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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From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

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The specs

Engine 60kwh FWD

Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry

Power 204hp Torque 360Nm

Price, base / as tested Dh174,500 

ESSENTIALS

The flights 
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
 

The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

Racecard

6pm: The Pointe - Conditions (TB) Dh82,500 (Turf) 1,400m

6.35pm: Palm West Beach - Maiden (TB) Dh82,500 (T) 1,800m

7.10pm: The View at the Palm - Handicap (TB) Dh85,000 (Dirt) 1,400m

7.45pm: Nakeel Graduate Stakes - Conditions (TB) Dh100,000 (T) 1,600m

8.20pm: Club Vista Mare - Handicap (TB) Dh95,000 (D) 1,900m

8.55pm: The Palm Fountain - Handicap (TB) Dh95,000 (D) 1,200m

9.30pm: The Palm Tower - Handicap (TB) Dh87,500 (T) 1,600m

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

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Retirement funds heavily invested in equities at a risky time

Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.

Retirement money managers in 14 geographies now allocate 40 per cent of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer survey released last week that canvassed government, corporate and mandatory pension funds with almost $5 trillion in assets under management. That compares with about 25 per cent for pension funds in Europe.

The escalating trade spat between the US and China has heightened fears that stocks are ripe for a downturn. With tensions mounting and outcomes driven more by politics than economics, the S&P 500 Index will be on course for a “full-scale bear market” without Federal Reserve interest-rate cuts, Citigroup’s global macro strategy team said earlier this week.

The increased allocation to equities by growth-market pension funds has come at the expense of fixed-income investments, which declined 11 percentage points over the five years, according to the survey.

Hong Kong funds have the highest exposure to equities at 66 per cent, although that’s been relatively stable over the period. Japan’s equity allocation jumped 13 percentage points while South Korea’s increased 8 percentage points.

The money managers are also directing a higher portion of their funds to assets outside of their home countries. On average, foreign stocks now account for 49 per cent of respondents’ equity investments, 4 percentage points higher than five years ago, while foreign fixed-income exposure climbed 7 percentage points to 23 per cent. Funds in Japan, South Korea, Malaysia and Taiwan are among those seeking greater diversification in stocks and fixed income.

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Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Disclaimer

Director: Alfonso Cuaron 

Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

Rating: 4/5

The specs

Engine: 3.8-litre, twin-turbo V8

Transmission: eight-speed automatic

Power: 582bhp

Torque: 730Nm

Price: Dh649,000

On sale: now  

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'Of Love & War'
Lynsey Addario, Penguin Press

'Worse than a prison sentence'

Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.

“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.

“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”

Last 10 NBA champions

2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2

Brief scores:

Day 2

England: 277 & 19-0

West Indies: 154

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now

A Cat, A Man, and Two Women
Junichiro
Tamizaki
Translated by Paul McCarthy
Daunt Books 

The specs: 2019 Infiniti QX50

Price, base: Dh138,000 (estimate)
Engine: 2.0L, turbocharged, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 268hp @ 5,600rpm
Torque: 380Nm @ 4,400rpm
Fuel economy: 6.7L / 100km (estimate)

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