Smoke rises from a residential area in Kyiv (Kiev), Ukraine, 05 June 2022, amid the Russian invasion of the country. Kyiv Mayor Vitali Klitschko on 05 June announced on social media that several explosions occurred following missile strikes in the Darnytskyi and Dniprovskyi districts of the capital with no casualties reported and only one injured who was taken to hospital. EPA / OLEG PETRASYUK
Smoke rises from a residential area in Kyiv (Kiev), Ukraine, 05 June 2022, amid the Russian invasion of the country. Kyiv Mayor Vitali Klitschko on 05 June announced on social media that several explosions occurred following missile strikes in the Darnytskyi and Dniprovskyi districts of the capital with no casualties reported and only one injured who was taken to hospital. EPA / OLEG PETRASYUK
Smoke rises from a residential area in Kyiv (Kiev), Ukraine, 05 June 2022, amid the Russian invasion of the country. Kyiv Mayor Vitali Klitschko on 05 June announced on social media that several explosions occurred following missile strikes in the Darnytskyi and Dniprovskyi districts of the capital with no casualties reported and only one injured who was taken to hospital. EPA / OLEG PETRASYUK
Smoke rises from a residential area in Kyiv (Kiev), Ukraine, 05 June 2022, amid the Russian invasion of the country. Kyiv Mayor Vitali Klitschko on 05 June announced on social media that several explo

Kyiv struck by Russian cruise missiles amid fierce fighting in east Ukraine


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Five cruise missiles hit targets in Kyiv on Sunday, Ukrainian officials have said. The weapons, reportedly KH-22 missiles fired from the Caspian Sea, have a 600-kilometre range, marking the end of weeks of relative calm in the capital.

The attack came as Ukrainian forces claimed to have made gains in the country's east, after a period of Russian advances that the UK's Ministry of Defence called "incremental."

