A Raja, India's former telecom minister, after he was acquitted in New Delhi in the 2G spectrum case. EPA
A Raja, India's former telecom minister, after he was acquitted in New Delhi in the 2G spectrum case. EPA

There is nothing shocking about India's telecoms verdict



Most Indians are stunned and shocked by the judgment of India's special court acquitting all of the accused in the 2G telecoms case. The judge ruled that there was no scam. So Indians now ask: when there was so much smoke, where was the fire? Perhaps the noise and din was created by the spin doctors of various political parties. Perhaps the $27 billion deficit was caused by the way the licenses had been allocated, not through the misappropriation of funds. The coalition government wanted to expand the telecoms sector in 2008 and sought rapid sector expansion rather than pure revenue generation. Therefore, many people were swayed into believing that politicians pocketed the money but we mustn't forget that tardy execution of general sales tax and other legislation, in addition to these allocations, is what caused the economy to suffer.

Rajendra Aneja, Dubai

It took an incredible team to build the Louvre Abu Dhabi

I refer to your article UAE news year in review: the most important stories of 2017 (December 26). As The National had so well depicted in articles about the Louvre Abu Dhabi as it was constructed over the years, the implementation of its very intricate design could not have been a more complicated process. Project officials met the world's most stringent museum requirements in terms of UV deflection and environmental and security standards. The museum was built to fulfill a 100-year lifespan under tight budgetary constraints. As was well-documented and universally acknowledged internationally, the Jean Nouvel design of the Louvre Abu Dhabi is certainly inspiring and deserving of all the accolades it has received. As we celebrate this world wonder of a museum, let's also acknowledge the equally impressive determination dedication and contributions of its builders.

David Rupp, Dubai

VAT would do well to target businesses more equitably

In reference to your article With just days to go until VAT comes in, many businesses are still unprepared (December 26), VAT is a pass-the-parcel impost, the cost of which ends up being incurred by the consumer and often results in the least able bearing the largest burden. Globally, VAT strangles small businesses in favour of corporates, who often shift money internationally and end up paying little or no net tax. One glance at the sclerotic European Union should have been enough to demonstrate that this tax may not be the best of options for smaller economies.
Andrew Preston, Abu Dhabi

Let's read as we watch, shall we?

I refer to your article Subtitles improve reading skills in India (December 27). The article elaborately explains the advantages of having subtitles in the same language. The UAE has many subtitled films in cinemas. In an era of scarce reading, this has become a luxury.

K Ragavan, India

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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Business Insights
  • As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses. 
  • SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income. 
  • Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
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What: 11th edition of the Mubadala World Tennis Championship

When: December 27-29, 2018

Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams

Tickets: www.ticketmaster.ae, Virgin megastores or call 800 86 823

UAE currency: the story behind the money in your pockets
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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.”