Protesters hold Palestinian flags and a sign reading 'Palestine will live', during a rally in the Place de la Republique in Paris on June 10. AFP
Protesters hold Palestinian flags and a sign reading 'Palestine will live', during a rally in the Place de la Republique in Paris on June 10. AFP
Protesters hold Palestinian flags and a sign reading 'Palestine will live', during a rally in the Place de la Republique in Paris on June 10. AFP
Protesters hold Palestinian flags and a sign reading 'Palestine will live', during a rally in the Place de la Republique in Paris on June 10. AFP

US discourages world leaders from taking part in Saudi-French UN conference on Palestinian statehood


Adla Massoud
  • English
  • Arabic

US President Donald Trump's administration is actively discouraging world leaders from taking part in a Saudi-French conference on Palestinian statehood scheduled for next week at the UN.

“This conference would be counterproductive and we will encourage others not to participate,” a State Department representative told The National.

French officials said President Emmanuel Macron is leaning toward formally recognising a Palestinian state ahead of the June 17–20 conference, which France is co-hosting with Saudi Arabia.

Mr Macron, who is expected to attend the event, has said he is determined to recognise a Palestinian state, but also set out several conditions, including the “demilitarisation” of Hamas.

The goal of the conference is to establish the foundations for a plan towards a Palestinian state, with guarantees for Israel's security.

According to Reuters, the US warned countries in a memo that taking “anti-Israel actions” after the conference could be seen as opposing Washington's foreign policy interests and may lead to diplomatic repercussions.

“The United States opposes any steps that would unilaterally recognise a conjectural Palestinian state, which adds significant legal and political obstacles to the eventual resolution of the conflict and could coerce Israel during a war, thereby supporting its enemies,” the memo read.

Britain, Canada, Australia, New Zealand and Norway imposed sanctions on Tuesday on two far-right Israeli cabinet ministers, Itamar Ben-Gvir and Bezalel Smotrich, accusing them of repeatedly inciting violence against Palestinians in the West Bank. The two ministers are settlers.

“The United States opposes the implied support of the conference for potential actions including boycotts and sanctions on Israel, as well as other punitive measures,” the memo read.

Israel has repeatedly denounced the conference, saying it rewards Hamas for the October 7 attack that started the Gaza war, and has pressed France not to recognise a Palestinian state.

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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

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

Updated: June 12, 2025, 8:47 AM