Trump, the UN and the art of the deal: Could the world body be Doge's next victim?


Adla Massoud
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By Manhattan’s East River sits a stretch of concrete, glass and idealism: the UN's headquarters. Conceived in the postwar optimism of 1945 and inaugurated in 1952, it was once called “the most important site in the world”.

Now, depending on your viewpoint, it’s either an architectural relic, the best rent-controlled deal on the island, or a fault line where history’s tectonic plates collide. And despite it being an international body, the slash-and-burn spending policy of the current US administration could shake the UN to its core.

The UN may not always solve the world’s problems, but it has the best front-row seats. It occupies nearly seven hectares of prime Manhattan real estate, overlooking Midtown’s towers. Yet while new skyscrapers climb higher each year and apartments in neighbouring Turtle Bay fetch seven figures, the Secretariat building’s Cold War gravitas feels frozen in time.

Its corridors are filled with soft power and stiff suits; its cafeteria serves sushi and curry and a lingering sense of bureaucratic fatigue. Its flags flap in the Hudson breeze. Tourists snap photos of its iconic curve. Inside, translators juggle idioms; delegates trade statements and censorious frowns. And developers eye it like chess players eye the centre of the board.

This patch of land, donated by the Rockefellers, has long stood as a neutral ground. It’s not quite America – UN employees don’t pay New York City taxes, and parking tickets accrue like diplomatic cables, often unpaid. Still, the Big Apple, in its usual transactional shrug, puts up with it. After all, what other place on Earth would be able to effortlessly host five simultaneous translations of global disagreement?

“It’s hard to think of New York without the UN,” one passer-by told The National. Another said: “It makes New York feel like the capital of the world.”

But what if, whispers a certain breed of real estate fantasist, the UN packed up and moved to Geneva or even Nairobi? Behind security barricades, the UN remains as much a symbol as it is a seat of power: multilateral in an age of unilateral demands.

US President Donald Trump's administration is weighing a proposal to slash the State Department’s budget by nearly half, a move that would gut international aid and strip the UN of critical funding.

Washington, the UN's largest contributor, is in arrears: it owes nearly $1.5 billion for the regular UN budget and nearly $1.2 billion for the peacekeeping budget for the current fiscal year. Reports indicate that the White House budget office has recommended cutting funding for UN peacekeeping missions, pointing to operational failures in Lebanon, Mali and elsewhere.

“The US role in financing and politically backstopping the UN is so huge, that if Washington walks away nobody can fully compensate for it,” said Richard Gowan, UN director at the International Crisis Group.

A top UN diplomat put it bluntly: “The UN shouldn’t wait for Elon Musk to come here. They should start making changes now.” The diplomat was referring to the Tesla co-founder and billionaire adviser to Mr Trump, who has been slashing budgets, firing thousands and shuttering offices in an attempt to eliminate government waste.

Some UN insiders fear Elon Musk, the billionaire adviser to US President Donald Trump, could wield his budget cuts on America's funding to the UN. Reuters
Some UN insiders fear Elon Musk, the billionaire adviser to US President Donald Trump, could wield his budget cuts on America's funding to the UN. Reuters

Another diplomat told The National: “The UN has lost its way” – the kind of observation offered not in anger, but with the weary certainty of someone who’s seen too many resolutions passed and promptly forgotten.

“The Trump administration threatens to push it over a cliff edge,” said Mr Gowan. “Many Republicans deeply distrust the institution and are angry over UN criticism of Israel over Gaza and are coming for revenge.”

He added: “Multilateral bodies like the UN don't really matter in Trump's worldview.”

The UN is already teetering on the edge of a liquidity crisis. UN Secretary General Antonio Guterres last month said he is seeking ways to improve efficiency and cut costs as the world body turns 80 this year. The machinery of global diplomacy, it seems, was built under the assumption that America would always be there to foot the bill.

