Prime Minister Mustafa Al Kadhimi during an interview with Mina Al-Oraibi, Editor-in-Chief of 'The National', in New York. Photo: Iraq's Prime Minister's Media Office
Prime Minister Mustafa Al Kadhimi during an interview with Mina Al-Oraibi, Editor-in-Chief of 'The National', in New York. Photo: Iraq's Prime Minister's Media Office
Prime Minister Mustafa Al Kadhimi during an interview with Mina Al-Oraibi, Editor-in-Chief of 'The National', in New York. Photo: Iraq's Prime Minister's Media Office
Prime Minister Mustafa Al Kadhimi during an interview with Mina Al-Oraibi, Editor-in-Chief of 'The National', in New York. Photo: Iraq's Prime Minister's Media Office

Elections are our path out of political impasse, Iraqi prime minister says


Mina Al-Oraibi
  • English
  • Arabic

Iraq’s Prime Minister Mustafa Al Kadhimi is facing monumental challenges, not least of which is the need to get the country out of a political deadlock that has left his caretaker government without a budget as it deals with the fallout from armed clashes surrounding the seat of government that occurred only a few weeks ago.

In his first interview since those violent clashes, Mr Al Kadhimi told The National that there was no choice but to pursue dialogue. He said the dialogue he was convening among different political groups was primarily focused on holding new elections, coupled with a new “compact” to ensure all sides respect their results.

In the meantime, his government faces major challenges, with Mr Al Kadhimi saying that “the political forces insist on not giving this government a chance”, including refusing to pass a full budget to enact major projects.

Asked about the solution to the political crisis, Mr Al Kadhimi said one word: “Dialogue”.

He went on to say that there are two options: either “we go towards a clash in a society that has tried all types of violence or an opportunity for dialogue”.

Since taking office more than two years ago, some of the primary concerns for Mr Al Kadhimi have been to limit the role of militias, reinforce security in the country and re-establish an effective state.

But two years in, he is dealing with emboldened militias and complete political gridlock. His critics say he should take a stand against the militias, but that could lead to more bloodshed.

“A thousand years of dialogue is better than one moment of killing,” he said.

He said it was high time to “divorce the violent past and a future built on true democratic values built not just on the ballot box votes”.

But dialogue takes time. Though time is not in Iraq’s favour with all the crises it faces, he said: “What other choice do we have?”

Prime Minister Mustafa Al Kadhimi during an interview with Editor-in-Chief of 'The National' Mina Al-Oraibi in New York. Photo: Iraq's Prime Minister's Media Office
Prime Minister Mustafa Al Kadhimi during an interview with Editor-in-Chief of 'The National' Mina Al-Oraibi in New York. Photo: Iraq's Prime Minister's Media Office

This October marks a year since Iraq held elections but it has since failed to form a new government and the political system has reached a complete impasse.

“Everyone agrees on early elections,” Mr Al Kadhimi said. However, new elections will need a road map.

“New elections need an agreement and building trust between the political elites, with processes that emerge from dialogue,” he continued.

“We need a new social compact that states that when there are elections. We don’t question their results and agree on respecting constitutional deadlines.”

The elections of October 2021 were deemed fair and representative by international observers and the UN, after being held according to a new electoral law that brought independent members of parliament to the legislative body for the first time.

Mr Al Kadhimi had strong words for politicians in his country.

“The political elites are the problem; they believe in the ballot box but don’t believe in the political order, or democratic values. Therefore any new agreement must be about elections with specific conditions and a new social compact that ensures the integrity of the elections and the implementation of their results.”

Despite his efforts, the leading political grouping that emerged from the last elections has withdrawn from the political process.

After his bloc gained 73 seats in the last parliamentary elections but was unable to form a government with his allies, Shiite cleric Moqtada Al Sadr had his MPs resign from parliament and he himself announced his retirement from political life.

