The move is the clearest indication yet that Donald Trump and the Digital World dealmakers are seeking to capitalise on the market euphoria around their venture. AP
The move is the clearest indication yet that Donald Trump and the Digital World dealmakers are seeking to capitalise on the market euphoria around their venture. AP
The move is the clearest indication yet that Donald Trump and the Digital World dealmakers are seeking to capitalise on the market euphoria around their venture. AP
The move is the clearest indication yet that Donald Trump and the Digital World dealmakers are seeking to capitalise on the market euphoria around their venture. AP

World

US

Trump's social media venture reportedly seeks to raise $1bn

Former US president announced new app after he was banned from top platforms

Reuters

December 02, 2021

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Former US president Donald Trump's new social media venture is seeking to raise up to $1 billion by selling shares to hedge funds and family offices at several times the valuation they commanded in a deal with a blank-cheque acquisition firm in October.

Two people familiar with the matter told Reuters that the Trump Media & Technology Group, which has yet to roll out the social media app it says it is developing, already stands to receive $293 million if its deal to list in New York through a merger with blank-cheque firm Digital World Acquisition Corp is completed.

The deal valued Trump Media at $875m, including debt, and the company is now seeking to raise up to an additional $1bn at a valuation of close to $3bn, to reflect Digital World's share rally after Trump supporters and day traders snapped up the stock, the sources said.

It is the clearest indication yet that Mr Trump and the Digital World dealmakers are seeking to capitalise on the market euphoria around their venture, which has so far been fuelled by its ambitious goals rather than a business that is up and running.

Digital World shares were valued at $10 each in the deal with Trump Media.

Trump Media is now looking to secure a so-called private investment in public equity (Pipe) that would value Digital World shares closer to their recent price, the sources said.

Weighing on the deal's appeal is the reluctance of many investors to associate with Mr Trump after he was banned from top social media platforms for encouraging his supporters to participate in the January 6 attack on the US Capitol, which was based on unsubstantiated claims of widespread fraud in last year's presidential election.

