France's foreign policy is not identical to that of the US in much of the Middle East and North Africa. And yet, some co-ordination in the two countries' diplomatic initiatives in the region has become evident, particularly from the recent visit to crisis-hit Lebanon by French President Emmanuel Macron, followed by that of David Schenker, the US Assistant Secretary of State for Near Eastern Affairs. How effective this co-ordination proves to be is, of course, an open question. Nonetheless, it is noteworthy.
The US has often considered French diplomacy to be more performative than impactful. But as is evidenced in recent days, that may be changing.
The Trump administration is backing France's Lebanese demarche in the aftermath of the devastating Beirut Port blasts a month ago. Indeed, there are enough signs to suggest that US President Donald Trump has encouraged Emmanuel Macron, his French counterpart, in sparing no effort to aid Lebanon – provided this does not violate the red lines the US has drawn with regard to Hezbollah, the Iranian-backed militia and political entity that wields considerable influence in the Arab country.
French President Emmanuel Macron speaks at a news conference in Beirut on September 1, 2020, during his second visit to Lebanon after the August 4 port explosion in the capital. Bloomberg
Emmanuel Macron plants a cedar tree alongside members of the NGO Jouzour Loubnan during a ceremony marking Lebanon's centenary in Jaj Cedar Reserve Forest, north-east of Beirut, on September 1, 2020. AFP
French President Emmanuel Macron hugs a blast victim while attending a ceremony to mark Lebanon's centenary in Jaj Cedars Reserve Forest on September 1, 2020. AFP
French President Emmanuel Macron meets former Lebanese prime minister Saad Hariri at the Pine Residence, the official residence of the French ambassador to Lebanon, in Beirut on August 31, 2020. Reuters
France's president with his Lebanese counterpart Michel Aoun at the Presidential palace in Baabda, east of Beirut, on September 1, 2020. AFP
French President Emmanuel Macron meets Lebanese Maronite Patriarch Bechara Rai at the Pine Residence in Beirut. Bkerki Press Office / AFP
President Emmanuel Macron speak with speaks with Arnaud Tranchant, commander of the French helicopter carrier Tonnerre, off the port of Beirut on September 1, 2020. AFP
French jets perform a flypast over Beirut during Lebanon's centenary celebrations on September 1, 2020. Bloomberg
French President Emmanuel Macron meets UN representatives and NGOs at Beirut port. AFP
Emmanuel Macron gestures toward a board as he meets the military mobilised to help to rebuild the Beirut port. via AP
Emmanuel Macron speaks to the media outside the French ambassador's residence in Beirut. Bloomberg
The French president poses for selfies after a news conference at the Pine Residence in Beirut on September 1, 2020. AFP
French President Emmanuel Macron speaks to a patient during a visit to Rafik Hariri University Hospital in Beirut with French Health Minister Olivier Veran, right, on September 1, 2020. AFP
There certainly seems to be a difference in their respective approaches to dealing with Hezbollah. The French have avoided implicating the group for its destructive role in Lebanon's society and politics. They have even granted it legitimacy, going by Mr Macron’s recent statements. This position stands in sharp contrast to Washington's designation of Hezbollah as a terror group. The Americans are not entirely convinced that the French tactic of taking all the Lebanese political forces along with it will lead to much-needed reforms. Nonetheless, they will not come in their way.
They do agree on the need to exert pressure on the country's wider political class.
Both countries have made it clear that there would be no international or Arab aid at the level needed to rescue Lebanon unless radical reforms are undertaken to strengthen the state and make it more transparent and accountable to the people. These reforms would no doubt impact the domination of the elite, which explains its resistance against them.
A carrot-and-stick routine may be playing out in Lebanon, with Paris leading the efforts to pledge aid as Washington raises the threat of sanctions. Indeed, the US has hinted at the possibility of imposing sanctions in the coming week against powerful politicians who are allied to Hezbollah in government.
A woman, draped in a black-striped Lebanese flag, looks at the site of the massive explosion at Beirut's port area, during a demonstration to mark one month since the cataclysmic August 4 explosion that killed 191 people, in the Lebanese capital Beirut. AFP
A woman holds a noose as she observes a minute of silence to mark one month since the massive explosion at Beirut's port area. Reuters
Families of Beirut port explosion victims carry their pictures during a minute of silence and prayer to mark one month of Beirut port explosion. EPA
Families of Beirut port explosion victims carry their pictures during a minute of silence and prayer to mark one month of Beirut port explosion. EPA
Protesters carry torches and hangman noose as they demand the punishment of those responsible for the port explosion during a moment of silence to mark one month of Beirut port explosion. EPA
Firefighters hold a flag as they commemorate a month since Beirut's deadly explosion. Getty Images
Protesters wave a Lebanese flag and hold nooses, which have become symbols of public anger against the Lebanese government, as they commemorate a month since the city's deadly explosion. Getty Images
Protesters hold torches and nooses as they commemorate a month since the city's deadly explosion. Getty Images
Paper lanterns in the shape of a Lebanese flag mark one month since the city's deadly explosion. Getty Images
A woman sings on a pile of rubble near paper lanterns arranged in the shape of a Lebanese flag to mark one month since the city's deadly explosion. Getty Images
Families of Beirut port explosion victims carry their pictures during a minute of silence and prayer to mark one month of Beirut port explosion. EPA
The carrot, however, may not be significant. It will certainly not come in the form of a $11 billion aid package that was pledged during the recent French-led Cedre donor conference. In fact, it is unlikely to exceed $3bn. Any rescue package worth its salt – including a bailout from the IMF, the US and Arab nations – will require Beirut to enact serious reforms. These include an overhaul of its mode of government and system of elections, and the creation of a long-term vision for the state. The production and storage of illegal arms to benefit Hezbollah and further Iran's interests will also need addressing.