However, Mr Al Kadhimi stressed the importance of Mr Al Sadr’s role in political life in Iraq. In response to a question about having Mr Al Sadr re-enter politics, he said: “Iraq has multiple political forces and Mr Al Sadr represents one of these primary forces, and let us be clear that having elections without the Sadrist movement, the elections will have a major deficit and will face a major challenge.”

The “Sadrist movement must be part of any coming elections”, he said.

The Iraqi government announced this week a major rehabilitation project for Sadr City, where many of Mr Al Sadr’s supporters hail from.

Asked if this was part of the efforts to incentivise Mr Al Sadr and his followers to re-enter politics, Mr Al Kadhimi stressed that was not the intention.

“The aim is not to convince one side of the other on political participation, rather as part of a public service, and I have overseen the rehabilitation of several areas in Baghdad,” he said. “The aim is to convince the citizen that the government is capable in delivering.”

Next year, Iraq will mark 20 years since the fall of the regime of Saddam Hussein. Asked about this moment, Mr Al Kadhimi said: “We must reflect on where we made mistakes in the past 20 years, and we must reconcile among ourselves.

“We suffered from the previous regime but when we came to office, we became the victimisers. We should not repeat the mistakes of the past.”

As political leaders forge ahead in their discussions about new elections, the Iraqi public may choose to stay away. Voter turnout has been on the decline, with a little under 40 per cent of citizens participating in the October 2021 elections.

“We will have to convince the Iraqi voter to participate by stressing that the next government will come with full authorities, and that the next government will come to serve the people with news projects and fulfilled promises,” Mr Al Kadhimi said.

“We have to reinstitute the voters’ faith in the political system; the citizen has lost trust in the political system and lost trust in the political blocs.”

The prime minister, who did not participate in the last elections and does not have a political party, emphasised the need to “reconcile with our citizens before we reconcile within the political groups”. He repeated his criticism of most of the political parties in Iraq, saying “they have a mindset fixated on power and status”.

Iraq's Prime Minister Mustafa Al Kadhimi meets leaders in New York - in pictures

  • Iraqi Prime Minister Mustafa Al Kadhimi meets Nato Secretary General Jens Stoltenberg. All photos: Iraqi Prime Minister's Media Office
    Iraqi Prime Minister Mustafa Al Kadhimi meets Nato Secretary General Jens Stoltenberg. All photos: Iraqi Prime Minister's Media Office
  • Mr Al Kadhimi meets France's President Emmanuel Macron.
    Mr Al Kadhimi meets France's President Emmanuel Macron.
  • Mr Al Kadhimi greets Mr Macron.
    Mr Al Kadhimi greets Mr Macron.
  • Mr Al Kadhimi meets Sheikh Ahmad Nawaf Al Ahmad Al Sabah, Prime Minister of Kuwait.
    Mr Al Kadhimi meets Sheikh Ahmad Nawaf Al Ahmad Al Sabah, Prime Minister of Kuwait.
  • Mr Al Kadhimi speaks with Sheikh Ahmad of Kuwait.
    Mr Al Kadhimi speaks with Sheikh Ahmad of Kuwait.
  • Mr Al Kadhimi speaks with Sheikh Ahmad.
    Mr Al Kadhimi speaks with Sheikh Ahmad.
  • Mr Al Kadhimi meets Charles Michel, President of the European Council.
    Mr Al Kadhimi meets Charles Michel, President of the European Council.
  • Mr Al Kadhimi meets Lebanese Prime Minister Najib Mikati.
    Mr Al Kadhimi meets Lebanese Prime Minister Najib Mikati.
  • Mr Al Kadhimi greets Iran's President Ebrahim Raisi.
    Mr Al Kadhimi greets Iran's President Ebrahim Raisi.
  • Mr Al Kadhimi meets Ahmed Aboul Gheit, Secretary General of the League of Arab States.
    Mr Al Kadhimi meets Ahmed Aboul Gheit, Secretary General of the League of Arab States.
  • Mr Al Kadhimi speaks with Mr Aboul Gheit.
    Mr Al Kadhimi speaks with Mr Aboul Gheit.
  • Mr Al Kadhimi meets Jordan's King Abdullah II.
    Mr Al Kadhimi meets Jordan's King Abdullah II.
  • Mr Al Kadhimi meets Austrian Chancellor Karl Nehammer.
    Mr Al Kadhimi meets Austrian Chancellor Karl Nehammer.
  • Mr Al Kadhimi meets Pedro Sanchez, Prime Minister of Spain.
    Mr Al Kadhimi meets Pedro Sanchez, Prime Minister of Spain.
  • Mr Al Kadhimi attends the opening of 77th session of the UN General Assembly in New York.
    Mr Al Kadhimi attends the opening of 77th session of the UN General Assembly in New York.
  • Mr Al Kadhimi attends the UN General Assembly.
    Mr Al Kadhimi attends the UN General Assembly.

