More witnesses to take stand in Tamim trial


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CAIRO// Witnesses in the trial of two men accused in the killing of Suzanne Tamim, the Lebanese pop singer, were due to give evidence today. The second session of the trial of Hisham Talaat Moustafa, the Egyptian billionaire and senior member of Egypt's ruling party, opened in Cairo yesterday after a month-long adjournment. Mohsen el Sokari, 39, a former Egyptian state security officer, accused of killing of the 31-year-old singer on Mr Moustafa's orders, is also in the dock.

The first witness, an Egyptian police officer who arrested Mr Sokari, told yesterday how the defendant described where he was hiding money he took in payment for killing Tamim. Mr Moustafa is charged with paying US$2 million (Dh7.3m) to have Tamim killed after she ended their relationship. Tamim was found dead in her apartment at Dubai's beachfront Jumeira Beach Residence on July 28, with stab wounds and her throat cut.

The two defendants, who deny involvement in Tamim's death, were taken into the court at 7.30am under tight security. More than 2,000 security guards surrounded the court, while plain-clothes officers could be seen on rooftops overlooking the court near Islamic Cairo. Tamim was discovered by a Lebanese talent company in 1996, but her troubled personal life began overshadowing her career. When the trial first opened on Oct 18, the prosecution presented the judge with evidence against the men, including Sokari's trousers, a Swiss army knife, a fingerprint report, a DNA test, security camera tapes and transcripts of phone conversations between the two men allegedly discussing the murder.

Mr Moustafa has been in custody since he was arrested on Sept 2 when Egypt's general prosecutor stripped him of his parliamentary immunity. Lawyers for Mr Moustafa requested he be released pending the outcome, but the judge refused. nmagd@thenational.ae

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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.”

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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. 

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4. More beneficial VAT and excise tax penalty regime

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7. Limited time periods for audits

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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. 

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