The nuclear enrichment plant at Natanz, in central Iran. EPA
The nuclear enrichment plant at Natanz, in central Iran. EPA
The nuclear enrichment plant at Natanz, in central Iran. EPA
The nuclear enrichment plant at Natanz, in central Iran. EPA

Experts say Iran’s response to Natanz sabotage could cause regional crisis


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Iran's promise of revenge for the Natanz nuclear sabotage incident on Sunday could risk serious escalation, but Tehran will probably seek to avoid casualties, analysts told The National after the latest in a string of incidents.

Any lethal response against Israel, which Iran blames for the sabotage, could cause a new crisis, they said.

Iran knows that it can't afford to get itself into an all out conflict with Israel under sanctions

Iran has so far said it will begin enriching uranium to 60 per cent purity in response to the attack, while maritime risk analysts at Dryad Global said an Israeli ship had been attacked in the Gulf of Oman on Tuesday evening.

The report could not be verified and the ship's owner, Ray Shipping, said the vessel had suffered no damage.

Natanz is Iran’s primary uranium enrichment facility, housing its advanced IR-9 centrifuges.

It was seriously damaged on Sunday when its power supply was destroyed by what Iran says was an explosive device.

It is thought that the attack set back Iran’s “breakout time” – the time required to enrich enough weapons-grade uranium for a nuclear bomb – by nine months.

Iran's next move

“In terms of a counter move, Iran has options in the Strait of Hormuz,” said Dean Mikkelsen, a cyber and maritime security analyst who has worked with oil companies in Iraq.

“Iran does repeat things – potentially a limpet mine attack again in the Arabian Sea, the confiscation of another ship in the Strait or near disputed islands,” he said.

“Cyber attacks are also possible. Iran and Israel have done tit-for-tat cyber attacks against each other in the past,” Mr Mikkelsen said.

  • Iranian President Hassan Rouhani, right, and the head of Atomic Energy Organization of Iran Ali Akbar Salehi inspect the nuclear technology on the occasion of Iran National Nuclear Technology Day in Tehran in 2019. EPA
    Iranian President Hassan Rouhani, right, and the head of Atomic Energy Organization of Iran Ali Akbar Salehi inspect the nuclear technology on the occasion of Iran National Nuclear Technology Day in Tehran in 2019. EPA
  • IR-8 centrifuges at Natanz nuclear power plant, some 300 kilometres south of capital Tehran. AFP
    IR-8 centrifuges at Natanz nuclear power plant, some 300 kilometres south of capital Tehran. AFP
  • The Iranian nuclear power plant in Bushehr in 2010. EPA
    The Iranian nuclear power plant in Bushehr in 2010. EPA
  • Salehi speaks with media while visiting Natanz enrichment facility, in central Iran in 2019. Atomic Energy Organization of Iran via AP
    Salehi speaks with media while visiting Natanz enrichment facility, in central Iran in 2019. Atomic Energy Organization of Iran via AP
  • The gate of Natanz nuclear power plant in Natanz , Isfahan province, in 2019. EPA
    The gate of Natanz nuclear power plant in Natanz , Isfahan province, in 2019. EPA
  • Inside of the Iran's Fordow nuclear facility, in Fordow, Qom province in 2019. EPA
    Inside of the Iran's Fordow nuclear facility, in Fordow, Qom province in 2019. EPA
  • Technicians work at the Arak heavy water reactor's secondary circuit, as officials and media visit the site, near Arak, Iran in 2019. Atomic Energy Organization of Iran via AP
    Technicians work at the Arak heavy water reactor's secondary circuit, as officials and media visit the site, near Arak, Iran in 2019. Atomic Energy Organization of Iran via AP
  • Members of the media and officials tour the water nuclear reactor at Arak in 2019. WANA via Reuters
    Members of the media and officials tour the water nuclear reactor at Arak in 2019. WANA via Reuters
  • Concrete is poured for the base of the second nuclear power reactor at Bushehr plant in 2019. Atomic Energy Organization of Iran via AP
    Concrete is poured for the base of the second nuclear power reactor at Bushehr plant in 2019. Atomic Energy Organization of Iran via AP

Samuel Ramani, a commentator and Middle East specialist at the University of Oxford, agreed.

"Iran could respond with a cyber attack on Israel's water system. In that scenario, Israel [could] urge US officials to delay a swift return to the nuclear deal negotiations," he said.

Naval war

Iran was accused of placing limpet mines on the Israeli commercial vessel Helios Ray on February 28.

