Liz Truss and Rishi Sunak before taking part in the BBC Conservative Party leadership debate in Stoke-on-Trent, England, on Monday. PA
Liz Truss and Rishi Sunak before taking part in the BBC Conservative Party leadership debate in Stoke-on-Trent, England, on Monday. PA
Liz Truss and Rishi Sunak before taking part in the BBC Conservative Party leadership debate in Stoke-on-Trent, England, on Monday. PA
Liz Truss and Rishi Sunak before taking part in the BBC Conservative Party leadership debate in Stoke-on-Trent, England, on Monday. PA

Sunak offers energy support as Truss vows to cut crime


Soraya Ebrahimi
  • English
  • Arabic

Liz Truss and Rishi Sunak have outlined plans to save households money and reduce serious crime in their latest Conservative leadership race pledges.

Mr Sunak, the former chancellor, has announced he would scrap VAT on all domestic energy bills for the next year, saving the average household £160 ($193), if he became prime minister.

The move is part of his “winter plan” to tackle inflation and the high cost of living which, his campaign team says, stands in contrast to the inflationary £55 billion of fiscal commitments Ms Truss has made.

On top of scrapping VAT on all domestic energy bills, the Tory leadership hopeful said he would also undertake major supply-side reforms.

“Tackling inflation and getting people the support they need to help with the cost of living is critical," Mr Sunak said.

“That’s why, with the price cap expected to rise above £3,000 in October, I will move immediately to scrap VAT on everyone’s domestic energy bills for the next year, saving the average household £160.

“This temporary and targeted tax cut will get people the support they need whilst also – critically – bearing down on price pressures.

"As chancellor I knocked £400 off everyone’s energy bill and provided support of £1,200 for the most vulnerable households. This additional VAT cut will help deal with the current emergency.

“I will also begin undertaking major supply side reforms targeted at the rising cost pressures families are facing.

“That means urgently getting more people off welfare and into work, and tackling the supply chain crunch.”

Under his new plan, Mr Sunak would expand the labour force by tightening the rules on out-of-work benefits, doubling the number of hours someone on welfare has to work a week to avoid having to look for a full-time job.

He would also look at new incentives to support inactive older workers returning to the labour market, and would reduce the UK’s dependence on French ports.

