German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP
German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP
German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP
German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP

Germany extending military missions from Red Sea to southern Mediterranean


Tim Stickings
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Germany plans to renew four military missions in the Middle East, Africa and the Mediterranean before parliament is dissolved for a February general election.

Votes will take place in late January on extending operations involving 1,600 German troops in the Red Sea, in waters off Libya and Tunisia, in the wider Mediterranean and in South Sudan. Their deployment in UN, EU and Nato-led missions is set to expire between February and April – when Germany may be in political limbo during post-election coalition talks.

Shipping had declined by 73 per cent in the Bab Al Mandab strait as mariners take a detour from the Red Sea
German report

Chancellor Olaf Scholz's government says the missions should continue at a cost of €30.6 million ($31.5 million) to secure key sea routes against smuggling, Houthi attacks and the “spillover” of violence from the Middle East. It also hopes to show Donald Trump's coming US administration that Europe is willing to do its fair share for security.

Although the missions have broad support among Germany's traditional parties, they are viewed more sceptically by left and right-wing forces tipped to gain in the election. The Alliance Sahra Wagenknecht, a left-populist party that could be involved in coalition talks, opposed the Red Sea mission, saying the government was “blindly following” the US.

A mural in Yemen shows a Houthi fighter stopping an Israeli ship as part of the militants' campaign in the Red Sea. EPA
A mural in Yemen shows a Houthi fighter stopping an Israeli ship as part of the militants' campaign in the Red Sea. EPA

Mr Scholz's government said in papers handed to parliament that US-UK air strikes in Yemen had only a “short-term” impact on Houthi militants' ability to attack Red Sea shipping. It quoted an EU situation report as saying shipping had declined by 73 per cent in the Bab Al Mandeb strait as mariners take the longer route around Africa's southern tip.

The German frigate Hessen fired shots at two drones, from a 76-millimetre gun and missile launcher, in one security scare last February. In addition “the danger is rising of deliberate or collateral damage to critical infrastructure in the area of operations”, such as undersea data cables connecting Europe and Asia, the German government said.

The European mission known as Operation Aspides “shows that the EU is willing and able to take responsibility in the region”, it said. “This also sends a positive signal to our transatlantic allies regarding the sharing of duties in securing freedom of navigation in the area of operations”.

The German parliament's authorisation for up to 700 troops to deploy to the Red Sea runs out on February 25, two days after the general election. Ministers are seeking an extension until October. They want to keep up to 300 troops available for a second EU mission known as Operation Irini which monitors Libya's coast for weapons smugglers.

Mediterranean tasks

The Mediterranean mission is intended to help stabilise Libya but Germany said an arms embargo continues to be breached, despite more than 600 ships being boarded under Operation Irini. Nonetheless it said the naval presence was the “only instrument with which the UN weapons embargo against Libya is enforced on the high seas”.

Ministers say German sailors are also providing intelligence to the EU on people smuggling networks in the Mediterranean. Although Operation Irini is not primarily a search and rescue mission, Germany says it is obliged to provide assistance to people in distress at sea.

The EU's Operation Irini is mainly directed at Libyan arms smugglers but also has goals to gain intelligence on Mediterranean migration. Reuters
The EU's Operation Irini is mainly directed at Libyan arms smugglers but also has goals to gain intelligence on Mediterranean migration. Reuters

The far-right Alternative for Germany (AfD) has called for Operation Irini to be stopped, saying it had brought “no successes” in the fight against illegal migration. Concerns it was having a “pull effect” on migrants led to an emergency brake being introduced at EU level but Germany sees “no indications” that it should be triggered.

A further Mediterranean mission, a Nato operation known as Sea Guardian, has a broader goal of counter-terrorism and surveillance in Europe's southern waters. Germany says its participation with 550 troops should continue although no ships were inspected against their will during 2024.

“International terrorism has emerged as an increased threat in the maritime domain, including in the context of the escalation in the Middle East”, the government said. “This especially means international arms smuggling. It remains necessary to prevent a spillover effect into Europe and Nato territory from the activities of terrorist groups”.

The fourth German mission is a 50-troop presence in South Sudan as part of a UN peacekeeping operation, which Mr Scholz's government called the “most important anchor of stability” in the fragile country. Elections due to take place last month were postponed as a transitional period was extended until 2027.

Germany's election was brought forward from September to February after Mr Scholz's three-party coalition collapsed, leaving him without a majority in parliament. Support from centre-right parties should mean the military operations are extended but the election is expected to shake up the party landscape.

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Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

Sector: E-commerce / Marketplace

Size: Two employees

Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East) 

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Name: Kumulus Water
 
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Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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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

Infobox

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UAE beat Iran by 10 wickets

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Monday fixtures

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Updated: January 03, 2025, 2:55 PM