In addition to preparing for elections, Mr Al Kadhimi said the current political discussions in Iraq are aimed at dealing with complex files to improve the level of trust between the different sides. One such issue is that of displacement, as some Iraqis are still struggling to return to their homes due to “political roadblocks”.

While the political machinations continue in Baghdad, the spectre of violence is never far.

“We must focus on maintaining arms under the control of the state, and political parties must understand that,” Mr Al Kadhimi said.

“I must confess, we tried to do that for the past 28 months of this government but we did not find receptive political forces and there are those who work at obstructing returning the use of arms under the umbrella of the state.”

Iraq suffers from the presence of several militia groups who not only refuse to give up their arms, but also have attacked state institutions such as Iraqi army bases.

Mr Kadhimi said that some of these groups “use unrealistic excuses like the presence of an occupation, but we do not have an occupation in Iraq — the presence of foreign forces are based on the request of the Iraqi government”.

“I have tried but the political forces did not help me in achieving that, just like they have obstructed other matters, like that of having a budget; I only have six months' budget at a time,” he said.

Parliament has refused to pass a fully functioning budget, as Mr Al Kadhimi's is a caretaker government since last October’s elections.

“Despite all of this, we have carried out financial reforms, our reserves have gone up from $49 billion to $85bn, in addition to 50 tonnes of gold,” he said.

He stressed the success of his government’s reforms, although these came at a time of historically high oil prices which Iraq, as an oil producer, has benefited from.

“The dependence on oil has reduced from 96 per cent to 80 per cent of our budget,” he said.

With revenue up, particularly from oil, there are increased concerns about corruption and the siphoning off of Iraq’s riches. Iraq is 157th out of 180 countries on Transparency International’s rankings of global corruption.

“Our big challenge is corruption. We have fought corruption and the integrity committee has been accused all sorts of accusations by corrupt mafias working to stop building up this country at any cost,” Mr Al Kadhimi said.

While critics say little has been done to tackle corruption, Mr Al Kadhimi said: “We achieved a lot but there are vested interests that worked to stop the integrity committee.”

