Members of Kataib Hezbollah attend the funeral of one of its fighters, Fadel Al Maksusi, on Tuesday. AFP
Members of Kataib Hezbollah attend the funeral of one of its fighters, Fadel Al Maksusi, on Tuesday. AFP
Members of Kataib Hezbollah attend the funeral of one of its fighters, Fadel Al Maksusi, on Tuesday. AFP
Members of Kataib Hezbollah attend the funeral of one of its fighters, Fadel Al Maksusi, on Tuesday. AFP

Iraq condemns US air strikes on Iran-backed militias as a 'breach of sovereignty'


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The government in Baghdad on Wednesday denounced the latest US air strikes on Iran-backed militias that killed at least eight militants, describing them as a “breach of Iraqi sovereignty”.

Militia group Kataib Hezbollah said in a statement on social media that eight of its members were killed in a strike on its base in Jurf Al Sakhar, a town south of Baghdad also known as Jurf Al Nasr, early on Wednesday.

US aircraft also struck another Kataib Hezbollah operations centre in Anbar province, west of Baghdad, two Iraqi security officials told The National.

There was no word on casualties from the strike in Anbar province, where hard-line militias have taken control of a border crossing into Syria, farmland and other infrastructure.

The US strikes against militia sites in Iraq are in response to attacks on Iraqi bases and others in Syria where American troops are stationed, which have increased alongside Israel's operations against Hamas in Gaza.

“The US Central Command forces conducted discrete, precision strikes against two facilities in Iraq," Centcom said in a statement on social media platform X, formerly Twitter.

“The strikes were in direct response to the attacks against US and coalition forces by Iran and Iran-backed groups."

One of these attacks was on November 21, “which involved use of close-range ballistic missiles”, it said.

Late on Monday, US forces were attacked at Ain Al Asad airbase west of Baghdad and a US military AC-130 plane responded a few hours later, killing one Iran-backed militant linked to Kataib Hezbollah.

Iraq condemns 'breach of sovereignty'

Iraqi government spokesman Basim Al Awadi said the latest US strikes were a “dangerous escalation and a breach of Iraqi sovereignty”.

“We strongly condemn the attack on Jurf Al Nasr as a clear violation of sovereignty and an attempt to destabilise the security situation,” Mr Al Awadi added, saying the attack was carried out without the prior knowledge of the Iraqi government.

“The Iraqi government is exclusively responsible for law enforcement and accountability,” he added in a statement.

Iraq's statement said the strikes were a "clear overstepping” of the task of the US-led International Coalition, which is supporting Iraqi forces with training and advice.

But it also contained veiled criticism of the militias, warning that the government “is the only party that is constitutionally responsible for drawing and implementing policies and maintaining security and stability".

"Any armed actions outside the military institution are deemed illegal and a threat to the national interests,” it warned.

Prime Minister Mohammed Shia Al Sudani, who is also Iraq's Commander-in-Chief, ordered the security forces to “enforce the law and prevent any party from compromising the country’s security and stability”, the statement added.

Kataib Hezbollah is a brigade in the Popular Mobilisation Forces, an umbrella grouping of paramilitary groups consisting primarily of powerful Iran-backed militias.

Ostensibly, the government supervises the body but in reality official security forces such as the army and police have limited control over them.

Mourners carry the coffins of Iraq's Kataib Hezbollah fighters who were killed by US air strike in Jurf Al Sakhar, at a funeral in Baghdad. Reuters
Mourners carry the coffins of Iraq's Kataib Hezbollah fighters who were killed by US air strike in Jurf Al Sakhar, at a funeral in Baghdad. Reuters

Rising violence reaches contested town

The attacks are the first by the US inside Iraq since the Israel-Gaza war began. Previously, the US had only conducted retaliatory air strikes against militia sites in Syria.

A US Department of Defence official told The National American troops have come under 68 attacks since last October 7, with 33 of them in Iraq and the rest in Syria.

The latest were on Tuesday when militants fired numerous rockets near Shuddadi base in Syria and one-way drones at Al Asad Airbase in Iraq.

In hitting Jurf Al Sakhar, the latest strikes targeted one of the former strongholds of Sunni militant groups such as Al Qaeda and ISIS after the US-led invasion of 2003.

Jurf Al Sakhar loosely means “rocky bank” due to its location on a bend in the Euphrates, but was renamed Jurf Al Nasr, or Victory Bank, by Iraqi security forces in 2014.

It came under the control of the insurgents in June 2014, but they were driven out a few months later by security forces in an extremely destructive battle.

Thousands of Sunnis who fled the town have been unable to return because it is under the control of Iran-backed Shiite militias, such as Kataib Hezbollah.

Human rights groups have condemned what they say is the collective punishment of civilians permanently expelled from the town.

The area has been described as off-limits for regular security forces, including the army, while Sunni politicians have repeatedly called for their community to be allowed to return.

Ellie Sennett reported from Washington DC.

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FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties? 
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

2.0

Director: S Shankar

Producer: Lyca Productions; presented by Dharma Films

Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey

Rating: 3.5/5 stars

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MATCH INFO

Red Star Belgrade v Tottenham Hotspur, midnight (Thursday), UAE

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

How to invest in gold

Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.

A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).

Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.

Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”

Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”

Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”

By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.

You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.

You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.

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MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Updated: November 23, 2023, 12:05 PM