter Abu Dhabi.”
Prior to unification, it had been difficult for people to cross into Abu Dhabi without a permit and setting up business in the capital required a sponsor or partner from Abu Dhabi. In contrast, free movement and business between Dubai and the Northern Emirates was common. With unification, Abu Dhabi became more integrated with the other emirates and it experienced a flush of investment from the future capital.
“After ittihad, people were very happy because so many jobs came,” said Mr Zakaria. “The education in the Northern Emirates was much more advanced than anywhere else. This is a fact. So people who had good education found opportunities in Abu Dhabi. Maybe more than 40 per cent of its workers were from Sharjah, Ajman, Ras Al Khaimah.” Mahmoud left Dubai in 1963, after his employer passed away.
But his Cairo friends, now Emiratis themselves, have never looked back.
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Sheikh Zayed and the story of a nation
How to avoid crypto fraud
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F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 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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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
More from Neighbourhood Watch
Ten10 Cricket League
Venue and schedule Sharjah Cricket Stadium, December 14 to 17
Teams
Maratha Arabians Leading player: Virender Sehwag; Top picks: Mohammed Amir, Imad Wasim; UAE players: Shaiman Anwar, Zahoor Khan
Bengal Lions Leading player: Sarfraz Ahmed; Top picks: Sunil Narine, Mustafizur Rahman; UAE players: Mohammed Naveed, Rameez Shahzad
Kerala Kings Leading player: Eoin Morgan; Top picks: Kieron Pollard, Sohail Tanvir; UAE players: Rohan Mustafa, Imran Haider
Pakhtoons Leading player: Shahid Afridi; Top picks: Fakhar Zaman, Tamim Iqbal; UAE players: Amjad Javed, Saqlain Haider
Punjabi Legends Leading player: Shoaib Malik; Top picks: Hasan Ali, Chris Jordan; UAE players: Ghulam Shabber, Shareef Asadullah
Team Sri Lanka Cricket Will be made up of Colombo players who won island’s domestic limited-overs competition
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
UAE currency: the story behind the money in your pockets
On racial profiling at airports
MATCH INFO
Tottenham 4 (Alli 51', Kane 50', 77'. Aurier 73')
Olympiakos 2 (El-Arabi 06', Semedo')
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
Mobile phone packages comparison
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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.”
Cricket World Cup League 2 Fixtures
Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)
Sunday March 6, Oman v Namibia, ICC Academy
Tuesday March 8, UAE v Namibia, ICC Academy
Wednesday March 9, UAE v Oman, ICC Academy
Friday March 11, Oman v Namibia, Sharjah Cricket Stadium
Saturday March 12, UAE v Namibia, Sharjah Cricket Stadium
UAE squad
Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia
WHEN TO GO:
September to November or March to May; this is when visitors are most likely to see what they’ve come for.
WHERE TO STAY:
Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.
HOW TO GET THERE:
Etihad Airways regularly flies from Abu Dhabi to Kathmandu from around Dh1,500 per person return, including taxes. Buddha Air (buddhaair.com) and Yeti Airlines (yetiairlines.com) fly from Kathmandu to Bharatpur several times a day from about Dh660 return and the flight takes just 20 minutes. Driving is possible but the roads are hilly which means it will take you five or six hours to travel 148 kilometres.
MATCH INFO
Newcastle 2-2 Manchester City
Burnley 0-2 Crystal Palace
Chelsea 0-1 West Ham
Liverpool 2-1 Brighton
Tottenham 3-2 Bournemouth
Southampton v Watford (late)