European Commission President Ursula von der Leyen on Tuesday said that she had chosen Dutch Foreign Affairs Minister Wopke Hoekstra to be the next commissioner in charge of climate action after the departure last week of fellow Dutch citizen and previous climate commissioner, Frans Timmermans.
Ms von der Leyen said after interviewing Mr Hoekstra that he had “shown strong motivation for the post and great commitment to the European Union”.
“He also has relevant professional experience for this post,” she continued.
“His governmental experience will be a strong asset in particular for Europe's climate diplomacy in the run-up to Cop28 and for climate finance, as well as for the implementation of climate-related legislative instruments.”
The European Parliament's environment committee must approve Ms von der Leyen's choice at a yet-to-be-determined date.
But it is likely to be a “tough hearing”, committee member Mohamed Chahim, a vice president of the socialists and democrats group in the European Parliament, told The National.
“Above all, I see a problem with his credibility, both inside and outside Europe,” said Mr Chahim, a Dutch politician, in an email.
Mr Hoekstra will have to distance himself from the strong opposition displayed this summer by his political group in the European Parliament, the European People's Party, to a flagship nature protection law supported by Mr Timmermans, said Mr Chahim.
“We want to see ambition,” he said.
Dutch Prime Minister Mark Rutte suggested Mr Hoekstra's name to fill a vacancy after the resignation of Mr Timmermans.
A socialist, Mr Timmermans, 62, was recently chosen to lead a joint Dutch green-socialist coalition in the hope of becoming the his country's next prime minister in an upcoming election.
Mr Chahim said that it was important that Mr Hoekstra demonstrate to the European Parliament that he is loyal “to European climate goals and social justice as the basis for all climate legislation”.
“He will have to do his best to show that he is fit for the job.”
Ms von der Leyen said that during the interview, Mr Hoekstra stressed “his commitment to continuing an ambitious climate policy and to maintaining a social balance in all necessary joint efforts on the road to climate neutrality”.
But Mr Hoekstra will have a lot of convincing to do – he must show, particularly to southern European lawmakers, that he has the right diplomatic and climate skills, said Pieter de Pous, programme lead at climate change think tank E3G’s fossil fuel transition project.
Mr Hoekstra became unpopular in Brussels after calling for an investigation into southern European countries' budgetary difficulties, prompting an angry reaction in March 2020 from Portuguese Prime Minister Antonio Costa, who described his comments as “repugnant” and contrary to the spirit of the EU.
“He’s mostly known for being a fiscal hawk and a very undiplomatic one,” Mr de Pous told The National.
“The question is: how hard are MEPs willing to play?”
Should he obtain parliament’s approval, Mr Hoekstra’s first big diplomatic test will be to negotiate on behalf of the EU at the next UN climate change conference, Cop28, in Dubai in November.
Mr Timmermans, his predecessor, was widely seen as a political heavyweight.
He is credited with pushing the EU to signal that it was open to a loss and damage fund at the previous Cop in Egypt.
Mr Chahim said it was unlikely that Mr Hoekstra would be able to pull off a similar feat, pointing to the fact that Dutch government, of which Mr Hoekstra was a member, was against a loss and damage fund at the time.
“He needs to convince other countries to be even more ambitious on climate policies, and I have doubts about that,” said Mr Chahim.
“We need an experienced negotiator at the upcoming Cop28, to make this climate summit a success.”
Citing unnamed sources, Dutch daily Algemeen Dagblad has reported that the EPP pressured Ms von der Leyen, who is also affiliated with their group, to choose a climate commissioner that would not push for more tough environment rules.
Michael Bloss, a German MEP and a member of the Greens, told The National that Mr Hoekstra “has a lot to prove” but will hopefully follow in Mr Timmermans’ footsteps.
“The ex-commissioner already urged the EU to increase its climate ambition and we want his successor to deliver on that,” he said.
Following Mr Timmermans’ resignation, Ms von der Leyen had given the climate portfolio on a temporary basis to the commission's European Vice President for Institutional Relations Maros Sefcovic.
The Slovakian socialist politician was also promoted to executive vice president for the European Green Deal. Mr Hoekstra will work under his guidance, said Ms von der Leyen.
“We are not going to dilute our ambition,” Mr Sefcovic said in a joint media interview on Tuesday.
“What I believe is that we need to improve our communication and to be able to come faster, earlier and be more precise in our reactions to some of the natural worries which are there in some sectors.”
Cinco in numbers
Dh3.7 million
The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown
46
The number, in kilograms, that Swarovski’s wedding gown weighed.
1,000
The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]
50
How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday
3,000
The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.
1.1 million
The number of followers that Michael Cinco’s Instagram account has garnered.
Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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UAE currency: the story behind the money in your pockets
'The Lost Daughter'
Director: Maggie Gyllenhaal
Starring: Olivia Colman, Jessie Buckley, Dakota Johnson
Rating: 4/5
Previous men's records
- 2:01:39: Eliud Kipchoge (KEN) on 16/9/19 in Berlin
- 2:02:57: Dennis Kimetto (KEN) on 28/09/2014 in Berlin
- 2:03:23: Wilson Kipsang (KEN) on 29/09/2013 in Berlin
- 2:03:38: Patrick Makau (KEN) on 25/09/2011 in Berlin
- 2:03:59: Haile Gebreselassie (ETH) on 28/09/2008 in Berlin
- 2:04:26: Haile Gebreselassie (ETH) on 30/09/2007 in Berlin
- 2:04:55: Paul Tergat (KEN) on 28/09/2003 in Berlin
- 2:05:38: Khalid Khannouchi (USA) 14/04/2002 in London
- 2:05:42: Khalid Khannouchi (USA) 24/10/1999 in Chicago
- 2:06:05: Ronaldo da Costa (BRA) 20/09/1998 in Berlin
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.”
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
