Saudi Arabia is hopeful after exploratory talks with Iran, its foreign minister said.
The official-level discussions aim to restore relations severed five years ago between Saudi Arabia and Iran.
"We have initiated some exploratory talks," Prince Faisal bin Farhan said in Paris on Tuesday, where he is participating in two international summits. "They are at a very early stage but we are hopeful."
The talks with Iran, facilitated by Iraqi Prime Minister Mustafa Al Kadhimi, were secret until the Financial Times newspaper reported that a meeting was held in Baghdad on April 9.
The Iranian government confirmed only on May 10 that the talks were held but that it was "too soon" to discuss the results.
"If [the Iranians] can see that their interest is in a good relationship with their neighbours, I can be hopeful," Prince Faisal said.
Asked what the effect of the June presidential elections in Iran might be, he said he thought it would be minimal.
"Our understanding of Iran's foreign policy is that it's set by the supreme leader," he said. "So we don't think there will be a substantial change. There may be a change in the representatives that portray that policy, but in the end, it's what happens on the ground that matters, and that is driven by the supreme leader."
The countries cut ties in 2016 after Iranian protesters attacked Saudi diplomatic missions after the kingdom's execution of a revered Shiite cleric.
The regional rivals back opposite sides in several regional conflicts, from Syria to Yemen, where a Saudi-led coalition is fighting Iran-backed Houthi rebels in support of the internationally recognised government.
But in April, Saudi Arabia's crown prince struck a conciliatory tone, saying he sought good relations.
The tentative initiative comes at a time of shifting power dynamics as US President Joe Biden is seeking to revive the tattered 2015 Iran nuclear deal.
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
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
