• Turkish President Recep Tayyip Erdogan prays during the ground-breaking ceremony of Sazlidere Bridge in Istanbul on June 26, 2021. Reuters
    Turkish President Recep Tayyip Erdogan prays during the ground-breaking ceremony of Sazlidere Bridge in Istanbul on June 26, 2021. Reuters
  • Turkish President Recep Tayyip Erdogan greets his supporters as he arrives at the ground-breaking ceremony of Sazlidere Bridge over the planned route of Istanbul Canal on June 26, 2021. Reuters
    Turkish President Recep Tayyip Erdogan greets his supporters as he arrives at the ground-breaking ceremony of Sazlidere Bridge over the planned route of Istanbul Canal on June 26, 2021. Reuters
  • Demonstrators in Istanbul hold a placard that reads '"Canal is destructıon' during a protest in Istanbul, on Saturday, June 26, 2021. AP Photo
    Demonstrators in Istanbul hold a placard that reads '"Canal is destructıon' during a protest in Istanbul, on Saturday, June 26, 2021. AP Photo
  • Demonstrators opposing Turkey's President Recep Tayyip Erdogan's Istanbul Canal project chant slogans as they are challenged by Turkish police officers in Istanbul on June 26, 2021. AP Photo
    Demonstrators opposing Turkey's President Recep Tayyip Erdogan's Istanbul Canal project chant slogans as they are challenged by Turkish police officers in Istanbul on June 26, 2021. AP Photo
  • Turkish President Recep Tayyip Erdogan speaks during the ground-breaking ceremony of Sazlidere Bridge in Istanbul on June 26, 2021. Reuters
    Turkish President Recep Tayyip Erdogan speaks during the ground-breaking ceremony of Sazlidere Bridge in Istanbul on June 26, 2021. Reuters
  • Protestors opposing President Recep Tayyip Erdogan's Istanbul Canal project scuffle with Turkish police officers on June 26, 2021. AP Photo
    Protestors opposing President Recep Tayyip Erdogan's Istanbul Canal project scuffle with Turkish police officers on June 26, 2021. AP Photo
  • Turkish police officers watch a demonstration in Istanbul against President Recep Tayyip Erdogan's canal project. AP Photo
    Turkish police officers watch a demonstration in Istanbul against President Recep Tayyip Erdogan's canal project. AP Photo

Turkey's Erdogan starts construction of 'crazy' Istanbul canal project


  • English
  • Arabic

Turkey’s President Recep Tayyip Erdogan on Saturday poured the first load of cement in the building of what he has called his “crazy project” – a ship canal that runs around Istanbul, bypassing the Bosphorus Strait.

The ground-breaking ceremony at Sazlidere dam, west of the city, marked the start of a scheme that has been 10 years in the making and caused more controversy than any other undertaken during Mr Erdogan's 18-year rule.

But there are questions over whether the project, which envisages a 45-kilometre waterway linking the Sea of Marmara to the Black Sea, will be completed in the six-year time frame.

Among those leading objections to the canal are the mayor of Istanbul and the leader of the opposition party he represents.

Kemal Kilicdaroglu, who leads the Republican People's Party (CHP), has vowed to abandon the $15 billion plan if Mr Erdogan is defeated in elections due to be held in 2023.

Both he and Istanbul Mayor Ekrem Imamoglu, who is regarded as a potential presidential candidate, have also threatened to blacklist international finance and construction firms involved in the project.

“I suggest that any [person who] intends to do this job, who says ‘I will pay for this project, I will put this country in debt’, should sit down and think again a thousand times, because in two years’ time no one will deal with them on behalf of the country,” Mr Imamoglu said last weekend.

The mayor has already fired the first shot in what promises to be a protracted war between Mr Erdogan and the canal’s opponents by removing construction workers’ accommodation from land owned by the Istanbul water authority.

Turkish banks signed up to the UN’ green principles are reportedly reluctant to invest in the project, given the possibility of cancellation and environmental concerns.

