Regional unrest gives Al Qaeda in Iraq new life


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It's possible to lose count of how many times Al Qaeda in Iraq (AQI) has been declared dead, only to re-emerge in another murderous attack. In 2006, western analysts predicted the end of the group after Abu Musab Al Zarqawi, the Jordanian credited as its founder, was killed by a US air strike. Nearly every year since has brought a new chorus of high-ranking US or Iraqi officials predicting the end in much the same way. And yet, the killings continue.

Iraq's problems are just a microcosm of the region's. Amid the instability that has been a by-product of the Arab uprisings of the past year and a half - in Syria, in Yemen and in North Africa - Al Qaeda and related groups have clawed back. In stable societies (even, to a degree, in stability enforced by a strongman) people tend to reject the extremists' murderous bile.

But Iraqis have disproportionately borne the brunt for too long. This week's suicide attack on a Shia funeral procession in the Iraqi city of Baquba is a reminder that AQI remains a deadly, if weakened, force. Each month since the withdrawal of US forces in December has seen new Al Qaeda-linked violence. One of the deadliest attacks came on June 13, when car bombings across Iraq killed 70 Shia pilgrims and police. Monday's strike, which Iraqi officials have attributed to the terror group, killed 15 and wounded over 40.

The question is not only how to stop the violence - Iraqi security forces are well-trained and able - but rather how to resist the sectarian bloodletting that Al Qaeda in all of its incarnations works to inspire. Across the region, extremists are trying to provoke further violence. Al Qaeda isn't the only force that is willing to sacrifice civilian lives to achieve its misguided goals. But the franchise, now loosely united under Ayman Al Zawahiri, understands - indeed, admits - that its success depends on stoking more violence and an over-reaction from its targets.

Iraq's sectarian-tinged politics have fed this resurgence. Prime Minister Nouri Al Maliki has pushed non-Shiites (as well as many Shiites, it should be noted) out of government. Marginalising Sunnis in Baghdad only builds misguided support for Al Qaeda.

As Syria's unrest boils over the border, Iraq can ill afford to inflame its own sectarian fault lines. In uncertain times every country in the region must remember that extremists, including Al Qaeda, have only one strategy: to incite further violence. Because of their murderous tactics, terrorists exert an influence far beyond their numbers or the value of their ideas. It's impossible to completely stamp out a group like Al Qaeda through military means, but at the same time, such groups will always lose the war of ideas.

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

'Peninsula'

Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra

Director: ​Yeon Sang-ho

Rating: 2/5

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

In numbers

Number of Chinese tourists coming to UAE in 2017 was... 1.3m

Alibaba’s new ‘Tech Town’  in Dubai is worth... $600m

China’s investment in the MIddle East in 2016 was... $29.5bn

The world’s most valuable start-up in 2018, TikTok, is valued at... $75bn

Boost to the UAE economy of 5G connectivity will be... $269bn 

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

The biog

Favourite book: Homegoing by Yaa Gyasi

Favourite holiday destination: Spain

Favourite film: Bohemian Rhapsody

Favourite place to visit in the UAE: The beach or Satwa

Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19

Pros%20and%20cons%20of%20BNPL
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RESULT

Liverpool 4 Southampton 0
Jota (2', 32')
Thiago (37')
Van Dijk (52')

Man of the match: Diogo Jota (Liverpool)

Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

UAE currency: the story behind the money in your pockets
The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km