If Hadi wants Yemen whole, he must talk to the South


Faisal Al Yafai
  • English
  • Arabic

'If you want peace," runs the Latin expression, "prepare for war." It is an idea Yemen's president Abdrabbu Mansur Hadi, as a career military man, ought to know well. In the modern context of Yemen it applies most to the "southern question" - again, a topic the president should know well, as both a southerner and a long-time vice-president.

And yet Mr Hadi appears not to take the political war brewing in the south seriously enough. Rightly, the president has decided the current interests of the country are best served by keeping Yemen united. But he has not yet accepted that many others see it differently, and thus does not seem to be prepared to fight the political war for the south that is looming.

For a politician hailed as a strategist, this oversight is a strategic error. If Mr Hadi wants Yemen to remain whole, he will have to take the possibility of secession seriously.

The idea of a separate southern state in Yemen has gained popularity in the past half decade but especially so since the ousting of Mr Hadi's former boss, Ali Abdullah Saleh.

It remains more an idea than a policy, but in a way that provides it with greater raw animating power.

The grievances of southern Yemen go back a long way, but were entrenched by the unhappy union with the north in the early 1990s.

Since then, southerners have been removed from positions in the military and the public sector and many saw their lands confiscated and their businesses shut down. The Southern Movement, known as Hirak, was set up in 2007 to address some limited grievances but has since gained rapid support all across the south, centred around the city of Aden.

What happens to the southern issue remains the biggest question that the on-going National Dialogue will have to answer. Sensing this, Mr Hadi offered the Hirak movement a large share of the seats in the dialogue, only to be rebuffed by those factions that would rather discuss separation.

Although a small delegation from Hirak is taking part in the dialogue, notable factions - including one of the largest, led by the former president of South Yemen Ali Salem Al Beidh - are not, refusing to sit down with representatives of what is now increasingly called the "northern occupation".

Yet Mr Hadi acts as if the representation of this one faction means that Hirak as a whole - and, more importantly, the public opinion that animates it - is represented at the dialogue. That could prove a dangerous miscalculation.

A separate southern Yemen would be a serious change to the map of the Arabian Peninsula. If the new country followed the contours of its predecessor, formerly known as the People's Democratic Republic of Yemen, it would border both Oman and Saudi Arabia, sit on the strategically vital Gulf of Aden and include the country's largest port, the lion's share of its coastline, and most of the remaining oil reserves.

Due to that complexity alone - which would, naturally, have to be resolved in tandem with the other environmental and demographic challenges that face the entire country - it is not something Sanaa, Riyadh or most of the international community want to contemplate.

But events in the south could overtake the politicians. Although the leaders of Hirak are divided on the best political strategy, among a wide swathe of southerners there is broad agreement on issues.

The three R's continue to animate the movement: genuine political representation (whether in an inclusive government in one country or as a separate south), reinstatement of lands and jobs, and redress for what southerners say was institutionalised discrimination.

At the end of last year, Mr Hadi set up a tribunal to address some of the issues of reinstatement, promising to return to southerners property seized after the 1994 civil war. But it has moved slowly, while other events - such as drone strikes by the United States - continue to inflame the south.

By not making a genuine effort to fix legitimate grievances of southerners, Mr Hadi is making his task of steering Yemen through this political transition harder.

Hirak has distanced itself from the jihadi groups that periodically spring up across the south and from any external influence from Iran. The movement could be an ally to Mr Hadi, if only he would make them an offer.

What might that be? The best solution now on offer to Mr Hadi would mean a "grand bargain" of sorts with the south, offering some level of autonomy, perhaps, in return for dropping secessionist demands.

Whether Mr Hadi can make such an offer - and whether he can find anyone in the south to listen, agree and deliver the deal - remains an open question.

But Mr Hadi is running out of time. Whereas at the beginning of the year, he might have found factions within Hirak open to dialogue on greater inclusion in a Sanaa government, now public sentiment is hardening, moving towards autonomy and more.

The longer he waits to speak to the south about remaining in a genuine Yemeni union, the less likely he is to find anyone willing to listen.

On Twitter: @FaisalAlYafai

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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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Tips for entertaining with ease

·         Set the table the night before. It’s a small job but it will make you feel more organised once done.

·         As the host, your mood sets the tone. If people arrive to find you red-faced and harried, they’re not going to relax until you do. Take a deep breath and try to exude calm energy.

·         Guests tend to turn up thirsty. Fill a big jug with iced water and lemon or lime slices and encourage people to help themselves.

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·         You absolutely don’t have to make every element of the brunch from scratch. Take inspiration from our ideas for ready-made extras and by all means pick up a store-bought dessert.

 

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THE BIO

Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old

Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai

Favourite Book: The Alchemist

Favourite quote: Failing to prepare is preparing to fail

Favourite place to Travel to: Vienna

Favourite cuisine: Italian food

Favourite Movie : Scent of a Woman

 

 

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.