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.
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 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.
COMPANY PROFILE
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)
Uefa Champions League last 16 draw
Juventus v Tottenham Hotspur
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Sevilla v Manchester United
Porto v Liverpool
Real Madrid v Paris Saint-Germain
Shakhtar Donetsk v Roma
Chelsea v Barcelona
Bayern Munich v Besiktas
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The%20Specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.6-litre%20twin%20turbocharged%20V6%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E10-speed%20automatic%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20472hp%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20603Nm%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh290%2C000%20(%2478%2C9500)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20now%3C%2Fp%3E%0A
Results:
Men's 100m T34: 1. Walid Ktila (TUN) 15 sec; 2. Rheed McCracken (AUS) 15.40; 3. Mohammed Al Hammadi (UAE) 15.75. Men's 400m T34: 1. Walid Ktila (TUN) 50.56; 2. Mohammed Al Hammadi (UAE) 50.94; 3. Henry Manni (FIN) 52.24.
UAE currency: the story behind the money in your pockets
West Asia Premiership
Dubai Hurricanes 58-10 Dubai Knights Eagles
Dubai Tigers 5-39 Bahrain
Jebel Ali Dragons 16-56 Abu Dhabi Harlequins
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
Western Region Asia Cup Qualifier, Al Amerat, Oman
The two finalists advance to the next stage of qualifying, in Malaysia in August
Results
UAE beat Iran by 10 wickets
Kuwait beat Saudi Arabia by eight wickets
Oman beat Bahrain by nine wickets
Qatar beat Maldives by 106 runs
Monday fixtures
UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain