The UN mission to Iraq on Wednesday called for national dialogue between the country’s political rivals to find a solution to the stalemate over the formation of a new government.
Political infighting has been wreaking havoc in Iraq since the October national elections — the fifth since the US-led invasion toppled Saddam Hussein's regime in 2003.
The conflict reached worrying levels last week, when followers of the powerful Shiite cleric Moqtada Al Sadr breached the heavily fortified Green Zone, occupied the parliament building and staged an open-ended sit-in.
Following his inability to form a new government after becoming the clear winner in the elections — with 73 seats in the 329-seat legislative body — Mr Al Sadr ordered his MPs to resign in June.
He blamed his rivals, the Iran-backed Co-ordination Framework, for hindering his efforts to form a government through lawsuits and parliamentary session boycotts.
After Mr Al Sadr's supporters stormed parliament, tension escalated further on Monday when the Co-ordination Framework launched counter-protests outside the Green Zone, accusing the Shiite leader of staging a “coup” for demanding an overhaul to the political system and changes to the constitution.
The Green Zone is home to key government buildings including the Cabinet and the parliament as well as foreign embassies and senior politicians' residencies.
“Meaningful dialogue among all Iraqi parties is now more urgent than ever, as recent events have demonstrated the rapid risk of escalation in this tense political climate,” the UN Assistance Mission for Iraq (Unami) said in a statement.
It chastised political parties for not observing the “democratic basics such as constitutional compliance and respect for state institutions”.
“Their failure to move forward has had a clear adverse effect on public trust,” it added.
Unami stressed that the need to find solutions through an all-inclusive dialogue “is evident” and said that without it, “the state of Iraq will continue to be dominated by competing interests, leading to further instability, with the people paying the price”.
“Such a scenario is simply intolerable,” it said.
“Iraqis do not need continued power struggles or stand-offs. They need solutions, and a commitment to implementing them, to draw their country out of its political crisis.”
'He is the only one with integrity'
Mr Al Sadr has yet to respond publicly to calls for dialogue with his rivals. His aides told the protesters that their demands should be met before any dialogue begins.
Meanwhile, thousands of protesters continued their sit-in for the fifth consecutive day.
The at times carnival-like protests have included demonstrators chanting Sadrist rhetoric but also expressing anger over the dysfunctional political system, poor public services and weak economy in the oil-rich, corruption-plagued country.
Ali Mohammed Oklah, 43, left behind his wife and three children to make the four-hour drive from Iraq's mostly Shiite south to the usually ultra-secure Green Zone.
“I'm rebelling to free my country from the fangs of the corrupt,” the Islamic studies high schoolteacher told AFP. He also wants Iraq to adopt a new constitution and update the presidential system.
Leaning back in a chair inside the legislative chamber, Umm Ali, 47, said she has come to demonstrate alongside her husband, brothers and nephews.
She vowed they would stay “until the Sayyed tells us to withdraw”, using the honorary title for Mr Al Sadr, whose black turban marks him as a descendant of the Prophet Mohammed.
A portrait of Mr Al Sadr sat in the lap of the mother of seven.
“He is the only one with integrity,” said the woman, who lives in Baghdad's working-class Sadr City district, named after the preacher's late father, also a revered cleric.
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
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
UAE'S%20YOUNG%20GUNS
%3Cp%3E1%20Esha%20Oza%2C%20age%2026%2C%2079%20matches%0D%3Cbr%3E%0D%3Cbr%3E2%20Theertha%20Satish%2C%20age%2020%2C%2066%20matches%0D%3Cbr%3E%0D%3Cbr%3E3%20Khushi%20Sharma%2C%20age%2021%2C%2065%20matches%0D%3Cbr%3E%0D%3Cbr%3E4%20Kavisha%20Kumari%2C%20age%2021%2C%2079%20matches%0D%3Cbr%3E%0D%3Cbr%3E5%20Heena%20Hotchandani%2C%20age%2023%2C%2016%20matches%0D%3Cbr%3E%0D%3Cbr%3E6%20Rinitha%20Rajith%2C%20age%2018%2C%2034%20matches%0D%3Cbr%3E%0D%3Cbr%3E7%20Samaira%20Dharnidharka%2C%20age%2017%2C%2053%20matches%0D%3Cbr%3E%0D%3Cbr%3E8%20Vaishnave%20Mahesh%2C%20age%2017%2C%2068%20matches%0D%3Cbr%3E%0D%3Cbr%3E9%20Lavanya%20Keny%2C%20age%2017%2C%2033%20matches%0D%3Cbr%3E%0D%3Cbr%3E10%20Siya%20Gokhale%2C%20age%2018%2C%2033%20matches%0D%3Cbr%3E%0D%3Cbr%3E11%20Indhuja%20Nandakumar%2C%20age%2018%2C%2046%20matches%3C%2Fp%3E%0A
PREMIER LEAGUE RESULTS
Bournemouth 1 Manchester City 2
Watford 0 Brighton and Hove Albion 0
Newcastle United 3 West Ham United 0
Huddersfield Town 0 Southampton 0
Crystal Palace 0 Swansea City 2
Manchester United 2 Leicester City 0
West Bromwich Albion 1 Stoke City 1
Chelsea 2 Everton 0
Tottenham Hotspur 1 Burnley 1
Liverpool 4 Arsenal 0
Bahrain%20GP
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%20Ramez%20Gab%20Min%20El%20Akher
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books