The canal will cut through farms, marshes and about two dozen villages, destroying marine ecosystems as well as basins that provide nearly a third of Istanbul's fresh water.

Environmentalists have raised the alarm over the effect on the Sea of Marmara – already struggling with widespread mucilage, or “sea snot”, owing to rising water temperatures and pollution.

The nearby 8,500-year-old Yarimburgaz archaeological site is also under threat

Turkey's government has said tenders will be open to foreign investors but many say the scheme is a white elephant that will benefit only real estate speculators and builders.

The bridge Mr Erdogan inaugurated on Saturday is the first of six that will cross the canal in a project that will create a new urban centre of up to 1.2 million people.

This 860-metre, eight-lane bridge will connect to a highway linking Istanbul’s new airport and a third Bosphorus bridge – other developments in an infrastructure splurge under Mr Erdogan that have cost tens of billions of dollars.

"Today we are turning a new page in the history of Turkey's development," the president said on Saturday.

“We see Canal Istanbul as a project to save the future of Istanbul.”

Mr Erdogan highlighted the risk of shipping accidents in the Bosphorus before pressing a button to release the first batch of cement for the bridge's foundation as confetti and fireworks were set off.

Mr Imamoglu called the ceremony an "illusion" and said the bridge was planned years earlier as part of the North Marmara highway that also links the airport and the third Bosphorus bridge.

“Even if there was no such thing as Canal Istanbul on Turkey’s agenda today, this bridge would be built. That's the illusion,” he said on Thursday.

“In other words, the construction of a bridge here has nothing to do with the canal project. It’s something to do with the road hub.”

The National
The National

Many others have questioned the feasibility of the canal and raised suspicions that its main purpose is to profit pro-government firms that will build luxury homes, shopping centres and a marina alongside the waterway.

“Considering Istanbul Airport and the new regions opening to settlement, it is possible to say that the Canal Istanbul proposal is an integrated rent project,” said Ugur Emek, an economics professor at Baskent University in Ankara.

This is not a transportation project but a residential project that a canal passes through

Nuran Zeren Gulersoy, head of architecture at Istanbul's Isik University, said the project would harm "the quality of life" of Istanbul residents.

"In summary, this is not a transport project but a residential project that a canal passes through."

Kemal Doksanyedi, from Either the Canal or Istanbul, a coalition of NGOs, described the canal as a political project.

“The government needs a project, a vision, ahead of a possible early election,” he said.

Mr Doksanyedi said the president was trying to polarise opinion by pitting Istanbul's municipality against the central government led by My Erdogan's Justice and Development Party, or AKP.

“The AKP government has always made all kinds of election propaganda against the opposition and has succeeded through dissent.”

Cemal Saydam, professor of environmental engineering at Ankara's Hacettepe University, highlighted the risk of embarking on such an irreversible mega-project.

“Canal Istanbul is not a project that you can say ‘We made a mistake, let’s go back.’ Even if you regret it, there is never any going back,” he said.

“Therefore, this project should not happen.”

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

UAE SQUAD

Ahmed Raza (Captain), Rohan Mustafa, Jonathan Figy, CP Rizwan, Junaid Siddique, Mohammad Usman, Basil Hameed, Zawar Farid, Vriitya Aravind (WK), Waheed Ahmed, Karthik Meiyappan, Zahoor Khan, Darius D'Silva, Chirag Suri

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

The years Ramadan fell in May

1987

1954

1921

1888

Citizenship-by-investment programmes

United Kingdom

The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).

All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.

The Caribbean

Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport. 

Portugal

The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.

“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.

Greece

The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.

Spain

The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.

Cyprus

Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.

Malta

The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.

The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.

Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.

Egypt 

A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.

Source: Citizenship Invest and Aqua Properties

The specs

Engine: 4-litre twin-turbo V8

Transmission: nine-speed

Power: 542bhp

Torque: 700Nm

Price: Dh848,000

On sale: now

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5