Ali Allawi, Iraq's former deputy prime minister and finance minister. AFP
Ali Allawi, Iraq's former deputy prime minister and finance minister. AFP
Ali Allawi, Iraq's former deputy prime minister and finance minister. AFP
Ali Allawi, Iraq's former deputy prime minister and finance minister. AFP

Ali Allawi: absence of a million Iraqis who fled in 2003 keenly felt in Baghdad today


Laura O'Callaghan
  • English
  • Arabic

Iraq continues to be handicapped by the departure of one million citizens who fled after the 2003 US-led invasion, Ali Allawi has said.

The former deputy prime minister and finance minister said the legacy of the war remains clear in Baghdad at the bureaucratic and political levels.

The incursion and the bitter sectarian militia battles for neighbourhoods that followed displaced about one in 25 Iraqis from their homes.

About 1.25 million crossed borders into neighbouring countries, seeking refuge.

Their absence is keenly felt to this day, Mr Allawi said, as he regretted the lack of talent of those in positions of power.

Speaking at the Iraq Initiative conference hosted by Chatham House, a London think tank, he said the exodus meant his country was stripped of some of its brightest people.

While he acknowledged that many who left had links to the regime of Saddam Hussein, a great many honest and qualified people were also among the masses streaming across borders.

“It was denuded of its talent,” Mr Allawi said.

“Bureaucracy as a vertical organisation, a hierarchical organisation, was really shaken and people who were not competent, who were not even up to international standards of 30 years ago, either left or were put into positions of power.

“This weakening allowed another force to come in, which is the horizontal intrusion into the bureaucratic structures, not only by politicians but by warlords, by tribal chiefs, by corrupt businessmen, by all kinds of people.

“So you have people in positions of great authority unable to manage the system hierarchically because it had lost that capacity. And [they] are prone to being subverted by these forces that keep them in position.”

Iraqis flee Basra in March 2003 after a US-led coalition invaded. AFP
Iraqis flee Basra in March 2003 after a US-led coalition invaded. AFP

Assessing the current political situation, Mr Allawi said: “The single most glaring deficiency we have in Iraq is basically the collapse of the state, not in terms of its range of control but in terms of a failed state as such."

He resigned as finance minister in August in protest against what he called widespread corruption and the influence of political parties on the country’s revenue.

Mr Allawi said that Baghdad today was “incapable of managing a modern state” because it severely lacked personnel, human resources, an effective administrative system and vision.

“We just don’t have it,” he said. “It’s not a question of who is prime minister, now it’s a question of who is minister and who is not minister. The entire structure is deficient.

“I am not saying that Iraqis have a unique lack of capacity to manage, that’s not true, but the curious mixture and the very peculiar circumstances in which the machinery of government emerged in the last 20 years or thereabouts makes it impossible to have a modern state.

“You can be the most brilliant minister, you can be the most brilliant executive, you can be the most brilliant manager, but there’s just no depth to it.”

He said a team effort was required to push Iraq, one of the world’s most corrupt nations, in the right direction.

Mr Allawi also regretted the lack of public service, which he said was a rare quality in today’s bureaucratic and political systems.

“The ethos of public service in Iraq died in the 1970s,” he said.

“I spent most of my life politically fighting the Baath Party but I have to admit in the 1970s we had people who had a high sense of public duty, even though they had wrong ideological framework. And so they were extremely technically competent.

“We don’t have that, we have a complete degradation of qualifications.

"The government is choc-a-block with people with fake degrees … some of them have not probably attended these schools. We are drowning in so-called qualified people.”

How to get exposure to gold

Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.

A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.

Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.

Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.

London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long

However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.

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MATCH RESULT

Liverpool 4 Brighton and Hove Albion 0
Liverpool: 
Salah (26'), Lovren (40'), Solanke (53'), Robertson (85')    

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

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

Match info

Uefa Nations League A Group 4

England 2 (Lingard 78', Kane 85')
Croatia 1 (Kramaric 57')

Man of the match: Harry Kane (England)

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
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Company profile

Company: Rent Your Wardrobe 

Date started: May 2021 

Founder: Mamta Arora 

Based: Dubai 

Sector: Clothes rental subscription 

Stage: Bootstrapped, self-funded 

How to help

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

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UFC Fight Night 2

1am – Early prelims

2am – Prelims

4am-7am – Main card

7:30am-9am – press cons

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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Updated: November 14, 2022, 8:00 PM