US President Joe Biden wants to dial down tensions with Iran through diplomacy. AP Photo
US President Joe Biden wants to dial down tensions with Iran through diplomacy. AP Photo
US President Joe Biden wants to dial down tensions with Iran through diplomacy. AP Photo
US President Joe Biden wants to dial down tensions with Iran through diplomacy. AP Photo

Will Biden's 'maximum diplomacy' with Iran work?


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It is evident from President Joe Biden's speech at the US State Department that his administration is going to pursue a policy of diplomacy – "maximum diplomacy", if you like – thereby replacing the previous Trump administration's "maximum pressure" campaign against Iran.

The Biden administration, led by Secretary of State Antony Blinken, is already in contact with America’s allies in Europe to discuss a strategy towards the Iranian regime. Precisely what this strategy will entail is hard to tell right now. But the administration will almost certainly not rush back into the nuclear deal, which the US and other global powers signed with Iran in 2015 before former president Donald Trump withdrew his country from it.

It is a good sign that Washington will not cave in to pressure being exerted by Tehran to do just that. There is a clear understanding that the regime has been, for the most part, a force for bad, not just in its neighbourhood but in the wider region and the world at large. While its ongoing development of nuclear weapons is bad news for everyone, its funding of armed proxies in Arab countries run by weak governments is well known.

French President Emmanuel Macron has made bold statements in the past. Reuters
French President Emmanuel Macron has made bold statements in the past. Reuters

My concern, however, is that the administration may stray too far from Mr Trump’s pressure campaign, which has significantly weakened the regime financially. If the former president did ever use diplomacy, it was the unconventional type – and it worked to some extent. Mr Biden, on the other hand, runs the risk of putting some of that good work in jeopardy if he returns to the kind of conventional diplomacy pursued by his former boss, Barack Obama, which proved ineffective in the Middle East, particularly with regard to the Syrian civil war.

As Mr Blinken talks to the Europeans, he should be mindful of the statements that French President Emmanuel Macron has made at various points in the past. Mr Macron has often sought to involve himself in geopolitical challenges around the world without a lot of success. Words do matter, but six months after a deadly blast in Beirut's port area killed at least 200 people, the French president's repeated visits to the Lebanese capital and his tough public remarks have done little to extract accountability from that country's politicians.

Meanwhile, the fear of political assassinations, which were a thing of the past, is rife across Lebanon once again. The country is struggling to come to terms with the killing of activist and publisher Lokman Slim. Found shot dead in his car in south Lebanon earlier in the week, Slim was known for his outspokenness – especially against Hezbollah. The Tehran-backed Lebanese proxy has denied any involvement in his killing and even condemned it. However, Hezbollah leader Hassan Nasrallah's son, Jawad, posted and then deleted a tweet saying: "The loss of some is in truth a gain and an unexpected kindness."

This is the same Hezbollah that Mr Macron attempted to placate during discussions following the port blast. The hope then was that by taking all the political forces along with it, Paris could help usher in much-needed economic and political reforms in Lebanon. Those efforts came to nought, because Hezbollah – and by extension, Tehran – controls Lebanese politics and has no incentive to encourage reforms.

  • Lokman Slim with his dog. "He was a generous person and loved people. He even loved trees and the garden and animals generally," recalled Ahmad Jaber. Lokman Slim / Facebook
    Lokman Slim with his dog. "He was a generous person and loved people. He even loved trees and the garden and animals generally," recalled Ahmad Jaber. Lokman Slim / Facebook
  • Lokman Slim was a Shiite Muslim secular intellectual known for his opposition to the Shiite movement Hezbollah. AFP
    Lokman Slim was a Shiite Muslim secular intellectual known for his opposition to the Shiite movement Hezbollah. AFP
  • Slim, who is remembered by friends as multi-talented, was also a publisher who ran a research centre focused on Lebanese culture and history. Reuters
    Slim, who is remembered by friends as multi-talented, was also a publisher who ran a research centre focused on Lebanese culture and history. Reuters
  • Lokman Slim's office. "Lokman is a researcher. Lokman is a writer. Lokman is an artist. Lokman was a man of political opinions. Lokman was an outstanding personality," said Ali El Amine. Reuters
    Lokman Slim's office. "Lokman is a researcher. Lokman is a writer. Lokman is an artist. Lokman was a man of political opinions. Lokman was an outstanding personality," said Ali El Amine. Reuters
  • Slim speaks during a conference in Beirut, Lebanon, 04 February 2021. EPA photo
    Slim speaks during a conference in Beirut, Lebanon, 04 February 2021. EPA photo

