Donald Trump representing the opposite of Barack Obama is no longer good enough for Arab states.
Donald Trump representing the opposite of Barack Obama is no longer good enough for Arab states.
Donald Trump representing the opposite of Barack Obama is no longer good enough for Arab states.
Donald Trump representing the opposite of Barack Obama is no longer good enough for Arab states.

Obama was bad for the Middle East, but Trump's ambiguity is worrisome


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With the United States Congress on the verge of expanding its sanctions against the pro-Iranian Hizbollah militia, it would  seem that Washington is dead set on countering Tehran’s expanding influence in the Middle East.

But not so fast. While the Trump administration may be sincere in its desire to contain the Islamic Republic, its policies in Syria and Iraq have sown confusion, hardly an oddity for the current White House.

Nor has US president Donald Trump carried through with his threats to renege on or renegotiate the Iranian nuclear deal, which his administration has just recertified even as the US imposed more sanctions on Iran.

Nowhere has Mr Trump's thinking been more contradictory than in Syria. Last week, the administration announced that it would end military support for the Syrian rebels, in the process surrendering any political leverage it had over Russia and Iran in Syria.

In that way, the White House effectively gave both a wide berth to define a Syrian endgame. This will particularly benefit Iran, which controls the bulk of forces on the ground fighting on behalf of the Assad regime.

This was no slipup. US secretary of state Rex Tillerson was recently quoted by Colum Lynch and Robbie Gramer in Foreign Policy magazine, telling United Nations secretary-general Antonio Gutteres “that the fate of Syrian leader Bashar Al Assad now lies in the hands of Russia and that the Trump administration’s priority is limited to defeating ISIL”. The authors cited three diplomatic sources for their story.

In other words, the Trump administration has conceded that Syria’s future will be largely shaped by Russia in close collaboration with Iran, which regards Mr Al Assad’s political survival as a key aspect of its policy in the Levant.

One can be forgiven for misunderstanding the rationale behind wanting to contain Iran regionally, while giving it more room in the one place where Tehran’s expansionism has been most visible.

Such duality has been equally present in Iraq since 2014, following the takeover of Mosul by ISIL. Washington may have held its nose while doing so, but it participated heavily in the re-conquest of territory from the extremist group even though that meant collaborating with the Popular Mobilisation Forces, among which many groups are Iranian proxies.

Lately, the Lebanese government has been the target of criticism in the US and the Arab world for coordinating with Hizbollah in the party’s military campaign to oust radical groups from the hinterland east of the Beqaa town of Arsal near the Syrian-Lebanese border. At the same time, on July 22, the Kuwaiti government delivered a protest to the Lebanese government, demanding that it put pressure on the party to end its support for groups aiming to overthrow the Kuwaiti government.

The Lebanese government's inability to take action against Hizbollah is unlikely to arouse sympathy from critics.

However, the behaviour of the Trump administration had hardly represented a guide to officials in Beirut. Given Washington’s own de facto collaboration with pro-Iran groups against radical organisations in Iraq, the Lebanese may wonder in what ways doing so with Hizbollah around Arsal is so very different.

There may well be many holes in such an argument, but ironically, it is the Trump administration that is creating the ambiguities allowing for such sleights of hand. The real problem is that, beyond generalities, the administration doesn’t seem to have a clue as to how to counter Iran. Nor has it even bothered to rally its allies, as it once might have, to advance a collective regional effort to keep Iran in check.

Instead, the Arab world remains profoundly divided over a host of issues, from Syria to Iran to tensions in the Gulf, while the one country that could act as a unifier, namely the US, seems completely neutralised by its own domestic dysfunction. No one has imposed foreign policy discipline on the administration enough to outline priorities in the Middle East beyond fighting ISIL. Mr Trump seems disengaged and those around him are directionless.

For a moment, the accord reached between the US and Russia over southern Syria appeared to be an exception to this. By coming to an agreement outside the confines of the Astana process, thereby preventing Iran from having a say, Washington and Moscow reached a modus vivendi that could keep Iran and its allies in Syria away from the occupied Golan Heights and Jordan. Yet this aim did not square with subsequent US actions in Syria, which only widened Iran’s margin of manoeuvre.

Many Arab states like Mr Trump because, to them, he represents the opposite of Barack Obama. But that is no longer good enough. Mr Obama may have been terrible for the Middle East, but he was consistent in his cynicism. Mr Trump, in contrast, is all over the place. Soon, Arab regimes may realise that his bluster only conceals a deep cynicism of its own.

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