  • Candidates Rishi Sunak and Liz Truss at the Conservative Party leadership election hustings at Wembley Arena, London. This was the final hustings attended by Tory Party members who will vote for the new leader and next prime minister. EPA
    Candidates Rishi Sunak and Liz Truss at the Conservative Party leadership election hustings at Wembley Arena, London. This was the final hustings attended by Tory Party members who will vote for the new leader and next prime minister. EPA
  • Liz Truss addresses Conservative Party members at Wembley Arena. AP
    Liz Truss addresses Conservative Party members at Wembley Arena. AP
  • Mr Sunak puts forward his case to be leader while speaking at Wembley Arena. Bloomberg
    Mr Sunak puts forward his case to be leader while speaking at Wembley Arena. Bloomberg
  • Mr Sunak visits his family's old business, Bassett Pharmacy in Southampton, while on the campaign trail. Reuters
    Mr Sunak visits his family's old business, Bassett Pharmacy in Southampton, while on the campaign trail. Reuters
  • Ms Truss speaks to staff at Condimentum Ltd at the Food Enterprise Park in Norwich. Getty Images
    Ms Truss speaks to staff at Condimentum Ltd at the Food Enterprise Park in Norwich. Getty Images
  • A Rishi Sunak supporter at a hustings event in Norfolk. PA
    A Rishi Sunak supporter at a hustings event in Norfolk. PA
  • Mr Sunak greets people at a leadership hustings in Manchester. Bloomberg
    Mr Sunak greets people at a leadership hustings in Manchester. Bloomberg
  • Ms Truss poses for a selfie with a supporter as she arrives for the event in Manchester. Getty
    Ms Truss poses for a selfie with a supporter as she arrives for the event in Manchester. Getty
  • Rishi Sunak looks through the sights of an anti-tank missile launcher, supplied to Ukraine, during a visit to the Thales Defence System plant in Belfast, Northern Ireland. AP
    Rishi Sunak looks through the sights of an anti-tank missile launcher, supplied to Ukraine, during a visit to the Thales Defence System plant in Belfast, Northern Ireland. AP
  • Liz Truss at a Conservative Party leadership campaign event in Belfast. Getty
    Liz Truss at a Conservative Party leadership campaign event in Belfast. Getty
  • Liz Truss meets supporters before a hustings in Perth, Scotland. Getty
    Liz Truss meets supporters before a hustings in Perth, Scotland. Getty
  • Rishi Sunak speaks during a campaign visit to Cluny Castle in Inverurie, Scotland. Getty
    Rishi Sunak speaks during a campaign visit to Cluny Castle in Inverurie, Scotland. Getty
  • Police hold back protesters outside Perth Concert Hall, Scotland, where Conservative leadership candidates Liz Truss and Rishi Sunak were speaking. PA
    Police hold back protesters outside Perth Concert Hall, Scotland, where Conservative leadership candidates Liz Truss and Rishi Sunak were speaking. PA
  • A mural showing the two leadership contestants appears on a wall in Belfast, Northern Ireland. AP
    A mural showing the two leadership contestants appears on a wall in Belfast, Northern Ireland. AP
  • Rishi Sunak during a visit to St John's Wood Synagogue, north London. PA
    Rishi Sunak during a visit to St John's Wood Synagogue, north London. PA
  • Liz Truss at the Conservative Party leadership election hustings in Cheltenham. EPA
    Liz Truss at the Conservative Party leadership election hustings in Cheltenham. EPA
  • Rishi Sunak during a hustings event in Cheltenham. Reuters
    Rishi Sunak during a hustings event in Cheltenham. Reuters
  • Liz Truss speaks to scientists during a campaign visit to a life sciences laboratory at Alderley Park in Manchester. PA
    Liz Truss speaks to scientists during a campaign visit to a life sciences laboratory at Alderley Park in Manchester. PA
  • Rishi Sunak during a campaign hustings in Darlington, England. Bloomberg
    Rishi Sunak during a campaign hustings in Darlington, England. Bloomberg
  • Liz Truss meets party members before she speaks at the Darlington campaign hustings. Getty
    Liz Truss meets party members before she speaks at the Darlington campaign hustings. Getty
  • Rishi Sunak arrives for the Darlington hustings. Getty
    Rishi Sunak arrives for the Darlington hustings. Getty
  • Liz Truss plays pool during a visit to the Onside Future Youth Zone in London. Reuters
    Liz Truss plays pool during a visit to the Onside Future Youth Zone in London. Reuters
  • Rishi Sunak looks at a book with Teddy Openshaw, 4, as his father, Henry, looks on after a Conservative leadership campaign event in Ribble Valley, Lancashire, England. Getty
    Rishi Sunak looks at a book with Teddy Openshaw, 4, as his father, Henry, looks on after a Conservative leadership campaign event in Ribble Valley, Lancashire, England. Getty
  • Liz Truss plays table tennis with former Conservative party leader Iain Duncan Smith during a visit to the Onside Future Youth Zone in London. Reuters
    Liz Truss plays table tennis with former Conservative party leader Iain Duncan Smith during a visit to the Onside Future Youth Zone in London. Reuters
