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King Abdullah of Jordan has told Iranian Foreign Minister Abbas Araghchi that the kingdom "will not be a theatre for regional conflicts", the Royal Palace said on Wednesday. The statement comes amid possible Israeli retaliation for Iran's October 1 missile attacks on Israel, which could further destabilise the Middle East.
Mr Araghchi was in Amman as part of a regional tour that will include Egypt and Turkey. Israeli Prime Minister Benjamin Netanyahu had agreed to limit his country’s response against Iran, sparing the infrastructure for oil production, the heart of Iran's economy, according to US media.
The Royal Palace said King Abdullah affirmed "the need for regional de-escalation" during his meeting with Mr Araghchi, including a halt to the Gaza war and the war between Lebanon's Hezbollah and Israel.
Jordan, which has a peace treaty with Israel and is allied with the US, played a role in shooting down some of the Iranian missiles fired at Israel on October 1. Jordanian officials said the military would also not allow Israel to abuse its airspace.
"His Majesty the King renewed the assertion that Jordan will not be a theatre for regional conflicts," the Royal Palace said.
Mr Araghchi earlier met the Jordanian Prime Minister Ayman Al Safadi and blamed Israel for the "critical" situation in the region, Iranian state media said.
The Wall Street Journal reported last week that Jordan is among Arab countries Iran has threatened if they help Israel in the expected strike. Although Jordan and Iran have diplomatic relations, the kingdom has not had an ambassador in Tehran for years because of Amman's objections to Iranian action in the region.
Tension between the two escalated two years ago after Jordan accused pro-Iranian militias of involvement in a multibillion dollar a year narcotics smuggling operation through southern Syria to Jordan.
In a rare report on state media, Jordanian television said on Wednesday that security forces have foiled 36 smuggling attempts, mostly from Syria, since the beginning of the year. But it did not give any indication of the quantities of drugs seized or how much is being smuggled.
After his visit to Jordan, Mr Araghchi will head to Egypt and Turkey, Iranian state media said. Ties between Israel and Egypt, as well as Israel and Turkey, have been frayed by the Israel-Gaza war.
Mr Araghchi's office quoted him on Wednesday as telling UN Secretary General Antonio Guterres that Iran is ready for a “decisive and regretful” response to any Israeli “adventures”.
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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
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
