Yemenis (R) visit the grave of their relative of those who were killed in Yemen’s prolonged proxy war, at a cemetery in Sana'a, Yemen, 16 March 2023. The protracted war in Yemen is referred to as the Saudi Arabia-Iran proxy conflict as both warring parties, the Yemeni government and the Houthis, have been militarily and politically backed by Saudi Arabia and Iran respectively since 2015, claiming the lives of more than 377,000 people. EPA / YAHYA ARHAB
Yemenis (R) visit the grave of their relative of those who were killed in Yemen’s prolonged proxy war, at a cemetery in Sana'a, Yemen, 16 March 2023. The protracted war in Yemen is referred to as the Saudi Arabia-Iran proxy conflict as both warring parties, the Yemeni government and the Houthis, have been militarily and politically backed by Saudi Arabia and Iran respectively since 2015, claiming the lives of more than 377,000 people. EPA / YAHYA ARHAB
Yemenis (R) visit the grave of their relative of those who were killed in Yemen’s prolonged proxy war, at a cemetery in Sana'a, Yemen, 16 March 2023. The protracted war in Yemen is referred to as th
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
March 26, 2023
During his visit to Moscow last week, Chinese President Xi Jinping sought to balance Beijing’s strategic co-operation with Russia with a determination to preserve relations with the US-led West. While his visit brought the Russian government good economic and political tidings, Mr Xi’s messaging will also have been reassuring for the Biden administration.
The Chinese president cemented economic ties with Moscow that included trade agreements worth billions of dollars, crucial energy deals, and agreements to expand technical-military co-operation. He, however, was keen to make it clear to everyone that Beijing would not supply arms to Russia to be used in the war in Ukraine. He also made a distinction between co-operation between two countries with shared political outlooks, especially vis-a-vis the West, and appearing as though they are converging towards unity.
Mr Xi and Russian President Vladimir Putin agreed on the broad outlines of co-operation in international forums such as the UN and the G20. But they avoided issuing joint statements that the US might interpret as hostile. Rather, the communiques were vague and did not include any vows to stand up to Washington.
No agreement was reached or concrete steps were taken in the context of the Chinese peace plan for Ukraine. Instead, the two leaders reaffirmed general principles connected to the Beijing initiative. The two presidents did not tackle the details of the China-Russia-Iran friendship either, and stopped at reaffirming co-operation with Tehran, with Mr Putin welcoming the Chinese initiative for Saudi-Iranian normalisation.
All this means that Mr Xi is a skilled navigator determined to adhere to China’s strategic priorities, led by the Belt and Road Initiative that requires expanding the scope of global co-operation and narrowing the prospects of antagonistic blocs and axes.
China's President Xi Jinping with Russian President Vladimir Putin in Moscow. Reuters
Mr Xi's motorcade drives toward the Kremlin. AP
Mr Xi, accompanied by Russian Deputy Prime Minister Dmitry Chernyshenko, at a welcome ceremony at Moscow's Vnukovo Airport. AFP
Mr Xi arrives at Moscow's Vnukovo Airport. AFP
Both countries' national flags wave at the Russian-Chinese Greenwood business district in Moscow. EPA
Traditional Russian dolls depicting the presidents at a gift shop in central Moscow. AFP
Tehran needs Beijing’s support, economically, politically and strategically
China’s sponsorship of the Saudi-Iranian agreement, built on respect for states’ sovereignty, good neighbourly relations, and non-interference in others’ internal affairs, will come under intense regional and international scrutiny. If Beijing is unable to adequately monitor the implementation of the agreement, it will be vulnerable to diplomatic, political and economic accountability.
This is the bet made by those convinced about China’s commitment to the implementation of the Saudi-Iranian guarantees. From the Saudi standpoint, there are almost no impediments in the agreement. But from the Iranian standpoint, it depends on whether its regime intends to merely embellish its behaviour and soften its rhetoric, or change its approach and ideology, which will require abandoning its regional projects extending across Iraq, Lebanon, Syria and Yemen.
The first test will be in Yemen, where the war currently under way directly affects Saudi national security – and on which Beijing will need to be firm with the Iranian leadership. It will need to press Tehran to stop providing military support to the Houthi rebels, without the duplicity of public denials coupled with continued covert support. This requires putting a clear timetable for a comprehensive resolution on the Yemen crisis that has, so far, eluded American and UN-led efforts. If China fails in this endeavour, it will be exposed to criticism.
China has leverage over the Iranian regime, however some questions need answering: to what extent is Beijing willing to use this leverage? How willing is Tehran to abandon its raison d’etre, and whose policy in Yemen reflects the foundational core of its doctrine?
Then there is Lebanon, which does not appear to be at the top of anyone’s list of priorities. However, Hezbollah in and of itself is an obvious component in the process of de-escalation, accord-building and softening of behaviour that Iran possibly undertakes. The Tehran-backed proxy in Lebanon is at the heart of the test of whether the Iranian regime will modify the logic of its existence or merely embellish its behaviour temporarily, in order to buy itself time and survive.
China might not invest its full weight in a small country such as Lebanon. But it is not ignorant of the weight of Beirut’s relations with the Gulf countries, particularly Saudi Arabia. Accordingly, Beijing could be forced to expand its political and diplomatic compass if it is serious about being a guarantor of the Saudi-Iranian agreement.
Celebrations of the Iranian New Year Nowruz at the Azadi tower in Tehran last week. Reuters
Syria could pose a test for Arab-Iranian co-existence and compromises, with Damascus partially reliant on Tehran for its survival. And while its politics is complicated, thereby meriting a separate analysis, the bottom line is that this country could become the arena for much bargaining between the two sides.
Beijing will need Moscow’s help in its quest to influence Tehran, given the nature of the Russia-Iran military alliance in Syria and Ukraine. However, Chinese-Iranian relations themselves are deep and extensive, and Tehran needs Beijing’s support, economically, politically and strategically.
Moreover, neither China nor Russia is willing to fall into any trap that could hurt their relations with Saudi Arabia and the Gulf states. Logically, therefore, they will have indicated to Iran that it needs to seriously adapt to the imperatives of their key interests, which in process will accrue benefits to Tehran too.
Statements made following the Xi-Putin meeting in Moscow indicate that the three-way partnership, at least as previously conceived by the Iranian leadership, is no longer on the table. Rather, political realism has turned this arrangement from an axis of defiance, assertiveness and ideological expansion into a co-operative one. The big question here is whether the Iranian regime will accept this arrangement and opt for a radical shift, and not just soften its behaviour temporarily.
The softening of behaviour and rhetoric, and avoiding provocation and confrontation, would of course be welcomed by everybody, including the US, which seeks de-escalation of tensions in the region. But for Saudi Arabia, the goal of the rapprochement with Tehran would ideally be to bring about a radical shift in relations with the country, as well as in the Iranian regime’s approach to the Arab world.
China has undoubtedly made an important foray into a complicated region. So far, there are reasons to be optimistic about its role in sponsoring the Saudi-Iranian agreement. But the challenge lies in inducing real change going forward.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
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
How to avoid crypto fraud
Use unique usernames and passwords while enabling multi-factor authentication.
Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
Avoid suspicious social media ads promoting fraudulent schemes.
Only invest in crypto projects that you fully understand.
Critically assess whether a project’s promises or returns seem too good to be true.
Only use reputable platforms that have a track record of strong regulatory compliance.
Store funds in hardware wallets as opposed to online exchanges.
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes. Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.