Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
March 31, 2024
Senior Republican Party leaders have criticised the Biden administration’s decision to host Iraqi Prime Minister Mohammed Shia Al Sudani in Washington in the coming weeks.
Leaders such as Senator Tom Cotton have deemed the visit untimely, suggesting that hosting Mr Al Sudani sends a message of appeasement to Iraq’s neighbour Iran at a time when the Biden administration should be squarely behind Israel in its war on Gaza. The White House has clarified that discussions with Mr Al Sudani will cover the US military’s role in Iraq and their shared commitment to defeat ISIS.
The Biden administration fully realises the extent of Iranian influence in Iraq and Tehran’s use of Iraqi militias, as well as militias elsewhere, to strike at American interests in the Middle East. It also understands that Mr Al Sudani is trying to balance Baghdad’s relations with the US, Iran and Turkey.
The recent Moscow terror attack, claimed by ISIS-K, has prompted the Biden administration to emphasise the continuing threat that terror poses in Iraq. US ambassador to Iraq Alina Romanowski said in a statement that the Moscow attack underscores the need for Washington to continue its “military alliance” with Baghdad.
Iraq officially says that ISIS no longer poses a threat to it. But while Iranian-backed factions within the so-called Co-ordination Framework did not initially comment on Ms Romanowski’s statement, some leaders adopted striking and contrasting positions. They departed from the escalation rhetoric, echoing what former prime minister Nouri Al Maliki said about Iraq’s need for continued US intelligence co-operation as well as training and support.
There is speculation that Mr Al Sudani’s visit to Washington will set the context for members of the Framework to press for sanctions relief on Iraqi individuals and banks, in exchange for a truce with US interests in the country.
US Secretary of State Antony Blinken with US Marine Corps members in Baghdad last November. AP
The recent Moscow terror attack has prompted the Biden administration to emphasise the continuing threat that terror poses in Iraq
Some Republicans have voiced objections to the Biden administration’s willingness to engage with both Iraq and Iran, viewing this as a form of appeasement towards Tehran. They are worried about the implications for Iran’s nuclear ambitions, the Iran-Israel relationship, and the consequences of US rapprochement with Iran amid a notable rift between the Biden administration and the Israeli government.
However, these concerns don’t diminish the seriousness of the threat that ISIS poses.
There are mounting fears particularly regarding the terror group’s technological advancements and its ability to launch cyberattacks. And as organisations such as ISIS-K might attempt to exploit the tragedy in Gaza to reassert themselves on the global stage, they could draw inspiration from the Houthis’ success in disrupting navigation in the Red Sea.
Of course, the Houthis are backed by Iranian technology and intelligence even though Tehran denies playing a role in the Yemeni group’s attacks. This isn’t surprising as ambiguity is a part of the Iranian regime’s strategy, especially as it prefers to maintain channels of communication with the Biden administration.
Tehran, it needs mentioning, would most likely prefer a second term for US President Joe Biden than the return of his predecessor, Donald Trump, next year. With just seven months left before the US presidential election, Tehran is wary of provoking Washington into military action against it or falling into an Israeli trap of provocation, which could lead it into war through Hezbollah in Lebanon.
For now, the regime aims to maintain its influence in Iraq without resorting to overt bargaining, but through implicit understandings. While it claims to prioritise the Palestinian cause in its calculations, it has made it clear that it isn’t prepared to align with Hamas’s agenda. It awaits the outcome of ongoing negotiations mediated by Arab powers with the group, refraining from direct intervention to either support or hinder them. It is also closely monitoring the shifting US-Israeli dynamic.
US President Joe Biden and Israeli Prime Minister Benjamin Netanyahu are said to have serious disagreements. AFP
The Biden administration is focused on ending the Gaza war, particularly as it has become a detrimental factor in its electoral considerations. The Democratic Party’s rank and file is incensed by Israeli Prime Minister Benjamin Netanyahu’s open defiance towards Mr Biden as well as his determination to invade Rafah regardless of the human cost. The Gaza war also opens the door for Republicans to accuse Mr Biden of showing weakness against groups such as Hamas, Hezbollah and the Houthis – and, by extension, the Iranian regime.
The possibility of Mr Biden’s first term ending with two open-ended conflicts in Gaza and Ukraine will provide ammunition for Mr Trump’s presidential campaign. Additionally, Mr Netanyahu will not hesitate to crush Hamas and its military infrastructure if the Biden administration fails to provide viable alternatives to his government’s Rafah invasion plan, which is advocated by Israel’s military establishment and enjoys popular support in that country.
As the US presidential election campaigns progresses, the Iranian regime will seek to maintain an air of mystery even as it figures more prominently as a regional actor. Mr Al Sudani’s visit to Washington, and all that the Iraqi Prime Minister’s negotiations with the Biden White House entail, are likely then to shed even greater light on Tehran’s intentions across the region.
Likewise, if the conflict in Gaza escalates, Iran will be in the spotlight. It has, therefore, worked hard to persuade Hezbollah to scale back its military activities, which could invite Israeli retaliations that would not only be costly for Lebanon but also for Hezbollah and Tehran itself.
The resurgence of ISIS is not merely a passing concern. However, the group is not the sole actor currently asserting itself on the international stage and influencing US policies. The Iranian leadership and its various proxies remain significant players, too.
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
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final
German intelligence warnings
2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Profile of Tarabut Gateway
Founder: Abdulla Almoayed
Based: UAE
Founded: 2017
Number of employees: 35
Sector: FinTech
Raised: $13 million
Backers: Berlin-based venture capital company Target Global, Kingsway, CE Ventures, Entrée Capital, Zamil Investment Group, Global Ventures, Almoayed Technologies and Mad’a Investment.
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Zidane's managerial achievements
La Liga: 2016/17 Spanish Super Cup: 2017 Uefa Champions League: 2015/16, 2016/17, 2017/18 Uefa Super Cup: 2016, 2017 Fifa Club World Cup: 2016, 2017
UAE currency: the story behind the money in your pockets
Engine: 4-litre V8 twin-turbo Power: 630hp Torque: 850Nm Transmission: 8-speed Tiptronic automatic Price: From Dh599,000 On sale: Now
ASHES FIXTURES
1st Test: Brisbane, Nov 23-27
2nd Test: Adelaide, Dec 2-6
3rd Test: Perth, Dec 14-18
4th Test: Melbourne, Dec 26-30
5th Test: Sydney, Jan 4-8
Company profile
Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Results:
6.30pm: Mazrat Al Ruwayah (PA) | Group 2 | US$55,000 (Dirt) | 1,600 metres
Winner: AF Al Sajanjle, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
