The administration of US President Donald Trump says that countries want investment, not handouts. AFP
The administration of US President Donald Trump says that countries want investment, not handouts. AFP
The administration of US President Donald Trump says that countries want investment, not handouts. AFP
The administration of US President Donald Trump says that countries want investment, not handouts. AFP

Marco Rubio defends USAID closure as uncertainty surrounds future help for poorer countries


Thomas Watkins
  • English
  • Arabic

US Secretary of State Marco Rubio has defended the closure of the US Agency for International Development, which officially shut its doors on Tuesday after more than six decades of assistance to poorer countries.

Five months after Elon Musk called USAID a “criminal organisation” and said he had fed it into a “wood chipper”, the agency started by president John F Kennedy and credited with saving millions of lives around the globe no longer exists.

Its remaining functions have been absorbed into the State Department, which will oversee a new “America First” approach to international aid.

In a statement, Mr Rubio gave parts of the Middle East and North Africa as examples of places that have received US aid but held a negative view of America.

Since 1991, “more than $89 billion invested in the Middle East and North Africa left the US with lower favourability ratings than China in every nation but Morocco", Mr Rubio said. “The agency’s expenditure of $9.3 billion in Gaza and the West Bank since 1991, whose beneficiaries included allies of Hamas, has produced grievances rather than gratitude towards the United States.”

US Secretary of State Marco Rubio. Reuters
US Secretary of State Marco Rubio. Reuters

Beyond creating a globe-spanning “NGO industrial complex” at taxpayer expense, USAID has little to show since the end of the Cold War, he said.

“Development objectives have rarely been met, instability has often worsened and anti-American sentiment has only grown.”

Mr Rubio said Americans should not pay taxes to fund failed governments far from the US.

“Moving forward, our assistance will be targeted and time-limited.”

USAID was known globally for providing life-saving help to poorer countries, including medicine to combat HIV and Aids. Its termination comes amid several new reports projecting that cuts to US aid could lead to millions of preventable deaths.

The Lancet, which analysed data from 133 low and middle-income countries from 2001 to 2023, estimates that USAID-funded programmes helped to prevent more than 91 million deaths over the past two decades, including 30 million among children.

If the cuts continue, researchers project 1.8 million excess deaths in 2025 alone, with a total of 14 million by 2030 – including 4.5 million children under the age of five.

“US aid cuts, along with the probable ripple effects on other international donors, threaten to abruptly halt and reverse one of the most important periods of progress in human development,” the study said.

Mr Rubio said USAID had marketed its programmes as a charity, rather than instruments of American foreign policy intended to advance US interests

Former presidents Barack Obama and George W Bush, and Irish singer Bono, on Tuesday questioned the Trump administration's closure of USAID, including funding cuts to a popular Aids and HIV programme known as Pepfar (the President's Emergency Plan for Aids Relief).

Mr Obama called the dismantling of USAID “inexplicable” and “a colossal mistake.”

Washington has been the world's largest humanitarian aid donor, amounting to at least 38 per cent of all contributions recorded by the UN. It disbursed $61 billion in foreign assistance last year, just over half of that through USAID, according to government data.

The State Department denied criticism, saying countries want investment opportunities, not handouts.

“We think that the best thing we can do, from a moral perspective, to lead to development and a betterment of life all around the world, is to invest in the peace and prosperity of those countries,” a senior State Department official told reporters.

“Which means trade, investment, sort of growing our bilateral connection that way so that's the administration's view at least.”

The official also said reports that Pepfar funding will not continue are inaccurate.

“The Secretary said, many, many times, Pepfar will continue, will become more efficient and we believe, more impactful,” the official said.

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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

Kathryn Hawkes of House of Hawkes on being a good guest (because we’ve all had bad ones)

  • Arrive with a thank you gift, or make sure you have one for your host by the time you leave. 
  • Offer to buy groceries, cook them a meal or take your hosts out for dinner.
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  • Entertain yourself so that your hosts don’t feel that they constantly need to.
  • Leave no trace of your stay – if you’ve borrowed a book, return it to where you found it.
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4. Daniel Ricciardo (Red Bull Racing) 107
5. Kimi Raikkonen (Ferrari) 83
6. Sergio Perez (Force India) 50
7. Max Verstappen (Red Bull Racing) 45
8. Esteban Ocon (Force India) 39
9. Carlos Sainz (Torro Rosso) 29
10. Felipe Massa (Williams) 22

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Updated: July 02, 2025, 1:16 PM