The US Capitol in Washington. The defence bill stipulates that any Iranian weapons seized will be transferred to American military partners. Bloomberg
The US Capitol in Washington. The defence bill stipulates that any Iranian weapons seized will be transferred to American military partners. Bloomberg
The US Capitol in Washington. The defence bill stipulates that any Iranian weapons seized will be transferred to American military partners. Bloomberg
The US Capitol in Washington. The defence bill stipulates that any Iranian weapons seized will be transferred to American military partners. Bloomberg

US Congress passes 2026 defence bill - what does it say about the Middle East?


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The US Congress on Wednesday passed the National Defence Authorisation Act (NDAA) for the fiscal year 2026, which outlines Washington's defence priorities and spending for the coming 12 months.

The Senate passed the $901 billion legislation with a vote of 77 to 20. The bill was passed by the House of Representatives last week and will now head to President Donald Trump's desk to be signed into law.

The bill contains a great deal about the Middle East and how the US will approach the region from a defence perspective in the coming year.

It repeals the so-called Caesar Act sanctions on Syria, which were signed into law in 2019 and targeted members of the regime of former president Bashar Al Assad who were accused of war crimes and human rights abuse. The final text of the defence bill was released at the weekend and the legislation could face a vote as early as this week.

The repeal of the sanctions comes with conditions, however: it mandates a review of the situation in Syria every 180 days over the course of four years to ensure Damascus is taking appropriate action in areas such as combating ISIS, removing foreign fighters from government roles and upholding religious and ethnic minority rights.

The legislation also orders an annual report on ISIS detention centres in Syria, as well as a review of US military presence in the country and an analysis of the prospect of reopening the US embassy.

On Iraq, it eliminates the Iraq War Authorisation for Use of Military Force (AUMF). The AUMF gave the president the power to pursue those responsible for the terror attacks of September 11, 2001, which the Bush administration - wrongly - had partially blamed on Saddam Hussein's Iraq.

It also directs support for Iraqi security forces but conditions this aid on its progress in working to push back against the country's powerful Iran-backed militias. It also strengthens operations aimed at countering Tehran's influence throughout the Middle East.

On Lebanon, the bill contains a stipulation that aid to the Lebanese military becomes contingent on its progress in disarming Hezbollah.

It adds that the Secretary of Defence and the head of US Central Command must submit a report by June 30, 2026, on plans to continue financial and material aid, to include a “rubric for assessing the progress of the Lebanese Armed Forces in disarming Hezbollah, and options for suspending assistance to the Lebanese Armed Forces if it is determined that such forces are unwilling to act to disarm Hezbollah”.

The legislation also amends a subsection of the 2016 NDAA on defence aid to Lebanon by adding “such support may be used only to promote the ability of the armed forces of Lebanon to counter the threat posed by Lebanese Hezbollah and any other terrorist organisation that threatens the security of Lebanon and its neighbours”.

On Israel, the bill focuses on strengthening the alliance through defence co-operation, including funding for the Iron Dome, David's Sling and Arrow anti-missile systems and counter-drone systems.

It also extends the US-Israel Anti-Tunnel Co-operation programme until 2028. Militant groups such as Hamas have built extensive tunnel networks under Gaza to avoid detection by the Israeli military. Drug cartels and human traffickers have also created an extensive series of tunnels along the US-Mexico border.

In addition, the bill directs the Secretary of Defence, the Secretary of State and the Director of National Intelligence to assess the impact of international arms embargoes on Israel.

On Yemen, the bill states any Iranian weapons seized from the Houthi rebels will be transferred to military partners.

In March, the US began almost daily strikes on Yemen's Houthi rebels in a bid to ensure the safety of international shipping in the Red Sea and in defence of Israel. The Houthis had been harassing ships crossing the Red Sea and launching drone attacks against Israel in solidarity with beleaguered Palestinians in Gaza.

The bio

Job: Coder, website designer and chief executive, Trinet solutions

School: Year 8 pupil at Elite English School in Abu Hail, Deira

Role Models: Mark Zuckerberg and Elon Musk

Dream City: San Francisco

Hometown: Dubai

City of birth: Thiruvilla, Kerala

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ELECTION%20RESULTS
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ARGENTINA SQUAD

Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada
Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez

The specs

Engine: 5.0-litre V8

Power: 480hp at 7,250rpm

Torque: 566Nm at 4,600rpm

Transmission: 10-speed auto

Fuel consumption: L/100km

Price: Dh306,495

On sale: now

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.”

While you're here
The specs

Price: From Dh180,000 (estimate)

Engine: 2.0-litre turbocharged and supercharged in-line four-cylinder

Transmission: Eight-speed automatic

Power: 320hp @ 5,700rpm

Torque: 400Nm @ 2,200rpm

Fuel economy, combined: 9.7L / 100km

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Updated: December 17, 2025, 7:22 PM