Hezbollah leader Hassan Nasrallah gives a televised speech on Friday. AFP
Hezbollah leader Hassan Nasrallah gives a televised speech on Friday. AFP
Hezbollah leader Hassan Nasrallah gives a televised speech on Friday. AFP
Hezbollah leader Hassan Nasrallah gives a televised speech on Friday. AFP

Nasrallah mocks US-led naval coalition against Houthis for including Seychelles


Nada Homsi
  • English
  • Arabic

Hezbollah leader Hassan Nasrallah in his Friday speech praised Yemen’s Houthi movement and mocked Operation Prosperity Guardian, the US-led multinational naval coalition formed to protect commercial traffic from Houthi attacks in the Red Sea.

While much of Mr Nasrallah's speech focused on condemning Israel and the US, he also turned his attention on an unexpected target – the small island nation of the Seychelles, which recently joined the maritime coalition.

“‘Senshel’, ‘Menshel’, whatever its name is … I had to google it to find out where it even is,” he said, laughing. “Turns out it’s an island at the end of the earth.”

The Seychelles is the smallest country in Africa and the least populated, with an estimated 100,600 people living there. It also has the most prosperous economy in sub-Saharan Africa and is reliant on tourism and fishing.

Meanwhile, Lebanon is in a state of protracted economic crisis that is considered by the World Bank to be among the worst in modern history.

The Seychelles is not, however, known for having a powerful navy.

Yemen's Houthis have attacked commercial ships in the Red Sea, disrupting global supply routes with the intended strategy of exerting international pressure on Israel to deter it from its invasion of Gaza.

Mr Nasrallah was mocking what he portrayed as the US inability to attract larger nations to join the maritime task force against the Houthis.

Some US allies have been reluctant to associate themselves with the coalition due to Washington's enduring support for Israel despite rising international criticism of the war. More than 22,438 Palestinians have been killed in Israel’s assault on Gaza so far.

The US says 20 countries have signed up for the naval coalition, but announced the names of only 12. And although Britain, Greece and others have publicly embraced the coalition, several countries mentioned in the US announcement, such as Italy and Spain, were quick to distance themselves from it.

“The countries he [US Secretary of Defence Lloyd Austin] announced as part of the coalition came out and said: ‘Bro, we aren't part of this coalition, no one talked to us about it, and we have nothing to do with it’ – and then they withdrew,” Mr Nasrallah joked.

Hezbollah has since October been embroiled in a cross-border conflict with Israel in an attempt to force it to split its focus amid its invasion of Gaza, in support of its ally Hamas, which controls the blockaded strip.

The group is part of the so-called Axis of Resistance, a coalition of Iran-backed groups with interconnected political agendas.

Mr Nasrallah’s mispronunciation of the Seychelles quickly grew popular on social media and a Change.org petition was created, to “change the name of the island to make it easier to google -we recommend Senshel Menshel”.

The US-led task force has so far failed to deter Yemen’s Houthis from attacking commercial vessels in the Red Sea.

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

Updated: January 05, 2024, 7:03 PM