Turkish President Recep Tayyip Erdogan, right, and Iranian President Ebrahim Raisi in Ankara in January. AP
Turkish President Recep Tayyip Erdogan, right, and Iranian President Ebrahim Raisi in Ankara in January. AP
Turkish President Recep Tayyip Erdogan, right, and Iranian President Ebrahim Raisi in Ankara in January. AP
Turkish President Recep Tayyip Erdogan, right, and Iranian President Ebrahim Raisi in Ankara in January. AP

Turkey seeks mediation role between Israel and Iran


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Turkey has tried to position itself as a mediator in global conflicts for years, shuffling between warring parties including Russia and Ukraine.

It is currently restructuring its Foreign Ministry to include a department specifically dealing with international negotiations.

In the Israeli-Palestinian conflict, its success so far has been limited. Israel has lost trust in Ankara due to Turkish President Recep Tayyip Erdogan’s overt criticism of Prime Minister Benjamin Netanyahu’s conduct, and the country's hosting of Hamas officials.

Ankara, meanwhile, has been angered by the widespread killing of Palestinian civilians.

Qatar and Egypt, rather than Turkey, emerged as the main regional negotiators in a Gaza ceasefire and hostage release deal late last year.

But after Iran’s April 13 attack on Israel, Turkey has been among the key back channels between Tehran and Israel’s western allies as diplomats seek to stop tension spilling into a regional conflict.

Turkish officials are among the few who speak directly to the US, Israel, Hamas members and Iran.

“It is a smart move and humanitarian responsibility to take any initiative, including Turkey's mediation, for a ceasefire and solution” a senior Turkish official told The National.

Turkish Foreign Minister Hakan Fidan spoke to his Iranian and US peers before and after Iran launched about 300 drones and missiles at Israel on Saturday night.

Tehran said the attack was in response to the bombing of the Iranian consulate compound in Damascus on April 1.

“The developments did not come as a surprise,” another Turkish diplomatic official said, referring to Iran’s attack.

Iran informed Turkey about the response options, the source said.

“Possible developments were also discussed during the call with [US Secretary of State Antony] Blinken," the official said.

"The American side conveyed to Iran through us that the reaction should remain within certain limits.

“In response, Iran said that the response would be a retaliation to the attack on the embassy in Damascus and would not go beyond that.”

In a phone call after the attack, Mr Fidan told Iranian Foreign Minister Hossein Amirabdollahian that Turkey does not want any further escalation.

Switzerland has also played a key role in messages between Iran and Washington.

Mr Erdogan criticised western nations for condemning Iran’s attack on Israel but not the strike on the consulate.

“Unfortunately, only a couple of countries responded negatively to this unfortunate event,” he said this week.

“So those who keep their silence against the violations by Israel started competing with each other in order to condemn Iran.”

US Secretary of State Antony Blinken with Turkish Minister of Foreign Affairs Hakan Fidan in Brussels. Getty Images
US Secretary of State Antony Blinken with Turkish Minister of Foreign Affairs Hakan Fidan in Brussels. Getty Images

Balancing act

Despite the anti-Israel launguage, Ankara is trying to tread a fine line between maintaining commercial and political links with Israel, managing domestic anger over the war in Gaza, and keeping up ties with Iran.

Turkey has banned some exports to Israel but maintains a diplomatic relationship with the country, and enables its oil trade with Azerbaijan.

Israel is Turkey’s 13th largest trade partner and Ankara can ill afford to halt billions of dollars in annual exports as the Turkish economy suffers high inflation and a rapid fall in the value of its currency.

“He [Erdogan] is trying to play on both sides of the ball,” a senior Israeli official told The National.

Trust between Israel and Turkey is at near-historic lows. Ankara is not included in a list of foreign nations that Israel is engaging with as it hopes to build momentum for further sanctions against Iran.

Ankara has more successfully engaged with Israel’s western allies. After Iran’s attack, the US acknowledged Turkey’s role in back-channelling messages to Iran.

“Secretary Blinken thanked Foreign Minister Fidan for his ongoing engagement to prevent further escalation in the region,” said a US State Department representative.

Mehmet Koc, an Ankara-based analyst who lived in Iran for 20 years, said: “Turkey has both Iran’s trust and the trust of the US and the West.

"And because of this, in this crisis between Israel and Iran, it has been able to act as an intermediary point.

“Iran values Turkey’s position towards the West, including America, and welcomes Turkey’s role as an intermediary between Iran and America.”

In playing a balancing act between Iran and Israel, and its western allies, Turkey appears to want to prove itself as a reliable interlocutor for the US and UK, which are also important trade and security partners.

Nato member Turkey and the US in particular have had strained relations in recent years over Washington’s backing of Syrian Kurdish forces that have close ties to the Kurdistan Workers’ Party (PKK), a group proscribed as a terrorist organisation and regarded as a national security threat by Turkey.

A fighter from the Kurdish-led, US-backed Syrian Democratic Forces in Syria's north-eastern Deir Ezzor province. AFP
A fighter from the Kurdish-led, US-backed Syrian Democratic Forces in Syria's north-eastern Deir Ezzor province. AFP

Global mediator

A presidential decree dated April 6, 2024, seen by The National, detailed a reform plan for the Turkish Ministry of Foreign Affairs.

It includes the creation of a “Directorate General for International Mediation', to be led by an ambassador-level official.

According to the document, the department is responsible for carrying out, “mediation, conflict prevention and crisis-management activities within international congresses and other projects within this scope.”

Turkey has real reasons to actively de-escalate tensions in the region.

More widespread conflict could lead to migration into the country, already host to millions of Syrian and Afghan refugees, and worsen economic conditions in key trade partner countries such as Iraq and Iran.

Turkey is also continuing to speak directly to Hamas. In Doha on Wednesday, Mr Fidan held a three-hour meeting with political leader Ismail Haniyeh.

The Palestinian group pledged to lay down its arms on the creation of a Palestinian state, the Turkish minister said.

“Hamas stated that after the establishment of an independent Palestinian state to be established on the basis of the 1967 borders, there would not be any armed wing and they will continue life as a political party,” Mr Fidan told media after the meeting.

“That is what Hamas stated. I think this is a very important statement from Hamas, so the whole world can undertake the necessary steps.”

There is a limit to Turkey’s willingness to play go-between, however.

Asked if he expected Ankara to continue conveying messages between Iran and the West, one of the Turkish officials said: “No. We expect the West to establish good relations with the countries in the region and avoid initiatives that would disrupt regional stability.”

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

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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The specs

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Power: 150hp
Torque: 250Nm
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How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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The specs

Engine: 1.5-litre, 4-cylinder turbo

Transmission: CVT

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Price: Dh98,900

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The studios taking part (so far)
  1. Punch
  2. Vogue Fitness 
  3. Sweat
  4. Bodytree Studio
  5. The Hot House
  6. The Room
  7. Inspire Sports (Ladies Only)
  8. Cryo

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Updated: April 19, 2024, 4:48 AM