Lebanon’s Prime Minister-designate Mustapha Adib will no doubt be under immense pressure to make a start on some of these reforms. He has promised to put together a line-up of technocrats – rather than the usual yes-men from the political class.
Mr Adib’s challenges are somewhat comparable to the ones Iraqi Prime Minister Mustafa Al Kadhimi is facing at the moment. Lebanon and Iraq are both in dire need to exert their sovereignty and neutrality, as regional powers battle each other for control over these two countries. Sovereignty means that the state has the sole authority over a country's territory, but this requires the top leaders of both Lebanon and Iraq to rise to the challenge.
Iraqi protesters run for cover as they clash with security forces on Al Jumhuriyah in the capital Baghdad, following an anti-government demonstration. AFP
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all deatined protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
An Iraqi protester holds a smoke grenade fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters gather to block a street during an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters hurl stones at security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi protester looks on as others wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters gather amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters affected by smoke grenades receive help amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters flee smoke grenades fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi demonstrator tries to smash a concrete wall during ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa al-Kadhimi called for the release of all detained protesters, at Jumhuriya bridge in Baghdad, Iraq. REUTERS
Mr Macron, who visited Iraq shortly after leaving Lebanon, emphasised the issue of sovereignty during his meeting with Mr Al Kadhimi. Interestingly, rather than targeting Iran, the French President spoke to Turkish incursions as part of Ankara's military operations against the Kurdistan Workers' Party, members of which are said to be hiding in Iraqi territory.
France has been keen for the US to rein in Turkey over its actions in Iraq, Libya and the Eastern Mediterranean, where it is in a resource conflict with Greece. Washington's priority, however, is to preserve Turkey’s Nato membership in order to yank it out of Russia's embrace.
There has also been a gap in their strategies to deal with Iran, although that gap has reduced in recent times. Much like the Americans have done over the past three years to rein in Iran's expansionist activities in the region, French diplomats are also beginning to raise the threat of sanctions against Tehran and its partners and allies. It has to be said that, while American sanctions have a significant impact on the economies of state and non-state actors, French punitive measures are usually more symbolic than anything else.
Paris is, therefore, bent on pursuing two-track diplomacy with Tehran – an idea that Washington has chosen to be open-minded about.
Iraqi protesters run for cover as they clash with security forces on Al Jumhuriyah in the capital Baghdad, following an anti-government demonstration. AFP
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all deatined protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
An Iraqi protester holds a smoke grenade fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters gather to block a street during an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters hurl stones at security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi protester looks on as others wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters gather amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters affected by smoke grenades receive help amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters flee smoke grenades fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi demonstrator tries to smash a concrete wall during ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa al-Kadhimi called for the release of all detained protesters, at Jumhuriya bridge in Baghdad, Iraq. REUTERS
Today, France has an opportunity to leave a distinguished mark in the Middle East. But for this to happen, it needs to be courageous and tough, rather than go down the road of appeasement. It has no doubt made some bold and important policy proposals to the Lebanese politicians, such as imposing a transparent and neutral tendering process for the port’s reconstruction, and addressing the allegations of corruption surrounding the Selaata power plant project – as if to state that the time of one party’s domination over Lebanon’s energy sector is over.
And yet, Mr Macron’s strong words need to be backed by a rigorous sanctions regime, if necessary, as well as strong support from the European Union. Most importantly, his government simply needs to stand up to Tehran’s regional agenda. It must avoid repeating the mistake the West and Russia made by overlooking Iran’s expansionist activities while securing the 2015 nuclear deal with Tehran.
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute
Key facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills
4pm: Maiden Dh 60,000 (D) 1,000m. Winner: Cross The Ocean, Richard Mullen, Satish Seemar.
4.30pm: Handicap 64,000 (D) 1,950m. Winner: Sa’Ada, Fernando Jara, Ahmad bin Harmash.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE SQUAD
Khalid Essa, Ali Khaseif, Fahad Al Dhanhani, Adel Al Hosani, Bandar Al Ahbabi, Mohammad Barghash, Salem Rashid, Khalifa Al Hammadi, Shaheen Abdulrahman, Hassan Al Mahrami, Walid Abbas, Mahmoud Khamis, Yousef Jaber, Majed Sorour, Majed Hassan, Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Khalil Al Hammadi, Fabio De Lima, Khalfan Mubarak, Tahnoon Al Zaabi, Ali Saleh, Caio Canedo, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri
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
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
UAE group fixtures
Sunday Feb 23, 9.30am, v Iran
Monday Feb 25, 1pm, v Kuwait
Tuesday Feb 26, 9.30am, v Saudi
UAE squad
Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed