US President Donald Trump dances after speaking at the Conservative Political Action Conference, in Maryland, US, last week. AP
US President Donald Trump dances after speaking at the Conservative Political Action Conference, in Maryland, US, last week. AP
US President Donald Trump dances after speaking at the Conservative Political Action Conference, in Maryland, US, last week. AP
US President Donald Trump dances after speaking at the Conservative Political Action Conference, in Maryland, US, last week. AP


With US prestige eroding, where do Europe, Russia and the Gulf states stand?


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February 23, 2025

US President Donald Trump in his fascination with his role as president of the world's most powerful country may have forgotten the importance of prestige, which has been a crucial factor for the country.

The consequences of losing prestige are profound. They affect not only American geopolitical interests but also embolden rivals in their strategic defiance, as Mr Trump seems to improvise policy, relying on exclusionary tools to reshape the global order, under the mantra of Make America Great Again.

The danger here is that Mr Trump is being serious even as some may find his tactics amusing. Ultimately, Trumpian bravado is steadily eroding American prestige, necessary to uphold US exceptionalism on the world stage. Now, Mr Trump faces resistance in his proposal for Gaza and US-Arab relations to Ukraine, Russia and the transatlantic ties, and even within America.

Mr Trump may deserve credit for his audacity in upending conventional thinking, forcing others to think outside the box. Indeed, the recent thaw in US-Russia relations could be said to have yielded some benefits, despite it having inflicted severe damage on US-European relations and Nato. His decision to hold high-level US-Russia meetings in Riyadh was a master stroke, sending multiple messages. One being that Riyadh is central to Washington’s strategy – a critical ally, not just regionally but globally.China’s role in brokering the 2023 Saudi-Iranian rapprochement initially alarmed US diplomats, who found themselves sidelined while Beijing took the lead. Realising the shift, Washington has since recalibrated, engaging Riyadh with a new-found seriousness.

Clearly, Mr Trump’s team has realised Riyadh is a crucial partner in regional affairs, while initially assuming that this partnership would translate into automatic Saudi alignment with US policies. However, Saudi Arabia’s rejection of Mr Trump's plans – particularly his disregard for the two-state solution and his efforts to undermine the establishment of a Palestinian state – may well have surprised Mr Trump. Furthermore, the Saudi and wider Arab rejection of Mr Trump’s ideas of displacing Palestinians from the West Bank and Gaza threw cold water on his ambitions to control Gaza’s coastline.

US Secretary of State Marco Rubio (R) shakes hands with Russian Foreign Minister Sergei Lavrov during their meeting in Riyadh, Saudi Arabia, on February 18. SPA / AFP
US Secretary of State Marco Rubio (R) shakes hands with Russian Foreign Minister Sergei Lavrov during their meeting in Riyadh, Saudi Arabia, on February 18. SPA / AFP

The positions of several Gulf nations are already clear. Most probably, Egypt and Jordan will not escalate against Mr Trump’s provocations but will instead work to contain them. To be sure, these countries understand that Mr Trump’s aggression can be costly if he is cornered, so they will attempt to outmanoeuvre him with intelligence and wisdom – unlike perhaps past Arab diplomatic efforts that simply rejected and condemned policies without offering alternatives.

It is crucial to note, however, that Arab nations have not lacked initiative – far from it. Indeed, the Arab Peace Initiative, launched by Saudi Arabia in 2002, proposed a solution to the Israeli-Palestinian conflict: full Israeli withdrawal from the occupied territories, the establishment of a Palestinian state, and the normalisation of relations between Arab states and Israel.

The mini summit in Riyadh on Friday, where Arab leaders met, set the stage for a unified Arab stance at the emergency Arab summit expected in Cairo on March 4. This will be a pivotal event for US-Arab relations, as well as for Gulf ties with Egypt, Jordan, and the Palestinians – and even with Israel.

Meanwhile, Saudi Arabia’s international and diplomatic standing has been bolstered with gravitas and prestige by hosting US-Russia talks in Riyadh after years of diplomatic estrangement due to the Ukraine war. Saudi Arabia's Crown Prince Mohammed bin Salman has hinted that he wants Riyadh to become a serious hub for international dialogue. That is exactly what happened during the US-Russia discussions in Riyadh, in stark contrast to the provocations in statements by Mr Trump, Ukrainian President Volodymyr Zelenskyy, and several European leaders.

So where does everyone stand and what is the current state of play?

Regarding US-Russia relations, there was a partial agreement to resume diplomatic ties and establish a consultation mechanism to manage tensions. Both sides agreed to assign high-level teams to start working towards a lasting resolution of the Ukraine war that is acceptable to all parties. The discussions also laid the groundwork for future geopolitical co-operation and economic opportunities that could emerge after the war.

However, these steps do not represent a major breakthrough, either in bilateral relations or regarding Ukraine, because many significant gaps remain. Mr Trump has reshuffled the deck with Russia but failed so far to achieve his primary goal: stopping the Ukraine war.

Mr Putin is reportedly not ready to meet Mr Trump as he is concerned about the pitfalls of a rushed agreement. For instance, an unofficial US draft document on Russia and Ukraine includes a clause stating that if Russia violates any peace deal, Ukraine would automatically join Nato, which is a red line for Mr Putin, who wants to prevent precisely that. One of their biggest disagreements, sources say, is over territory. Mr Trump seems willing to let Russia keep the lands it currently controls in Ukraine, while Mr Putin insists that the entire regions of Donetsk, Kherson, Luhansk, and Zaporizhzhia, along with Crimea, are recognised as "constitutionally" part of Russia.

Thus, the road to a US-Russia deal on Ukraine is not well paved. Even if a deal was reached, it would lack legitimacy as long as Europe and Ukraine reject it. In short, as long as the Ukraine war continues, US-Russia normalisation remains out of reach.Meanwhile, Mr Trump is furious with Mr Zelenskyy, who mocked him for falling into a Russian disinformation trap. In response, Mr Trump publicly rebuked Mr Zelenskyy, prompting his Secretary of State Marco Rubio to warn that Mr Trump does not tolerate "ingratitude".

Mr Trump's disregard for Europe and its role in Ukraine initially caused confusion and disarray in Europe. This was soon followed, however, by a closing of ranks, and the US president found himself facing a unified European front – including Britain, a traditional US ally – just as Germany heads into elections that could determine the configuration of leadership of the European continent.

Yet, Europe understands that resisting Mr Trump will come at a cost. But it also knows that it cannot succumb to the dictates of a US president who is on the verge of dismantling the historical transatlantic alliance. Some are suggesting options for Europe that seem far-fetched, such as withdrawing from Nato, bypassing Mr Trump by engaging directly with Russia, or even aligning more closely with China. If anything, these ideas reflect the level of frustration with Mr Trump's unprecedented style of international relations and Europe's willingness to challenge it.

Meanwhile, Mr Trump wants the Arab states to give him Gaza and to hand the West Bank over to Israel. He believes he will get his way because Egypt and Jordan need his country’s support, and because US-Gulf security ties remain crucial, particularly given Iran’s clear commitment to its regional strategy and nuclear doctrine – something that would likely necessitate a military operation against Iran involving the US.

For its part, China is watching and preparing for Mr Trump’s economic war. However, it does not seem concerned about the possibility of Mr Trump pulling Russia away from its orbit, as it sees too many obstacles preventing an end to the war in Ukraine.The credibility Mr Trump once sought – and initially obtained – on the international stage is now under threat and increasingly fragile. The loss of prestige is not just damaging to Mr Trump personally, but also to the US presidency and to the US itself.

SERIE A FIXTURES

Saturday

AC Milan v Sampdoria (2.30pm kick-off UAE)

Atalanta v Udinese (5pm)

Benevento v Parma (5pm)

Cagliari v Hellas Verona (5pm)

Genoa v Fiorentina (5pm)

Lazio v Spezia (5pm)

Napoli v Crotone (5pm)

Sassuolo v Roma (5pm)

Torino v Juventus (8pm)

Bologna v Inter Milan (10.45pm)

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 Old Slave and the Mastiff

Patrick Chamoiseau

Translated from the French and Creole by Linda Coverdale

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Terror attacks in Paris, November 13, 2015

- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France

Ticket prices

General admission Dh295 (under-three free)

Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free

Buy tickets at: wbworldabudhabi.com/en/tickets

ABU%20DHABI%20CARD
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The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km

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Updated: February 24, 2025, 2:18 AM