A protester waves the flag of Kataib Hezbollah, an Iran-backed Iraqi militia, outside the US embassy in Baghdad. Reuters
A protester waves the flag of Kataib Hezbollah, an Iran-backed Iraqi militia, outside the US embassy in Baghdad. Reuters
A protester waves the flag of Kataib Hezbollah, an Iran-backed Iraqi militia, outside the US embassy in Baghdad. Reuters
A protester waves the flag of Kataib Hezbollah, an Iran-backed Iraqi militia, outside the US embassy in Baghdad. Reuters

Back in the crossfire: Iraq’s Tehran-backed militias prepare to support Iran if US intervenes


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An air of uncertainty surrounds US President Donald Trump and potential American involvement in Israel's war against Iran.

Concern is mounting across the region that US strikes on Iran would provoke retaliation and make American bases a target.

While Tehran has long been an adversary of Washington and a source of international concern over its nuclear ambitions, Middle East governments and the broader international community have warned the Americans that getting involved in this war could have catastrophic consequences. Iran itself has warned of unleashing “hell” in the region if the US intervenes.

As Mr Trump considers whether or not to directly involve US forces, one of Iran’s largest support networks remains deeply embedded in Iraq. Powerful militant groups, tied to Tehran through years of military and strategic co-operation, are watching developments closely and escalating their threats of military action to back their ally.

It is a big risk and Iraq would pay a heavy price, which it cannot afford. It just started rebuilding its security and stabilising the country
Iraqi government source

Sources close to the Iraqi government said some of the most prominent militant groups have made it known this week that any US military intervention would trigger a response.

“They told the government that they would go in and that they disagree with the decision to stand by,” one source said.

Baghdad decided at the start of this war not to be part of it. The government wants to avoid turning the country into a battlefield for a regional conflict.

One source said that the Iraqi government has already “warned the militias against any involvement,” fearing further escalation.

“It is a big risk and Iraq would pay a heavy price, which it cannot afford,” the source added. “It has just started rebuilding its security and is stabilising as a country.”

Iraqi militant factions operate on their own terms, but military action to support Iran would not be straightforward and could result in severe consequences, the government sources added.

“The US know where those factions are based and can easily eliminate them if they chose to,” one source said. “They can target them one by one.”

Hassan Janabi, a former Iraqi ambassador and minister, told The National: “It is clear that armed factions will see US involvement as an opportunity to carry out attacks on US sites, including the embassy in Baghdad.”

Although direct American involvement would not be a surprise, it would “increase the anger of the Iraqi public, which is hostile to Israel and America, as well as the Iran-aligned armed factions that are ideologically and strategically tied to Tehran,” Mr Janabi added.

Members of Iraq's Hashed Al Shaabi group carry portraits of people killed by US strikes. AFP
Members of Iraq's Hashed Al Shaabi group carry portraits of people killed by US strikes. AFP

He added that the Iraqi government led by Prime Minister Mohammed Shia Al Sudani is attempting to portray “solidarity with Iran by condemning the Israeli aggression, because it is ultimately unable to confront the military escalation taking place”.

The threat of a full regional war is more serious now than at any point in the past two years. If Mr Trump sends warplanes to support Israel, Iraqi militias are unlikely to be passive.

While the threat isn’t entirely new and the scale and potential impact of this type of involvement is uncertain, these Iraqi factions, known as Fasael, have been adopting a more serious tone as the conflict intensifies and enters a second week.

Powerful Shiite cleric Moqtada Al Sadr said on Friday that an attack could take place at any time and against any country, depending on the decision “entrusted” to Mr Trump.

“This means that the unjust decision will, by divine wisdom and divine power, bring calamity and loss upon the man who issued this decision," he added. "It will bring calamity and loss upon him, as has already happened.”

On Thursday, the Iran-backed Shiite militia Kataib Hezbollah in Iraq vowed to attack US military bases across the Middle East if the US enters the war.

