Saudi minister discusses defence co-operation on rare visit to Iran

Saudi Arabia’s Defence Minister Prince Khalid bin Salman discussed prospects for defence co-operation with the Chief of Staff of Iran's armed forces during a rare visit to Tehran.

The visit, which involved meetings with senior Iranian officials, including supreme leader Ayatollah Ali Khamenei, comes at a critical time in the Middle East.

The US and Iran are preparing for a second round of talks in Rome on Saturday, as Saudi Arabia and other Gulf nations express concern over the potential consequences if the negotiations fail.

“In my meeting with the Chief of Staff of Iran's armed forces Maj Gen Mohammad Bagheri, we reviewed the bilateral relations between our countries and explored prospects for defence co-operation,” Prince Khalid said in a post on X.

Iranian state media reported that defence officials stressed to the Saudi official Tehran’s readiness to expand military relations.

President Masoud Pezeshkian meets with Saudi Arabia's Defence Minister Prince Khalid bin Salman and his delegation in Tehran. AP

Prince Khalid, a fighter pilot, is probably the first Saudi defence minister to visit Iran since the 1979 Islamic Revolution. He is also the highest-ranking Saudi royal to visit in decades. The last was King Abdullah bin Abdulaziz, who visited in 1997 as crown prince, during an Organisation of Islamic Co-operation meeting held in Tehran.

The visit is significant, particularly given the decades of enmity between the countries. Relations have thawed since a 2023 agreement mediated by China, amid efforts to secure peace in Yemen, where Houthi rebels have threatened both Saudi Arabia and the UAE despite US air strikes.

During his visit, Prince Khalid delivered a message from Saudi King Salman. He also met with Iran's President Masoud Pezeshkian and the country’s Supreme National Security Council chief, Ali Akbar Ahmadian, to discuss “efforts to promote security and stability”.

Last month, Qatar's Prime Minister, Sheikh Mohammed bin Abdulrahman, warned that an attack on Iran's Gulf coast nuclear facilities would leave countries across the region without water.

US President Donald Trump said on Thursday he was “not in a rush to strike Iran, because I think Iran has a chance to have a great country”.

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Know before you go

Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
If you’re driving, make sure your insurance covers Oman.
By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.

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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

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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.

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US households add $601bn of debt in 2019

American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.

Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.

Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.

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