Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
July 10, 2022
US President Joe Biden is opening a new chapter in relations with the Middle East, forced to do so by the developments in Ukraine and Iran.
The Biden administration is anxious about any potential collapse of nuclear talks with Iran, and how Tehran might react if they do not result in a new nuclear agreement. Moreover, the failure of the Vienna talks – now taking place in Doha – would be Mr Biden’s own: he has invested a lot of political capital in reviving the nuclear deal previously torn up by his predecessor, Donald Trump. It does not help matters that a failure to reach a deal with Iran would give ammunition to Mr Trump.
In a bid to find something to write home about, Mr Biden is visiting the region this week. In Riyadh, he is set to meet with the Saudi King and Crown Prince, and attend a GCC Summit for which Egypt, Jordan, and Iraq are also invited. But any reset in Mr Biden’s troubled relationship with Arab states, who are concerned by his administration’s unsure footing on issues such as Iran, is unlikely to be the result of some friendly initiative on Washington’s part. Rather, it will be more about pragmatism, and is therefore unlikely to result in new strategic coherence.
This would be a disappointment for Washington, which is concerned first and foremost with gaining allies in its effort to counter Russia, particularly in light of the latter’s ongoing war in Ukraine. In Moscow’s view, the war in Ukraine will culminate with a Russian victory no matter the cost, including the cost of international isolation.
One of the ways Russia could seek to regain the initiative is in the Middle East, particularly in Syria. Moscow has repeatedly communicated to the Israeli government its frustration with airstrikes attributed to Israel, and with the Israeli stance on Ukraine. Last week, the Russian government halted the Russian operations of the Jewish Agency, which is in charge of organising the emigration of Jews to Israel. The message to the Israeli government could be that Russia has little tolerance left for its military operations in Syria, including those targeting Iran and Hezbollah’s assets.
Iran’s Islamic Revolutionary Guard Corps (IRGC) is, in turn, increasingly well prepared for action out of Syria, believing the latter to be the most advantageous front for retaliatory strikes on Israel. The broad outline of Russia’s policies in the Middle East is its reliance on a strategic partnership with Iran and the development of Iranian capabilities in the region to become a strong pillar of a Russian-Chinese-Iranian troika. Apart from that, the Kremlin sees good relations with the Arab states as crucial, but it realises that the strategic relationship between them and the US remains the cornerstone of many of their policies, despite setbacks whether Joe Biden or Donald Trump is in the White House.
The Iranian nuclear talks remain an elephant in the room in Biden's discussions with the US's Arab allies. Reuters
The Biden administration is anxious about any potential collapse of nuclear talks with Iran, and how Tehran might react if they do not result in a new nuclear agreement
Even so, under Barack Obama US-Arab relations were often strained, and the Biden administration has brought back that atmosphere somewhat. It seemed, until the war in Ukraine started that Mr Biden had probably not thought of changing this. But Putin’s war on Ukraine forced the Biden administration – many of whose officials had served under Mr Obama – to seriously seek reviving strategic relations with Arab states, from economic to energy, political, security, and military ties as well as arms deals. But Mr Biden has made much of his discomfort with Saudi Arabia, and may show it when meeting with Crown Prince Mohammed bin Salman. He will be wary of the campaign in the American liberal media to watch his every step in Riyadh.
It is not just the Biden administration that needs the US relationship with Arab states restored, however; many American allies want to see that, too. European Nato members wants to see it partly because of Europe’s need to offset lost Russian oil with supplies not only from the Gulf but also Iran. The latter requires a strong commitment across the region to seeing an Iranian nuclear deal finalised. And Turkey, a Nato member and regional US ally, has already paved the way for improving its own complicated relations with states like Egypt, the UAE, Saudi Arabia and Israel, opening a new chapter and marking a major shift in Middle Eastern relations. And of course Israel has embarked on new relationships with Gulf states. It hopes the Biden administration will continue the work of the Trump administration on the Abraham Accords, with the grand prize being future ties with Saudi Arabia.
There is also much to be gained in America’s relationship with Iran. Tehran is anxious about Mr Biden’s regional tour, and the prospect of warmer US-Arab relations. It is losing its grip in some of its areas of influence – notably in Iraq, which will attend the GCC Summit. However, Iran also knows that the Gulf states have little desire to have a troubled relationship with it, and ultimately want stable relations based on non-interference. An ongoing Saudi-Iranian dialogue is evidence of this, and what the GCC states want is a shift in Iranian foreign policy doctrine. This today seems completely unlikely because the IRGC will not easily abandon its partners, proxies, and projects in Syria, Lebanon, Iraq, and Yemen. But with the right diplomatic and strategic engagement with the Middle East, Washington could play a role in making it happen.
A strategic reconfiguration could be afoot in the Middle East. But any outcome will largely depend on the direction in which the Biden administration’s compass will settle.
The biog:
From: Wimbledon, London, UK
Education: Medical doctor
Hobbies: Travelling, meeting new people and cultures
Favourite animals: All of them
If you go
The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.
The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.
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
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
Stage: Embarking on a Series A round to raise $5 million in the first quarter of 2019 with a 20 per cent stake
Investors: Seed round was self-funded with “millions of dollars”
VERSTAPPEN'S FIRSTS
Youngest F1 driver (17 years 3 days Japan 2014) Youngest driver to start an F1 race (17 years 166 days – Australia 2015) Youngest F1 driver to score points (17 years 180 days - Malaysia 2015) Youngest driver to lead an F1 race (18 years 228 days – Spain 2016) Youngest driver to set an F1 fastest lap (19 years 44 days – Brazil 2016) Youngest on F1 podium finish (18 years 228 days – Spain 2016) Youngest F1 winner (18 years 228 days – Spain 2016) Youngest multiple F1 race winner (Mexico 2017/18) Youngest F1 driver to win the same race (Mexico 2017/18)
Sheffield Wednesday v Manchester City
Reading/Cardiff City v Sheffield United
Chelsea v Shrewsbury Town/Liverpool
West Bromwich Albion v Newcastle United/Oxford United
Leicester City v Coventry City/Birmingham City
Northampton Town/Derby County v Manchester United
Southampton/Tottenham Hotspur v Norwich City
Portsmouth v Arsenal
MATCH INFO
Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
Syria squad
Goalkeepers: Ibrahim Alma, Mahmoud Al Youssef, Ahmad Madania. Defenders: Ahmad Al Salih, Moayad Ajan, Jehad Al Baour, Omar Midani, Amro Jenyat, Hussein Jwayed, Nadim Sabagh, Abdul Malek Anezan. Midfielders: Mahmoud Al Mawas, Mohammed Osman, Osama Omari, Tamer Haj Mohamad, Ahmad Ashkar, Youssef Kalfa, Zaher Midani, Khaled Al Mobayed, Fahd Youssef. Forwards: Omar Khribin, Omar Al Somah, Mardik Mardikian.
