• Former Lebanese prime minister Rafik Hariri and his sons Saad, left and Bahaa, centre, perform Umrah at the Grand Mosque in Makkah, Saudi Arabia, in 2003. Saad would go on to become prime minister in 2009, four years after the assassination of his father. All photos: AFP
    Former Lebanese prime minister Rafik Hariri and his sons Saad, left and Bahaa, centre, perform Umrah at the Grand Mosque in Makkah, Saudi Arabia, in 2003. Saad would go on to become prime minister in 2009, four years after the assassination of his father. All photos: AFP
  • Saad Hariri and Solange Gemayel, the widow of assassinated president and Christian warlord Bashir Gemayel, attend a press conference in Beirut in 2005, where Hariri announced his list for the coming elections. Ms Gemayel became a shoo-in for Beirut's only Maronite Christian seat.
    Saad Hariri and Solange Gemayel, the widow of assassinated president and Christian warlord Bashir Gemayel, attend a press conference in Beirut in 2005, where Hariri announced his list for the coming elections. Ms Gemayel became a shoo-in for Beirut's only Maronite Christian seat.
  • Saad with Rafik Hariri's sister, Bahia, during the funeral procession for former minister Bassel Fleihan, Hariri's close aide, who died from wounds sustained in the February 14 bomb blast that killed the prime minister.
    Saad with Rafik Hariri's sister, Bahia, during the funeral procession for former minister Bassel Fleihan, Hariri's close aide, who died from wounds sustained in the February 14 bomb blast that killed the prime minister.
  • UAE President Sheikh Khalifa receives Saad Hariri on December 4, 2005 in Abu Dhabi.
    UAE President Sheikh Khalifa receives Saad Hariri on December 4, 2005 in Abu Dhabi.
  • Mr Hariri, newly-elected Lebanese parliamentarian, meets Russian Foreign Minister Sergey Lavrov in New York, in 2005, on the sidelines of the UN General Assembly.
    Mr Hariri, newly-elected Lebanese parliamentarian, meets Russian Foreign Minister Sergey Lavrov in New York, in 2005, on the sidelines of the UN General Assembly.
  • Former French president Jacques Chirac with Hariri in 2005, after a meeting at the Elysee palace in Paris.
    Former French president Jacques Chirac with Hariri in 2005, after a meeting at the Elysee palace in Paris.
  • With Jordan's King Abdullah II on the sidelines of UN General Assembly in New York, 2005.
    With Jordan's King Abdullah II on the sidelines of UN General Assembly in New York, 2005.
  • US envoy David Welch, left, then assistant secretary of state for Near East affairs, meets Mr Hariri in Beirut, in 2007. Mr Welch held talks in Lebanon to discuss a presidential void.
    US envoy David Welch, left, then assistant secretary of state for Near East affairs, meets Mr Hariri in Beirut, in 2007. Mr Welch held talks in Lebanon to discuss a presidential void.
  • With Turkish Prime Minister Recep Tayyip Erdogan in Ankara, in 2011.
    With Turkish Prime Minister Recep Tayyip Erdogan in Ankara, in 2011.
  • French President Emmanuel Macron walks between Saad Hariri and UN Deputy Secretary General Amina Mohammed, right, as they arrive to attend the Lebanon International Support Group meeting in Paris on December 8, 2017.
    French President Emmanuel Macron walks between Saad Hariri and UN Deputy Secretary General Amina Mohammed, right, as they arrive to attend the Lebanon International Support Group meeting in Paris on December 8, 2017.
  • Mr Hariri delivers a speech to mark the 10th anniversary of the assassination of his father in Beirut, 2015.
    Mr Hariri delivers a speech to mark the 10th anniversary of the assassination of his father in Beirut, 2015.
  • With former Egyptian president Hosni Mubarak in Cairo, in 2008.
    With former Egyptian president Hosni Mubarak in Cairo, in 2008.
  • Mr Hariri greets Lebanon's newly-elected Sunni Mufti Sheikh Abdul Latif Deryan, in 2014.
    Mr Hariri greets Lebanon's newly-elected Sunni Mufti Sheikh Abdul Latif Deryan, in 2014.
  • Former US president George W Bush shares a light moment with Mr Hariri during their meeting in the Oval Office of the White House in Washington, in 2006.
    Former US president George W Bush shares a light moment with Mr Hariri during their meeting in the Oval Office of the White House in Washington, in 2006.
  • Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid, then Crown Prince of Dubai, receives Mr Hariri in 2005.
    Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid, then Crown Prince of Dubai, receives Mr Hariri in 2005.
  • With Lebanese President Michel Aoun at the presidential palace in Beirut, in 2020.
    With Lebanese President Michel Aoun at the presidential palace in Beirut, in 2020.
  • Russian Prime Minister Mikhail Mishustin meets Mr Hariri in Moscow, in 2021.
    Russian Prime Minister Mikhail Mishustin meets Mr Hariri in Moscow, in 2021.
  • With then Saudi Crown Prince Sultan bin Abdul Aziz, in 2005, at the UN in New York.
    With then Saudi Crown Prince Sultan bin Abdul Aziz, in 2005, at the UN in New York.
  • France's former president Francois Hollande, right, welcomes Mr Hariri to a meeting at the Elysee presidential palace, in 2012.
    France's former president Francois Hollande, right, welcomes Mr Hariri to a meeting at the Elysee presidential palace, in 2012.
  • Mr Hariri salutes thousands of supporters in Lebanon's Miniyeh region.
    Mr Hariri salutes thousands of supporters in Lebanon's Miniyeh region.
  • Greeting supporters upon arrival at his home in Beirut, in 2017, after a mysterious odyssey that resulted in him announcing his resignation while in Saudi Arabia. Hariri told cheering supporters that he was staying.
    Greeting supporters upon arrival at his home in Beirut, in 2017, after a mysterious odyssey that resulted in him announcing his resignation while in Saudi Arabia. Hariri told cheering supporters that he was staying.
  • With former US secretary of state Condoleezza Rice in 2005.
    With former US secretary of state Condoleezza Rice in 2005.
  • Meeting Palestinian leader Mahmoud Abbas in Beirut, in 2005.
    Meeting Palestinian leader Mahmoud Abbas in Beirut, in 2005.

Lebanon's Saad Hariri withdraws from politics


Sunniva Rose
  • English
  • Arabic

Three-time prime minister Saad Hariri announced on Monday that he had suspended his participation in Lebanese politics and would not run in the coming elections, in a widely anticipated move that leaves the Sunni Muslim community with no clear leader as the country struggles with its worst economic crisis to date.

In an emotional address, Mr Hariri asked members of his political party, the Future Movement, to also withdraw from politics. Mr Hariri, 51, said the party would not present candidates in the elections in May.

“I announce my suspension from politics and I ask my family in the Future Movement to do the same,” he said. “I am not presenting myself as a candidate in the parliamentary elections and am not presenting any candidates from the Future Movement or in the name of the Future Movement.”

Speculation about Mr Hariri's intentions has been rife in Beirut since his return on Wednesday from a several-month stay in the UAE.

A veteran politician, Mr Hariri succeeded his late father and former prime minister Rafik Hariri when he was assassinated in 2005 as the leader of the Future Movement, which largely represents Lebanon's Sunni Muslim community.

'It wasn't written'

Visibly tearing up at the end of his speech, Mr Hariri recognised that he had failed to improve living conditions for the Lebanese population. The country's economic meltdown has pushed over three quarters of the population into poverty.

“The project of Rafik Hariri can be summarised in two ideas. First, stopping the civil war in Lebanon, and secondly, a better life for the Lebanese,” he said, referring to his father acceding the premiership in the aftermath of the country's 1975-1990 bloody civil war. “It wasn’t written for me that I would succeed in the second one.”

Mr Hariri blamed political compromise for his failures, including accepting the election of President Michel Aoun, who is allied with the Future Movement's political rival, Iran-backed Hezbollah.

These deals “may be the reason why I didn’t succeed in giving the Lebanese a get a better life. History will judge,” he said.

Former Lebanese Prime Minister Saad Hariri was visibly emotional as he announced he is suspending his work in politics and will not run in May's parliamentary elections. AP
Former Lebanese Prime Minister Saad Hariri was visibly emotional as he announced he is suspending his work in politics and will not run in May's parliamentary elections. AP

Mr Hariri recognised losses in his personal finances and “friendships abroad”, in a thinly-veiled allusion to Gulf states distancing themselves from him for cosying up to Hezbollah in the past years.

Mr Hariri's businesses, mostly inherited from his billionaire father, have faced difficulties, including the closure of the family's construction company in Saudi Arabia in 2017.

“I believe there is no positive opportunity for Lebanon due to Iranian influence, international floundering, national divisions, sectarian agitation and the state falling apart,” he said.

Mr Hariri's retreat from political life is widely viewed by Lebanese media as a new chapter in local politics. No other dominant Sunni leader has emerged but several politicians are vying for the position, including Mr Hariri's brother Bahaa.

Lebanon's government is designed to provide political representation of all Lebanese religious groups, with its three largest being Christian Maronites, Sunni Muslims, and Shiite Muslims.

The prime ministers are always Sunni Muslim, while the president is Christian and the parliament speaker is Shiite Muslim.

Local media reported at the weekend that Mr Hariri's supporters drove from all over the country to his house in Beirut, waving his party's blue flag and asking him to participate in the electoral process.

Mr Hariri responded by saying that his home would “remain open to all".

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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. 

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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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Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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Updated: January 25, 2022, 6:26 AM