Saudi Foreign Minister and co-chairman of the UN General Assembly Prince Faisal bin Farhan at the UN headquarters in New York. EPA
Saudi Foreign Minister and co-chairman of the UN General Assembly Prince Faisal bin Farhan at the UN headquarters in New York. EPA
Saudi Foreign Minister and co-chairman of the UN General Assembly Prince Faisal bin Farhan at the UN headquarters in New York. EPA
Saudi Foreign Minister and co-chairman of the UN General Assembly Prince Faisal bin Farhan at the UN headquarters in New York. EPA

Arab diplomacy takes centre stage at UNGA


Vanessa Ghanem
  • English
  • Arabic

Decades of Arab diplomacy pushing for recognition of a Palestinian state are bearing fruit this week at the UN General Assembly in New York, where regional leaders are presenting a unified front on the Gaza war and the two-state solution.

Saudi Arabia has taken a leading role. On Monday, it co-hosted, alongside France, a high-level summit that underscored growing international momentum behind Palestinian statehood.

French President Emmanuel Macron used the meeting to announce France’s official recognition of Palestine, joining a wave of countries that in recent days have shifted policy in defiance of Washington’s long-standing stance.

“The time for peace has come,” said Mr Macron to applause in the crowded chamber. “Some might say it’s too late. Other might say it’s too early. But one thing is certain, we can no longer wait.”

A string of western states followed France’s lead, with the last-minute additions of Monaco and Denmark. Britain, Canada, Australia and Portugal made announcements on Sunday and were followed on Monday by Belgium, Malta, Luxembourg, San Marino and Andorra.

Saudi Foreign Minister Prince Faisal bin Farhan chaired the opening session of the international peace conference on behalf of Crown Prince Mohammed bin Salman, the Saudi Foreign Ministry said.

Prince Faisal hailed “the historic stance” of Mr Macron in recognising Palestinian statehood and “the courageous steps taken by numerous countries in this regard”, the ministry added.

“We call on all other countries to take a similar historic step that will have a great impact on supporting the efforts towards implementation of the two-state solution,” said Prince Faisal.

He added that the kingdom was keen on following up to ensure the implementation of the outcomes of the conference, including putting an end to the Gaza war.

The push at the UN came as Israeli troops intensified their assault on Gaza. Two Gaza city hospitals were taken out of service on Monday due to Israel's escalation of its ground offensive and damage caused by continued Israeli bombing, the Gaza Health Ministry said, as tanks advanced deeper into the territory.

“The conference is happening at a time when the Israeli occupation continues its aggression and violations,” said Prince Faisal. “Israel’s insistence on pursuing this hostile approach undermines peace efforts in the region, and we reiterate our firm position that the two-state solution remains the best path to peace.”

The US along with Egypt and Qatar have been leading mediation efforts to broker a ceasefire and hostage release deal in Gaza without success.

Egyptian Prime Minister Mostafa Madbouly said that his country would host a Gaza reconstruction conference as soon as a ceasefire had been reached in the devastated territory.

“Egypt will, as soon as we reach a ceasefire, host an international reconstruction conference on the Gaza Strip to mobilise the necessary funding for the Arab-Islamic reconstruction plan,” he told the conference hosted by France and Saudi Arabia.

For his part, Jordan’s King Abdullah II said that states recognising Palestine are sending a message that the conflict must end. “This global rally behind the two-state solutions sends a clear message: the conflict must end,” he said.

“A clear choice stands before us: on one side to continue down the dark and bloody path of war and conflict; or to take the path of peace through the two-state solution.

“Today, the world is taking a significant step on the path to achieving just and lasting peace,” he added.

Arab leaders to meet President Trump

US President Donald Trump is expected to hold on Tuesday a multilateral meeting with Arab and Muslim leaders, during which he will outline principles for peace and postwar governance in Gaza, according to Axios. Leaders and senior officials from the UAE, Saudi Arabia, Qatar, Egypt, Jordan, Turkey, Indonesia and Pakistan will participate in the meeting.

President Trump will address the UNGA in person during the Tuesday morning session as the General Debate begins. The session will also include speeches from King Abdullah II of Jordan and Sheikh Tamim, Emir of Qatar.

Qatar's speech will come after Israel targeted Hamas leaders in Doha this month. Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani has described Israel’s strike as “100 per cent treacherous”. Despite the attack, Doha said it would not retreat from its mediation role in efforts to end the Gaza war.

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

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Updated: September 23, 2025, 11:27 AM