Mohammed Al Gergawi, the President of the Arab Strategic Forum and the Minister of Cabinet Affairs, opens this year's forum. Antonie Robertson / The National
Mohammed Al Gergawi, the President of the Arab Strategic Forum and the Minister of Cabinet Affairs, opens this year's forum. Antonie Robertson / The National
Mohammed Al Gergawi, the President of the Arab Strategic Forum and the Minister of Cabinet Affairs, opens this year's forum. Antonie Robertson / The National
Mohammed Al Gergawi, the President of the Arab Strategic Forum and the Minister of Cabinet Affairs, opens this year's forum. Antonie Robertson / The National

War in Gaza weighs heavily on Middle East, say Arab officials


Ismaeel Naar
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Live updates: Follow the latest news on Israel-Gaza

The war in Gaza weighed heavy on discussions at the Arab Strategy Forum in Dubai on Wednesday, with Gulf officials saying what Israel was doing went beyond anything seen previously in the decades-old Israeli-Palestinian conflict.

“In the past, I condemned the attacks on civilians on both sides, but what Israel is doing against the Palestinian people in Gaza cannot be compared with anything else,” said Saudi Arabia's Prince Turki Al Faisal, a former ambassador to the US.

“The Hamas attack on Israel and the way it was able to invade Israel’s fortress around Gaza led to very significant repercussions, including shattering the image that many people had that Israel was the impenetrable fortress against any force that could compete with it or challenge it in the region,” he said.

Dr Anwar Gargash, diplomatic adviser to the UAE President, reiterated his country’s firm support for the Palestinian people and the importance of resolving the conflict.

“Our solidarity must be with the Palestinian people and their cause. Managing this file [issue] is a necessity and a very important thing, along with managing other regional files,” Dr Gargash said.

Israeli strikes and heavy ground fighting continued in Gaza on Wednesday as fears mounted of a regional escalation after the killing of Saleh Al Arouri, deputy leader of Hamas's political wing, in Beirut on Tuesday.

Audience members listen to Mohammed Abdullah Al Gergawi, UAE Minister of Cabinet Affairs. Antonie Robertson / The National
Audience members listen to Mohammed Abdullah Al Gergawi, UAE Minister of Cabinet Affairs. Antonie Robertson / The National

The strike was widely blamed on Israel, but its implications for the war remain unclear. Israel has not commented on the killing, but Rear Adm Daniel Hagari, an Israeli military spokesman, said “we are on high readiness for any scenario”.

The Arab Strategy Forum, first held in 2001 under the patronage of Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, focused its discussions this year on the political and economic outlook for the Arab world in 2024.

Mohammed Al Gergawi, UAE Minister of Cabinet Affairs, said in his opening speech that three main factors would shape the Middle East this year.

“The Palestinian issue, the emergence of the Gulf states as an influential economic force, and the escalation of the pace of polarisation locally and internationally will be the main issues we will contend with,” Mr Al Gergawi said.

He said the aim of the forum this year, which was attended by Sheikh Mohammed bin Rashid, was to form an in-depth understanding of global political and economic trends and unify Arab positions in light of increasing questions about the inability of the international system to contain crises.

“The war in Gaza is a humanitarian catastrophe and presents a situation that requires contemplation as it is surrounded by an intellectual conflict and double standards. It is a global diplomatic war that enjoys international polarisation,” Mr Al Gergawi said.

He said the important question is whether the war on Gaza represents an impetus and reason for a permanent peace, or a prolonged war.

Former Egyptian foreign minister Nabil Fahmy said there was a semblance of “Israeli slander and arrogance of power in the region”, and warned that the future for Arab states rested on a two-fold approach in their dealings with other countries.

“We, as Arabs, must do two things. First, not to rely on others too much without isolation by building our capabilities and co-operation regionally and globally, and second, to take the initiative in dealing with regional issues with wisdom and firmness,” he said.

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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. 

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 03, 2024, 3:33 PM