The European Union announced on Tuesday it would begin lifting sanctions on Syria to help its people build an "inclusive and peaceful" country.
The EU's 27 foreign ministers agreed to lift "economic sanctions" at a meeting in Brussels, the bloc's foreign affairs minister Kaja Kallas said. Their decision came a week after US President Donald Trump announced he was giving Syria a sanction-free "fresh start" under its interim President Ahmad Al Shara.
The decision to lift economic sanctions – many of which were suspended in February – leaves in place those imposed on former Bashar Al Assad regime officials, and others suspected of human rights crimes.
EU members have said the new Syrian regime must respect the rights of the country's minorities – amid outbreaks of sectarian violence – and prevent a resurgence of terrorism. However, there is also interest in restoring relations with Damascus, with a view to returning some of the hundreds of thousands of refugees living in Europe.
"This decision is reversible and also conditional on progress," Ms Kallas said. "There can be no peace without the path to economic recovery and we all need a stable Syria. Is everything really ideal there? No, it is not. But ... we need to give the Syrian people a chance."
German Foreign Minister Johann Wadephul said the "first step" in lifting restrictions would include easing sanctions on Syria's Central Bank.
"The European Union wants to take a chance on a new start with Syria. We want to give the new leadership a real chance," Mr Wadephul said. "Therefore, as a first step we will lift and relax sanctions that essentially concern the Syrian Central Bank. I will push for us to continue on this path."
Austrian Foreign Minister Beate Meinl-Reisinger said military sanctions should not yet be lifted, while her Dutch counterpart Caspar Veldkamp warned that the lifting of sanctions "is reversible".
But offering an economic perspective to Syria is the only way to achieve reconstruction and "thereby also tackle the root causes of migration", Ms Meinl-Reisinger said.
An ambassador from a European country said the decision had been agreed on earlier before being ratified at the meeting of foreign ministers.
“Everyone now agrees that Syria must be given a chance at stabilisation and then hopefully a move towards pluralisation,” a senior EU official said.
Mr Trump announced the lifting of US sanctions a day before meeting Mr Al Shara in Riyadh. He indicated he had been asked to do so by Saudi Arabia and Turkey.
At a press conference in Damascus alongside his Jordanian counterpart on Tuesday, Syria's Foreign Minister Asaad Al Shaibani said "lifting sanctions expresses the regional and international will to support Syria" and "the Syrian people today have a very important and historic opportunity to rebuild their country".
Mr Al Shaibani said the American “U-turn” has been a factor in the EU's anticipated decision and the lifting of US and EU sanctions will give Syria the chance to become a “normal country”.
“We would be looking at an Iraq or a Libya scenario if salaries continued to be unpaid and the countries who want to help Syria cannot,” added the official, who said the move would be seen by Europeans as a “down-payment” in return for a pledge to pursue a democratisation process.
Another senior diplomatic source told The National the EU will maintain some individual sanctions imposed mainly against former Mr Al Assad and his confidants.
The source said the EU will also impose sanctions on at least some groups or people suspected of being involved in the killing of hundreds of Alawite community members in March.
Mr Al Shara was appointed President in January, a month after forces led by Hayat Tahrir Al Sham ousted Mr Al Assad, whose family had ruled Syria for five decades.
Celebrations erupted in Damascus last week after Mr Trump's announcement in Riyadh. Drivers honked horns and placards of Mr Trump and Saudi Crown Prince Mohammed bin Salman were hoisted high, as Syrians poured on to the streets.
The sanctions have presented a significant challenge to the country's new leaders in rebuilding the country. The new regime won some relief last week when the World Bank confirmed Syria's $15.5 million debts to the organisation had been cleared.
Qatar and Saudi Arabia agreed to pay Syria's arrears. The deal with the World Bank means the country is now eligible for new funding.
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
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 BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
Gender pay parity on track in the UAE
The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.
"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."
Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.
"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.
As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general.
