Arrests in Kuwait stir free-speech debate


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KUWAIT CITY // When Mohammed al Jassem, a prominent writer jailed for criticising public officials, was released on bail two weeks ago, free-speech advocates who had taken to the streets to demand his release had little time to celebrate. Khaled al Fadala, 33, the secretary general of the National Democratic Alliance (NDA), was sentenced to three months in prison on June 30 for insulting the prime minister. Many Kuwaitis believe the consecutive detentions are a sign that the government is clamping down on freedom of expression in a country known for a lively media and outspoken MPs.

"It seems the government is losing focus and they don't know what they are doing," Mr al Jassem said at a gathering of citizens at the NDA's headquarters on Monday demanding al Fadala's release. "I think they are destroying the country one way or another. And they are badly affecting the relationship between the Al Sabah family and the Kuwaiti people. This is all new." Kuwaiti citizens had expressed their displeasure with Mr al Jassem's detention since he began his sentence in May by staging protests at his brother-in-law's property in Al Andalus. On Thursday, those who gathered there to welcome him home made their way across town in a convoy of SUVs and sports cars to the NDA's headquarters in Al Nuzha to vent their frustrations over the conviction of al Fadala who was to begin serving his sentence the next day.

"The sentence was three months in prison without bail, this is very important," said al Fadala's father, Sanad, at the protest on Monday, in which several parliamentarians addressed a crowd of about 200 people. "This is the first time this happened for many years in Kuwait, that there is no bail for this charge. There are many, many cases, even against politicians and writers, and all of them were released on bail, no exception in the past few years.

"Because it's a political case, even if it is presented as slander," Sanad al Fadala said. Lama al Fadala said her brother was charged with insulting the prime minister, Sheikh Nasser Mohammed al Ahmed al Sabah, after speaking about a controversy involving the prime minister's expenses at protest in front of parliament in November. She said several prominent politicians who spoke at the event, used "harsher words", but have not been charged with any offence.

"The expenses were not dreamt up, they were from the Audit Bureau, which is official," Ms al Fadala said."He refused to keep things hush-hush anymore." Khaled's father said the government is trying to make an example of his son because of "the growth of his career as an activist over the last 10 years". Khaled al Fadala has campaigned on such issues as the reduction of the electoral constituencies from 25 to five, and on eliminating government corruption, topics that have rankled with the government, his father said. In 2009, he was elected leader the NDA, making him a powerful voice of the country's liberal youth.

"They are using the rally, some outspoken words, as an excuse to suppress him," his father said. Mr al Fadala's father said the family visited his son in prison on Sunday and "his moral is very high". "If he does end up staying three months, he's coming out stronger, not weaker," Lama al Fadala said. "If anyone thinks he's broken, he's not." One of the liberal parliamentarians who attended Monday's rally, Abdulrahman al Anjari, said: "I remember during the time of previous emirs and previous prime ministers, the opposition in Kuwait used to criticise the government, the prime minister, in so many things. Nobody took anyone to court."

He said he believes that the government is trying to "stop the momentum" of a highly educated and politically aware young generation. Many of the parliamentarians who spoke at the gathering warned against government interference in the judiciary. Before leaving for a ministerial meeting in Cairo yesterday, Sheikh Mohammed Sabah al Sabah, the foreign minister, said, "We welcome any criticism against our government practices," Kuna, the state news agency reported. "The judiciary is a protected authority that observes justice," Mr al Sabah was reported to have said.

Mr al Jassem, the released writer, will face state security charges of "attacking the regime" when he returns to court on September 20. He said since his release he has been busy organising a campaign "to try and convince the government to stop this kind of action". He said he has news "from different sources, some inside the state security police" that two other activists, including the politician Musallam al Barrak, could soon face sate security charges in court.

@Email:jcalderwood@thenational.ae

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Stars: Nicole Kidman, Charlize Theron, Margot Robbie 

Four out of five stars 

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Karnataka Tuskers 110-5 (10 ovs)

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Delhi Bulls 91-8 (10 ovs)

Mathews 31, Rimmington 3-28

Karnataka Tuskers win by 19 runs

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Rating: 1 out of 4

Running time: 81 minutes

Director: David Blue Garcia

Starring: Sarah Yarkin, Elsie Fisher, Mark Burnham

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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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Favourite superhero: Batman

Favourite quote: We must become the change we want to see, by Mahatma Gandhi.

Favourite car: Lamborghini

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8.50pm: The Garhoud Sprint Listed Dh265,000 1,200m - Winner: Drafted, Sam Hitchcott, Doug Watson

9.25pm: Handicap Dh170,000 1,600m - Winner: Cachao, Tadhg O’Shea, Satish Seemar

10pm: Handicap Dh190,000 1,400m - Winner: Rodaini, Connor Beasley, Ahmed bin Harmash

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5.30pm Maiden (TB) Dh82,500 (Turf) 1,400m

Winner Spirit Of Light, Clement Lecoeuvre (jockey), Erwan Charpy (trainer)

6.05pm Maiden (TB) Dh82,500 (Dirt) 1,900m

Winner Bright Start, Pat Cosgrave, Saeed bin Suroor

6.40pm Handicap (TB) Dh92,500 (D) 2,000m

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7.50pm Handicap (TB) Dh92,500 (T) 2,000m

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The National
4AD

List of alleged parties

 

May 12, 2020: PM and his wife Carrie attend 'work meeting' with at least 17 staff 

May 20, 2020: They attend 'bring your own booze party'

Nov 27, 2020: PM gives speech at leaving party for his staff 

Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson 

Dec 13, 2020: PM and his wife throw a party

Dec 14, 2020: London mayoral candidate Shaun Bailey holds staff event at Conservative Party headquarters 

Dec 15, 2020: PM takes part in a staff quiz 

Dec 18, 2020: Downing Street Christmas party 

How to help

Call the hotline on 0502955999 or send "thenational" to the following numbers:

2289 - Dh10

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6026 - Dh200

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.

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.