The withdrawal of populist Iraqi cleric Moqtada Al Sadr from the country’s political process is no “surprise”, experts told The National.
Iraq has been beset by a wave of public-service disasters, the most recent of which include a hospital fire that killed 92 people and a national power cut in the blazing summer heat.
“This is not the first time and, to many, not a surprise that Moqtada Al Sadr is coming out and claiming to leave the political process,” said Renad Mansour, a senior research fellow at the Chatham House think tank in London.
“He’s done this in the past and even before elections, and it’s part of his vision of being above politics, to some extent.”
Mr Al Sadr said last week that he would boycott Iraq’s upcoming elections to distance himself from the government.
The cleric is known to be one of Iraq’s most influential religious figures, heading a political bloc in Parliament that was the biggest winner of the 2018 elections.
Sairoon has significant influence and gained 54 seats in Parliament, the most won by any party or bloc in the 329-member legislature.
In the past, Mr Sadr has withdrawn from frontline politics without dismantling his powerful movement.
He now appears to want to distance himself from publicly recognised political appointments among his Sadrist followers and remould himself as someone above the fray of day-to-day political turmoil.
Iraq’s ongoing, multi-sector collapse of public services came to a head earlier this month when the national grid suffered a catastrophic failure. Electricity production plunged from 20 gigawatts – already 10 gigawatts below peak demand – to eight gigawatts.
But since 2019, armed groups linked to political parties backed by Iran have resisted a national protest movement, killing at least 500 people.
“This is a time where people are angry at the government, and so this is what he does,” Mr Mansour told The National.
“He will view himself in a more paternal way.”
Even if Mr Al Sadr does not run in October’s elections, candidates loyal to him could stand, allowing him to retain his influence.
The cleric’s main rivals are Iran-backed groups, which have blamed his party over state failings.
Mr Al Sadr has millions of followers and, like his Iran-backed rivals, a militia.
In his statement, he said Iraq was being subjected to a “satanic regional scheme to humiliate the country and to bring it to its knees”.
“Watch out before Iraq's fate becomes like that of Syria, Afghanistan or other states that have fallen victim to internal, regional and international policies,” he said.
The populist cleric could be running away from accountability, for fear of underperforming and being embarrassed in the elections, Nicholas Krohley, author of a book on the Sadr movement, The Death of the Mehdi Army, and an adviser to the Iraqi Security Forces, told The National.
“His people have been key in the Ministry of Health for ages. How can the fires and the overall Covid-19 fiasco not blow back on him?” Dr Krohley said.
“Another view would be that he sees a major no-vote from the people at large, and wants to position himself as an outsider once again, apart from the system,” he said.
Dr Krohley said that despite his statement to withdraw, his actions in the past have been “unpredictable and erratic”.
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
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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.