  • Liz Truss with supporters at a campaign event in Solihull, England. Reuters
    Liz Truss with supporters at a campaign event in Solihull, England. Reuters
  • Rishi Sunak attends a campaign event held by his party in Bexhill, England. Reuters
    Rishi Sunak attends a campaign event held by his party in Bexhill, England. Reuters
  • A protester is removed as Ms Truss speaks during the Conservative Party leadership hustings in Eastbourne. Bloomberg
    A protester is removed as Ms Truss speaks during the Conservative Party leadership hustings in Eastbourne. Bloomberg
  • Mr Sunak speaks at an event in Edinburgh. PA
    Mr Sunak speaks at an event in Edinburgh. PA
  • Ms Truss leaves the hall in Exeter, south-west England, after her speech to a Conservative Party membership hustings. Getty
    Ms Truss leaves the hall in Exeter, south-west England, after her speech to a Conservative Party membership hustings. Getty
  • Mr Sunak speaks at the University of Exeter in south-west England. AP
    Mr Sunak speaks at the University of Exeter in south-west England. AP
  • A supporter of Ms Truss at a Conservative Party hustings in Exeter, south-west England. Getty
    A supporter of Ms Truss at a Conservative Party hustings in Exeter, south-west England. Getty
  • Ms Truss at a hustings event at the Pavilion conference centre at Elland Road in Leeds. PA
    Ms Truss at a hustings event at the Pavilion conference centre at Elland Road in Leeds. PA
  • Mr Sunak in Salisbury watching a screening of the Uefa Women's Euro 2022 final between England and Germany at Wembley stadium. England won 2-1 in extra time. PA
    Mr Sunak in Salisbury watching a screening of the Uefa Women's Euro 2022 final between England and Germany at Wembley stadium. England won 2-1 in extra time. PA
  • Ms Truss before the Uefa Women's Euro 2022 final at Wembley stadium in London. AFP
    Ms Truss before the Uefa Women's Euro 2022 final at Wembley stadium in London. AFP
  • Mr Sunak meets Tory members at Fontwell Park Racecourse. Reuters
    Mr Sunak meets Tory members at Fontwell Park Racecourse. Reuters
  • Ms Truss at an event in Dereham, Norfolk. AFP
    Ms Truss at an event in Dereham, Norfolk. AFP
  • Mr Sunak in Ropley, near Winchester, Hampshire. PA
    Mr Sunak in Ropley, near Winchester, Hampshire. PA
  • Ms Truss speaks as Conservative Member of Parliament Tom Tugendhat looks on at a Conservative Party leadership campaign event at Biggin Hill Airport. Getty
    Ms Truss speaks as Conservative Member of Parliament Tom Tugendhat looks on at a Conservative Party leadership campaign event at Biggin Hill Airport. Getty
  • Ms Truss on the campaign trail in Woodford Green, on the outskirts of London. Reuters
    Ms Truss on the campaign trail in Woodford Green, on the outskirts of London. Reuters
  • Mr Sunak at a Conservative Party hustings event in Leeds. AFP
    Mr Sunak at a Conservative Party hustings event in Leeds. AFP
  • Ms Truss speaks at the hustings event in Leeds. AFP
    Ms Truss speaks at the hustings event in Leeds. AFP
  • Sunak and Truss-themed souvenirs at a stand during the Leeds hustings event. Reuters
    Sunak and Truss-themed souvenirs at a stand during the Leeds hustings event. Reuters
  • Ms Truss, and her mother, Patricia, arrive for the hustings event. Getty
    Ms Truss, and her mother, Patricia, arrive for the hustings event. Getty
  • Ms Truss poses with supporters in Morley, England. Getty
    Ms Truss poses with supporters in Morley, England. Getty
  • Mr Sunak delivers a speech during a campaign event in Newmarket. AFP
    Mr Sunak delivers a speech during a campaign event in Newmarket. AFP
  • Ms Truss and Jake Berry, MP for Rossendale and Darwen, during a visit to a broadband interchange company in Leeds. PA
    Ms Truss and Jake Berry, MP for Rossendale and Darwen, during a visit to a broadband interchange company in Leeds. PA
  • Mr Sunak answers questions as he takes part in the hustings in Leeds. AFP
    Mr Sunak answers questions as he takes part in the hustings in Leeds. AFP
  • Ms Truss speaks at an event at a private house with members of the Conservative Party in Woodford Green. PA
    Ms Truss speaks at an event at a private house with members of the Conservative Party in Woodford Green. PA
  • Ms Truss and Mr Sunak pose for a picture before a BBC leadership debate at Victoria Hall in Hanley. Getty
    Ms Truss and Mr Sunak pose for a picture before a BBC leadership debate at Victoria Hall in Hanley. Getty
  • Ms Truss addresses Mr Sunak during the televised debate. Getty
    Ms Truss addresses Mr Sunak during the televised debate. Getty
  • Mr Sunak, with daughters Krishna and Anushka, and wife Akshata Murthy, during a visit to Vaculug tyre specialists at Gonerby Hill Foot, Grantham. PA
    Mr Sunak, with daughters Krishna and Anushka, and wife Akshata Murthy, during a visit to Vaculug tyre specialists at Gonerby Hill Foot, Grantham. PA
  • Ms Truss speaks to people while campaigning in Marden. Getty