“We affirm, with greater clarity, that if the United States enters this war, the ‘crazy’ Trump will lose all the trillions he dreams of seizing from this region,” militia leader Abu Ali Al Askari said in a statement. He added that operational plans had already been drawn up.

Another Tehran-backed armed faction in Iraq, the True Promise Corps, has also threatened to join the war. The group, part of a shadowy coalition known as the Islamic Resistance in Iraq, issued a warning Monday that it would strike Israeli targets and its regional allies.

“We declare that all the sites and camps of the entity [Israel] and anyone who supports it in the region are targets for us,” the group’s leader, Mohammed Al Tamimi, said in a statement posted on X.

The escalating threats come after White House press secretary Karoline Leavitt said Mr Trump will make a decision “within the next two weeks”, suggesting that much would depend on the outcome of more potential talks with Iran.

“In light of the substantial chance that negotiations with Iran may or may not take place in the near future, the President will make his decision within the next two weeks,” she said.

Just 24 hours earlier, Mr Trump said he had not made up his mind. “I may do it,” he told reporters. “I may not do it.”

One source suggested to The National that Washington is “reluctant to get directly involved,” pointing out that “Trump has repeatedly stated his desire to de-escalate conflicts in the region and end foreign entanglements.”

It remains to be seen whether or not the Trump administration will stand by and watch Iranian missiles continue to strike Tel Aviv, especially after talking about “hitting hard”, repeat warnings about Iran’s nuclear threat and five failed rounds of negotiations.

The aftermath of US strikes on western Iraq in February 2024. Photo: PMF
The aftermath of US strikes on western Iraq in February 2024. Photo: PMF

'Survival mode'

Renad Mansour, director of the Iraq Initiative at London's Chatham House, believes Iraq's armed factions are in “survival mode”.

“The situation has gone beyond their control,” he said. “They don't know where it's going or where it will end, and it's about surviving effectively.”

Baghdad does not want to create instability following years of calm. However, “what's happening now is risking the equilibrium that Iraq has enjoyed", Mr Mansour added.

“So for this reason, armed groups – certainly senior PMF groups – have tried to rhetorically signal their support for Iran and condemn Israel.”

Iraq’s powerful militias played an active role early in the Israel-Gaza war, launching attacks on US bases and claiming that they fired rockets towards Tel Aviv.

But that momentum shifted following a quiet, unannounced truce that led Iran-backed factions to halt attacks on US forces. The truce, involving Washington, Baghdad and Tehran, was reached in February 2024.

Mina Aldroubi contributed to this report from Abu Dhabi

The specs

Engine: 3.5-litre V6

Power: 272hp at 6,400rpm

Torque: 331Nm from 5,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.7L/100km

On sale: now

Price: Dh149,000

 

COMPANY%20PROFILE
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Tree of Hell

Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla

Director: Raed Zeno

Rating: 4/5

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Yemen's Bahais and the charges they often face

The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.

The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran. 

Today, some 2,000 Baha'is reside in Yemen, according to Insaf. 

"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said. 

Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer. 

The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy. 

 

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

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

Sonchiriya

Director: Abhishek Chaubey

Producer: RSVP Movies, Azure Entertainment

Cast: Sushant Singh Rajput, Manoj Bajpayee, Ashutosh Rana, Bhumi Pednekar, Ranvir Shorey

Rating: 3/5

Maestro
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How it works

Each player begins with one of the great empires of history, from Julius Caesar's Rome to Ramses of Egypt, spread over Europe and the Middle East.

Round by round, the player expands their empire. The more land they have, the more money they can take from their coffers for each go.

As unruled land and soldiers are acquired, players must feed them. When a player comes up against land held by another army, they can choose to battle for supremacy.

A dice-based battle system is used and players can get the edge on their enemy with by deploying a renowned hero on the battlefield.

Players that lose battles and land will find their coffers dwindle and troops go hungry. The end goal? Global domination of course.

Profile of Udrive

Date started: March 2016

Founder: Hasib Khan

Based: Dubai

Employees: 40

Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

Updated: June 21, 2025, 9:27 AM