Police have arrested several participants in protests that were initially about academic freedom, but morphed into demonstrations against broader issues in Turkey. AP
Police have arrested several participants in protests that were initially about academic freedom, but morphed into demonstrations against broader issues in Turkey. AP
Police have arrested several participants in protests that were initially about academic freedom, but morphed into demonstrations against broader issues in Turkey. AP
Police have arrested several participants in protests that were initially about academic freedom, but morphed into demonstrations against broader issues in Turkey. AP

‘Shop on a full stomach’: Turkey is struggling with poverty and protests


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Contrary to much recent commentary, Turkish President Recep Tayyip Erdogan is a big fan of the protests that have been shaking Istanbul for the past five weeks.

The standoff began in the first days of the year, following his decision to appoint a non-academic and acolyte of the ruling Justice and Development Party (AKP) as the new rector of Turkey’s top public university, Bogazici. This sparked on-campus protests calling for the new rector’s resignation and a university system free of government control.

Authorities cracked down hard, wielding batons, spraying teargas and arresting dozens of protesting students, which in turn encouraged more students to protest, joined by faculty. The Bogazici protests soon swelled in size and scope to move beyond Istanbul and encompass broader issues such as high unemployment and widespread dissatisfaction among Turkish youth.

The crackdown has continued apace, with dozens more arrested last weekend. But the demonstrators have held their ground. Some news outlets have hailed these protests as the political emergence of Turkey’s generation Z, which has known only Mr Erdogan as its leader and is now saying it has had enough.

Bogazici University students have been joined by faculty in the protests. EPA
Bogazici University students have been joined by faculty in the protests. EPA

Why might all of this please the Turkish president? For starters, these demonstrations pull eyeballs away from the most urgent issue in the country today, which is how its deeply troubled economy is driving more people into poverty.

The government has subtly acknowledged the depth of this problem with a new campaign to help Turkish citizens survive on next to nothing. On Sunday, a programme on state-run television network TRT advised people not to waste food and explained that eggs could be eaten after their expiration date.

The day before, the front page of Takvim, a newspaper closely linked to AKP, presented a grim walk-through on wielding one's will power to save money while grocery shopping. "Shop on a full stomach." "Avoid nice smells." "Don't touch the products – the feeling of ownership will force you to buy it."

The reality is that Mr Erdogan’s government is failing to find ways to provide for its people. “They’re expecting Turks to live in abject poverty and this is the guidebook to survival,” analyst Can Okar tweeted.

In its 20-year history, the AKP has never lost a national vote. Though the next election is more than two years away, the current economy could end that winning streak: two recent polls show backing for the government’s electoral alliance has fallen significantly below support for the opposition alliance.

These numbers point to another reason Mr Erdogan appreciates the protests. They present the perfect opportunity to do what he does best: divide and conquer. And indeed he and his allies have begun to polarise the country further and rally his main vote banks, nationalists and religious conservatives.

In a tweet Twitter soon deleted, Devlet Bahceli, the leader of the far-right Nationalist Movement Party, AKP’s parliamentary partner, described the demonstrators as “snakes whose heads need to be crushed”. To put a scare into the protesters and help rally the nationalists, Mr Bahceli’s pal Alaattin Cakici, a convicted murderer, urged the Erdogan-appointed rector not to resign.

There has also been significant outreach to Turkey’s conservative Islamist crowds, who are often in opposition to so-called "Western values". Seeing a pro-LGBT symbol among the protesters, the interior minister, Suleyman Soylu, blamed “LGBT perverts” for the unrest, an accusation that has since been repeated a number of times.

“We don’t accept these people as the youth of our country,” said Mr Erdogan, who described the protesters as “terrorists”.

The AKP has exploited the presence of LGBT symbols at protests to rally conservatives against them. AP
The AKP has exploited the presence of LGBT symbols at protests to rally conservatives against them. AP
These protests mark the political emergence of Turkey's generation Z

This demonising is straight out of the populist playbook. Longtime Venezuelan leader Hugo Chavez often denounced his foes as homosexual, Zionist, part of the bourgeoisie or backed by Americans. The objective, of course, is to pit a virtuous and supposedly homogenous group, “the people”, against a grab-bag of elites and problematic “others”.

