Turkey’s chief of staff Gen Hulusi Akar talks to the prime minister, Ahmet Davutoglu, as they attend the funeral on February 18, 2016, of a soldier killed south-eastern city of Diyarbakir. Adem Altan / AFP
Turkey’s chief of staff Gen Hulusi Akar talks to the prime minister, Ahmet Davutoglu, as they attend the funeral on February 18, 2016, of a soldier killed south-eastern city of Diyarbakir. Adem Altan / AFP
Turkey’s chief of staff Gen Hulusi Akar talks to the prime minister, Ahmet Davutoglu, as they attend the funeral on February 18, 2016, of a soldier killed south-eastern city of Diyarbakir. Adem Altan / AFP
Turkey’s chief of staff Gen Hulusi Akar talks to the prime minister, Ahmet Davutoglu, as they attend the funeral on February 18, 2016, of a soldier killed south-eastern city of Diyarbakir. Adem Altan

Ankara attack raises pressure on US to pick Kurds or Turkey


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BEIRUT // As Turkey begins to seriously consider deepening its role in Syria’s war, it is not the continued presence of ISIL nor the Assad government’s siege of rebels in Aleppo that is driving its moves. Rather, it is what has driven much of Ankara’s Syria policy for a long time: the Kurds.

Turkish prime minister Ahmet Davutoglu on Thursday blamed the Kurdish YPG militia in Syria for the Ankara bombing that killed 28 people a day earlier, promising to retaliate against the group with “all necessary measures” and increasing pressure on the United States to suspend its support for what has been the most effective ground force against ISIL in the country.

However, Salih Muslim, the leader of PYD – the YPG’s political wing – denied any involvement in the attack.

Mr Davutoglu’s announcement of additional Turkish military action against the Kurdish militia was neither reactive nor sudden.

Turkey has already been shelling YPG-held areas north of Aleppo since February 13 after the Kurds captured positions of Syrian rebels who had fled a government offensive backed by Russian air strikes and later began fighting some opposition groups.

Turkish president Recep Tayyip Erdogan and senior Turkish officials were already trying to justify further military action against the YPG before the bomb attack.

Just hours earlier on Wednesday, Mr Erdogan said Ankara would not allow a “new Qandil” – a reference to the PKK stronghold in the mountains of northern Iraq – to sprout up along Turkey’s southern border and vowed that artillery strikes against the YPG would continue.

On Tuesday, he said that “both the PYD and YPG are organisations of the Assad regime” and urged the West not to differentiate between the PKK, ISIL and other terrorist organisations.

The tough talk against the YPG was bolstered by action, as Ankara on Wednesday allowed 500 rebels to cross its border into the rebel-held Syrian town of Azaz, which is facing an assault by a Kurdish-led alliance of fighters.

Turkey’s deputy prime minister, Yalcin Akgodan, on Wednesday called for military intervention to create a 10 kilometre deep “secure strip” of territory inside Syria to protect Azaz from Kurdish forces. The zone would rebuff efforts to “change the demographic structure” of the area, he said.

If, as Turkey says, the YPG did indeed carry out the bombing in Ankara, it would be the first time the group has launched such an attack and would be out of character.

While the PKK – the YPG’s sister organisation – has long carried out bombings and ambushes inside Turkey and is currently at war with the government, the YPG has focused its attention on Syria, where it is carving out what could become an independent Kurdish state.

The PKK and YPG are closely linked ideologically, and many PKK militants now fight under the banner of the YPG in Syria. But aware that much of the international community blacklists the PKK as a terrorist organisation and fearful that Turkey could move to crush any Kurdish movement along its borders, the YPG has been careful to stress its differences with the PKK and not provoke Turkey with attacks.

In denying responsibility, Mr Muslim, the PYD leader, said the YPG had not been attacking Turkey and did not consider Turkey its enemy.

Their efforts to distance themselves from the PKK have paid off. In Syria, the YPG has forged a close alliance with the United States even though Washington considers its sister organisation a terrorist group.

Turkey has been disapproving of the US relationship with the YPG from the start, but on Thursday Ankara took a firmer stand as Mr Davutoglu issued an ultimatum: Turkey’s allies are expected to stand against the YPG.

“Those who directly or indirectly back an organisation that is the enemy of Turkey risk losing the title of being a friend of Turkey,” he said.

Mr Davutoglu’s challenge presents the US with a dilemma.

Defeating ISIL has come to define Washington’s Syria policy and the YPG has become a cornerstone of its strategy.

As the most effective fighting force on the ground against the extremist group, the YPG has directly coordinated air strikes with the US and plays host to the small number of American special forces currently deployed in Syria.

Where the US met failure in its efforts to mould Arab rebel groups with its now defunct train-and-equip programme, in the YPG they found an eager, proficient fighting force with the ability to capture and hold territory.

However, the US also views Turkey as a key ally in fighting ISIL, despite the country carrying out just a handful of air strikes against the group and being accused of allowing the extremists to flourish through lax control of its border with Syria. By allowing the anti-ISIL coalition to use its Incirlik airbase to launch strikes, Turkey has earned itself an important role.

In backing Turkey and abandoning support for the YPG, the US would risk reversing many of the gains it has made against ISIL. But by refuting Turkey, Washington could potentially risk losing access to its airbases and land routes into Syria, as well as Ankara’s cooperation in resolving the Syrian conflict.

Caught between two allies that are vital to its mission in Syria, the US faces a decision it does not want to make. Yet the bombing in Ankara may force it to go one way or the other.

foreign.desk@thenational.ae

* With additional reporting from Associated Press and Reuters

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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Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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  • Use unique usernames and passwords while enabling multi-factor authentication.
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What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
if you go

The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.

The trip 

Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.

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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Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE