Recep Tayyip Erdogan poses with cabinet colleagues onboard Turkey's new drill ship Abdulhamid Han at Tasucu port in the Mediterranean city of Mersin in August. Reuters
Recep Tayyip Erdogan poses with cabinet colleagues onboard Turkey's new drill ship Abdulhamid Han at Tasucu port in the Mediterranean city of Mersin in August. Reuters
Recep Tayyip Erdogan poses with cabinet colleagues onboard Turkey's new drill ship Abdulhamid Han at Tasucu port in the Mediterranean city of Mersin in August. Reuters
Recep Tayyip Erdogan poses with cabinet colleagues onboard Turkey's new drill ship Abdulhamid Han at Tasucu port in the Mediterranean city of Mersin in August. Reuters


Turkey's zig-zag foreign policy zeroes in on Syria


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  • Arabic

November 29, 2022

Turkey’s latest foreign policy moves have left me feeling a bit of deja vu. Much like six months ago, Ankara has again been renewing once-frigid regional ties, mulling another assault on Kurdish militants in northern Syria, and patting itself on the back for nailing down the Ukraine grain deal.

This time around, Ankara’s new friend is in Cairo, rather than Tel Aviv or Yerevan. And there appears to be more urgency to the proposed military operation against the YPG after the recent terrorist attack in the heart of Istanbul, not to mention the looming election.

Turkey and Egypt have, of course, been at odds since the 2013 removal of Mohammed Morsi’s Muslim Brotherhood government, after which Ankara welcomed several of the group’s exiled leaders. Rapprochement talks began nearly two years ago and had waxed and waned until last week, when Egyptian President Abdel Fattah El Sisi and his Turkish counterpart shook hands at a World Cup reception hosted by Qatari Emir Sheikh Tamim.

It’s widely thought the Qatari leader organised the meeting, which was seen as a watershed, as two regional powers appeared to set aside their differences and embrace co-operation. With the Brotherhood largely defunct, the main issue had been Libya, where Ankara supported the Tripoli-based GNA in its fight against Field Marshal Khalifa Haftar, backed by Egypt and other Arab states.

Relatives mourn over the caskets of 11 people killed in Turkish air strikes during their funeral in Al Malikiyah in Syria's Hasakah province this month. AFP
Relatives mourn over the caskets of 11 people killed in Turkish air strikes during their funeral in Al Malikiyah in Syria's Hasakah province this month. AFP

With Libya now mostly peaceful and headed, hopefully, towards elections, that concern, too, has been largely settled. Energy resources in the Eastern Mediterranean has been their other point of contention. In 2020, in response to Turkey’s late 2019 maritime borders agreement with Libya’s GNA, Greece and Egypt agreed on their own maritime deal, and Cairo joined the East Med Gas Forum. Ankara was none too pleased about these moves.

Thus, it came as something of a surprise that the day after the Sisi-Erdogan handshake, Greek Foreign Minister Nikos Dendias arrived in Cairo to sign a maritime search-and-rescue agreement. Turkey quickly denounced the deal, blaming Greece’s desire to further its maximalist claims. Yet, Ankara refrained from criticising Egypt, perhaps because just a month prior Turkey and Libya had signed a follow-up deal of their own, on oil and gas exploration.

Setting aside Greece, which is a unique foreign policy file for Turkey, Ankara has mostly taken a softly-softly approach across the region of late. Since mid-2020, Turkey has improved relations with Saudi Arabia, the UAE, Israel, Armenia and Egypt.

It’s not far-fetched to imagine Turkey, Syria, Lebanon, Egypt, Libya and Israel aligned on maritime borders

Why the turn to diplomacy? Partly for financial support during an economic crisis. And indeed, Turkey now looks set to receive $5 billion from Saudi Arabia and $10 billion from Qatar, with more likely to come. But it is also to increase regional amity and stability, which tends to boost co-operation and economic growth.

What’s remarkable is that Turkey pulled off its diplomatic breakthroughs without sacrificing its independent foreign policy. Cairo had reportedly set two conditions for renewed ties: a full Turkish withdrawal from Libya and the handing over of exiled Brotherhood leaders. Similarly, Israel is widely thought to have told Turkey it had to shut down the Istanbul offices of Hamas. Ankara did none of these things, yet still improved ties.

Turkey may have made some yet-to-be revealed promises, but this bold balancing act tracks with its broader foreign policy positioning. Ankara has found that it can go against the western grain – boosting trade with, rather than sanctioning, Russia; attacking the US-partnered YPG; refusing to approve new Nato members; and sidelining free speech – and suffer minimal consequences as long as it simultaneously embraces the West’s agenda, as with the grain deal, hosting millions of refugees, supporting Ukrainian sovereignty and renewing ties with the likes of Saudi Arabia and Israel.

A zig for every zag seems to work just fine. Next up could be a meeting between Mr Erdogan and Syrian President Bashar Al Assad, possibly brokered by Russian President Vladimir Putin. Turkish officials have said a summit could happen before Turkey’s upcoming elections, set for June, and it would probably be seen as another example of Ankara thumbing its nose at the West.

Syrian President Bashar Al Assad meets Russian President Vladimir Putin in Damascus in 2020. AP Photo
Syrian President Bashar Al Assad meets Russian President Vladimir Putin in Damascus in 2020. AP Photo

So what might be the zag? Last month, neighbours and long-time foes Israel and Lebanon settled their long-standing maritime dispute. Now there’s talk that Lebanon and Syria will soon meet to nail down their borders in the Mediterranean. Meanwhile, Egypt and the Palestinian Authority, along with the unlikeliest of partners, Israel and Hamas, are set to seal a $1.4 billion deal to extract gas off the coast of Gaza.

Suddenly it’s not too far-fetched to imagine Turkey, Syria, Lebanon, Egypt, Libya and Israel largely aligned on maritime borders and Mediterranean energy. And with the backing of Gulf states, this group might be able to bring Greece and Cyprus on-side as well.

You might recall that it was Mr Putin who told Mr Erdogan, just last month, that his vision of Turkey as an energy hub could be made real. At a meeting in north-eastern Syria on the weekend, Russia urged the YPG to withdraw southward and allow Syrian regime forces to take control of a buffer zone along the Turkish border. Such a shift would eliminate the need for another Turkish incursion and clear the way for an Assad-Erdogan summit.

The timing is good, as Ankara expects to resume drilling in the Mediterranean in the coming days and its Black Sea gas discovery is expected to come online in the next few months. With a bit of luck, Mr Erdogan might soon be well positioned to achieve his gas hub dreams and potentially provide Europe – struggling these days to wean itself from Russian gas – with a much-needed energy lifeline.

Zig, zag, zoom.

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

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Villains
Queens of the Stone Age
Matador

The Year Earth Changed

Directed by:Tom Beard

Narrated by: Sir David Attenborough

Stars: 4

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PROFILE OF SWVL

Started: April 2017

Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh

Based: Cairo, Egypt

Sector: transport

Size: 450 employees

Investment: approximately $80 million

Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani

 

 

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
Updated: November 29, 2022, 7:36 AM