Turkish President Tayyip Erdogan addresses his supporters in Eskisehir, Turkey, October 23, 2021. Reuters
Turkish President Tayyip Erdogan addresses his supporters in Eskisehir, Turkey, October 23, 2021. Reuters
Turkish President Tayyip Erdogan addresses his supporters in Eskisehir, Turkey, October 23, 2021. Reuters
Turkish President Tayyip Erdogan addresses his supporters in Eskisehir, Turkey, October 23, 2021. Reuters

Erdogan’s move to expel diplomats could bring about grave economic consequences


Andrew Wilks
  • English
  • Arabic

When Turkish President Recep Tayyip Erdogan stepped on to the stage in the western city of Eskisehir, few imagined he was about to drop an unprecedented diplomatic bombshell.

By announcing his intention to expel 10 ambassadors over their support for jailed businessman and activist Osman Kavala, Mr Erdogan threatened to inflict a devastating blow to Turkey’s fragile relationship with the West.

Declaring the diplomats persona non grata, or unwelcome persons, not only risks ties that Turkey had been seeking to repair but could also further damage the embattled economy.

The envoys represent seven of Ankara’s Nato allies, including the US, Germany and France, as well as EU members. Germany is Turkey’s largest market while the US is its third biggest. The two countries accounted for more than 15 per cent of Turkish exports between them last year.

The crisis began when the ambassadors issued a statement on October 18, calling for Mr Kavala’s release after four years’ imprisonment without being convicted of a crime.

His case has been widely criticised as a bid to shutdown free speech and lacking evidence.

Turkish President Tayyip Erdogan. Photo: Reuters
Turkish President Tayyip Erdogan. Photo: Reuters

Mr Kavala, 64, was acquitted last year of charges linked to nationwide anti-government protests in 2013 but the ruling was overturned and joined to charges relating to a 2016 coup attempt.

The European Court of Human Rights had called for his release in 2019 and the Council of Europe says it will start infringement proceedings against Turkey at the end of November if Mr Kavala is not released.

Following their message, the ambassadors were summoned to the foreign ministry for a dressing down. During a return flight from Africa the following day, Mr Erdogan hinted to journalists they could be kicked out.

While most observers put his comments down to rhetoric, it appears Mr Erdogan was sincere in his remarks. Over the next few days foreign ministry officials tried to roll back the president’s plan, according to the Anka news agency.

Then came Saturday’s unequivocal announcement.

“I gave the instruction to our foreign minister and said ‘You will immediately handle the persona non grata declaration of these 10 ambassadors,’” Mr Erdogan told a crowd of supporters in Eskisehir.

Jailed businessman and activist Osman Kavala, whose case has sparked a diplomatic row betweeen Turkey and Western countries. AFP
Jailed businessman and activist Osman Kavala, whose case has sparked a diplomatic row betweeen Turkey and Western countries. AFP

Yasar Yakis, a career diplomat who served as foreign minister in the early years of Mr Erdogan’s government, described the declaration as “an instruction that should not have been given”.

“They should leave this kind of work to the diplomats and determine how the issue is formulated,” he said.

Whether Turkey will proceed with the expulsions remains up in the air. Formal notices have not been served, according to most of the intended recipients. At Mr Erdogan's weekly Cabinet meeting on Monday, he said the ambassadors had taken a step back and would be more careful in their statements.

"Our government will not shy away from any further steps to show that we will never compromise our national sovereignty," said Fahrettin Altun, Turkey's communications director, on Twitter.

If they are removed, Ankara faces tit-for-tat responses from the 10 nations, which also include Canada, the Netherlands, New Zealand, Denmark, Sweden, Norway and Finland.

“International relations are an arm wrestle,” said Mr Yakis. “Turkey is currently in no position to bend the wrists of these 10 countries. There is a possibility that Turkey will suffer more from this conflict.”

The crisis is likely to derail Mr Erdogan’s plans for a face-to-face meeting with US President Joe Biden at a G20 meeting in Rome next weekend.

Turkish soldiers stand outside a court at a prison complex in June, during proceedings against Osman Kavala and 15 others. Photo: AP
Turkish soldiers stand outside a court at a prison complex in June, during proceedings against Osman Kavala and 15 others. Photo: AP

It could also lead to tougher US sanctions over Turkey’s purchase of Russian missiles and hamper plans for it to buy new F-16 jets from Washington, according to Naim Baburoglu, a faculty member at Istanbul Aydin University.