Sadr protests in Baghdad — in pictures

  • Supporters of Iraqi Shiite cleric Moqtada Al Sadr, head of the Sadrist movement, gather inside Iraq's Parliament buliding. EPA
    Supporters of Iraqi Shiite cleric Moqtada Al Sadr, head of the Sadrist movement, gather inside Iraq's Parliament buliding. EPA
  • The cleric's followers enter the Parliament building in a show of force. EPA
    The cleric's followers enter the Parliament building in a show of force. EPA
  • Anti-riot policemen use water cannons in a bid to disperse supporters of Mr Al Sadr. EPA
    Anti-riot policemen use water cannons in a bid to disperse supporters of Mr Al Sadr. EPA
  • A demonstrator lies on the desk of the Speaker of the Iraqi parliament. AFP
    A demonstrator lies on the desk of the Speaker of the Iraqi parliament. AFP
  • Supporters of Mr Al Sadr flash the victory sign as they gather inside the Iraqi Parliament. AFP
    Supporters of Mr Al Sadr flash the victory sign as they gather inside the Iraqi Parliament. AFP
  • There's always time for a selfie. AFP
    There's always time for a selfie. AFP
  • The demonstrators are protesting the recent selection of Mohammed Al Sudani as the official nominee of the Co-ordination Framework bloc. AFP
    The demonstrators are protesting the recent selection of Mohammed Al Sudani as the official nominee of the Co-ordination Framework bloc. AFP
  • It is the largest protest since federal elections were held in October. AFP
    It is the largest protest since federal elections were held in October. AFP
  • The protesters sit in the building, in Baghdad's high-security Green Zone. AFP
    The protesters sit in the building, in Baghdad's high-security Green Zone. AFP
  • A person holds a portrait of Mr Al Sadr. Reuters
    A person holds a portrait of Mr Al Sadr. Reuters
  • Protesters raise flags and a portrait of Mr Al Sadr. Reuters
    Protesters raise flags and a portrait of Mr Al Sadr. Reuters
  • Al Sadr posted a statement on Twitter telling supporters their message had been received. Reuters
    Al Sadr posted a statement on Twitter telling supporters their message had been received. Reuters
  • People stand outside of the Parliament building during the protest. Reuters
    People stand outside of the Parliament building during the protest. Reuters
  • Supporters of Iraqi Shiite cleric Moqtada Al Sadr protest against corruption inside the Parliament building in Baghdad, Iraq. Reuters
    Supporters of Iraqi Shiite cleric Moqtada Al Sadr protest against corruption inside the Parliament building in Baghdad, Iraq. Reuters
  • Mr Al Sadr's supporters protest against corruption inside the Parliament building in Baghdad. Reuters
    Mr Al Sadr's supporters protest against corruption inside the Parliament building in Baghdad. Reuters
  • Demonstrators protest inside the Parliament building. Reuters
    Demonstrators protest inside the Parliament building. Reuters
  • Protesters demonstrate inside the Parliament building. Reuters
    Protesters demonstrate inside the Parliament building. Reuters
  • Protesters pull down a wall with chains and ropes during a protest against corruption. Reuters
    Protesters pull down a wall with chains and ropes during a protest against corruption. Reuters
  • Supporters of Mr Al Sadr carry a person during a protest against corruption in the Green Zone in Baghdad. Reuters
    Supporters of Mr Al Sadr carry a person during a protest against corruption in the Green Zone in Baghdad. Reuters
  • Iraqi security forces stand outside the main gate of Baghdad's Green Zone as demonstrators protest against the nomination of Mohammed Shia Al Sudani as prime minister. AFP
    Iraqi security forces stand outside the main gate of Baghdad's Green Zone as demonstrators protest against the nomination of Mohammed Shia Al Sudani as prime minister. AFP
  • Mr Al Sadr's supporters gather outside the main gate of Baghdad's Green Zone. AFP
    Mr Al Sadr's supporters gather outside the main gate of Baghdad's Green Zone. AFP
  • Supporters of Mr Al Sadr protest against corruption in Baghdad. Reuters
    Supporters of Mr Al Sadr protest against corruption in Baghdad. Reuters
  • Protesters break down barricades in Baghdad. Reuters
    Protesters break down barricades in Baghdad. Reuters
  • Supporters of Mr Al Sadr demonstrate in Baghdad. Reuters
    Supporters of Mr Al Sadr demonstrate in Baghdad. Reuters
  • Iraqi security forces prepare to meet the demonstrators in Baghdad's Tahrir Square. AFP
    Iraqi security forces prepare to meet the demonstrators in Baghdad's Tahrir Square. AFP
  • Supporters of Mr Al Sadr gather in Baghdad's Tahrir Square to protest against the nomination of Mohammed Shia Al Sudani as prime minister. AFP
    Supporters of Mr Al Sadr gather in Baghdad's Tahrir Square to protest against the nomination of Mohammed Shia Al Sudani as prime minister. AFP
  • Protesters demonstrate in Baghdad. AFP
    Protesters demonstrate in Baghdad. AFP
  • Mr Al Sadr's supporters walk across a bridge to the Green Zone during a protest against corruption in Baghdad. Reuters
    Mr Al Sadr's supporters walk across a bridge to the Green Zone during a protest against corruption in Baghdad. Reuters