    Ms Truss speaks to people while campaigning in Marden. Getty
  • Ms Truss celebrates after being named, along with Mr Sunak, one of the final two candidates in the race to become the UK's next prime minister. PA
    Ms Truss celebrates after being named, along with Mr Sunak, one of the final two candidates in the race to become the UK's next prime minister. PA
  • Mr Sunak outside his campaign office in central London. EPA
    Mr Sunak outside his campaign office in central London. EPA
  • Ms Truss outside Downing Street in London. Reuters
    Ms Truss outside Downing Street in London. Reuters
  • Rishi Sunak meets Conservative Party members and activists, in Teesport, Redcar. Reuters
    Rishi Sunak meets Conservative Party members and activists, in Teesport, Redcar. Reuters
  • Conservative leadership candidates Mr Sunak, Ms Truss, Kemi Badenoch, presenter Julie Etchingham, Tom Tugendhat and Penny Mordaunt during 'Britain's Next Prime Minister: The ITV Debate' in London. EPA
    Conservative leadership candidates Mr Sunak, Ms Truss, Kemi Badenoch, presenter Julie Etchingham, Tom Tugendhat and Penny Mordaunt during 'Britain's Next Prime Minister: The ITV Debate' in London. EPA
  • Ms Badenoch arrives at Here East studios in Stratford, east London, before a live television debate. PA
    Ms Badenoch arrives at Here East studios in Stratford, east London, before a live television debate. PA
  • Mr Sunak arrives at a London event to launch his campaign to be the next Conservative Party leader and UK prime minister. Reuters
    Mr Sunak arrives at a London event to launch his campaign to be the next Conservative Party leader and UK prime minister. Reuters
  • Mr Tugendhat appears on the BBC One current affairs programme, 'Sunday Morning'. PA
    Mr Tugendhat appears on the BBC One current affairs programme, 'Sunday Morning'. PA
  • Ms Badenoch, Ms Mordaunt, Mr Sunak, Ms Truss and Mr Tugendhat before the live television debate. PA
    Ms Badenoch, Ms Mordaunt, Mr Sunak, Ms Truss and Mr Tugendhat before the live television debate. PA
  • Ms Mordaunt arrives for the launch of her Conservative leadership campaign at the Cinnamon Club in Westminster. PA
    Ms Mordaunt arrives for the launch of her Conservative leadership campaign at the Cinnamon Club in Westminster. PA
  • Ms Truss speaks at the launch event for her campaign to become the next leader of the Tory Party and Britain's prime minister, in London. EPA
    Ms Truss speaks at the launch event for her campaign to become the next leader of the Tory Party and Britain's prime minister, in London. EPA
  • Chancellor of the Exchequer Nadhim Zahawi, one of the candidates who has been knocked out of the race, giving a speech at the Churchill War Rooms. PA
    Chancellor of the Exchequer Nadhim Zahawi, one of the candidates who has been knocked out of the race, giving a speech at the Churchill War Rooms. PA
  • Former leadership candidate Jeremy Hunt appearing on the BBC One current affairs programme, 'Sunday Morning'. PA
    Former leadership candidate Jeremy Hunt appearing on the BBC One current affairs programme, 'Sunday Morning'. PA
  • Sajid Javid attending the launch of his campaign to be Conservative Party leader and prime minister, at the Cinnamon Club in London. He has since been knocked out of the contest. PA
    Sajid Javid attending the launch of his campaign to be Conservative Party leader and prime minister, at the Cinnamon Club in London. He has since been knocked out of the contest. PA
  • Rehman Chishti is interviewed after announcing his bid to become the next prime minister. Mr Chishti is no longer in the race. Getty
    Rehman Chishti is interviewed after announcing his bid to become the next prime minister. Mr Chishti is no longer in the race. Getty
  • Mr Tugendhat speaking at the launch of his campaign. PA
    Mr Tugendhat speaking at the launch of his campaign. PA
  • Culture Secretary Nadine Dorries and Conservative MP Iain Duncan Smith arrive for the Truss campaign launch event. Getty
    Culture Secretary Nadine Dorries and Conservative MP Iain Duncan Smith arrive for the Truss campaign launch event. Getty
  • Former leadership candidate Attorney General Suella Braverman at the Churchill War Rooms in central London. PA
    Former leadership candidate Attorney General Suella Braverman at the Churchill War Rooms in central London. PA
  • Supporters of Mr Sunak wait for his arrival ahead of the campaign launch. Bloomberg
    Supporters of Mr Sunak wait for his arrival ahead of the campaign launch. Bloomberg
  • Mr Tugendhat makes a speech at the launch of his campaign. PA
    Mr Tugendhat makes a speech at the launch of his campaign. PA
  • Mr Javid mops his brow while launching his campaign. Getty
    Mr Javid mops his brow while launching his campaign. Getty
  • Ms Truss leaves for work after her announcement that she would be running for the leadership of the Conservative Party. Getty
    Ms Truss leaves for work after her announcement that she would be running for the leadership of the Conservative Party. Getty