  • An explosion caused by a police munition is seen while supporters of former president Donald Trump gather in front of the US Capitol Building in Washington, US, January 6, 2021. Reuters
    An explosion caused by a police munition is seen while supporters of former president Donald Trump gather in front of the US Capitol Building in Washington, US, January 6, 2021. Reuters
  • A supporter of US President Donald J. Trump sits on the desk of US House Speaker Nancy Pelosi, after supporters of US President Donald J. Trump breached the US Capitol security in Washington. EPA
    A supporter of US President Donald J. Trump sits on the desk of US House Speaker Nancy Pelosi, after supporters of US President Donald J. Trump breached the US Capitol security in Washington. EPA
  • Police detain a person as supporters of US President Donald Trump protest outside the US Capitol. AFP
    Police detain a person as supporters of US President Donald Trump protest outside the US Capitol. AFP
  • Protesters enter the US Capitol Building. AFP
    Protesters enter the US Capitol Building. AFP
  • A protester holds a Trump flag inside the US Capitol Building near the Senate Chamber. AFP
    A protester holds a Trump flag inside the US Capitol Building near the Senate Chamber. AFP
  • US Capitol police officers point their guns at a door that was vandalized in the House Chamber during a joint session of Congress. AFP
    US Capitol police officers point their guns at a door that was vandalized in the House Chamber during a joint session of Congress. AFP
  • Members of congress run for cover as protesters try to enter the House Chamber during a joint session of Congress. AFP
    Members of congress run for cover as protesters try to enter the House Chamber during a joint session of Congress. AFP
  • Congress staffers barricade themselves after Trump supporters stormed inside the US Capitol. AFP
    Congress staffers barricade themselves after Trump supporters stormed inside the US Capitol. AFP
  • Congress staffers barricade themselves after Trump supporters stormed inside the US Capitol. AFP
    Congress staffers barricade themselves after Trump supporters stormed inside the US Capitol. AFP
  • Congress staffers hold up their hands while Capitol Police Swat teams check everyone in the room as they secure the floor of Trump supporters. AFP
    Congress staffers hold up their hands while Capitol Police Swat teams check everyone in the room as they secure the floor of Trump supporters. AFP
  • US Capitol Police stand detain protesters outside of the House Chamber during a joint session of Congress. AFP
    US Capitol Police stand detain protesters outside of the House Chamber during a joint session of Congress. AFP
  • A supporter of US President Donald Trump sits at a desk after invading the Capitol Building. AFP
    A supporter of US President Donald Trump sits at a desk after invading the Capitol Building. AFP
  • A protester sits in the Senate Chamber. AFP
    A protester sits in the Senate Chamber. AFP
  • Pro-Trump protesters tear down a barricade as they clash with Capitol police during a rally to contest the certification of the 2020 US presidential election results by the US Congress. Reuters
    Pro-Trump protesters tear down a barricade as they clash with Capitol police during a rally to contest the certification of the 2020 US presidential election results by the US Congress. Reuters
  • Police hold back supporters of US President Donald Trump as they gather outside the US Capitol's Rotunda. AFP
    Police hold back supporters of US President Donald Trump as they gather outside the US Capitol's Rotunda. AFP
  • Supporters of US President Donald Trump enter the US Capitol's Rotunda. AFP
    Supporters of US President Donald Trump enter the US Capitol's Rotunda. AFP
  • A protester is seen hanging from the balcony in the Senate Chamber. AFP
    A protester is seen hanging from the balcony in the Senate Chamber. AFP
  • Riot police prepare to move demonstrators away from the US Capitol. AFP
    Riot police prepare to move demonstrators away from the US Capitol. AFP
  • Trump supporters clash with police and security forces as they storm the US Capitol. AFP
    Trump supporters clash with police and security forces as they storm the US Capitol. AFP
  • Trump supporters clash with police and security forces, as they storm the US Capitol. AFP
    Trump supporters clash with police and security forces, as they storm the US Capitol. AFP
  • A supporter of US President Donald Trump wears a gas mask as he protests after storming the US Capitol. AFP
    A supporter of US President Donald Trump wears a gas mask as he protests after storming the US Capitol. AFP
  • Pro-Trump supporters storm the US Capitol following a rally. AFP
    Pro-Trump supporters storm the US Capitol following a rally. AFP
  • Supporters of US President Donald Trump protest inside the US Capitol. AFP
    Supporters of US President Donald Trump protest inside the US Capitol. AFP
  • US President Donald Trump is seen on TV from a video message released on Twitter addressing rioters at the US Capitol, in the Brady Briefing Room at the White House in Washington, DC. AFP
    US President Donald Trump is seen on TV from a video message released on Twitter addressing rioters at the US Capitol, in the Brady Briefing Room at the White House in Washington, DC. AFP
  • Trump supporters clash with police and security forces as they storm the US Capitol in Washington, DC. AFP
    Trump supporters clash with police and security forces as they storm the US Capitol in Washington, DC. AFP
  • Supporters of US President Donald Trump protest in the US Capitol Rotunda. AFP
    Supporters of US President Donald Trump protest in the US Capitol Rotunda. AFP
  • Paramedics perform cardiopulmonary resuscitation on a patient. AFP
    Paramedics perform cardiopulmonary resuscitation on a patient. AFP
  • A wounded protester is carried on barricade as demonstrators breach the US Capital building grounds. Bloomberg
    A wounded protester is carried on barricade as demonstrators breach the US Capital building grounds. Bloomberg
  • US Vice President Mike Pence and House Speaker Nancy Pelosi preside over a joint session of Congress to certify the 2020 Electoral College results after supporters of President Donald Trump stormed the Capitol earlier in the day on Capitol Hill in Washington, DC. EPA
    US Vice President Mike Pence and House Speaker Nancy Pelosi preside over a joint session of Congress to certify the 2020 Electoral College results after supporters of President Donald Trump stormed the Capitol earlier in the day on Capitol Hill in Washington, DC. EPA
  • Rep. Andy Kim, D-N.J., cleans up debris and personal belongings strewn across the floor of the Rotunda in the early morning hours of the morning, after protesters stormed the Capitol in Washington. AP
    Rep. Andy Kim, D-N.J., cleans up debris and personal belongings strewn across the floor of the Rotunda in the early morning hours of the morning, after protesters stormed the Capitol in Washington. AP

The deal also faces regulatory risk. Elizabeth Warren, a US senator, asked US Securities and Exchange Commission Chairman Gary Gensler last month to investigate the planned merger for potential breaches of securities laws around disclosure. The SEC has declined to comment on whether it plans any action.