Another challenge is that of the disappeared in Iraq, some of whom were taken under the pretext of “fighting terrorism” at the height of sectarian tension several years ago, and others who were kidnapped during the protests of October 2019.

“Investigations are ongoing regarding the disappeared … we have been able to find those who took protesters [of October 2019] and last week we arrested a man who worked in one of the government entities and who played a large role in the kidnapping and assassination of protesters,” Mr Al Kadhimi said.

He also said that one of the men responsible for killing analyst Hisham Al Hashimi in the summer of 2020 has been arrested.

As for those who have been kidnapped, particularly from Sunni-majority provinces, Mr Al Kadhimi did not have clear numbers of how many there are.

“This matter has to do with some political parties who are part of the political process … some use this issue for corruption and political aims,” he said.

While refraining from going into detail, Mr Al Kadhimi made clear that there are political forces behind the disappearances of ordinary Iraqi citizens and that it is a matter his government is working to resolve.

Another challenge facing Iraq is that of climate change, which Mr Al Kadhimi sees as a major threat. Iraq’s continued flaring of gas hurts the environment and costs Iraq heavily as it has to import gas from Iran.

Responding to a question on the illogical approach to burning gas, Mr Al Kadhimi said: “This is part of irresponsible policies from past governments.

“My government is serious in dealing with this issue and we have a series of projects for gas capture.”

Mr Al Kadhimi made his anger about this issue clear.

“It is regrettable that Iraq planned on electricity plants running on gas, while burning its own gas and having to import gas which is sometimes used for political pressure or wasting Iraqi money,” he said.

“We need time, we have signed an important contract with Total for carbon capture, we also need to use renewable energy and adopt modern solutions.

“This is an important issue especially as Iraq is one of the world’s most impacted countries from climate change.”

Mustafa Al Kadhimi tours streets of Sadr City — in pictures

  • Mustafa Al Kadhimi, Iraqi Prime Minister, tours the streets of Sadr City, Baghdad, on foot. All photos: @MAKadhimi Twitter
    Mustafa Al Kadhimi, Iraqi Prime Minister, tours the streets of Sadr City, Baghdad, on foot. All photos: @MAKadhimi Twitter
  • Mr Al Kadhimi met citizens who congratulated him on surviving an assassination attempt.
    Mr Al Kadhimi met citizens who congratulated him on surviving an assassination attempt.
  • The drone attack took place at his home in the Iraqi capital on Sunday.
    The drone attack took place at his home in the Iraqi capital on Sunday.
  • The failed assassination attempt increased tensions after last month’s parliamentary elections, in which Iran-backed militias were the biggest losers.
    The failed assassination attempt increased tensions after last month’s parliamentary elections, in which Iran-backed militias were the biggest losers.
  • Sadr City is a stronghold of influential Shiite cleric Moqtada Al Sadr, whose nationalist movement won the largest number of seats in Parliament, 73 out of 329.
    Sadr City is a stronghold of influential Shiite cleric Moqtada Al Sadr, whose nationalist movement won the largest number of seats in Parliament, 73 out of 329.
  • Mr Al Kadhimi waves during his walkabout.
    Mr Al Kadhimi waves during his walkabout.

Iraq is also working on an electric grid project with neighbouring Arab countries, however some of these projects have been delayed.

“Let me be frank: there are those who are working to obstruct the government’s openness to our brothers in Arab countries; some are calling Gulf investments in Iraq Gulf imperialism,” he said.