  • British citizens Aiden Aslin, left, and Shaun Pinner, right, and Moroccan Saaudun Brahim, centre, sit behind bars in a courtroom in the breakaway eastern Ukrainian enclave of Donetsk. The three were sentenced to death by pro-Moscow rebels for fighting on Ukraine's side. AP
    British citizens Aiden Aslin, left, and Shaun Pinner, right, and Moroccan Saaudun Brahim, centre, sit behind bars in a courtroom in the breakaway eastern Ukrainian enclave of Donetsk. The three were sentenced to death by pro-Moscow rebels for fighting on Ukraine's side. AP
  • A Ukrainian soldier fires a machine gun near the town of New York in the breakaway Donetsk enclave. Reuters
    A Ukrainian soldier fires a machine gun near the town of New York in the breakaway Donetsk enclave. Reuters
  • The gutted remains of cars lie along a road during heavy fighting in Severodonetsk. AP
    The gutted remains of cars lie along a road during heavy fighting in Severodonetsk. AP
  • Ukrainian soldiers ride an armoured vehicle near the city of Bakhmut, in the breakaway Donetsk enclave. EPA
    Ukrainian soldiers ride an armoured vehicle near the city of Bakhmut, in the breakaway Donetsk enclave. EPA
  • Ukrainian soldiers and members of civilian demining organisations take part in a training exercise for bomb disposal experts in Peja, Kosovo. Getty
    Ukrainian soldiers and members of civilian demining organisations take part in a training exercise for bomb disposal experts in Peja, Kosovo. Getty
  • Volunteers clear debris near a damaged shopping mall after night shelling in Kharkiv, Ukraine. EPA
    Volunteers clear debris near a damaged shopping mall after night shelling in Kharkiv, Ukraine. EPA
  • A man walks past a college on fire after a strike in Lysychansk in the eastern Ukrainian region of Donbas. AFP
    A man walks past a college on fire after a strike in Lysychansk in the eastern Ukrainian region of Donbas. AFP
  • Ukrainian service members near the town of Soledar. Reuters
    Ukrainian service members near the town of Soledar. Reuters
  • Ukrainian President Volodymyr Zelenskyy in Kyiv. AFP
    Ukrainian President Volodymyr Zelenskyy in Kyiv. AFP
  • Residents kneel during a funeral procession for senior lieutenant Vasyl Herych, 31, of the 15th Separate Mountain Assault Battalion, who was killed in Perechyn, Ukraine. Reuters
    Residents kneel during a funeral procession for senior lieutenant Vasyl Herych, 31, of the 15th Separate Mountain Assault Battalion, who was killed in Perechyn, Ukraine. Reuters
  • People hide in a bomb shelter in the city of Lysychansk in the Donbas region. AFP
    People hide in a bomb shelter in the city of Lysychansk in the Donbas region. AFP
  • Ivan Sosnin, 19, surveys the damage to his home in Lysychansk. AFP
    Ivan Sosnin, 19, surveys the damage to his home in Lysychansk. AFP
  • Ukrainian troops repair a tank in the Donbas region. AFP
    Ukrainian troops repair a tank in the Donbas region. AFP
  • Ukrainian troops fire rockets towards Russian positions at a front line in the Donbas region. AFP
    Ukrainian troops fire rockets towards Russian positions at a front line in the Donbas region. AFP
  • Volunteers from a Danish NGO demonstrate how to search for explosive devices with help of a loop metal detector, outside the town of Ichnia in Ukraine. Reuters
    Volunteers from a Danish NGO demonstrate how to search for explosive devices with help of a loop metal detector, outside the town of Ichnia in Ukraine. Reuters
  • A firefighter takes a break after putting out a fire at a house in a district of Kharkiv that was bombed by Russian forces. Reuters
    A firefighter takes a break after putting out a fire at a house in a district of Kharkiv that was bombed by Russian forces. Reuters
  • Plumes of smoke rise from a house on fire after a military strike by Russian forces in Kharkiv. Reuters
    Plumes of smoke rise from a house on fire after a military strike by Russian forces in Kharkiv. Reuters
  • The damaged house of Inna Bobryntseva, a woman who died during Russian shelling, in Kharkiv. Ukrainian officials exhumed her body from her backyard as part of an investigation into war crimes. Reuters
    The damaged house of Inna Bobryntseva, a woman who died during Russian shelling, in Kharkiv. Ukrainian officials exhumed her body from her backyard as part of an investigation into war crimes. Reuters
  • A man moves items from a damaged shop in Kharkiv after a Russian military strike the night before. Reuters
    A man moves items from a damaged shop in Kharkiv after a Russian military strike the night before. Reuters
  • Civilian militia men hold shotguns during training at a shooting range on the outskirts of Kyiv, Ukraine. AFP
    Civilian militia men hold shotguns during training at a shooting range on the outskirts of Kyiv, Ukraine. AFP
  • A woman walks by a destroyed apartment building in the town of Borodyanka. AFP
    A woman walks by a destroyed apartment building in the town of Borodyanka. AFP
  • Rescuers dismantle collapsing structures of a heavily damaged 16-storey residential building in the Saltivka district of Kharkiv. AFP
    Rescuers dismantle collapsing structures of a heavily damaged 16-storey residential building in the Saltivka district of Kharkiv. AFP
  • A Ukrainian bomb disposal worker carries unexploded ordnance during mine clearance work in the village of Yahidne, in the liberated territories of the Chernihiv region. AFP
    A Ukrainian bomb disposal worker carries unexploded ordnance during mine clearance work in the village of Yahidne, in the liberated territories of the Chernihiv region. AFP
