Lebanese Prime Minister Najib Mikati met US Secretary of State Antony Blinken at the Cop26 climate change conference in Glasgow on Tuesday, one of many meetings focusing on the country's economic plight and split with Gulf nations.
Mr Blinken is the most senior US official that Mr Mikati has met since taking office in September.
Mr Mikati has convened with a range of foreign and Arab leaders since arriving in Glasgow on Monday, in meetings aimed at improving his embattled government’s relations with Western and Gulf allies, after a Lebanese minister’s pro-Houthi comments stirred a diplomatic row with Saudi Arabia.
Mr Blinken said they had a “productive meeting” and “discussed the need to implement urgent reforms to address Lebanon’s economic crisis and to hold free and fair elections next year”, on his official Twitter account.
Lebanon has been grappling with its biggest diplomatic crisis in years with historic allies and investors in the Gulf, after Information Minister George Kordahi said in a televised interview that the Iran-backed Houthis were acting in self-defence against foreign aggressors.
A Riyadh-led Arab coalition has supported Yemen's internationally recognised government against the Houthis since 2015.
Saudi Arabia is a major US ally in the Middle East but its ties with Beirut are strained because of Iran-backed Hezbollah's growing influence on the country.
In efforts to smooth relations, Mr Mikati visited the UAE and Saudi Arabia pavilions at the conference. The two countries had recalled their ambassadors to Lebanon over Mr Kordahi's remarks.
Mr Mikati also spoke to French President Emmanuel Macron on Monday. He did not disclose the nature of their talks but said Mr Macron “extended the meeting several times even though he was busy”.
France is a former colonial power in Lebanon and the country’s closest Western ally. Mr Macron rallied support for Beirut in a donor conference last year after the deadly explosion at the port ripped through the Lebanese capital.
The French president has called on Lebanon’s politicians, widely accused of corruption and inaction in the face of economic meltdown, to enact reforms to unlock billions of dollars in debt relief and loans.
One of the chief reforms required to unlock aid and loans is securing a package from the International Monetary Fund. Talks broke down between the Lebanese government and the IMF last year after the Cabinet, Parliament and Central Bank failed to agree on the size of the losses incurred by the country’s banking sector.
In a meeting with IMF director general Kristalina Georgieva in Glasgow, she said the negotiations must be successful this time, "because it is the door to the only available solution" for Lebanon’s woes.
Mr Mikati spoke to UN Secretary General Antonio Guterres, who said that he would visit Beirut by the end of the year.
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Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
Scoreline
Arsenal 3
Aubameyang (28'), Welbeck (38', 81')
Red cards: El Neny (90' 3)
Southampton 2
Long (17'), Austin (73')
Red cards: Stephens (90' 2)
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 specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
Traces%20of%20Enayat
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SPEC%20SHEET%3A%20APPLE%20IPAD%20PRO%20(12.9%22%2C%202022)
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