However, Mr Al Kadhimi said these projects are vital.

“We are going to launch the power grid interconnection with Jordan within days, while our interconnection with Saudi Arabia is coming up, and the wider Iraq-GCC energy link will see Iraq becoming a transit point for Gulf energy supplies to Europe, within the next two years,” he said.

“This is part of ensuring close ties between Iraq and the Gulf states and maintaining the spirit of these ties.”

There are concerns that the closeness of these ties will be affected if a new government were to reject closer ties to Arab states.

“The loser here would be the Iraqi people … we should invest in the openness of the Arab Gulf countries to investing in Iraq and the opportunities for mutual benefit,” he said.

Speaking exclusively to The National in New York before he addressed the UN General Assembly, Mr Al Kadhimi stressed the importance of maintaining open relations with all sides.

His message to the international community was that “despite the political challenges, Iraq still represents an opportunity for the stability for the region and beyond”.

Mr Al Kadhimi has been integral to establishing strong diplomatic ties in the region and globally and oversaw the Baghdad Conference, which witnessed regional leaders and French President Emmanuel Macron meeting in August 2021. Another Baghdad conference will be held in Jordan soon, he said, and Iraq will continue in its diplomatic efforts.

The Iraqi prime minister met Iranian President Ebrahim Raisi in New York and attended a number of high-level bilateral meetings, including with Mr Macron and Nato Secretary General Jens Stoltenberg.

When asked about Iraq’s relations with Iran, and the call of many Iraqi protesters for a limit on Iran’s influence and interference in the country, Mr Al Kadhimi responded diplomatically.

“Our relations with Iran must be built based on interests. Iraq has its own specific identity and the Iranians should understand that,” he said.

“Iraq has Arab and Muslim depths and we have to find a balance respecting our interests and non-interference in Iraq’s internal matters.”

