Iraq's Prime Minister Mohammed Shia Al Sudani addresses the 78th session of the UN General Assembly this month. EPA
Iraq's Prime Minister Mohammed Shia Al Sudani addresses the 78th session of the UN General Assembly this month. EPA
Iraq's Prime Minister Mohammed Shia Al Sudani addresses the 78th session of the UN General Assembly this month. EPA
Iraq's Prime Minister Mohammed Shia Al Sudani addresses the 78th session of the UN General Assembly this month. EPA

Iraqi PM Al Sudani: The biggest challenge we face is gaining people's trust


Mina Al-Oraibi
  • English
  • Arabic

“Gaining the trust of the people”. That is how Iraqi Prime Minister Mohammed Shia Al Sudani described his biggest challenge since assuming office 10 months ago.

While economic woes, climate change and threats to security are all obstacles that Iraq must tackle, Mr Al Sudani stressed that regaining the trust of the people represents his government's biggest challenge.

In an extensive interview with The National in New York during his participation in the High Level Week of the United Nations General Assembly, Mr Al Sudani spoke of his commitment to improving the lives of Iraqis, with priorities that include “providing basic services, fighting corruption [and] undertaking economic reforms, which can all strengthen the confidence of people in this political system”.

He added that trust is only restored "through credibility and fulfilling promises. If we succeed in that, all other challenges can be met”.

Mr Al Sudani said that his government is strong and able to deliver, despite facing many challenges.

He described his government’s foreign policy as “balanced, independent with sovereign decision-making, far from the desires and interests of others”.

He went on to say that “there is no problem in [serving] mutual interests but not at the expense of Iraq”.

Surrounded by six neighbours with which his country has had a chequered history, Mr Al Sudani said Iraq’s fate is that it is "a point of convergence of all those in the region”.

He stressed that all countries would benefit from his nation being stable.

“Disruption in Iraq brings disturbances in the region and the world, as we saw with ISIS,” he said.

His government is seeking to create joint projects in the region to build on possible cooperation such as the “Iraq development road project”, which he has invited countries in the region to join, strengthening the links between Asia and Europe.

'We will not be part of any sphere of influence'

Mr Al Sudani’s trip to New York included meetings with US Secretary of State Antony Blinken and White House Coordinator for the Middle East, Brett McGurk.

Mr Al Sudani said that he told US officials that his country’s relationship “should not be only within a security dimension … while we are open to bilateral security co-operation”, highlighting the importance of “Iraq’s independence and we will not be part of any sphere of influence”.

One issue that has been raised is the presence of foreign troops in Iraq.

“We are not in need of combat troops; what we have are military advisers, but even their presence needs regulation, in terms of their size, location and how long they remain,” he said.

He added that there needs to be a “clear timeline" for the continued presence of foreign troops.

"This is part of what is needed for our sovereignty and stability, to take away any excuse from those who demand keeping arms out of the control of the state because of the presence of foreign troops”.

The US extended an official invitation for Mr Al Sudani to visit Washington, a matter that had been pending for several months. And while that was seen as a win, a build-up of tensions with Kuwait came to a head in New York as the Kuwaiti government raised concerns about Iraq seeming to renege on previous maritime border demarcation agreements.

Clear concern was expressed by Kuwait and supported by the countries of the Gulf Cooperation Council over Iraq’s Federal Supreme Court move to void the 2012 Kuwait-Iraq Agreement, which aimed at setting the maritime boundaries of Khor Abdullah.

In a joint statement after their meeting in New York last week, the GCC and US said “the ministers stressed the importance of Iraq’s commitment to Kuwait’s sovereignty, territorial integrity and respect for international conventions and UN resolutions, especially UNSC Resolution 833 regarding the demarcation of the Kuwait-Iraq boundary”.

The US and GCC statement called on the Iraqi government to “ensure that the agreement remains in force”.

Mr Al Sudani faces domestic pressure from some political parties to challenge the agreement on the maritime boundaries, and regional pressure to respond to the Federal Supreme Court’s ruling, which Kuwaiti Prime Minister Sheikh Ahmad Nawaf Al Sabah said “contains historical fallacies”.

