Supporters of deposed Egyptian President Mohammed Morsi voice their grievances at the Rabaa Adawiya square where they are camping.
Supporters of deposed Egyptian President Mohammed Morsi voice their grievances at the Rabaa Adawiya square where they are camping.
Supporters of deposed Egyptian President Mohammed Morsi voice their grievances at the Rabaa Adawiya square where they are camping.
Supporters of deposed Egyptian President Mohammed Morsi voice their grievances at the Rabaa Adawiya square where they are camping.

Egyptian police set up blockade at Brotherhood sit-in


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CAIRO // Egyptian police formed a blockade on Friday at a Muslim Brotherhood protest camp set up by supporters of former president Mohammed Morsi, but held off from storming the site, according to state TV.

The move follows diplomatic efforts and international appeals to the new army-installed government to avoid further violence.

Thousands of Morsi supporters at the camps had been preparing for a confrontation with security forces after a government warning this week that they should give up or face action.

"The idea of storming the camp by force is one rejected by the interior ministry, but a blockade will be imposed in all the streets leading to Rabaa," a state TV security correspondent reported from outside the ministry.

He was referring to Rabaa Al Adawiya Mosque, the site of the biggest of two protests by the Brotherhood in Cairo.

Police fired tear gas to disperse Morsi supporters who the interior ministry accused of blocking traffic near a television production complex outside Cairo.

A ministry statement gave no details on the size of the protest or whether anyone had been hurt or detained.

Almost 300 people have died in political violence since Mr Morsi, an Islamist, was overthrown on July 3, including 80 of his supporters killed by security forces in clashes on July 27.

Mr Morsi, who became Egypt's first freely elected president in June last year, had faced weeks of demonstrations against his rule.

Many Egyptians were frustrated by his failure to tackle social and economic problems and feared he was leading the country towards stricter Islamist control.

Mr Morsi is now in custody at a secret location.

The Egyptian army chief, Abdel Fattah El Sisi, understands there must be a political solution to the crisis in Egypt, said the vice president, Mohamed ElBaradei, in an interview printed on Friday, adding that "the army is on the edge".

"He understands that there has to be a political solution. But of course he has a responsibility to protect the country in terms of security. And the army is on the edge," Mr ElBaradei told the Washington Post.

The interim government gained a seal of approval from the United States late on Thursday when the US secretary of state, John Kerry, said the army had been "restoring democracy" when it toppled Mr Morsi - Washington's strongest endorsement yet for the new leadership.

US efforts to avoid calling Mr Morsi's overthrow a "military coup" has left it open to charges of sending mixed messages about events in Egypt.

Mohamed Ali Bishr, a senior Brotherhood leader and a minister in Mr Morsi's former government, said the movement was disappointed by Mr Kerry's statement.

The head of the Egyptian Social Democratic Party, the party of the prime minister, said mediation by the US and European Union was crucial because the Islamists were not talking to other Egyptians.

Mohamed Abolghar also said he wanted to see a political agreement with the Brotherhood to avoid a forceful break-up of the protest camps.

"It should be handled very carefully, preferably it should come after a negotiation," he said.

The deal should guarantee the Brotherhood's peaceful participation in politics and lead to the release of detained leaders who had not committed any crimes, Mr Abolghar said.

Political sources said there had been intense debate within the cabinet on the wisdom of sending in the security forces to clear the protesters.

At the Rabaa Al Adawiya camp on Friday morning, before the blockade announcement, young men wearing crash helmets and brandishing sticks stood guard behind barricades of sandbags and bricks. Blood from last Saturday's shooting stained the ground.

"We are here with our wives and children. We don't want violence," said Ali El Shishtawi, a government employee. "We're not afraid. We're not terrorists like they say."

Reuters

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

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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.”

Company profile

Company: Eighty6 

Date started: October 2021 

Founders: Abdul Kader Saadi and Anwar Nusseibeh 

Based: Dubai, UAE 

Sector: Hospitality 

Size: 25 employees 

Funding stage: Pre-series A 

Investment: $1 million 

Investors: Seed funding, angel investors  

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  • Energy engineer: Dh25,000 to Dh30,000 
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