Baghdad latest — in pictures

  • Iraqi Prime Minister Mustafa Al Kadhimi has threatened to resign if the political stand-off in the country is not resolved. Photo: Iraqi Prime Minister's Media Office
    Iraqi Prime Minister Mustafa Al Kadhimi has threatened to resign if the political stand-off in the country is not resolved. Photo: Iraqi Prime Minister's Media Office
  • An aerial view of Yafa Street in Baghdad after Shiite cleric Moqtada Al Sadr called on his supporters to withdraw from the Iraqi capital's heavily fortified Green Zone. AP
    An aerial view of Yafa Street in Baghdad after Shiite cleric Moqtada Al Sadr called on his supporters to withdraw from the Iraqi capital's heavily fortified Green Zone. AP
  • Plumes of smoke rise after small fires were lit near the Tomb of the Unknown Soldier and Parliament in Baghdad. AP
    Plumes of smoke rise after small fires were lit near the Tomb of the Unknown Soldier and Parliament in Baghdad. AP
  • Mr Al Sadr's followers heed his call to withdraw from the Green Zone after violent clashes in Baghdad. Reuters
    Mr Al Sadr's followers heed his call to withdraw from the Green Zone after violent clashes in Baghdad. Reuters
  • A supporter of Mr Al Sadr helps to dismantle the encampment in Baghdad's high-security Green Zone. AFP
    A supporter of Mr Al Sadr helps to dismantle the encampment in Baghdad's high-security Green Zone. AFP
  • Supporters of Mr Al Sadr pack up belongings as they prepare to leave the Green Zone. AP
    Supporters of Mr Al Sadr pack up belongings as they prepare to leave the Green Zone. AP
  • A supporter of Mr Al Sadr rolls up a mattress as their encampment in the Green Zone is dismantled. AFP
    A supporter of Mr Al Sadr rolls up a mattress as their encampment in the Green Zone is dismantled. AFP
  • Municipality workers clean up while Iraqi army soldiers guard the entrance to the Green Zone. AFP
    Municipality workers clean up while Iraqi army soldiers guard the entrance to the Green Zone. AFP
  • Mr Al Sadr addresses a news conference in Najaf, Iraq. Reuters
    Mr Al Sadr addresses a news conference in Najaf, Iraq. Reuters
  • Iraqi Shiite gunmen clash with government forces in the Green Zone of central Baghdad. EPA
    Iraqi Shiite gunmen clash with government forces in the Green Zone of central Baghdad. EPA
  • Smoke rises from a building in Baghdad. EPA
    Smoke rises from a building in Baghdad. EPA
  • Armed members of Saraya Al Salam, the military wing affiliated with Shiite cleric Moqtada Al Sadr. AFP
    Armed members of Saraya Al Salam, the military wing affiliated with Shiite cleric Moqtada Al Sadr. AFP
  • An armed member of Saraya Al Salam. AFP
    An armed member of Saraya Al Salam. AFP
  • A member of Saraya Al Salam takes aim. AFP
    A member of Saraya Al Salam takes aim. AFP
  • Armed members of the Peace Brigades militia in Baghdad's Green Zone. AFP
    Armed members of the Peace Brigades militia in Baghdad's Green Zone. AFP
  • They are affiliated with Shiite cleric Moqtada Al Sadr. AFP
    They are affiliated with Shiite cleric Moqtada Al Sadr. AFP
  • Peace Brigades members clash with security forces in the Iraqi capital. AFP
    Peace Brigades members clash with security forces in the Iraqi capital. AFP
  • The office of rival Shiite party the Badr Organisation, which was burnt by Sadrists. Reuters
    The office of rival Shiite party the Badr Organisation, which was burnt by Sadrists. Reuters
  • Iraqi security armoured vehicles during clashes with the Peace Brigades in the Green Zone. AFP
    Iraqi security armoured vehicles during clashes with the Peace Brigades in the Green Zone. AFP
  • Peace Brigades members carry weapons in the fortified zone. AFP
    Peace Brigades members carry weapons in the fortified zone. AFP
  • Smoke over Baghdad during an army-imposed curfew, a day after 23 Al Sadr supporters were shot dead. AFP
    Smoke over Baghdad during an army-imposed curfew, a day after 23 Al Sadr supporters were shot dead. AFP
  • A Peace Brigades member leads a mass funeral in Najaf for Al Sadr supporters killed in the clashes in Baghdad's Green Zone. AFP
    A Peace Brigades member leads a mass funeral in Najaf for Al Sadr supporters killed in the clashes in Baghdad's Green Zone. AFP
  • Tears during the mass funeral. AFP
    Tears during the mass funeral. AFP
  • Mourners pray in front of the coffins of Al Sadr supporters. Reuters
    Mourners pray in front of the coffins of Al Sadr supporters. Reuters
  • A coffin is carried at the funeral. AFP
    A coffin is carried at the funeral. AFP
  • The ceremony took place at a cemetery in Najaf, central Iraq. AFP
    The ceremony took place at a cemetery in Najaf, central Iraq. AFP
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Directed by: Bill Condon

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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

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Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Directed by: Craig Gillespie

Starring: Emma Stone, Emma Thompson, Joel Fry

4/5

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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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.

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

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The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
Bugatti Chiron Super Sport - the specs:

Engine: 8.0-litre quad-turbo W16 

Transmission: 7-speed DSG auto 

Power: 1,600hp

Torque: 1,600Nm

0-100kph in 2.4seconds

0-200kph in 5.8 seconds

0-300kph in 12.1 seconds

Top speed: 440kph

Price: Dh13,200,000

Bugatti Chiron Pur Sport - the specs:

Engine: 8.0-litre quad-turbo W16 

Transmission: 7-speed DSG auto 

Power: 1,500hp

Torque: 1,600Nm

0-100kph in 2.3 seconds

0-200kph in 5.5 seconds

0-300kph in 11.8 seconds

Top speed: 350kph

Price: Dh13,600,000

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Updated: September 23, 2022, 4:52 AM