Responding to questions about this issue, Mr Al Sudani told The National that “in Iraq, there is a division between the various branches of power”, deflecting the issue as a judicial one.

However, he stressed that his government is “committed to international laws and the decisions of the UN Security Council, in addition to the sovereignty and territorial integrity of the state of Kuwait”.

He spoke of his meeting with Kuwait’s Prime Minister saying: “I confirmed to him our government’s position and expressed Iraq’s desire to continue the work of the joint committees and to have ongoing mutual visits between the officials and experts of the two countries, across all fields, in order to strengthen the levels of co-operation and building of trust”.

Mr Al Sudani stressed his commitment to “improving our ties and overcoming all hurdles” between the two countries.

He acknowledged the concerns Kuwaitis have, given the memories of the 1990 invasion.

Mr Al Sudani said “Iraq after 2003 is completely different from Iraq before [that time]. We are working now at setting up cross-border projects and developing ties with all our neighbours, including Kuwait”.

As for relations with the Gulf more generally, which have been growing in the past despite concerns about the Kuwait dynamics, Mr Al Sudani said that the GCC countries are active in Iraq through investment projects and active participation in the Baghdad Conference, which also involves Jordan, Iran, Turkey, France and others.

The conference will have “a new vision, one based on economic integration which can further regional stability and joint infrastructure, in addition to other measures”, he added.

Mohammed Shia Al Sudani, Iraq's Prime Minister, arrives to speak during the UNGA. Bloomberg
Mohammed Shia Al Sudani, Iraq's Prime Minister, arrives to speak during the UNGA. Bloomberg

In the spirit of improved relations in the region, Mr Al Sudani stressed his firm belief that “Syria with its current political make up and people is better than an unknown alternative that could lead the region to enter a new war in the region”.

He added “any security disturbances in Syria can lead to ISIS being unleashed. We need to re-engage Syria and meet its people’s needs”.

And yet there are tensions with both Iran and Turkey with regular air strikes on Iraqi territories, particularly targeting dissident Kurdish groups.

Mr Al Sudani said: “We are dealing with this matter through diplomacy, and our rejection of violence or the threat of violence. Our ability to respond is there, but we prefer diplomacy”.

He added that “we have emptied the camps of [Iranian dissident] armed groups, which is part of our constitutional obligation not to allow the use of Iraqi territory to attack another country”.

Mr Al Sudani explained that there are now Iraqi troops monitoring the borders in the Kurdistan Region.

'There is a real war against corruption'

His primary concern for the moment is domestic affairs.

Iraq faces a significant challenge as 16 per cent of its population lives below the poverty line, according to the Iraqi government’s statistics.

He was keen to stress that “the best implementation of social security net is in Iraq … this is internationally recognised for dealing in a multi-faceted way”.

He added “this government’s 2023 budget set aside $4 billion for cash support for individuals and families below the poverty line, and 1.7 million individuals and families are included in this programme”.

Each of those gets an average of $200 a month, and added financial support for students as “battling poverty is not just about income, it is about education, health, society … we do not want poverty to be inherited”.

Tackling poverty and providing basic services is part of Mr Al Sudani’s effort to “end poverty in Iraq within five years”.

That pledge is one of several Mr Al Sudani is making in to win over Iraqis’ confidence. However, this cash support puts a strain on Iraq’s budget in addition to paying public sector salaries.

And so, Mr Al Sudani sees a vital role for the private sector.

He explained that “previously we could pay compliments to the private sector and rely on oil revenues, but in 2020 we had a violent shake up.

"In February [of that year], Iraq’s revenues from oil were at $1.5 billion, while $4.5 billion was needed to cover [public sector] salaries, meaning we had to borrow $3 billion”.

One of the biggest impediments facing the private sector is corruption – a matter that Mr Al Sudani acknowledges.

“There is a real war against corruption, on a daily basis we are working to recover funds and recover those who took the funds … we follow up on all information, even a statement post on social media”.

Responding to those who question how effective the fight against corruption, Mr Al Sudani said there is no “political manipulation when it comes to corruption … we are fighting it in reality, not only in media statements”.