The financial impact of cutting ties with some of the world’s largest economies will also damage Ankara’s efforts to attract foreign investment after the lira has gone through a series of record lows in recent weeks.

Inflation stands slightly under 20 per cent amid growing scepticism over the independence of the Central Bank in setting monetary policy.

“We shouldn’t have shot ourselves in the foot,” said Utku Cakirozer, an opposition member of parliament’s foreign affairs committee.

“Turkey cannot tolerate new crises. It is necessary to evaluate whether this decision that will harm or benefit the national interests of our country.”

Turkey’s precarious economic situation and Mr Erdogan’s drop in the opinion polls have been suggested as the reason for his reaction to the ambassadors’ statement.

“The decision to deport the 10 ambassadors is an attempt to completely change the agenda, to forget about [price] hikes, costs, the economic crisis and unemployment,” Mr Cakirozer said.

“It’s a very dangerous game. Of the 10 countries, Turkey has the most important trading partners, we have allies. This triggers another economic and political crisis,” he added.

Match info:

Portugal 1
Ronaldo (4')

Morocco 0

Chatham House Rule

A mark of Chatham House’s influence 100 years on since its founding,  was Moscow’s formal declaration last month that it was an “undesirable
organisation”. 

 

The depth of knowledge and academics that it drew on
following the Ukraine invasion had broadcast Mr Putin’s chicanery.  

 

The institute is more used to accommodating world leaders,
with Nelson Mandela, Margaret Thatcher among those helping it provide
authoritative commentary on world events. 

 

Chatham House was formally founded as the Royal Institute of
International Affairs following the peace conferences of World War One. Its
founder, Lionel Curtis, wanted a more scientific examination of international affairs
with a transparent exchange of information and ideas.  

 

That arena of debate and analysis was enhanced by the “Chatham
House Rule” states that the contents of any meeting can be discussed outside Chatham
House but no mention can be made identifying individuals who commented.  

 

This has enabled some candid exchanges on difficult subjects
allowing a greater degree of free speech from high-ranking figures.  

 

These meetings are highly valued, so much so that
ambassadors reported them in secret diplomatic cables that – when they were
revealed in the Wikileaks reporting – were thus found to have broken the rule. However,
most speeches are held on the record.  

 

Its research and debate has offered fresh ideas to
policymakers enabling them to more coherently address troubling issues from climate
change to health and food security.   

 
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How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

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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

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.

COMPANY PROFILE
Name: Mamo 

 Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua

 Based: Dubai, UAE

 Number of employees: 28

 Sector: Financial services

 Investment: $9.5m

 Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. 

 

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 

 

Terror attacks in Paris, November 13, 2015

- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France

 

 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Results

4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m; Winner: MM Al Balqaa, Bernardo Pinheiro (jockey), Qaiss Aboud (trainer)

5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel

5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel

6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi

6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud

7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel

7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard

So what is Spicy Chickenjoy?

Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
 

Key recommendations
  • Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
  • Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
  • Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
  • More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Common OCD symptoms and how they manifest

Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.

Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.

Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.

Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.

Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.

Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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Results

6.30pm: Maiden Dh165,000 (Dirt) 1,400m. Winner: Rio Angie, Pat Dobbs (jockey), Doug Watson (trainer).

7.05pm: Handicap Dh170,000 (D) 1,600m. Winner: Trenchard, Pat Dobbs, Doug Watson.

7.40pm: Maiden Dh165,000 (D) 1,600m. Winner: Mulfit, Pat Dobbs, Doug Watson.

8.15pm: Handicap Dh210,000 (D) 1,200m. Winner: Waady, Dane O’Neill, Doug Watson.

8.50pm: Handicap Dh210,000 (D) 2,000m. Winner: Tried And True, Pat Dobbs, Doug Watson.

9.25pm:Handicap Dh185,000 (D) 1,400m. Winner: Midnight Sands, Pat Dobbs, Doug Watson.

'Munich: The Edge of War'

Director: Christian Schwochow

Starring: George MacKay, Jannis Niewohner, Jeremy Irons

Rating: 3/5

Updated: November 01, 2021, 12:49 PM