US President Donald Trump did his successor Joe Biden a favour last week when he sanctioned Turkey under the Countering America’s Adversaries Through Sanctions Act (CAATSA).
The new sanctions, in response to Turkey’s purchase of Russian-made S-400 missile defence systems, were required under US law, and thus all but inevitable. The US State Department has barred American dealings with Turkey’s military procurement body, its chief and three top officials.
In the context of the broader Turkish economy, this amounts to little more than a slap on the wrist. But depending how long they remain in place, the sanctions could do real damage to Turkey’s defence industry, which relies on US imports. That industry has matured a great deal under the Justice and Development Party (AKP), from a $5 billion budget in 2002 to $60bn today, while producing some of the world’s most advanced drones.
Of course, Turkish defence industry leaders will not have forgotten that it was a previous punishment from Washington – an American arms embargo from 1975-78, in response to Turkey’s invasion of Cyprus – that helped spur their sector’s development in the first place. They may see these latest sanctions as another hurdle to overcome, rather than an unprecedented assault.
Turkish President Recep Tayyip Erdogan, unsurprisingly, has decried the sanctions as a blatant attack on a Nato ally. But it is undeniably better for Mr Biden that Mr Trump levied them now, clearing the way for the next administration to take office without being on a direct collision course with Turkey.
Of course, the two sides are not about to change their stripes. Mr Biden's White House is most likely to call for greater respect for human rights, international law and the continued integrity of defence alliances like Nato, while Mr Erdogan's Turkey will remain dogged and challenge the western system at nearly every turn.
US analysts and some officials will, in the days ahead, denounce Mr Erdogan's authoritarianism and probably call for Turkey to be removed from Nato. Turkish analysts will talk of kicking the US and its nuclear weapons out of Incirlik airbase, as Mr Erdogan continues to push the envelope. The Turkish drillship Oruc Reis, which has been accused of aggressive forays into Greek waters, is already back at sea after a brief return to port under the threat of EU sanctions. Ankara is now calling for Greek islands to be demilitarised.
This is precisely why US sanctions will have little longer-term impact. The US-Turkey relationship is nowadays defined largely by disagreements. These include maritime boundaries in the Eastern Mediterranean, the extradition of Turkish dissident cleric Fethullah Gulen, the US alliance with Syrian Kurds and the rule of law. The threats and disputes have become almost mechanical, habitual.
As with a bickering elderly couple, nobody fears they will divorce. Turkey is too crucial to Nato’s defence strategy, and it needs the US all the more in the face of regional isolation. It also needs the EU as its economy faces growing hardship.
Key to Mr Biden’s success with respect to Turkey will be his ability to work with European leaders to apply greater pressure on Ankara. That groundwork has already been laid. The US sanctions came a few days after the EU concluded its summit with an agreement to levy sanctions on Turkish individuals and entities linked to Eastern Mediterranean drilling. EU leaders said they would seek to co-ordinate with the White House before deciding on harsher sanctions, such as an arms embargo, at their next summit in March.
That gathering, which will come two months after Mr Biden’s January 20 inauguration, may be a bellwether for Turkey-West relations. If Mr Biden and Mr Erdogan have by then agreed on a plan to lift CAATSA sanctions, the EU may once again revert to a softer approach on Turkey. If Mr Erdogan remains uncompromising, things could take a darker turn.
Despite Mr Trump's stated affinity for Mr Erdogan, some analysts have argued that it was the US President's problematic diplomacy that led to these sanctions in the first place. Throughout 2018 and into 2019, Trump defended Turkey's decision to buy the S-400s, laying the blame on the Obama administration and vowing never to levy sanctions. Now that he has done precisely that, Mr Erdogan likely feels betrayed.
But Mr Trump is now on his way out, and the relatively mild sanctions from both the US and EU represent the “Goldilocks approach”: if the punishments had been harsher, the Turkish economy might be imperilled and Mr Erdogan more willing to lash out; if no sanctions had been levied, Mr Erdogan would feel free to do as he pleases on the high seas and beyond.
This makes for a strong starting point for Mr Biden. The warning shots have been fired and the new administration has an opportunity to take a clear diplomatic stand. Assuming Ankara will want to avoid total degradation of its western alliances, the relationship has a solid chance of starting with compromise, rather than confrontation. Mr Erdogan has already begun to talk of major economic and judicial reforms and has talked up how Mr Biden, in his role as vice president under the previous US administration, visited him at his home.
However the looming Biden-Erdogan talks play out, the battered US-Turkey alliance will stagger on. It’s less than ideal. One would sooner have Nato’s two largest militaries on friendlier terms. But at this point, strained relations is the best these two can do.
David Lepeska is a Turkish and Eastern Mediterranean affairs columnist for The National
Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
The biog
Name: Shamsa Hassan Safar
Nationality: Emirati
Education: Degree in emergency medical services at Higher Colleges of Technology
Favourite book: Between two hearts- Arabic novels
Favourite music: Mohammed Abdu and modern Arabic songs
Favourite way to spend time off: Family visits and spending time with friends
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Dooda%20Solutions%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Lebanon%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ENada%20Ghanem%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20AgriTech%0D%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%24300%2C000%20in%20equity-free%20funding%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2011%3C%2Fp%3E%0A
Mohammed bin Zayed Majlis
POWERWASH%20SIMULATOR
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20FuturLab%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ESquare%20Enix%20Collective%3Cbr%3E%3Cstrong%3EConsole%3A%20%3C%2Fstrong%3ENintendo%20Switch%2C%3Cstrong%3E%20%3C%2Fstrong%3EPlayStation%204%20%26amp%3B%205%2C%20Xbox%20Series%20X%2FS%20and%20PC%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Switch%20Foods%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Edward%20Hamod%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Plant-based%20meat%20production%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2034%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%246.5%20million%3Cbr%3E%3Cstrong%3EFunding%20round%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Based%20in%20US%20and%20across%20Middle%20East%3C%2Fp%3E%0A
NBA Finals so far
(Toronto lead 3-1 in best-of-seven series_
Game 1 Raptors 118 Warriors 109
Game 2 Raptors 104 Warriors 109
Game 3 Warriors 109 Raptors 123
Game 4 Warriors 92 Raptors 105
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 Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho