When a club decides to admit a new member, that is usually business for the club alone. When that club is the world’s most powerful military alliance, stretching from the shores of Alaska to the western borders of Russia, it becomes a matter for anyone concerned about international stability and the rules-based order.
Major changes are taking place within Nato as its leaders meet in Vilnius, the Lithuanian capital. From an organisation born as a postwar opposition bloc to the Soviet Union, the alliance is not only growing in Europe – thanks to the imminent admission of Sweden – it is also expanding its reach in the Indo-Pacific region or, as the organisation puts it, “strengthening dialogue and co-operation with its partners … Australia, Japan, the Republic of Korea and New Zealand”. This is to say nothing of the considerable involvement of some Nato members in the Ukraine conflict.
There was a time, not that long ago, when a Nato summit would pass relatively unremarked, reported on mainly by defence and security specialists. Now, given the alliance’s changing composition and trajectory, as well as continental Europe’s latest war, many non-Nato countries will be keeping a watching brief on the bloc’s developing, higher-profile and consequential role in geopolitical affairs.
For example, Nato says it wants to get more involved in the fight against terrorism – often regarded as a task more aptly suited to international policing and intelligence gathering. Nevertheless, Nato has said this week it is set to appoint its first special co-ordinator for counter-terrorism.
Indeed, terrorism was just one of issues that dogged Sweden’s bid to join the alliance, with Turkey withholding ratification while demanding assurances from Stockholm regarding supporters of Kurdish separatists operating in its territory. A statement after three-way talks this week said that Turkey and Sweden would also work closely on bilateral trade and Ankara’s wider European agenda, including on EU accession and visa liberalisation. Enmeshing political and economic issues in a country’s journey to joining a military alliance is one example of how Nato – whether intentionally or not – is developing a weightier role, not only in military affairs but in how countries relate to each other bilaterally.
Sweden's journey from de facto to fully fledged Nato member will have been watched closely by other nations – particularly Ukraine, which is already asking that it be regarded effectively as a Nato country. This call will be made again at a high-level meeting between Ukraine’s leadership and Nato figures today but, given US President Joe Biden’s recent statement that Kyiv is not ready for membership, it seems unlikely that the alliance will gain a 33rd member soon.
Nevertheless, Nato is currently enjoying an invigorated position amid a challenging international security environment. With its main member, the US, being led by an unapologetically pro-Nato Mr Biden, the alliance has the time and stability to develop further. But its next steps will have to be cautious ones. The reality is that Russia, which wanted less Nato but is now faced with more, remains deeply distrustful of the organisation. The dangers posed by two antagonistic military forces facing off in Eastern Europe are already clear.
Multinational organisations inevitably develop and evolve. Indeed, this is vital to remaining relevant in a rapidly changing world. When it comes to an organisation that commands an unparalleled level of force, that growth must take place with the knowledge that a misstep will not just affect the club’s members, but everyone else as well. With great power comes great responsibility.
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2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
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Director: Stephen Gaghan
Stars: Robert Downey Jr, Michael Sheen
One-and-a-half out of five stars
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.
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UAE currency: the story behind the money in your pockets
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Founders: Mansour Althani and Abdullah Althani
Based: Business Bay, with offices in Saudi Arabia, Egypt and India
Sector: Technology, digital marketing and e-commerce
Size: 70 employees
Revenue: On track to make Dh100 million in revenue this year since its 2015 launch
Funding: Self-funded to date
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
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The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
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