February has been a good month for UAE-UK relations. Just last week Prince William visited the Emirates, reaffirming the strong ties between both countries and their royal families. And at the beginning of the month, Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, received James Cleverly, UK Minister of State for Middle East and North Africa.
As revealed by The National, Mr Cleverly will sadly no longer be representing the UK in the GCC region, after the post of Minister of State for the Middle East was scrapped. Instead, the country's Foreign, Commonwealth and Development Office plans to divide responsibility for the Mena region among three new ministerial posts. Amanda Milling will now add the Middle East to her Asia portfolio and Lord Ahmad will be given responsibility for North Africa. Mr Cleverly's new role mostly involves Europe, but also includes Iran.
To many in Westminster, the move is baffling at a time when relations with the region, particularly the Gulf, are so crucial. The UK has been working hard to secure a trade agreement with the GCC, a key commercial region in the UK's post-Brexit future. Just yesterday, new data revealed that a record number of students from the UAE applied to UK universities in 2022. GCC-UK trade was worth almost $41 billion in 2020.
One senior Conservative MP told The National: “The carving up of the Mena post hardly gives confidence in 'Global Britain'.” The fact that Mr Cleverly is said by another politician to have been "really across his brief" is another cause for concern.
Away from economics, an important strategic issue that could see fragmentation because of the decision is high-stakes multilateral negotiations for a new deal to curb Iran's nuclear programme, which are entering a critical stage. Arab states have long argued that their concerns were ignored in a first, now-defunct one struck in 2015. With Mr Cleverly now no longer responsible for Arab states but still for Iran, there is a risk that one of the GCC's closest allies in talks might no longer be able to argue its case as uniformly as before.
Advocates of the division argue that it represents a modern approach for looking at Mena, and that three ministers rather than one paves the way for more specific government attention. Ms Milling's new responsibility for the Middle East in the wider context of Asia might be a recognition that the region is increasingly integrated into the continent's economy. Today's meeting between Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and Indian Prime Minister Narendra Modi, which is expected to discuss deepening trade ties among other things, is evidence this might be the case. There is even talk in academic circles that the label Mena should be replaced with "Swana" (South West Asia and North Africa), considered more reflective of the modern, post-colonial identity of the region. While that interpretation is still not mainstream, it indicates that current geographical and economic delineations might be increasingly up for revision.
Ultimately, what matters more than anything else for the UK's relations with the region is simple: continued appreciation and attention from government. While this new approach might be surprising, with so much recent evidence that the UK's relations with the Middle East are becoming stronger, it does not have to be damaging.
'Cheb%20Khaled'
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Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
BUNDESLIGA FIXTURES
Friday (UAE kick-off times)
Cologne v Hoffenheim (11.30pm)
Saturday
Hertha Berlin v RB Leipzig (6.30pm)
Schalke v Fortuna Dusseldof (6.30pm)
Mainz v Union Berlin (6.30pm)
Paderborn v Augsburg (6.30pm)
Bayern Munich v Borussia Dortmund (9.30pm)
Sunday
Borussia Monchengladbach v Werder Bremen (4.30pm)
Wolfsburg v Bayer Leverkusen (6.30pm)
SC Freiburg v Eintracht Frankfurt (9on)
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
if you go
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