A soldier salutes French President Emmanuel Macron at the Mont-de-Marsan airbase, where he proposed a substantial boost in military spending. AP
A soldier salutes French President Emmanuel Macron at the Mont-de-Marsan airbase, where he proposed a substantial boost in military spending. AP
A soldier salutes French President Emmanuel Macron at the Mont-de-Marsan airbase, where he proposed a substantial boost in military spending. AP
A soldier salutes French President Emmanuel Macron at the Mont-de-Marsan airbase, where he proposed a substantial boost in military spending. AP

Emmanuel Macron plans to pump billions into French military spending


Simon Rushton
  • English
  • Arabic

France's defence budget should be increased by a third for the next seven years to purchase new technology such as drones so that the country can be ready to tackle changing threats and battlefronts, President Emmanuel Macron said on Friday.

Parliament will be urged to approve his new budget of more than €400 billion ($430 billion) for 2024-2030, up from €295 billion for the 2019-2025 period.

The announcement of major spending came a day after more than a million people protested in France against a proposed reform to pensions and the raising of the retirement age.

“As war is changing, France has and will have armies ready for the perils of the century,” Mr Macron said at the Mont-de-Marsan military airbase in south-western France. “We need to be one war ahead.”

He said the military needed to be ready for new threats and technological attacks.

“After repairing the armed forces, we are going to transform them,” he said. “We need to do better and do it differently.”

France needs to develop the military capabilities “because we won't choose the conflicts we will have to wage”, Mr Macron said.

French President Emmanuel Macron is shown a military drone. EPA
French President Emmanuel Macron is shown a military drone. EPA

The news caused French defence stocks to outperform the Paris bourse.

Thales SA shares rose 2.1 per cent, the biggest increase on the French blue chip index CAC 40. Safran SA added 1.6 per cent and Dassault Aviation rose 2.8 per cent.

Mr Macron also said the budget for military intelligence would also be increased by 60 per cent for the same period, and he hoped to double the country's ability to respond to major cyber attacks.

The presidency has also said France wanted to increase its air defences by 50 per cent.

The new defence bill also aims to boost military equipment production “to respond to the needs of the armed forces” but also “to the expectations of a partner” such as Ukraine, the Elysee Palace has said.

  • Protesters wield flares and CGT labour union flags during a demonstration against French government's pension reform plan in Nice. Reuters
    Protesters wield flares and CGT labour union flags during a demonstration against French government's pension reform plan in Nice. Reuters
  • High school students put up placards that read "Retirement before Arthritis" in Paris during the nationwide strike on Thursday. Getty Images
    High school students put up placards that read "Retirement before Arthritis" in Paris during the nationwide strike on Thursday. Getty Images
  • Wooden pallets burn as demonstrators gather during a rally outside the Gare de Lyon in Paris. AFP
    Wooden pallets burn as demonstrators gather during a rally outside the Gare de Lyon in Paris. AFP
  • Empty platforms at Gare de l'Est Railway Station in Paris. Getty Images
    Empty platforms at Gare de l'Est Railway Station in Paris. Getty Images
  • A firefighter lights a flare during demonstrations in Toulouse. EPA
    A firefighter lights a flare during demonstrations in Toulouse. EPA
  • A rally called by French trade unions in Nantes. AFP
    A rally called by French trade unions in Nantes. AFP
  • Protesters wave flares during a rally in Marseille. AFP
    Protesters wave flares during a rally in Marseille. AFP
  • A commuter outside a closed metro station in Paris. EPA
    A commuter outside a closed metro station in Paris. EPA

Paris has boosted its defence spending in recent years, but its military capacities have come under scrutiny since Russia in February last year invaded pro-western Ukraine.

France has delivered weapons to Ukraine since the invasion, but at a slower rate than some of Kyiv's other western allies.

It has provided weaponry such as the Caesar howitzer artillery system and created a fund of €200 million for Ukraine to buy equipment directly from French manufacturers.

The French government has also pledged to hand over highly mobile AMX-10 RC light tanks, which are wheeled rather than tracked but have a much heavier cannon typical of a tank.

France's needs are not the same as Ukraine's, the French presidency has said.

“France is not Ukraine. It doesn't have the same security interests, and doesn't have a border with Russia,” it has said.

“We have nuclear weapons and we belong to the European Union and Nato.”

But it does need to be able to respond rapidly within a European framework, with or without Nato, which would mean deploying 20,000 troops at short notice.

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  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
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Quarter-finals

Saturday (all times UAE)

England v Australia, 11.15am 
New Zealand v Ireland, 2.15pm

Sunday

Wales v France, 11.15am
Japan v South Africa, 2.15pm

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Bombshell

Director: Jay Roach

Stars: Nicole Kidman, Charlize Theron, Margot Robbie 

Four out of five stars 

If you go

The flights

Etihad and Emirates fly direct from the UAE to Chicago from Dh5,215 return including taxes.

The hotels

Recommended hotels include the Intercontinental Chicago Magnificent Mile, located in an iconic skyscraper complete with a 1929 Olympic-size swimming pool from US$299 (Dh1,100) per night including taxes, and the Omni Chicago Hotel, an excellent value downtown address with elegant art deco furnishings and an excellent in-house restaurant. Rooms from US$239 (Dh877) per night including taxes. 

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Cricket World Cup League 2

UAE squad

Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind

Fixtures

Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE

UAE Premiership

Results

Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes

Final
Abu Dhabi Harlequins v Jebel Ali Dragons, Friday, March 29, 5pm at The Sevens, Dubai

Final scores

18 under: Tyrrell Hatton (ENG)

- 14: Jason Scrivener (AUS)

-13: Rory McIlroy (NIR)

-12: Rafa Cabrera Bello (ESP)

-11: David Lipsky (USA), Marc Warren (SCO)

-10: Tommy Fleetwood (ENG), Chris Paisley (ENG), Matt Wallace (ENG), Fabrizio Zanotti (PAR)

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

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'The Coddling of the American Mind: How Good Intentions and Bad Ideas are Setting up a Generation for Failure' ​​​​
Greg Lukianoff and Jonathan Haidt, Penguin Randomhouse

'Peninsula'

Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra

Director: ​Yeon Sang-ho

Rating: 2/5

MATCH INFO

Liverpool v Manchester City, Sunday, 8.30pm UAE

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

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

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Schedule
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Innotech Profile

Date started: 2013

Founder/CEO: Othman Al Mandhari

Based: Muscat, Oman

Sector: Additive manufacturing, 3D printing technologies

Size: 15 full-time employees

Stage: Seed stage and seeking Series A round of financing 

Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now. 

Updated: January 20, 2023, 10:33 PM