Sultan Haitham, in his National Day address, said government was keen to continue to help low-income Omanis. Saleh Al Shaibany for The National
Sultan Haitham, in his National Day address, said government was keen to continue to help low-income Omanis. Saleh Al Shaibany for The National
Sultan Haitham, in his National Day address, said government was keen to continue to help low-income Omanis. Saleh Al Shaibany for The National
Sultan Haitham, in his National Day address, said government was keen to continue to help low-income Omanis. Saleh Al Shaibany for The National

National Day: Sultan Haitham addresses Oman on its Golden Jubilee


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Sultan Haitham of Oman on Wednesday addressed the nation on television to begin a low-key celebration to mark the country’s 50th National Day.

“We decided to limit the 50th National Day celebrations in order to safeguard the safety of everyone,” Sultan Haitham said in his opening remarks, addressing the effect of the Covid-19 pandemic.

His speech was televised minutes after the health ministry announced 411 new cases and 10 deaths in a total of 121,129 cases and 1,360 deaths recorded in Oman.

He also touched on the current economic challenges facing the sultanate, but said he was confident the country would come out of the current recession.

“Despite the challenges facing our economy, the financial balance plan and the measures that have been taken are sufficient to bring our economy to a safe shore,” Sultan Haitham said.

  • An Omani uses his phone to take a picture as he stands on the lawn before the Royal Opera House Muscat in Oman's capital, lit up with the national colours on the occasion of the Omani national day. AFP
    An Omani uses his phone to take a picture as he stands on the lawn before the Royal Opera House Muscat in Oman's capital, lit up with the national colours on the occasion of the Omani national day. AFP
  • Vehicles drive along a main road past a building of the Oman Arab Bank, lit up with the national colours on the occasion of the Omani national day AFP
    Vehicles drive along a main road past a building of the Oman Arab Bank, lit up with the national colours on the occasion of the Omani national day AFP
  • An Omani child wearing a scarf showing the faces of Oman's Sultan Haitham bin Tariq (R) and his predecessor the late Qaboos bin Said (L) as he waves a national flag while standing on the lawn before the Royal Opera House Muscat in the capital, lit up with the national colours on the occasion of the national day. AFP
    An Omani child wearing a scarf showing the faces of Oman's Sultan Haitham bin Tariq (R) and his predecessor the late Qaboos bin Said (L) as he waves a national flag while standing on the lawn before the Royal Opera House Muscat in the capital, lit up with the national colours on the occasion of the national day. AFP
  • Bikers drive down a street in the Omani capital Muscat, on November 14, 2020, as part of the 50th National Day celebrations. AFP
    Bikers drive down a street in the Omani capital Muscat, on November 14, 2020, as part of the 50th National Day celebrations. AFP
  • Bikers drive down a street in the Omani capital Muscat, on November 14, 2020, as part of the 50th National Day celebrations. AFP
    Bikers drive down a street in the Omani capital Muscat, on November 14, 2020, as part of the 50th National Day celebrations. AFP
  • Bikers drive down a street in the Omani capital Muscat, on November 14, 2020, as part of the 50th National Day celebrations. AFP
    Bikers drive down a street in the Omani capital Muscat, on November 14, 2020, as part of the 50th National Day celebrations. AFP
  • A view of the Royal Opera House Muscat in Oman's capital, lit up with the national colours on the occasion of the Omani national day. AFP
    A view of the Royal Opera House Muscat in Oman's capital, lit up with the national colours on the occasion of the Omani national day. AFP
  • Indian residents of Oman pose for a picture on the lawn before the Royal Opera House Muscat in Oman's capital, lit up with the national colours on the occasion of the Omani national day. AFP
    Indian residents of Oman pose for a picture on the lawn before the Royal Opera House Muscat in Oman's capital, lit up with the national colours on the occasion of the Omani national day. AFP

He said that the Cabinet reshuffle he ordered three months ago was part of a “development strategy and implementation of restructuring plans”.

But he said that the government “cannot do it alone” and that it was the responsibility of every Omani to contribute “to the economic plan and vision”.

Earlier in the day, Sultan Haitham pardoned 390 prisoners convicted of various crimes, among them foreign citizens.

He also paid tribute to his predecessor, Sultan Qaboos.

“Oman was able to overcome all challenges with the wisdom of the late Sultan Qaboos bin Said and the sacrifices of its loyal people,” he said.

National Day is usually an elaborate celebration in Oman, but this year, with many still mourning the loss of Sultan Qaboos, was like any other day for Omani citizens and residents. The decorations that normally line the streets were pared back, apart from national flags flying on the motorways. There were no events in city malls, street dancing or decorations on the walls of private homes.

“I have been living in Oman for 37 years and I have never seen a quiet National Day. It is as if someone took the heart out of the country. The sentiments of the passing away of Sultan Qaboos is still strong,” said Alice Sanderson, 56, a British boutique owner in Muscat.

Al Basateen Street in Muscat is usually known for its colourful National Day celebrations, but this year the atmosphere was quiet and sombre.

“There are about 100 houses in this street and each house will have different decorations on the walls and the roofs. There are no tables and chairs in the gardens prepared for National Day dinners and no patriotic music blaring from the speakers,” said Said Al Amri, 44, a resident of Al Basateen Street.

The government has allowed evening fireworks in just two cities, Muscat and Salalah, but only for five minutes, instead of the usual 30-minute displays.

Alongside Oman's muted celebrations, the UAE will celebrate Oman as well by highlighting the strong ties and strategic partnership between the two countries, under the slogan: "Oman is from us, and we are among them."

The UAE events will include lighting key landmarks around the country with the Omani flag, as well as festive celebrations at the country’s land ports. Omani visitors coming to the UAE will also be received with flowers and souvenirs.

Oman’s annual National Day coincides with the re-opening of land ports connecting the two countries after more than eight months of suspension because of the pandemic.

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.”

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MATCH INFO

Uefa Champions League semi-final, first leg

Tottenham 0-1 Ajax, Tuesday

Second leg

Ajax v Tottenham, Wednesday, May 8, 11pm

Game is on BeIN Sports

'Shakuntala Devi'

Starring: Vidya Balan, Sanya Malhotra

Director: Anu Menon

Rating: Three out of five stars

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