Trump Media and Digital World have asked investors to finalise commitments to the Pipe by the middle of December, the sources said.

In a Pipe roadshow attended by one of the sources, investors were asked to commit between $10m and $20m. Neither Mr Trump nor Digital World executives made an appearance and the investor presentation was led by David Boral, president of EF Hutton, an investment bank that advised Digital World on the deal, the source said. A Trump Media representative was also in attendance, the source added.

Mr Trump has said he is launching his own social media app to stand up against the companies that have barred him from their platforms. He had 89 million followers on Twitter, 33 million on Facebook and 24.5 million on Instagram at the time he was blocked, a presentation on his company's website shows.

Since Mr Trump was voted out of office last year, he has repeatedly dropped hints that he might seek the presidency again in 2024.

Russia's Muslim Heartlands

Dominic Rubin, Oxford

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While you're here
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

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.”

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

The Bloomberg Billionaire Index in full

1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion

SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20electric%20motors%20with%20102kW%20battery%20pack%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E570hp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20890Nm%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERange%3A%3C%2Fstrong%3E%20Up%20to%20428km%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh1%2C700%2C000%3C%2Fp%3E%0A
Towering concerns
Planes grounded by coronavirus

British Airways: Cancels all direct flights to and from mainland China 

Hong Kong-based Cathay Pacific: Cutting capacity to/from mainland China by 50 per cent from Jan. 30

Chicago-based United Airlines: Reducing flights to Beijing, Shanghai, and Hong Kong

Ai Seoul:  Suspended all flights to China

Finnair: Suspending flights to Nanjing and Beijing Daxing until the end of March

Indonesia's Lion Air: Suspending all flights to China from February

South Korea's Asiana Airlines,  Jeju Air  and Jin Air: Suspend all flights

The specs: 2018 Volkswagen Teramont

Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

NINE WINLESS GAMES

Arsenal 2-2 Crystal Palace (Oct 27, PL)

Liverpool 5-5 Arsenal  (Oct 30, EFL)

Arsenal 1-1 Wolves (Nov 02, PL)

Vitoria Guimaraes 1-1 Arsenal  (Nov 6, Europa)

Leicester 2-0 Arsenal (Nov 9, PL)

Arsenal 2-2 Southampton (Nov 23, PL)

Arsenal 1-2 Eintracht Frankfurt (Nov 28, Europa)

Norwich 2-2 Arsenal (Dec 01, PL)

Arsenal 1-2 Brighton (Dec 05, PL)

The%20Little%20Mermaid%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Rob%20Marshall%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EHalle%20Bailey%2C%20Jonah%20Hauer-King%2C%20Melissa%20McCarthy%2C%20Javier%20Bardem%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A

War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
While you're here
While you're here
Fifa Club World Cup quarter-final

Esperance de Tunis 0
Al Ain 3 (Ahmed 02’, El Shahat 17’, Al Ahbabi 60’)

Results

2.30pm: Expo 2020 Dubai – Conditions (PA) Dh80,000 (Dirt) 1,600m; Winner: Barakka, Ray Dawson (jockey), Ahmad bin Harmash (trainer)

3.05pm: Now Or Never – Maiden (TB) Dh82,500 (Turf) 1,600m; Winner: One Idea, Andrea Atzeni, Doug Watson

3.40pm: This Is Our Time – Handicap (TB) Dh82,500 (D) 1,600m; Winner: Perfect Balance, Tadhg O’Shea, Bhupat Seemar

4.15pm: Visit Expo 2020 – Handicap (TB) Dh87,500 (T) 1,600m; Winner: Kaheall, Richard Mullen, Salem bin Ghadayer

4.50pm: The World In One Place – Handicap (TB) Dh95,000 (T) 1.900m; Winner: Castlebar, Adrie de Vries, Helal Al Alawi

5.25pm: Vision – Handicap (TB) Dh95,000 (D) 1,200m; Winner: Shanty Star, Richard Mullen, Rashed Bouresly

6pm: Al Wasl Plaza – Handicap (TB) Dh95,000 (T) 1,200m; Winner: Jadwal, Dane O’Neill, Doug Watson

Updated: December 02, 2021, 9:10 PM
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