  • Ukrainian President Volodymyr Zelenskyy, centre, visits the military during a trip to the Zaporizhzhia region. AFP
    Ukrainian President Volodymyr Zelenskyy, centre, visits the military during a trip to the Zaporizhzhia region. AFP
  • Ukrainian service members fire a shell from a M777 Howitzer in the Donetsk region as Russia's attack on Ukraine continues. Reuters
    Ukrainian service members fire a shell from a M777 Howitzer in the Donetsk region as Russia's attack on Ukraine continues. Reuters
  • Ukrainian servicemen manoeuvre a tank near the frontline in the Donetsk region. AP Photo
    Ukrainian servicemen manoeuvre a tank near the frontline in the Donetsk region. AP Photo
  • The remains of the Darnytsia Car Repair Plant damaged by missile strikes in Kyiv. EPA
    The remains of the Darnytsia Car Repair Plant damaged by missile strikes in Kyiv. EPA
  • A couple embrace on Maidan square in Kyiv. AP Photo
    A couple embrace on Maidan square in Kyiv. AP Photo
  • Smoke rises from a residential area in Kyiv. Mayor Vitali Klitschko said several explosions occurred following missile strikes in the Darnytskyi and Dniprovskyi districts of the capital with no casualties reported. EPA
    Smoke rises from a residential area in Kyiv. Mayor Vitali Klitschko said several explosions occurred following missile strikes in the Darnytskyi and Dniprovskyi districts of the capital with no casualties reported. EPA
  • A woman holds a poster showing Russian President Vladimir Putin during a protest against the war in Ukraine at the Brandenburg Gate in Berlin. AP
    A woman holds a poster showing Russian President Vladimir Putin during a protest against the war in Ukraine at the Brandenburg Gate in Berlin. AP
  • Smoke rises in the background after Russian missile strikes in Kyiv. AP
    Smoke rises in the background after Russian missile strikes in Kyiv. AP
  • A Ukrainian serviceman pauses before going back to the frontline in the Donetsk region of eastern Ukraine. AP
    A Ukrainian serviceman pauses before going back to the frontline in the Donetsk region of eastern Ukraine. AP
  • Firefighters dampen down a rail facility in the Darnytsia district of Kyiv after a Russian air strike. EPA
    Firefighters dampen down a rail facility in the Darnytsia district of Kyiv after a Russian air strike. EPA
  • An elderly woman sits in front of destroyed houses after a missile strike, which killed a civilian, in the city of Druzhkivka in the eastern Ukrainian region of Donbas. AFP
    An elderly woman sits in front of destroyed houses after a missile strike, which killed a civilian, in the city of Druzhkivka in the eastern Ukrainian region of Donbas. AFP
  • A man examines an apartment destroyed during shelling in Donetsk, eastern Ukraine. Five civilians were killed and 20 were injured. EPA
    A man examines an apartment destroyed during shelling in Donetsk, eastern Ukraine. Five civilians were killed and 20 were injured. EPA
  • Residents examine cars destroyed during shelling in Donetsk. EPA
    Residents examine cars destroyed during shelling in Donetsk. EPA
  • Civilians are evacuated from apartments destroyed during shelling in Donetsk. EPA
    Civilians are evacuated from apartments destroyed during shelling in Donetsk. EPA
  • A man looks on as smoke rises after explosions were heard in Kyiv. Reuters
    A man looks on as smoke rises after explosions were heard in Kyiv. Reuters
  • Residents chat in front of a destroyed building in Borodianka, as Russia's attacks on Ukraine continue. Reuters
    Residents chat in front of a destroyed building in Borodianka, as Russia's attacks on Ukraine continue. Reuters
  • A monument to Ukrainian poet Taras Shevchenko, damaged by shelling in Borodianka. Reuters
    A monument to Ukrainian poet Taras Shevchenko, damaged by shelling in Borodianka. Reuters
  • Men scavenge a burnt Russian military vehicle for parts and scrap metal in Novyi Bykiv. Getty
    Men scavenge a burnt Russian military vehicle for parts and scrap metal in Novyi Bykiv. Getty
  • A crater and a destroyed building after a rocket attack on a small airfield near Kharkiv. EPA
    A crater and a destroyed building after a rocket attack on a small airfield near Kharkiv. EPA
  • Ukrainian howitzers in action at an undisclosed location. AFP
    Ukrainian howitzers in action at an undisclosed location. AFP
  • A girl rides a scooter past a destroyed building in the village of Horenka, Kyiv. AFP
    A girl rides a scooter past a destroyed building in the village of Horenka, Kyiv. AFP
  • Pope Francis hugs a child during a meeting at the Vatican with children with disabilities and Ukrainian children who fled their country. Reuters
    Pope Francis hugs a child during a meeting at the Vatican with children with disabilities and Ukrainian children who fled their country. Reuters
  • Ukrainian emergency works at a damaged building following shelling in Kharkiv. AP
    Ukrainian emergency works at a damaged building following shelling in Kharkiv. AP
  • Members of a medical rescue team gather inside their temporary base in the Donetsk region of eastern Ukraine. AP
    Members of a medical rescue team gather inside their temporary base in the Donetsk region of eastern Ukraine. AP
  • A woman sits at a destroyed bus station in the city of Mariupol. AFP
    A woman sits at a destroyed bus station in the city of Mariupol. AFP
  • Residents are evacuated from Slovyansk, eastern Ukraine. AP
    Residents are evacuated from Slovyansk, eastern Ukraine. AP

