Afghanistan, Iran and Pakistan to 'jointly combat terrorism'


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TEHRAN // The presidents of Afghanistan, Iran and Pakistan agreed on Saturday to join forces in combating militancy as they attended a counterterrorism summit in Tehran under the cloud of an Afghan hospital bombing.

The joint statement by the three neighbours also came hot on the heels of an announcement by US President Barack Obama that Washington will withdraw 33,000 of its 99,000 troops from Afghanistan by the end of next summer.

"All sides stressed their commitment to efforts aimed at eliminating extremism, militancy, terrorism, as well as rejecting foreign interference, which is in blatant opposition to the spirit of Islam, the peaceful cultural traditions of the region and its peoples' interests," the statement said.

"All sides agreed to continue meeting at foreign, interior, security and economy ministers' level to prepare a roadmap for the next summit due to be held in Islamabad before the end of 2011," added the statement carried by Iran's official IRNA news agency.

Afghan President Hamid Karzai and his Iranian and Pakistani counterparts Mahmoud Ahmadinejad and Asif Ali Zardari held three-way talks on Friday ahead of a six-nation counterterrorism conference on Saturday.

The three leaders discussed "ways of battling terrorism, extremism and drug trafficking," IRNA said.

In his speech at the opening session of the two-day summit, Karzai said that despite his government's efforts, militancy was on the rise both in his country and in the region.

"Unfortunately, despite all the achievements in the fields of education, infrastructure and reconstruction, not only has Afghanistan not yet achieved peace and security, but terrorism is expanding and threatening more than ever Afghanistan and the region," the Afghan leader said.

The Pakistani president said: "Terrorists violate both human and divine values by inflicting death and destruction on fellow human beings. They have no religion."

He said attacks had resulted in the deaths of 35,000 people in Pakistan, 5,000 of them law enforcement personnel, and material damage totalling $67 billion.

In his speech to the opening session, Ahmadinejad again accused Iran's archfoe, the United States, of using the September 11, 2001 attacks as a "pretext" for sending troops to the region.

"In light of the way it was approached and exploited, September 11 is very much like the Holocaust," the Iranian leader charged.

"The American government used the attacks as a pretext to occupy two countries, and kill, injure and displace people in the region," he added.

"If the black box of the Holocaust and September 11 is opened, many of the realities will come to light. But unfortunately despite worldwide demand, the American government has not allowed it."

Ahmadinejad has repeatedly courted controversy by questioning the accepted version of both the September 11 attacks, which killed nearly 3,000 people in the United States, and the Holocaust.

He has dubbed 9/11 a "big lie" and a "suspect affair" similar to the Nazi Holocaust, which he dismissed as a "myth" shortly after coming to power in 2005, triggering an international outcry.

In his message to the counterterrorism conference, which was also attended by the leaders of Iraq, Sudan and Tajikistan, Iran's supreme leader Ayatollah Ali Khamenei also spoke out against what he charged was Western abuse of the terrorist threat.

"The diabolical calculation of the dominating powers is to exploit terrorism as a tool to gain their illegitimate aims and they have used it in their plans," he said in the message which was read out to the conference.

"In their view, terrorism is whatever threatens their interests. They consider those who are fighting for their legitimate right against occupiers as terrorists but do not consider their mercenaries and malicious groups who harm innocent people as terrorists."

Iranian Foreign Minister Ali Akbar Salehi said the next conference of the six nations would be held in Baghdad next year, and a permanent secretariat would be opened in Tehran.

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One in nine do not have enough to eat

Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.

One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.

The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.

Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.

It is currently estimated that one in nine people globally do not have enough to eat.

On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.

Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.

 

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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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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. 

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