An explosives specialist collects samples after a bomb blast in the village of Sitra, south of Manama, Bahrain (REUTERS/Hamad I Mohammed)
An explosives specialist collects samples after a bomb blast in the village of Sitra, south of Manama, Bahrain (REUTERS/Hamad I Mohammed)
An explosives specialist collects samples after a bomb blast in the village of Sitra, south of Manama, Bahrain (REUTERS/Hamad I Mohammed)
An explosives specialist collects samples after a bomb blast in the village of Sitra, south of Manama, Bahrain (REUTERS/Hamad I Mohammed)

Bahrain bomb raises hard questions


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The day after Iran’s foreign minister completed a three-stop tour of the Gulf, two police officers were killed in a bombing in Bahrain. Are the two incidents linked? Of course not. But is there a commonality between them? Almost certainly.

Start with Mohammad Javad Zarif, who spent the past week visiting Kuwait, Qatar and Iraq. Notably absent from that list was Saudi Arabia, the regional powerhouse, and Bahrain, where Mr Zarif would most assuredly not be welcome.

It has been widely presumed that Mr Zarif’s visits were meant to alleviate concerns by the Gulf states that Iran, emboldened by a nuclear deal with the West and flushed with billions released from its impounded foreign bank accounts, would redouble its efforts at meddling in the Middle East.

Such fears have only been exacerbated by comments from Iran’s supreme leader Ayatollah Khamenei, who pointedly said after the deal was concluded that there would be “no change” in Iran’s relations, and that the country would continue to support “oppressed people” – seen as a reference to Iran’s clandestine support for terrorism in Bahrain, among other states.

(Mr Khamenei has not only been impolitic about the Middle East – this week his official Twitter account published a bizarre mock-up of Barack Obama holding a gun to his own head.)

Last week, Bahrain arrested two men for smuggling military explosives. The men confessed to receiving the shipment from Iran. Then, on Tuesday, the two police officers were killed by a bomb using similar military explosives to those discovered with the smugglers.

Bahrain, and indeed its neighbours in the Gulf, could be forgiven for wondering if the words that really represent Iran are not the diplomatic ones Mr Zarif speaks, but the more aggressive ones attributed to Mr Khamenei.

This is the problem with Iran’s diplomacy. Rather than talking peace and seeking compromise, the country instead continues to foment problems with its neighbours. In Iraq, in Bahrain, in Syria, in Lebanon and in Yemen, the hand of Iran can be detected, and the result of its meddling in every one of those countries is more disruption, more loss of life, more instability. Iran, it appears, cannot do politics any other way.

While you're here
UAE cricketers abroad

Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.

Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.

Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.

MATCH INFO

Aston Villa 1 (Konsa 63')

Sheffield United 0

Red card: Jon Egan (Sheffield United)

 

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

While you're here

Michael Young: Where is Lebanon headed?

Kareem Shaheen: I owe everything to Beirut

Raghida Dergham: We have to bounce back

The Africa Institute 101

Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction. 

South and West: From a Notebook
Joan Didion
Fourth Estate 

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ITU Abu Dhabi World Triathlon

For more information go to www.abudhabi.triathlon.org.

Formula One top 10 drivers' standings after Japan

1. Lewis Hamilton, Mercedes 306
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 234
4. Daniel Ricciardo, Red Bull 192
5. Kimi Raikkonen, Ferrari 148
6. Max Verstappen, Red Bull 111
7. Sergio Perez, Force India 82
8. Esteban Ocon, Force India 65
9. Carlos Sainz Jr, Toro Rosso 48
10. Nico Hulkenberg, Renault 34

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