• The UAE announced it is withdrawing all remaining counter-terrorism teams from Yemen hours after a Saudi strike hit armoured vehicles belonging to its forces in the southern port of Mukalla.
  • The UAE counter-terrorism teams had played a "crucial role" in combatting Al Qaeda and other insurgents in Yemen, defence experts told The National, having coordinated with American and British forces.
  • Tension between Yemeni leaders has been simmering for weeks, but the latest rift took an unprecedented turn yesterday morning with the strike and an announcement by the Presidential Leadership Council chief Rashid Al Alimi that he was seeking to cancel the joint defence agreement with the UAE. Four of the eight PLC members denounced the move.
  • Turkey's President Recep Tayyip Erdogan announced that Ankara plans to begin drilling for oil off Somalia's coast and to build a spaceport in the country in 2026. The move comes amid criticism of Israel for recognising Somaliland, a breakaway territory.
  • Egypt's Deputy Prime Minister Kamel El Wazir concluded a milestone visit to Djibouti this week, where he finalised a deal to develop the Doraleh port on the Gulf of Aden.
  • The US has expressed concern over the stance taken by the Sudanese Armed Forces over a truce in Sudan and the preconditions they insist on. SAF chief Gen Abdel Fattah Al Burhan has increased his insistence that the war, now deep into its third year, will only end when the rival paramilitary group Rapid Support Forces (RSF) is defeated.
  • Protests over the cost of living in Iran spread to several universities yesterday, semi-official media reported. President Masoud Pezeshkian has tasked the interior minister to arrange talks with protesters in order to discuss their "legitimate demands".
  • Syrian authorities arrested 21 people allegedly linked to the former regime of Bashar Al Assad in Latakia, as a curfew took hold in the city after violence that killed four people this week.
  • US forces and allies have killed or captured about 25 ISIS operatives in Syria this month after large-scale strikes across the country, Central Command said.
  • Israel said it was suspending more than 30 humanitarian organisations from operating in Gaza, including Doctors Without Border and Care, for failing to comply with new registration rules. The groups have said the timing is devastating given the enormous humanitarian needs in the war-torn enclave.
  • More than 350 suspected ISIS members were arrested in large-scale operations across Turkey as authorities there crack down on suspected militants. Ankara has launched a series of operations after reports that operatives were planning attacks targeting New Year celebrations.
  • Iraq's parliament elected Farhad Al Atroushi as second deputy speaker after two failed rounds of voting. Sunni politician Haibat Al Halbousi was chosen as Speaker on Monday, while Babil governor Adnan Feyhan, a member of the US-sanctioned and Iran-aligned Asaib Ahl Al Haq group, was elected first deputy speaker. With all posts filled, parliament opened a three-day window for parties to submit their candidates for president.

More goings-on

  • The UK Foreign Secretary has ordered an urgent review after “serious information failures” led to British-Egyptian activist Alaa Abd El Fattah being allowed into the country despite posting anti-Semitic and anti-British tweets.
  • The number of Jews from western states moving to Israel increased in 2025, while an overall drop in immigration was recorded as arrivals from Russia declined, Israeli Immigration Minister Ofir Sofer said.
  • The US announced sanctions targeting Iran's drone trade with Venezuela as Washington increases pressure on both countries.
  • New Year's Eve celebrations around the region

This newsletter was compiled by Aveen Karim, Deputy Foreign Editor.

The National produces a variety of newsletters across an array of subjects. To get the best of our coverage straight to your inbox, sign up to them here.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
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

Karwaan

Producer: Ronnie Screwvala

Director: Akarsh Khurana

Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar

Rating: 4/5

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IF YOU GO

The flights

FlyDubai flies direct from Dubai to Skopje in five hours from Dh1,314 return including taxes. Hourly buses from Skopje to Ohrid take three hours.

The tours

English-speaking guided tours of Ohrid town and the surrounding area are organised by Cultura 365; these cost €90 (Dh386) for a one-day trip including driver and guide and €100 a day (Dh429) for two people. 

The hotels

Villa St Sofija in the old town of Ohrid, twin room from $54 (Dh198) a night.

St Naum Monastery, on the lake 30km south of Ohrid town, has updated its pilgrims' quarters into a modern 3-star hotel, with rooms overlooking the monastery courtyard and lake. Double room from $60 (Dh 220) a night.

 

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