Mr Erdogan has often railed against the meddling of Jewish-American philanthropist George Soros in reference to the mid-2013 Gezi Park protests. He did it again on Friday, saying that Ayse Bugra, the wife of Osman Kavala, a jailed philanthropist who founded the Turkish chapter of Mr Soros's foundation, was “among the provocateurs”. Ms Bugra is a professor at Bogazici.

Mr Erdogan has gone even further to exploit the protests. Last week, he issued a decree creating two new departments at Bogazici, law and communications, in a suspected attempt to increase the number of loyalists among the faculty.

We must be careful not to downplay the value of protests in pushing back against creeping authoritarianism or governmental overreach in Turkey and elsewhere, from Lebanon to Myanmar. Demonstrators have, in this century, forced the ouster of many leaders and persuaded countless governments to reform.

But Turkey has seen this film before and it does not have a happy ending. Apart from showing Mr Erdogan’s critics that they are not alone, the primary outcome of the Gezi Park demonstrations was to enable Turkish parliament to pass a security law in 2015 that greatly empowered police to silence protests violently and brutally. Some argue that Gezi Park spurred many to find their political voice and shaped the results of the subsequent 2015 national election, but that is all but impossible to know for sure.

Meanwhile, that new security law is why today’s protests are a fraction of the size of Gezi Park and unlikely to have a lasting effect. One thing in the protesters’ favour is that they are backed by majority opinion; a new survey from MetroPoll showed that 75 per cent of Turks polled preferred universities independent from politics.

But Turkish authorities likely will continue with the current level of crackdown for another week or two, until they go all-in and end the protests entirely, as they did in Gezi Park. Until then, the demonstrations are for the government mainly a welcome distraction from harsh economic reality and a chance for Mr Erdogan and his allies to regain some political ground – at least until their bill comes due in 2023, when Turkey again goes to the polls.

David Lepeska is a Turkish and Eastern Mediterranean affairs columnist for The National

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The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

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UAE currency: the story behind the money in your pockets
War 2

Director: Ayan Mukerji

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

Rating: 2/5

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

Profile box

Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D 
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India

The%20specs%3A%202024%20Mercedes%20E200
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The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

2018 ICC World Twenty20 Asian Western Regional Qualifier

Saturday results
Qatar beat Kuwait by 26 runs
Bahrain beat Maldives by six wickets
UAE beat Saudi Arabia by seven wickets

Monday fixtures
Maldives v Qatar
Saudi Arabia v Kuwait
Bahrain v UAE

* The top three teams progress to the Asia Qualifier

The biog

Favourite book: Animal Farm by George Orwell

Favourite music: Classical

Hobbies: Reading and writing

 

The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Power: 268bhp / 536bhp
Torque: 343Nm / 686Nm
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
On sale: Later this year
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

How to help

Send “thenational” to the following numbers or call the hotline on: 0502955999
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6026 – Dh 200

Long read

Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response

Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
About Seez

Company name/date started: Seez, set up in September 2015 and the app was released in August 2017  

Founder/CEO name(s): Tarek Kabrit, co-founder and chief executive, and Andrew Kabrit, co-founder and chief operating officer

Based in: Dubai, with operations also in Kuwait, Saudi Arabia and Lebanon 

Sector:  Search engine for car buying, selling and leasing

Size: (employees/revenue): 11; undisclosed

Stage of funding: $1.8 million in seed funding; followed by another $1.5m bridge round - in the process of closing Series A 

Investors: Wamda Capital, B&Y and Phoenician Funds 

Company%20profile
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VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

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The specs

Engine: 8.0-litre, quad-turbo 16-cylinder

Transmission: 7-speed auto

0-100kmh 2.3 seconds

0-200kmh 5.5 seconds

0-300kmh 11.6 seconds

Power: 1500hp

Torque: 1600Nm

Price: Dh13,400,000

On sale: now