Lebanon's Information Minister George Kordahi resigned on Friday weeks after comments he made about the war in Yemen caused a diplomatic crisis with Saudi Arabia and other Gulf states, citing French diplomatic pressure to step down.
"I decided to give up my ministerial position because Lebanon is more important than I am," he said during a live press conference.
Saudi Arabia reacted with outrage to Mr Kordahi's comments aired in late October in which he said that the Iran-backed Houthi rebel group in Yemen was acting in self defence. The interview had been recorded in August, before Mr Kordahi was appointed minister.
Saudi Arabia called Mr Kordahi's comments insulting, recalled its ambassador and banned all Lebanese imports. The UAE, Bahrain and Kuwait made similar moves.
Mr Kordahi initially resisted calls to step down over his comments, prolonging the crisis. He said on Friday that France had requested his resignation, which comes ahead of President Emmanuel Macron's visit to Riyadh.
"Today, we are facing new developments," he said. "I understand that the French want me to resign before Macron's visit to Saudi Arabia in order to help open a dialogue with Saudi officials about Lebanon."
France, a former colonial power, is heavily involved in the small Mediterranean country, which is suffering from an unprecedented economic crisis. Lebanon's financial meltdown, coupled with multiple other crises, has plunged more than three quarters of the nation’s population of 6 million, including a million Syrian refugees, into poverty.
Mr Kordahi said that he hoped that his resignation would lead to "better relations with Gulf states."
A French diplomatic source told The National that Mr Kordahi's resignation was "a guarantee that would probably facilitate discussions about Lebanon and its relations with Gulf countries during Mr Macron's meetings today and tomorrow".
A press statement issued by Mr Macron's office said that during his visit to Saudi Arabia, the UAE and Qatar, he would "continue his efforts towards regional stability, in the face of tensions in the Gulf, Iran, and the crises situations in Iraq, Libya as well as Lebanon."
Mr Kordahi said that he had discussed his resignation with Prime Minister Najib Mikati, and denied rumours that he had taken orders from Iran-backed Lebanese group Hezbollah. The former minister is supported by a Hezbollah ally, a small Christian party called the Marada.
Yemen’s war began with the 2014 takeover of the capital Sanaa by the Houthi rebels, who control much of the country’s north. The Saudi-led coalition entered the war the following year at the request of the Yemeni government.
The Saudi measures have caused anxiety, particularly among the many Lebanese who work in Gulf countries, and added to the country's economic woes. Lebanese exports to Saudi Arabia used to bring in about $240 million a year.
Saudi Arabia has been a traditional backer of Lebanon but ties deteriorated steadily with the increasing influence of Hezbollah, another Iran-backed group, in the small Mediterranean country.
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
Zayed Sustainability Prize
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