Mr Macron has in recent times called for a new phase of negotiations with Iran, which is fine, but added that he wants to play a role in it. But can he really play the role of "an honest broker and a committed broker", as he has claimed he can, between the US and Iran? He should, instead, push for an idea that he had proposed once but, like with other proposals in the past, failed to follow up on: including Saudi Arabia and Israel in future negotiations with Iran, especially to resolve Tehran's ballistic missiles programme and transgressions in their neighbourhood.

Diplomacy is good. But it is high time that American, French and European diplomats were united in a common commitment to end Iranian impunity in the region. Since December, two other assassinations have been carried out in Lebanon. The global powers need to include these killings, as well as the many that happen in Iraq, in future dialogues with Tehran. If the regime seeks sanctions relief, then it must be made to guarantee the safety and security of the millions of people living in countries where armed proxies backed by it routinely take the law into their own hands. The West should, at the very least, be able to make progress on this front.

It must also be cognisant of the favourable impact immediate sanctions relief would have on the ability of the Islamic Revolutionary Guard Corps to wage conflict in the Arab world. The IRGC, which is perhaps the most important force in Iran's military apparatus but also a significant player in its political arena, will do everything within its power to ensure that the man to succeed Hassan Rouhani in this year's presidential election is a hardliner. With so-called moderates such as Mr Rouhani and Foreign Minister Mohammad Javad Zarif being squeezed out of Iranian politics, any sanctions relief will only boost the IRGC's power.

The Biden administration has pulled the USS Nimitz carrier strike group out of the Gulf in a sign of potentially easing tensions with Iran. AFP
The Biden administration has pulled the USS Nimitz carrier strike group out of the Gulf in a sign of potentially easing tensions with Iran. AFP

Moral duty requires that the Biden team working on the Iranian dossier, including National Security Adviser Jake Sullivan and US Envoy for Iran Robert Malley, as well as its European counterparts look at the ground realities and take tough decisions. They should not lose sight of the ripple effects of the regime's presence in the region – whether they are political assassinations allegedly orchestrated by its proxies or a frustrating lack of accountability on the part of Arab politicians who are in Tehran’s pocket.

That the Biden administration has its sights firmly set on Tehran’s operations in the Middle East, including in Yemen, is encouraging. Despite announcing his withdrawal of support for the Saudi-led coalition forces in that country, Mr Biden has acknowledged that Saudi Arabia faces attacks from the Tehran-backed Houthis. He has vowed to continue supporting the Kingdom's right to defend its sovereignty.

The new administration has determined that the Iran crisis is a multi-faceted one and cannot be solved in one go. In other words, what we are likely to see over the next four years is more a marathon than a sprint.

Raghida Dergham is the founder and executive chairwoman of the Beirut Institute and a columnist for The National

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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

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Rating: 4 / 5

The UN General Assembly President in quotes:

YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”

PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”

OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”

REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”

British Grand Prix free practice times in the third and final session at Silverstone on Saturday (top five):

1. Lewis Hamilton (GBR/Mercedes) 1:28.063 (18 laps)

2. Sebastian Vettel (GER/Ferrari) 1:28.095 (14)

3. Valtteri Bottas (FIN/Mercedes) 1:28.137 (20)

4. Kimi Raikkonen (FIN/Ferrari) 1:28.732 (15)

5. Nico Hulkenberg (GER/Renault)  1:29.480 (14)

The biog

Name: Abeer Al Bah

Born: 1972

Husband: Emirati lawyer Salem Bin Sahoo, since 1992

Children: Soud, born 1993, lawyer; Obaid, born 1994, deceased; four other boys and one girl, three months old

Education: BA in Elementary Education, worked for five years in a Dubai school

 

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Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million