A Kurdish-dominated militia moved to solidify its control over resource-rich parts of eastern Syria on Thursday after suppressing an Arab tribal insurgency with US support.
Fighting in the area has diminished after the Syrian Democratic Forces, on Wednesday entered the Diban stronghold of a tribal leader who had challenged Kurdish control of the east without resistance.
The centre of Syria's oil and wheat production lie in the region.
A source in the US-backed administration of the east said the SDF has started to hunt down "elements" among the insurgents believed responsible for killing dozens of its members over the past two weeks.
"The rest will be spared," he said.
Officials from Washington were dispatched to the area to solve the crisis after an estimated 200 people were killed. US intervention resulted in a solution to the standoff in Diban, under which the Arab fighters, who mostly belonged to the Okeidat tribe, walked away, along with their leader, Sheikh Ibrahim Al Hafl.
The insurgency has undermined the idea that the US has supported an ethnically harmonious eastern zone united against ISIS. In 2019, the SDF declared victory against the group after overrunning the village of Bahouz in Deir Ezzor governorate under US air cover.
The US formed the SDF in 2015 as the main ground component in the fight against ISIS in Syria, playing on tribal rivalries and Arab-Kurdish competition to promote American influence.
Its Kurdish allies, meanwhile, furthered their grip on the war economy in the east and kept open channels with Iran and President Bashar Al Assad, contributing to Arab resentment against their rule.
The east accounts for most of Syria's oil production, which is running at 50,000 to 100,000 barrels per day, compared with 300,000 bpd in 2010, a year before the country's pro-democracy revolt and the subsequent civil war.
The core of the SDF comprises a Syrian Kurdish militia called the People Protection Units, which originates from the Syrian branch of the Kurdistan Workers Party (PKK), a Turkish Leninist group which has fought Ankara for decades.
Syria has been split into Russian, Iranian, Turkish and US zones in the last decade of the civil war, which started in late 2011, after the authorities put down a peaceful protest movement against the Assad government.
The bulk of the US zone in Syria runs along the Euphrates River basin in the east, adjacent to areas ruled by Turkish and Iranian proxies.
In the first Turkish reaction to the bloodshed in the area, Foreign Minister Hakan Fidan said on Wednesday the US must act “to stop suppressing Arab communities in Syria at the hands of YPG/PKK terror group".
“The painting of YPG terror group as legitimate must end," he said, calling the recent fighting " just the beginning".
Hours after Mr Al Hafl's defeat in Diban, makeshift tribal forces in the Turkish controlled zone in eastern Aleppo governorate launched revenge attacks against SDF positions near the rural city of Manbij.
A tribal commander said six of his men were killed on the Manbij front in the last 24 hours, without making any substantial progress against a well-entrenched enemy.
Like most areas of the east, Manbij is an Arab majority, but is controlled by the SDF.
A senior member of the Syrian opposition said the US had warned Turkey against backing any sustained attacks on the SDF in Manbij or other outlaying areas in the SDF zone.
"Turkey has heeded the American warning," he said from Istanbul. "All the Arabs got from Turkey was rhetoric yesterday."
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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