If Keir Starmer’s Labour wins the UK general election, it offers the possibility of renewal for Britain in a time of rapid global change. Getty
If Keir Starmer’s Labour wins the UK general election, it offers the possibility of renewal for Britain in a time of rapid global change. Getty
If Keir Starmer’s Labour wins the UK general election, it offers the possibility of renewal for Britain in a time of rapid global change. Getty
If Keir Starmer’s Labour wins the UK general election, it offers the possibility of renewal for Britain in a time of rapid global change. Getty


UK election is a chance to renew Gulf relationships


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July 03, 2024

Seven months ago, thousands of British people living in the UAE got the news that they would have the right to vote in UK general elections, no matter how long they had been living outside the country.

These Britons and the thousands more who live and work in other GCC countries are a reminder of the close historical and contemporary links between the UK and the Gulf. No matter which party emerges victorious from tomorrow’s vote, Britain is headed for political change, and the country’s friends and allies, in addition to foes and rivals, will be watching closely. The Gulf countries, with their close and historic ties, will be following the vote and government make-up.

It is worth reflecting on the fact that in the years since Brexit, Britain has intensified its co-operation with Gulf states. In February, the UK in a Changing Europe think tank noted that Britain had struck several co-operation agreements with individual GCC states, such as the March 2018 Strategic Partnership Council with Saudi Arabia that was set up to develop energy, defence and trade collaboration. Last year, the UK and Qatar launched a Strategic Dialogue, and in February, UAE Minister of State Ahmed Al Sayegh said 2024 was set to be “critically important” in the trading relationship between the Emirates and the UK.

Good trade ties have been a constant in the Anglo-Gulf relationship; talks about establishing a free-trade agreement with the GCC have been under way since 2021. Figures released in January by the GCC Statistical Centre showed that trade between the UK and the Gulf states was worth $39.6 billion by the end of 2022, a strong increase from the $23.7 billion recorded in 2021.

However, the UK’s foreign policy discourse still seems overly focused on its “special relationship” with the US as well as the tangled issue of how to work constructively with the EU. Given the demonstrable importance of the Gulf – especially when it comes to ensuring regional stability and ending wars such as the one raging in Gaza – London must reprioritise its existing ties with GCC states, especially the UAE, not just because of long historical connections and large expat populations, but because it is responsible statecraft and makes good strategic sense.

There are signs that the Gulf and wider region would be a priority for a Labour government. This week, UK shadow foreign secretary David Lammy said his party wanted three big resets – with Europe, the Global South and on climate change. But he also singled out the Middle East, and raised the possibility of setting up a new contact group with the UK’s Arab partners. In late January, Mr Lammy also said Labour wanted to create a new Middle East peace envoy. “We will work with, not snub, our partners in the Gulf in order to deliver a road to peace and a Palestinian state,” he added.

These are promising words, particularly in the context of the ongoing Israeli war in Gaza. In an exclusive interview with The National this week, Alan Duncan, a former Conservative foreign and development minister under prime ministers David Cameron and Theresa May, said the UK had been “weak and naive” in failing to stand up to Israel in recent years. A reinvigorated partnership with the Gulf countries would only add to the chances of reaching a ceasefire and a longer-term political settlement to the conflict.

In a wider sense, if – as seems likely – Keir Starmer’s Labour wins tomorrow’s election, it offers the possibility of renewal for Britain in a time of rapid global change. When the Conservatives came to power in 2010, Britain was still in the EU, the turbulence of a Donald Trump presidency was inconceivable and direct talks were taking place between Israel and the Palestinian Authority. All that has changed. In such challenging times, it is easy to be distracted but it is always important to maintain the ties that bind.

yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

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Director: Rupert Wyatt

Rating: 3/5

Winners

Best Men's Player of the Year: Kylian Mbappe (PSG)

Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)

TikTok Fans’ Player of the Year: Robert Lewandowski

Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)

Best Women's Player of the Year: Alexia Putellas (Barcelona)

Best Men's Club of the Year: Chelsea

Best Women's Club of the Year: Barcelona

Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)

Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)

Best Coach of the Year: Roberto Mancini (Italy)

Best National Team of the Year: Italy 

Best Agent of the Year: Federico Pastorello

Best Sporting Director of the Year: Txiki Begiristain (Manchester City)

Player Career Award: Ronaldinho

MATCH INFO

What: Brazil v South Korea
When: Tonight, 5.30pm
Where: Mohamed bin Zayed Stadium, Abu Dhabi
Tickets: www.ticketmaster.ae

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Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
MISSION: IMPOSSIBLE – FINAL RECKONING

Director: Christopher McQuarrie

Starring: Tom Cruise, Hayley Atwell, Simon Pegg

Rating: 4/5

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Updated: July 09, 2024, 7:56 AM