Dark smoke could be seen from many miles away after the attack on two outlying districts of Kyiv. Ukraine said the strike hit a rail car repair works, while Moscow said it had destroyed tanks sent by Eastern European countries to Ukraine.

At least one person was taken to hospital, although there were no immediate reports of deaths.

"The Kremlin resorts to new insidious attacks. Today’s missile strikes at Kyiv have only one goal — kill as many as possible," tweeted Ukrainian presidential adviser, Mikhailo Podolyak.

Ukraine's nuclear power operator said a Russian cruise missile had flown "critically low" over the country's second largest nuclear power plant.

Sunday's attack was the first big strike on Kyiv since late April, when a missile killed a journalist. Recent weeks have involved Russia focusing its destructive might mainly on front lines in the east and south. However, Moscow occasionally strikes elsewhere in what it calls a campaign to degrade Ukraine's military infrastructure and block Western arms shipments.

Fierce Sievierodonetsk battle

Russia has concentrated its forces in recent weeks on the small, eastern industrial city of Sievierodonetsk, pursuing one of the biggest ground battles of the war in an attempt to capture one of two eastern provinces it claims on behalf of separatist proxies.

After retreating steadily in the city in recent days, Ukraine mounted a counter-attack there, which it says took the Russians by surprise. After recapturing a part of the city, Ukrainian forces were now in control of half of it and continuing to push the Russians back, said Sergiy Gaidai, governor of the Luhansk region that includes Sievierodonetsk.

The claims could not be independently verified. Both sides say they have inflicted considerable casualties in Sievierodonetsk, a battle that could determine which side carries the momentum into a protracted war of attrition in the coming months.

In another sign Ukraine has held off the Russian advance, Mr Gaidai said evacuations resumed from the Ukrainian-held part of Luhansk province on Sunday, and 98 people had escaped. Russian forces have been trying for weeks to cut off the main road out to encircle Ukrainian troops there, and evacuations were halted last week after a journalist was killed by shelling.

Britain's defence ministry said on Sunday that Ukrainian counter attacks in Sievierodonetsk over the past 24 hours were likely to blunt any operational momentum Russia had gained. Moscow was deploying poorly equipped separatist fighters in the city to limit the risk to its regular forces, it said.

In the neighbouring Donetsk province, which Moscow also claims on behalf of its separatist proxies, Russian forces have been advancing in recent days in territory north of the Siverskyi Donets river, in advance of what Ukraine anticipates could be a push on the major city of Sloviansk.

Ukrainian officials said at least eight people were killed and 11 injured in Russian shelling in the province overnight.

In a Sunday address to 35,000 people in Rome, Pope Francis noted that more than 100 days had passed since "the start of the armed aggression against Ukraine", and called the war "the negation of God's dream".

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

Our legal consultant

Name: Dr Hassan Mohsen Elhais

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

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Itcan profile

Founders: Mansour Althani and Abdullah Althani

Based: Business Bay, with offices in Saudi Arabia, Egypt and India

Sector: Technology, digital marketing and e-commerce

Size: 70 employees 

Revenue: On track to make Dh100 million in revenue this year since its 2015 launch

Funding: Self-funded to date

 

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 

 

 

Company: Instabug

Founded: 2013

Based: Egypt, Cairo

Sector: IT

Employees: 100

Stage: Series A

Investors: Flat6Labs, Accel, Y Combinator and angel investors

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Ahmed Saadawi
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COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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.”

Updated: June 05, 2022, 6:06 PM