The rumoured US cuts come as Hugh Dugan, a former diplomat at the US mission to the UN and a former special presidential envoy for hostage affairs at the State Department, leads an initiative aimed at reforming the world body.

As the founder of Doge-UN – the UN-focused offshoot of Mr Musk's Department of Government Efficiency – Mr Dugan aims to tackle “bureaucratic bloat, waste and inefficiencies” at the world body, and propose cost-cutting measures.

“We need much more accountability for the resources that are provided to the UN,” Mr Dugan declared, his tone suggesting that he views the current system as less an international body than a fiscal black hole.

Ukraine's President Volodymyr Zelenskiy addresses the 78th Session of the UN General Assembly in New York in 2023. Reuters
Ukraine's President Volodymyr Zelenskiy addresses the 78th Session of the UN General Assembly in New York in 2023. Reuters

“The United States is undertaking this type of exercise in Washington, through the Doge exercise, to get into the books, into the management records, and to find out if there is accountability and where there is none, to stop the organisation until it provides the type of effective and efficient service that our taxpayers are expecting.”

The Trump administration, he noted, is already conducting a sweeping review of the UN, due to conclude by the end of August. “When the President speaks at the General Assembly in September,” Mr Dugan said, “He’s going to identify the United States’ expectations of the United Nations.”

Mr Dugan insisted that the US will not withdraw from the organisation but did float another idea: moving certain UN offices to different locations around the world.

“It would cost much less,” he pointed out, “because the salaries in New York are given a 40 per cent additional allowance for the cost of living,” he said.

One Republican senator has even introduced long-shot legislation that would pull the US from the UN entirely. Senator Mike Lee’s Disengaging Entirely from the United Nations Debacle (Defund) Act “addresses grave issues of national sovereignty and fiscal accountability which have plagued US involvement in the UN.”

Mr Gowan noted that the UN is going to have to shed a lot of jobs and merge a lot of its departments and agencies to reduce costs to continue to function.

“I worry that the UN will face pressure to cut quickly and may not make cost reductions in a logical or strategic way,” he said. “At least Guterres, who initially seemed unready for the Trump challenge, is now pushing his staff to think boldly about reform. He has recognised he needs to get a grip on the process.”

But whether the UN’s entrenched bureaucracy would submit to such upheaval remains an open question. For now, the only certainty is that the reckoning is coming.

Who has lived at The Bishops Avenue?
  • George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
  • Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
  • Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
  • Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills. 
Hunting park to luxury living
  • Land was originally the Bishop of London's hunting park, hence the name
  • The road was laid out in the mid 19th Century, meandering through woodland and farmland
  • Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds

 

The design

The protective shell is covered in solar panels to make use of light and produce energy. This will drastically reduce energy loss.

More than 80 per cent of the energy consumed by the French pavilion will be produced by the sun.

The architecture will control light sources to provide a highly insulated and airtight building.

The forecourt is protected from the sun and the plants will refresh the inner spaces.

A micro water treatment plant will recycle used water to supply the irrigation for the plants and to flush the toilets. This will reduce the pavilion’s need for fresh water by 30 per cent.

Energy-saving equipment will be used for all lighting and projections.

Beyond its use for the expo, the pavilion will be easy to dismantle and reuse the material.

Some elements of the metal frame can be prefabricated in a factory.

 From architects to sound technicians and construction companies, a group of experts from 10 companies have created the pavilion.

Work will begin in May; the first stone will be laid in Dubai in the second quarter of 2019. 

Construction of the pavilion will take 17 months from May 2019 to September 2020.

Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

In numbers

1,000 tonnes of waste collected daily:

  • 800 tonnes converted into alternative fuel
  • 150 tonnes to landfill
  • 50 tonnes sold as scrap metal

800 tonnes of RDF replaces 500 tonnes of coal

Two conveyor lines treat more than 350,000 tonnes of waste per year

25 staff on site

 

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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

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World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

Updated: April 28, 2025, 5:23 PM