Spanish Prime Minister Pedro Sanchez, left, is received at Baghdad International Airport by Iraqi Foreign Minister Fuad Hussein. AFP
Spanish Prime Minister Pedro Sanchez, left, is received at Baghdad International Airport by Iraqi Foreign Minister Fuad Hussein. AFP
Spanish Prime Minister Pedro Sanchez, left, is received at Baghdad International Airport by Iraqi Foreign Minister Fuad Hussein. AFP
Spanish Prime Minister Pedro Sanchez, left, is received at Baghdad International Airport by Iraqi Foreign Minister Fuad Hussein. AFP

Arab League summit: Spanish PM Pedro Sanchez proposes path for end to Israeli 'carnage' in Gaza


Sinan Mahmoud
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Spain’s Prime Minister Pedro Sanchez attended the Arab League summit in Baghdad as guest of honour on Saturday, where he laid out proposals to end the war in Gaza.

His participation in a summit focused primarily on Gaza underscored Spain’s role in regional diplomacy and its push for ending the conflict and establishing a Palestinian state.

“Palestine is bleeding before our eyes. What is unfolding in Gaza and the West Bank cannot go unnoticed – whether in Europe or anywhere else in the world,” Mr Sanchez told Arab leaders and UN Secretary General Antonio Guterres.

“The desire to redraw the map of the Middle East by force will only summon the nightmares of the past,” added the socialist PM, one of Europe’s most vocal critics of Israel’s conduct during the war in Gaza.

Israel’s war on Hamas, launched in response to the 7 October attacks in 2023, has killed more than 50,000 Palestinians and devastated the coastal territory.

Destruction in Gaza. Reuters
Destruction in Gaza. Reuters

“These are unacceptable figures that violate not only the basic principles of humanity but also international and humanitarian law,” the Spanish PM said.

Mr Sanchez stressed the urgency of a ceasefire. While a breakthrough had seemed close in recent days, Israel’s cabinet instead intensified its campaign, killing hundreds more in Gaza.

It also rejected renewed calls to increase humanitarian access, putting hundreds of thousands of civilians at risk of famine.

Relief to Gaza

Spain, he said, is working closely with Palestine on a draft resolution to be presented at the United Nations, demanding that Israel end what he described as the unjust humanitarian siege on Gaza and allow the unconditional delivery of aid.

The proposed resolution would insist that relief reach Gaza on the basis of neutrality and in co-ordination with the UN.

He called for increased international pressure on Israel to halt the “carnage unfolding” in Gaza, using every means available under international law.

Spain will also propose that the UN General Assembly request the International Criminal Court to examine Israel’s compliance with its obligations to deliver humanitarian aid.

He added that the international community must explore the legal framework through which the situation in Gaza could be assessed as “potential genocide”.

A demonstrator holds a placard reading 'Fair Peace' during a pro-Palestinian rally to protest against the arms trade with Israel, in Madrid. EPA
A demonstrator holds a placard reading 'Fair Peace' during a pro-Palestinian rally to protest against the arms trade with Israel, in Madrid. EPA

In April, Spain “unilaterally” pulled out of a €6.6 million order for millions of bullets from an Israeli company, after pressure from partners in the government’s left-wing coalition.

The country had suspended arms sales to Israel soon after it began its military campaign in Gaza in October 2023, and extended the suspension to include weapons imports the following year.

In 2024, Spain, along with Ireland and Norway, officially recognised a Palestinian state.

Mr Sanchez voiced strong support for an international peace conference, saying it was the only viable path forward. He noted that a conference planned in June by France and Saudi Arabia could offer a platform, but stressed that any such initiative must be backed by both Arab and European nations through a unified approach.

“We must apply international law equally to all, without ambiguity or double standards,” he concluded. “Spain is committed to doing everything in our power to make that a reality.”

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

Updated: May 17, 2025, 12:27 PM