Shades of 1999, but bolder


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The popular discontent seething in Tehran today has echoes of the spontaneous eruption of unrest by pro-democracy students in 1999, when the capital's streets were gripped by the worst turmoil since the early days of the Islamic Revolution. The events of a decade ago do not augur well for those now bitterly contesting the allegedly fraudulent results that handed Iran's hardline president, Mahmoud Ahmadinejad, a second four-year term. The 1999 protests were crushed by gloating security forces within just six days, followed by mass arrests. Mr Ahmadinejad on Sunday dismissed the post-election unrest as unimportant, flippantly comparing it to passions after a football match, and clearly hoping his opponents would simply return to their homes shocked and bewildered. There is no sign of that happening yet. The protests, albeit just days old, are bigger and more widespread than those of 1999, and involve not just students, but older people and the middle classes. Defying an interior ministry ban on protest rallies, tens of thousands of Iranians converged peacefully on a Tehran square yesterday to chant support for Mir Hossein Mousavi, the president's nominally-defeated challenger. Moreover, today's outcry is being led not by students, but by the defeated candidates who feel robbed. And they are senior insiders of the system's power structure. Mr Mousavi, the wartime former prime minister, has the support of fellow presidential candidate ­Mehdi Karrubi, a former parliamentary speaker. Backing them is Mr Ahamdinejad's reformist predecessor, Mohammad ­Khatami, and another former president, Akbar Hashemi Rafsanjani. It is a powerful alliance. Given the dangerous and unpredictable situation, they will work to ensure that voters who feel cheated by the election do not give the security forces any opportunity to launch a bloody suppression on the streets. There were reports that plain-clothed militias have been authorised to use live ammunition for the first time. Mr Mousavi has repeatedly called for calm. Instead, he and his allies are finding inventive ways for peaceful protest that capture the imagination and carry a historical resonance to embarrass the regime. Today, as in 1999, protesters are taunting the security forces and Mr Ahmadinejad with chants that were used during the 1979 Islamic Revolution that toppled the US-backed Shah. Cries of "Death to dictatorship!" were heard 10 years ago, as they are today. And, in a non-violent form of opposition, protesters are heeding a call by Mr Mousavi's charismatic wife, Zahra Rahnavard, to go onto their rooftops and chant "Allahu Akbar". It was a precise and deliberate echo of the call made three decades ago by the late Ayatollah Khomeini, founder of the 1979 Islamic Revolution, as he united the people against the Shah. Mr Mousavi has also threatened to hold a sit-in protest at the mausoleum of the Ayatollah Khomeini. That would put the authorities in a bind: embarrassed by a demonstration at the sprawling shrine south of Tehran, but possibly unwilling to risk clashes at the hallowed site. The protests 10 years ago erupted after hardline Islamic vigilantes violently stormed a dormitory at Tehran University where students were holding a small, peaceful demonstration against new press curbs. There were similar scenes on Sunday night at the same university when police and hardline militias ransacked a dormitory and arrested dozens of students.

Ten years ago, Mr Khatami, the charismatic standard-bearer of the reformist movement was president, but effectively acted as a leader of the opposition, constantly thwarted by an entrenched old guard that controlled most levers of power. He baulked when the street protests turned violent, insisting that the disorder was damaging his reform order. Mr Khatami, committed to the Islamic system, as is Mr Mousavi, wanted evolutionary change, not another revolution. His ruthless enemies, capitalising on his humanity and timidity, succeeded in stuffing the genie of democracy back into the bottle. This time it may well prove more difficult. The anger is deeper, the opposition more powerful and ­organised. The regime appears rightly concerned by the vigour of the opposition it is facing. Yesterday, Mr Ahmadinejad cancelled a trip to Moscow. And there was a sudden intervention by the supreme leader, Ayatollah Ali Khamenei, who called on the top election supervisory body, the Guardian Council, to examine Mr Mousavi's complaints that he was fraudulently denied victory. Mr Ahmadinejad's opponents will be very sceptical of Ayatollah Khamenei's move, suspecting it is aimed solely at restoring calm before the Guardian Council declares there was no electoral malfeasance. After all, the supreme leader had already endorsed Mr Ahmadinejad's "divine" victory. The Guardian Council is a highly conservative body loyal to the supreme leader. It is known for its hostility to reformists and has consistently backed the regime. Yet Mr Mousavi and his influential allies will seek to scrutinise the Guardian Council's investigation. If unconvinced after exhausting legal channels, they can be relied upon to maintain their challenge through peaceful means. Mr Mousavi is aware that he has become a vessel for the aspirations of millions of Iranians. Their supporters are already calling for a day of industrial action today. The Islamic Republic is entering unchartered political waters. How the regime responds to any continued challenge is unclear. The unrest in 1999 took the authorities by surprise, yet they crushed it swiftly. Today, heightening suspicions that the elections were fraudulent, the system was well prepared to crush dissent. Near the close of polls on Friday, large numbers of security forces poured into the streets. Two days earlier, the Revolutionary Guards issued a chilling warning that they would crush any "velvet"-style revolution by Mr Mousavi's supporters. But if they open fire on the streets, protests may only spiral and popular outrage deepen. It is a scenario that Mr Mousavi's ruthless opponents, determined to maintain their power and privilege, appear ready to confront, by violence if necessary. The unexpected surge of exuberant, youth-driven support for Mr Mousavi emerged only in the final weeks of the election campaign. Mr Ahmadinejad's camp will hope that the well of anger will subside just as quickly, and that disappointed and demoralised reformist supporters will return to their state of passive disenchantment they lived with since the end of the Khatami era. But there is no sign that they will. mtheodoulou@thenational.ae

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.”

Other simple ideas for sushi rice dishes

Cheat’s nigiri 
This is easier to make than sushi rolls. With damp hands, form the cooled rice into small tablet shapes. Place slices of fresh, raw salmon, mackerel or trout (or smoked salmon) lightly touched with wasabi, then press, wasabi side-down, onto the rice. Serve with soy sauce and pickled ginger.

Easy omurice
This fusion dish combines Asian fried rice with a western omelette. To make, fry cooked and cooled sushi rice with chopped vegetables such as carrot and onion and lashings of sweet-tangy ketchup, then wrap in a soft egg omelette.

Deconstructed sushi salad platter 
This makes a great, fuss-free sharing meal. Arrange sushi rice on a platter or board, then fill the space with all your favourite sushi ingredients (edamame beans, cooked prawns or tuna, tempura veggies, pickled ginger and chilli tofu), with a dressing or dipping sauce on the side.

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UAE currency: the story behind the money in your pockets
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What is the FNC?

The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning. 
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval. 
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
 

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Zidane's managerial achievements

La Liga: 2016/17
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Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

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