Barack Obama's fleeting visit to Myanmar today - the first by a US president - has received mixed reactions from experts, with some claiming that the country's military regime has duped the international community into believing in a reform process that is only "skin deep".
Mr Obama will meet the Myanmar opposition leader, Aung San Suu Kyi, at her home in Yangon today, as well as seeing the president, Thein Sein, who has been credited with kick-starting a broad reform movement over the past two years.
The Myanmar government has surprised observers with what appears to be a sudden opening up of the country after years of brutal dictatorship and international isolation.
It began releasing hundreds of political prisoners in 2010, including Ms Suu Kyi, who had been under house arrest for 15 of the previous 21 years, and allowed her party to stand in by-elections in April. It has also signed ceasefires with several ethnic rebel groups and relaxed some of its censorship rules.
But campaigners say Mr Obama's visit is premature given how far the reform process has still to go.
"It is too much, too soon," said Anna Roberts, executive director of Burma Campaign UK. "It's a really big reward for the small steps the government has taken. This leaves the US with no more leverage to press for further change."
She points to the ethnic violence directed against a Muslim community, the Rohingyas, which began in the summer in Myanmar's western Rakhine state. Locals say police and officials have done little to control the attacks, in which hundreds have been killed, homes and mosques destroyed, and thousands forced to flee.
The army also restarted a war against Kachin rebels in the north of the country in July 2011, in which they are accused of serious human-rights abuses.
Many countries, particularly the US, are keen to engage with Myanmar, not least because it offers a virgin market for all sorts of western goods, as well as substantial energy and natural resources. The US lifted a nearly decade-old ban on most imports from Myanmar ahead of Mr Obama's visit.
Ms Suu Kyi has warned against a "reckless optimism" among the international community regarding reforms in her country.
"Everybody is mainly interested in Myanmar because of its investment policies," she told The Hindu during a visit to India last week. "But investment has to be done in the right way, and also we have to keep in mind that we are just at the beginning of the road to democracy."
Members of her party, the National League for Democracy (NLD), have nonetheless welcomed Mr Obama's visit, saying it will boost the reform process.
"The president's visit does not mean things in the country are normal," said Tint Swe, a former NLD member of parliament who was forced into exile following the military repression of late 1980s.
"If we waited for all violence and human-rights abuses to end, no statesmen would ever come to Myanmar. An American president's visit to such a small, poor country indicates how Myanmar can play her legitimate role in the region."
Regardless of the consequences, the opening up of the country has so far been skilfully played by Mr Sein and his government, says Jan Zalewski, an analyst for IHS Global Insight, based in London. "They have sold the image of a government that is split between hardliners and reformists as a way of encouraging more foreign engagement. It's very useful for the Myanmar government and countries like the US to play on the hardliner/ softliner debate," Mr Zalewski said.
"That image allows Obama to say he is on the side of the reformers and therefore helping the democratic process.
"In reality, the reform process has been tightly controlled by the military and follows a plan that has been in place for many years. There is some disagreement within the government about the exact details of democratic reforms and how far they should go, but none of this would be happening if the military didn't want it to."
foreign.desk@thenational.ae
This article has been corrected since publication. The human rights organisation Burma Campaign UK was originally called Myanmar Campaign UK.
Company%20Profile
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The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
<html><head><meta http-equiv="Content-Type" content="text/html" charset="UTF-8" /></head><body><!--PSTYLE=* Labels%3aFH Label 18 Sport--><p>Beach soccer</p><!--PSTYLE=BY Byline--><p>Amith Passela</p><p /></body></html>
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
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
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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Brief scores
Day 1
Toss England, chose to bat
England, 1st innings 357-5 (87 overs): Root 184 not out, Moeen 61 not out, Stokes 56; Philander 3-46
The%20Specs
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