Mr Sunak said that he would work with Britain’s biggest importers to build up trade with Dutch and Danish ports, ending the disruption that is causing the shortages and the price increases.

Work and Pensions Secretary Therese Coffey, who supports Ms Truss in the leadership race, suggested the former chancellor had retreated on his welfare proposals.

“Helping people progress in work by getting better jobs and more hours is a key role of job centres," she said.

“DWP [Department of Work and Pensions] will shortly change the rules to ensure people keep looking for extra work until they have at least 12 hours a week, with an ambition to increase that in the future.

“DWP had hoped to get this under way earlier this year, but unfortunately was blocked by the former chancellor.

“I share the ambition to go further but these new proposals require an extra £210m funding.

“In the meantime, we need to get on so we can help people be more prosperous and help grow the economy.”

“Will the real Rishi Sunak please stand up?" said shadow Treasury minister Pat McFadden.

“Once again he’s acting as his own personal rebuttal unit, attacking a policy for months then adopting it.

“Not content with playing hokey cokey with our taxes as chancellor, he’s devised a poor imitation of the windfall tax Labour called for, and now he wants to cut VAT on energy bills.

“It’s like he’s forcing himself to do dodgy cover versions of a band he insists he always hated.

“This is just another example of the Tory party trying to cling on despite 12 years of continuous failure, when the truth is they are out of time and out of ideas.”

Meanwhile, Liberal Democrat Treasury spokeswoman Sarah Olney said that “this sounds like another Sunak Swindle”.

“His tax hikes alone have cost families four times as much as this measly plan would ever save them," Ms Olney said.

“It is proof that both Sunak and Truss are out of touch and out of ideas. All they can offer is half-baked policies that won’t save people from the frankly frightening rise in energy bills this winter.

“Both candidates are tax-hikers who are guilty of breaking promises made to the British public. We can’t trust them to govern this country through an economic crisis.

“If Conservative MPs refuse to listen to our calls for an emergency tax cut, they face a reckoning from Blue Wall voters at the next election.”

Meanwhile, Ms Truss has pledged to publish police league tables while asking forces to slash serious crime by 20 per cent if she wins the race for Downing Street.

She said she wanted police to “spend their time investigating real crimes, not Twitter rows and hurt feelings”.

If she becomes prime minister at the beginning of September, Ms Truss said her government would tell police to cut homicide, serious violence and neighbourhood crime by a fifth by the end of this Parliament.

She would release crime rate statistics showing how each force is performing against the national average, with leaders of underperforming ones forced to give improvement plans.

Ms Truss also wants every domestic burglary to be attended by a police officer in person.

She said she would give police and crime commissioners more powers to “veto training that focuses on identity politics”.

Free speech would be protected in the code of practice governing hate incidents, she said.

“People across our country want criminals locked up and crime prevented, so they feel safe on their streets," Ms Truss said.

“We and our fantastic Conservative police and crime commissioners have made good progress since the 2019 election, with over 13,000 new police officers on the streets and the increase in powers and resources having a real impact in communities around the country.

"But we now need to go further and faster.

“It’s time for the police to get back to basics and spend their time investigating real crimes, not Twitter rows and hurt feelings.

"People can trust me to deliver and these league tables will help hold the police to account, making our streets safer and our country more prosperous.”

The Commons public accounts committee recently warned that the Home Office faces “significant challenges” in hiring another 6,500 officers by next March to reach the Conservative manifesto target of 20,000.

MPs on the powerful committee criticised the programme’s focus so far “on getting people through the door” without setting out how the new officers’ impact on crime will be assessed.

“Burglars, thugs and murderers should expect to be taken off our streets and thrown behind bars, but it’s unfortunate that some chief constables are not cracking down as hard as they should be," said a Truss campaign source.

“Liz will hold their feet to the fire, and these newly published statistics will help the public do the same.”

A campaign representative for Rishi Sunak said: “A lightweight plan based on publishing data the government already does and a power grab away from Police and Crime Commissioners, including many excellent Conservative PCCs driving down crime in their area.

“The real way to get crime down is more police on the streets, which is why Rishi Sunak has prioritised funding to get these 20,000 new officers by the next general election.

“And on ‘non-crime hate incidents’, we don’t need a code of practice. Things are either illegal or legal.

"Free speech is legal and the police should not be wasting time getting involved, and they won’t in a Rishi Sunak government.”

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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.”

Key recommendations
  • Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
  • Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
  • Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
  • More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
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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.

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

SPECS
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THE CLOWN OF GAZA

Director: Abdulrahman Sabbah 

Starring: Alaa Meqdad

Rating: 4/5

UAE%20SQUAD
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Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

Pox that threatens the Middle East's native species

Camelpox

Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.

Falconpox

Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.

Houbarapox

Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.

FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties? 
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Company%20profile
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Honeymoonish
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Updated: July 27, 2022, 6:11 AM