Mr Al Sudani’s government is working on the imposition of corporate tax, digital payments and securing customs payments. Focusing on a singular dollar exchange and using the dinar for internal economic activity are also part of the government’s efforts. He also said that the banking system has major issues that need tackling.

He added “reforms are like a difficult medicine that the patient must take to get better … the fluctuations in the Iraqi dinar's value are a result of a battle between the Iraqi government which seeks to secure legitimate transactions and a group that benefits from the dollar exchange”.

While Iraqis often complain of inflation, Mr Al Sudani insisted that “all goods have maintained their prices as all traders have to take the dollar through the government system … those who seek alternative routes are the smugglers”.

Mr Al Sudani spoke at length about illicit trade in Iraq, including the role of those who smuggle US dollars to Iran.

“Our trade with Iran is approximately $11 billion, but Iran is sanctioned, which means a trader cannot send funds to Iran in return for goods as that is prohibited, so the trader goes to the parallel [black] market”.

The Iraqi central bank is working with its Iranian counterpart to address this issue, “an important part of controlling the price of the currency rests on regulating our trade with Iran”.

He added there had also been problems with informal transfers to Turkey for trade, but now the Iraqi government has mandated transfers are to be completed through the banking system.

The prime minister is also attempting to tackle the illicit tobacco trade, which he says must be brought under control.

“We get zero tax revenues from tobacco trade, and yet from Mosul to Basra, tobacco products fill the stores … they are coming in from illegal trading routes”, primarily through the Kurdistan region of Iraq, “with whom we are working to close this loophole”.

On Iraq’s internal politics, Mr Al Sudani once again expressed confidence, declaring the “political regime is at its best now."

There is, he said, "stability as this government has 280 MPs out of 329 standing behind it, the largest since 2003”.

It is that majority given to Mr Al Sudani by a wide coalition of political parties that makes him confident.

And despite wide differences between different political parties and internal wrangling between Baghdad and Erbil, Mr Al Sudani stated “this is normal, even after the elections, there was competition within constitutional boundaries”.

He was quick to dismiss questions about political differences and the presence of major internal problems, such as detainees in the country. He also dismissed rumours of the possibility of early elections on a national level. Iraq will have its next local elections on December 18.

Mr Al Sudani said “over 300 parties have registered to contest the local elections … and this is another healthy indicator that the political regime has stabilised”.

As for the October 2019 protests, known as the Tishreen movement, Mr Al Sudani said “we look to it with respect, we respect all element of peaceful protests within a legal framework”.

As the anniversary of those protests approaches, Mr Sudani promised “before the end of the year we will reveal the results of the investigations into who is responsible for the killing of the protesters”.

There have been concerns about the regression of human rights, from the killing of protesters in 2019 to the detention of activists.

Mr Al Sudani stressed that the Iraqi political system is “based on constitutional obligations … from my first days in office I appointed an advisor on human rights”.

He denied the presence of any detainees without trial, despite reports of an unknown number of detainees in Iraq from rights groups.

“There are no detainees in any prison without a judicial order.. even extending detention times must be put to the judiciary.

"We have put in place all the necessary guarantees for detainees”, rejecting accusations about Iraq’s prisons or elements of the judiciary allowing for human rights accusations, he added.

Looking to the future, Mr Al Sudani is focused on strengthening Iraq’s economy and its ability to tackle climate change, from expanding solar energy projects, recycling, and “a comprehensive water policy, including modern irrigation systems”.

He said Iraqi President Abdul Latif Rashid will be leading Iraq’s delegation to Cop28, in addition to working on major projects to tackle desertification and water scarcity. ”Iraq is greatly affected by climate change and environmental problems” which Mr Al Sudani says “we understand it must be a priority area for us to tackle”.

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

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.”

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Explainer: Tanween Design Programme

Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.

The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.

It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.

The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.

Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”

BUNDESLIGA FIXTURES

Friday Stuttgart v Cologne (Kick-off 10.30pm UAE)

Saturday RB Leipzig v Hertha Berlin (5.30pm)

Mainz v Borussia Monchengladbach (5.30pm)

Bayern Munich v Eintracht Frankfurt (5.30pm)

Union Berlin v SC Freiburg (5.30pm)

Borussia Dortmund v Schalke (5.30pm)

Sunday Wolfsburg v Arminia (6.30pm)

Werder Bremen v Hoffenheim (9pm)

Bayer Leverkusen v Augsburg (11.30pm)

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

Full list of Emmy 2020 nominations

LEAD ACTOR IN A COMEDY SERIES

Anthony Anderson, Black-ish
Don Cheadle, Black Monday
Ted Danson, The Good Place
Michael Douglas, The Kominsky Method
Eugene Levy, Schitt’s Creek
Ramy Youssef, Ramy

LEAD ACTRESS IN A COMEDY SERIES

Christina Applegate, Dead to Me
Rachel Brosnahan, The Marvelous Mrs. Maisel
Linda Cardellini, Dead to Me
Catherine O’Hara, Schitt’s Creek
Issa Rae, Insecure
Tracee Ellis Ross, Black-ish

OUTSTANDING VARIETY/TALK SERIES

The Daily Show with Trevor Noah
Full Frontal with Samantha Bee
Jimmy Kimmel Live
Last Week Tonight with John Oliver
The Late Show with Stephen Colbert

LEAD ACTOR IN A DRAMA SERIES

Jason Bateman, Ozark
Sterling K. Brown, This Is Us
Steve Carell, The Morning Show
Brian Cox, Succession
Billy Porter, Pose
Jeremy Strong, Succession

LEAD ACTRESS IN A DRAMA SERIES

Jennifer Aniston, The Morning Show
Olivia Colman, The Crown
Jodie Comer, Killing Eve
Laura Linney, Ozark
Sandra Oh, Killing Eve
Zendaya, Euphoria

OUTSTANDING REALITY/COMPETITION PROGRAM

The Masked Singer
Nailed It!
RuPaul’s Drag Race
Top Chef
The Voice

LEAD ACTOR IN A LIMITED SERIES/TV MOVIE

Jeremy Irons, Watchmen
Hugh Jackman, Bad Education
Paul Mescal, Normal People
Jeremy Pope, Hollywood
Mark Ruffalo, I Know This Much Is True

LEAD ACTRESS IN A LIMITED SERIES/TV MOVIE

Cate Blanchett, Mrs. America
Shira Haas, Unorthodox
Regina King, Watchmen
Octavia Spencer, Self Made
Kerry Washington, Little Fires Everywhere

OUTSTANDING LIMITED SERIES

Little Fires Everywhere
Mrs. America
Unbelievable
Unorthodox
Watchmen

OUTSTANDING COMEDY SERIES

Curb Your Enthusiasm
Dead to Me
The Good Place
Insecure
The Kominsky Method
The Marvelous Mrs. Maisel
Schitt’s Creek
What We Do In The Shadows

OUTSTANDING DRAMA SERIES

Better Call Saul
The Crown
The Handmaid’s Tale
Killing Eve
The Mandalorian
Ozark
Stranger Things
Succession

 

The biog

Name: Timothy Husband

Nationality: New Zealand

Education: Degree in zoology at The University of Sydney

Favourite book: Lemurs of Madagascar by Russell A Mittermeier

Favourite music: Billy Joel

Weekends and holidays: Talking about animals or visiting his farm in Australia

The biog

Favourite food: Fish and seafood

Favourite hobby: Socialising with friends

Favourite quote: You only get out what you put in!

Favourite country to visit: Italy

Favourite film: Lock Stock and Two Smoking Barrels.

Family: We all have one!

Saturday's schedule at the Abu Dhabi Grand Prix

GP3 race, 12:30pm

Formula 1 final practice, 2pm

Formula 1 qualifying, 5pm

Formula 2 race, 6:40pm

Performance: Sam Smith

The specs: 2017 Porsche 718 Cayman

Price, base / as tested Dh222,500 / Dh296,870

Engine 2.0L, flat four-cylinder

Transmission Seven-speed PDK

Power 300hp @ 6,500rpm

Torque 380hp @ 1,950rpm

Fuel economy, combined 6.9L / 100km

GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

Director: Athale

Rating: 4/5

Updated: September 26, 2023, 3:32 AM