Iranian Foreign Minister Mohammad Javad Zarif, right, and his Chinese counterpart Wang Yi, pose for photos at the start of their meeting in Tehran, Iran. AP
Iranian Foreign Minister Mohammad Javad Zarif, right, and his Chinese counterpart Wang Yi, pose for photos at the start of their meeting in Tehran, Iran. AP
Iranian Foreign Minister Mohammad Javad Zarif, right, and his Chinese counterpart Wang Yi, pose for photos at the start of their meeting in Tehran, Iran. AP
It should come as no surprise that China and Iran signed a 25-year agreement this week. It has been touted many times in recent years, although negotiations over the details have remained a secret. What is interesting, however, is the timing. It comes within 100 days of US President Joe Biden taking office and his desire to reconfigure America’s relations with both countries. Now, it seems Beijing and Tehran have moved past the era of fearing US sanctions following the departure of Mr Biden’s predecessor, Donald Trump.
The strategic agreement covers multiple areas, including politics, the economy and military and defence co-operation. China has also agreed to joint drills, port development in Iran and $450 billion worth of investment in energy, petrochemicals and other sectors.
President Biden has, in his own words, been “concerned about that for years”. But beyond being concerned for years, he may want to explain what he intends to do about the challenge posed by China and Iran, as well as by Russia, to his country, with all three countries having judged that the Biden administration will relinquish sanctions with a view to rid itself of the commitments and legacy of the previous Trump administration. President Biden must also engage Arab states’ positions vis-a-vis the China-Iran agreement, which has implications for the entire region.
There is co-ordination between Russia and China’s diplomatic efforts. Both powers are wary of the Biden administration and have favourable relations with Iran. Today, Tehran is also resentful of the Biden presidency, either for tactical reasons related to upcoming negotiations over returning to the 2015 nuclear deal, or as part of its strategic decision to strengthen its partnerships with China and Russia.
Interestingly, even as they prioritise their relations with Iran, China and Russia are also deepening co-operation with the Gulf states. Last month, Russian Foreign Minister Sergey Lavrov toured the region, as did Wang Yi, his Chinese counterpart. Mr Lavrov also visited Beijing to co-ordinate the two countries' strategies regarding relations with the US, the Gulf states and the Middle East amid the Biden administration's perceived downgrading of the region in its list of priorities.
Arab states will continue to maintain close ties with the US – ties that neither China nor Russia can match right now, unless a radical shift occurs in the balance of these relations. Yet their evolving ties with China and Russia, even if they are focused on the economy, have important implications that the US would do well to not downplay. Today, China and Russia are putting forward many initiatives in the Middle East, a region that was considered almost entirely in the American sphere of influence.
Following the China-Iran deal, Tehran is likely to receive an annual windfall of up to $20 billion. This will encourage the regime to pursue its domestic and regional projects with even more vigour, including strategic operations inside Syria, Iraq, Lebanon and Yemen. Regardless, China’s primary interest in the region is gaining a strategic position in the Middle East – not dissimilar from Russia’s foothold in Syria, courtesy of its relations of the Bashar Al Assad regime in Damascus.
Iran has effectively come under China’s security umbrella, with Beijing gaining a foothold in Iranian ports and in some Arab countries, such as Lebanon, where Iran has influence. But in the event of a direct war between Iran and Israel, will China be willing to help its ally? Or is there a Chinese-Russian deal that complements the agreement, bearing in mind that Moscow has sought to play the role of mediator between Iran and Israel, as well as between Syria and Israel?
US President Joe Biden has an opportunity to reset US strategy vis-a-vis Iran. AFP
Much like China aims to expand its influence globally through its “One Belt, One Road” initiative, its strategic pact with Iran will help increase its foothold in the region through Iran’s strategic location in the Gulf. But will China protect Iran militarily if Tehran were to escalate tensions in the Gulf waters, or if it continued to back Houthi attacks in the neighbourhood? Given advancements in China’s relations with the Gulf states, it will seek de-escalation.
These relations will, therefore, be important as these states seek to leverage Beijing’s partnership with Tehran to contain Iran’s incursions in the region. Only then will it even be possible for all the stakeholders to dream of a grand bargain between Iran and the US.
Arab states' evolving ties with China and Russia have important implications that the US would do well to not downplay
As of now, China and Russia share frosty relations with the US. Both powers see Iran as an important card to use against the Biden administration. Moscow, therefore, views the China-Iran pact as complementary to its own relations with Tehran. It also sees its attempted sponsorship of solutions to some of the conflicts in the region as a means to shore up its presence and negotiating hand – in a way that allows it to compete with Washington. It has bet big on Israel in this context, seeking to become a bridge between Israel, Iran and the Arab states.
At the annual conference of the Valdai Club, which plays a role in shaping Russian policy in the Middle East, Mr Lavrov presented a number of proposals. To some extent, these proposals build on the achievements of the Trump administration vis-a-vis the Abraham Accords, which have launched a new era of peace and co-operation between the Arab states and Israel. Moscow’s view is that the Biden administration is not ready to play a significant role in the Middle East, and that drafting a clear policy from Washington will take time, which creates an opportunity for Moscow to fill the vacuum through swift, bold action.
It aims to sponsor an accord between Iran and Israel, which has yet proved a far-fetched notion, but whether the China-Iran pact can move the needle remains to be seen.
Either Israel will begin to view Iran slightly differently, now that it has China’s backing – or mutual hostility will increase to match the rising tensions between their respective allies in Washington and Beijing. Within this context, US-China relations will also be interesting to watch.
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute and a columnist for The National
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples. Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts. Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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
UK Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Casket match The Undertaker v Chris Jericho
John Cena v Triple H
Matches to be announced
WWE World Heavyweight Championship, Raw Tag Team Championship, United States Championship and the Cruiserweight Championship are all due to be defended
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
