A damaged residential building in the town of Shusha in Nagorno-Karabakh on October 29, 2020, after Azerbaijani shelling. EPA
A damaged residential building in the town of Shusha in Nagorno-Karabakh on October 29, 2020, after Azerbaijani shelling. EPA
A damaged residential building in the town of Shusha in Nagorno-Karabakh on October 29, 2020, after Azerbaijani shelling. EPA
A damaged residential building in the town of Shusha in Nagorno-Karabakh on October 29, 2020, after Azerbaijani shelling. EPA

Nagorno-Karabakh: Azerbaijan claims to have captured strategic city Shusha


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Azerbaijan's President, Ilham Aliyev, said on Sunday his country's forces had taken Shusha, the second-largest city in the Nagorno-Karabakh enclave, but Armenian officials denied the city had been captured.

Shusha, which Armenians call Shushi, is of cultural and strategic importance to both sides and is located 15 kilometres south of the enclave's largest city, Stepanakert.

It is on a  hilltop, with cliffs making it a natural fortress, and on the main road linking the city with the territory of neighbouring Armenia, which backs the separatists.

At least 1,000 people have died in nearly six weeks of fighting in and around Nagorno-Karabakh, a mountainous enclave internationally recognised as part of Azerbaijan but populated and controlled by ethnic Armenians.

"[This day] will become a great day in the history of Azerbaijan," Mr Aliyev said, announcing that Baku's troops had taken Shusha.

In Baku, Azeris gathered in large numbers to celebrate, waving flags and chanting slogans, while drivers sounded their car horns.

Azerbaijan has so far produced no evidence to support the claims.

Officials from the Nagorno-Karabakh region and Armenia's Defence Ministry denied Mr Aliyev's statement, but no official rebuttal has been issued.

"Shushi remains an unattainable pipe dream for Azerbaijan. Despite heavy destruction, the fortress city withstands the blows of the enemy," the Nagorno-Karabakh Rescue Service said before the announcement.

Armenia's defence ministry said that heavy fighting for the strategic site continues, while the Defence Army of Nagorno-Karabakh said they had repelled numerous attempts by the Azerbaijani side to advance on the town.

Emboldened by Turkish support, Azerbaijan has the upper hand in the bloodiest fighting in more than 25 years in the South Caucasus. In just over a month, it has retaken much of the land in and around Nagorno-Karabakh that it lost in a previous war over the territory in the 1990s.

The city could become a key staging post for an Azerbaijani assault on the enclave's largest city, Stepanakert. Both faced heavy shelling in recent days. Azerbaijan's defence ministry said allegations that it had shelled civilian areas were misinformation.

Shusha's population was predominantly Azerbaijani before the previous conflict, making it historically significant for Azerbaijan. For Armenians, it is the site of Karabakh's cathedral, which was damaged in shelling last month.

Azerbaijan has reclaimed swathes of territory on Karabakh's southern flank – with experts estimating Baku has retaken 15 to 20 per cent of the territory it lost in Nagorno-Karabakh and seven surrounding regions in the 1990s.

Much of this land is plains and the fighting will be much harder in the narrow passes and mountains where separatist forces have had years to build up their defences.

Armenian officials say any Azerbaijani gains have come at an enormous cost and claim to have killed several thousand enemy troops.

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

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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.

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

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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 

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

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

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

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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

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

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What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.