Iran's supreme leader Ayatollah Ali Khamenei on Sunday formally endorsed Masoud Pezeshkian as the Islamic republic's ninth president, after he won a snap election earlier this month pledging reforms.
Mr Pezeshkian, a reformist who will be sworn in before parliament on Tuesday, is taking office at a time of heightened tension in the Middle East as fighting escalates between Israel and Iranian allies.
The endorsement ceremony, held in Tehran, was broadcast live on state television as banks and most government offices were shut to tackle a heatwave.
"I endorse his excellency Dr Masoud Pezeshkian as the president of the Islamic republic of Iran," said a decree by the supreme leader, read out by the director of his office.
Although a moderate, Mr Pezeshkian is not expected to bring about any radical shifts in foreign, domestic, or nuclear policy, as the supreme leader remains at the helm of all state affairs.
Foreign policy is not a matter decided by the Iranian president, but by Iran’s Islamic Revolutionary Guard Corps who answer to Mr Khamenei.
In his speech during the ceremony, Mr Khamenei reiterated Iran's anti-Israeli stance and praised Palestinian armed group Hamas for its resistance in Gaza.
Mr Pezeshkian vowed to adhere to the law and religious values, vowing that his administration will serve the people and "take no path but the path of justice and fairness".
Following the ceremony, acting president Mohammad Mokhber handed over to Mr Pezeshkian.
Mr Pezeshkian won a run-off race against ultraconservative Saeed Jalili on July 5 to replace president Ebrahim Raisi who died in a helicopter crash in May alongside other top officials.
Mr Raisi was a hardliner and his replacement has sparked hopes of a thaw in relations between Iran and the West, particularly with regards to nuclear issues.
During the ceremony, Mr Khamenei suggested he may be open to improving ties.
"We have no intention to oppose some European countries. The reason I did not mention European countries as a priority is that they have not treated us well for many years," he said.
If European countries did not "have this bad attitude" then mending ties "would be one of our priorities," he added.
Mr Khamenei stressed the importance of adopting an "active and effective" response to regional developments and that diplomacy should prioritise neighbouring countries.
He secured about 54 per cent of the 30 million ballots cast.
Later on Sunday, Mr Pezeshkian appointed reformist Mohammad Reza Aref, 72, as his first vice president, according to Iranian state media.
Mr Aref previously served as a vice president under former reformist President Mohammad Khatami from 2001 to 2005. The appointment marks the new president's first official act since assuming the position.
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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Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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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
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