US vows to hold Houthis accountable after attacks on Abu Dhabi

Washington on Monday condemned the attacks carried out by Yemen's Iran-backed Houthis against the UAE, pledging to work with the Emirates and to hold the rebel group accountable.

In a statement, White House National Security Adviser Jake Sullivan labelled the strike a “terrorist attack” and expressed support for the UAE.

“The United States strongly condemns today’s terrorist attack in Abu Dhabi in the United Arab Emirates, which killed three innocent civilians,” Mr Sullivan said.

The three people were killed when small flying objects, possibly related to drones, hit a number of fuel lorries and started a fire at Adnoc's petroleum storage unit in the ICAD industrial area of Mussaffah at about 10am. Six others suffered mild to moderate injuries.

“The Houthis have claimed responsibility for this attack and we will work with the UAE and international partners to hold them accountable,” Mr Sullivan said.

“Our commitment to the security of the UAE is unwavering and we stand beside our Emirati partners against all threats to their territory.”

US Secretary of State Antony Blinken also condemned the attacks and expressed his condolences on a call with Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, the state news agency Wam reported.

Sheikh Abdullah received phone calls from a number of foreign ministers over the course of the day expressing their condemnation for the attacks.

In a statement, UAE's minister of state and ambassador to Washington Yousef Al Otaiba welcomed US commitment and stressed urgency in the response. "Together, the UAE, US and international community must act with urgency to confront Houthi aggression," Ambassador Al Otaiba said on Monday.

Saudi Arabia's Prince Faisal bin Farhan, Bahrain's Abdullatif Al Zayani and Egypt's Sameh Shoukry were among the first foreign ministers to speak with Sheikh Abdullah and express their countries’ support and solidarity with the UAE.

In New York, UN Secretary General Antonio Guterres also denounced the attack.

“Attacks on civilians and civilian infrastructure are prohibited by international humanitarian law,” UN spokesman Stephane Dujarric said.

Israeli Foreign Minister Yair Lapid said his country stood with the UAE after the attack. He wrote on Twitter: “I strongly condemn today’s drone attack in Abu Dhabi and send my condolences to the families of those killed and my wishes for a speedy recovery to those wounded. Israel stands with the United Arab Emirates.”

The Organisation of Islamic Co-operation and the Higher Committee of Human Fraternity denounced the Houthi militia for aiming at civilian sites in a “flagrant violation of international laws and norms".

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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.”

ETFs explained

Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.

ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.

There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.

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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Borussia Dortmund v Schalke (4.30pm)

RB Leipzig v Freiburg (4.30pm)

Hoffenheim v Hertha Berlin (4.30pm)

Fortuna Dusseldorf v Paderborn (4.30pm)

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Monday, May 18

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Shabab Al Ahli 1

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