Israel was accused of retaliating by damaging Iran's "spy ship" the Saviz, in the busy Bab El Mandeb strait.

Neither side admitted to carrying out either incident.

Joe Truzman, an analyst with the Foundation for Defence of Democracies, said past Iranian actions showed calculated caution.

"They likely could have sunk the ships targeted in previous months, like the Helios. But they chose not to. Perhaps they don't want to get into a conflict with Israel because they've already estimated such an attack would spur the Israelis into retaliating strongly," he said.

In May 2018, Iranian operatives were blamed for firing missiles into Israel over the disputed Golan Heights.

Israel's retaliation in Syria produced some of the heaviest air strikes of the conflict.

"Iran knows that it can't afford to get itself into an all-out conflict with Israel under sanctions," Mr Truzman said.

But there are still unknowns, Mr Truzman said.

“Think of the embassy bombing in India ... it didn't do much but that's the type of attack I think keeps the Israelis worried.”

On January 29, a small explosive detonated near the Israeli embassy in New Delhi but there were no casualties. Indian media cited security officials who pointed the finger at Iran but, again, there was no confirmation.

Sima Shine, head of the Iran programme at Israel's Institute for National Security Studies, said Tehran's poor economic situation may hamper its ability to retaliate.

But, she said, this incident could still lead to escalation.

  • Islamic Revolutionary Guard Corps leader Maj Gen Hossein Salami visits an IRGC naval unit's new 'missile city', at an undisclosed location in Iran. EPA
    Islamic Revolutionary Guard Corps leader Maj Gen Hossein Salami visits an IRGC naval unit's new 'missile city', at an undisclosed location in Iran. EPA
  • Iran claims the missile city is equipped with cruise and ballistic missiles and electronic warfare equipment. EPA
    Iran claims the missile city is equipped with cruise and ballistic missiles and electronic warfare equipment. EPA
  • Military equipment on display at the Islamic Revolutionary Guard Corps' new missile city in Iran. In the foreground is a portrait of Maj Gen Qassem Suleimani, commander of the IRGC's Quds Force, who was killed in a US drone strike in 2020. EPA
    Military equipment on display at the Islamic Revolutionary Guard Corps' new missile city in Iran. In the foreground is a portrait of Maj Gen Qassem Suleimani, commander of the IRGC's Quds Force, who was killed in a US drone strike in 2020. EPA
  • Missiles on display at a new Islamic Revolutionary Guard Corps' missile city, at an undisclosed location in Iran. EPA
    Missiles on display at a new Islamic Revolutionary Guard Corps' missile city, at an undisclosed location in Iran. EPA
  • Missiles stored in an underground facility in an undisclosed location, Iran. Tehran claims its new equipment has 'advanced operational capabilities', including firing from underground launchers. AP
    Missiles stored in an underground facility in an undisclosed location, Iran. Tehran claims its new equipment has 'advanced operational capabilities', including firing from underground launchers. AP
  • Missiles lined up at a new Islamic Revolutionary Guard Corps' missile city in Iran. EPA
    Missiles lined up at a new Islamic Revolutionary Guard Corps' missile city in Iran. EPA

"If it's direct, vis-a-vis Israel, will there be any casualties? Because if that happens, probably Israel will retaliate, this can start a slippery slope of escalation between the two countries," Ms Shine said on Sunday.

Ms Shine was previously head of research at Israel's Mossad intelligence agency.

Nuclear deal moves

Israel’s supporters and others see the attack as an effort to weaken Iran’s hand and strengthen the US bargaining position at nuclear deal talks in Vienna, said Hussien Ibish, a senior resident scholar at the Arab Gulf States Institute in Washington.

"The recent attacks certainly delivered significant short-term damage to Iran's key nuclear facilities. I think we can expect Iran to certainly try to retaliate in some fashion soon," Mr Ibish said.

“The shadow war that has developed in a deniable 'grey zone' between Israel and Iran is clearly driven by regional competition and conflicts,” he said.

Despite this hostility, Mr Ibish believes that tensions between Tehran and Tel Aviv may come to an end “insofar as successful talks between the US and Iran would make the Iranian-Israeli shadow war unnecessary and undesirable. Otherwise, it’s going to continue, though it will intensify and ease, based on many factors”, he said.

"The current flare-up is strongly linked to the effort to renew talks between Washington and Tehran. Israel’s critics, especially Iran, accuse Israel of trying to sabotage negotiations, even though Iranian clients in Iraq, Yemen and elsewhere have also been on the attack recently," he said.

US President Joe Biden's administration seems determined to proceed with nuclear talks and will probably not take Israeli objections as seriously as former president Donald Trump did, the University of Oxford's Mr Ramani said.

The end result may “resemble the Mohsen Fakhrizadeh assassination", in which Israel was accused of shooting dead one of Iran's top nuclear scientists near Tehran in November last year.

The response "featured tensions and sabre-rattling but no real escalation of tensions, or change in Biden's views on renegotiating with Tehran”, Mr Ramani said.

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
RESULTS

Women:

55kg brown-black belt: Amal Amjahid (BEL) bt Amanda Monteiro (BRA) via choke
62kg brown-black belt: Bianca Basilio (BRA) bt Ffion Davies (GBR) via referee’s decision (0-0, 2-2 adv)
70kg brown-black belt: Ana Carolina Vieira (BRA) bt Jessica Swanson (USA), 9-0
90kg brown-black belt: Angelica Galvao (USA) bt Marta Szarecka (POL) 8-2

Men:

62kg black belt: Joao Miyao (BRA) bt Wan Ki-chae (KOR), 7-2
69kg black belt: Paulo Miyao (BRA) bt Gianni Grippo (USA), 2-2 (1-0 adv)
77kg black belt: Espen Mathiesen (NOR) bt Jake Mackenzie (CAN)
85kg black belt: Isaque Braz (BRA) bt Faisal Al Ketbi (UAE), 2-0
94kg black belt: Felipe Pena (BRA) bt Adam Wardzinski (POL), 4-0
110kg black belt final: Erberth Santos (BRA) bt Lucio Rodrigues (GBR) via rear naked choke

RESULTS

2pm: Maiden Dh 60,000 (Dirt) 1,400m. Winner: Masaali, Pat Dobbs (jockey), Doug Watson (trainer).

2.30pm: Handicap Dh 76,000 (D) 1,400m. Winner: Almoreb, Dane O’Neill, Ali Rashid Al Raihe.

3pm: Handicap Dh 64,000 (D) 1,200m. Winner: Imprison, Fabrice Veron, Rashed Bouresly.

3.30pm: Shadwell Farm Conditions Dh 100,000 (D) 1,000m. Winner: Raahy, Adrie de Vries, Jaber Ramadhan.

4pm: Maiden Dh 60,000 (D) 1,000m. Winner: Cross The Ocean, Richard Mullen, Satish Seemar.

4.30pm: Handicap 64,000 (D) 1,950m. Winner: Sa’Ada, Fernando Jara, Ahmad bin Harmash.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
UAE SQUAD

Khalid Essa, Ali Khaseif, Fahad Al Dhanhani, Adel Al Hosani, Bandar Al Ahbabi, Mohammad Barghash, Salem Rashid, Khalifa Al Hammadi, Shaheen Abdulrahman, Hassan Al Mahrami, Walid Abbas, Mahmoud Khamis, Yousef Jaber, Majed Sorour, Majed Hassan, Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Khalil Al Hammadi, Fabio De Lima, Khalfan Mubarak, Tahnoon Al Zaabi, Ali Saleh, Caio Canedo, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri

Starring: Jamie Foxx, Angela Bassett, Tina Fey

Directed by: Pete Doctor

Rating: 4 stars

SPEC%20SHEET%3A%20APPLE%20IPAD%20(2022)
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COMPANY%20PROFILE
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MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

Games on BeIN Sports

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 

The Kites

Romain Gary

Penguin Modern Classics

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

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

 

 

AS%20WE%20EXIST
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US tops drug cost charts

The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.

Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.

In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.

Some of the costliest drugs worldwide include Lipitor for high cholesterol. 

The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.

High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.

MATCH INFO

Crawley Town 3 (Tsaroulla 50', Nadesan 53', Tunnicliffe 70')

Leeds United 0 

All the Money in the World

Director: Ridley Scott

Starring: Charlie Plummer, Mark Wahlberg, Michelle Williams, Christopher Plummer

Four stars

What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.

The specs

BMW M8 Competition Coupe

Engine 4.4-litre twin-turbo V8

Power 625hp at 6,000rpm

Torque 750Nm from 1,800-5,800rpm

Gearbox Eight-speed paddleshift auto

Acceleration 0-100kph in 3.2 sec

Top speed 305kph

Fuel economy, combined 10.6L / 100km

Price from Dh700,000 (estimate)

On sale Jan/Feb 2020