A man waves a Syrian flag at Aleppo Airport, which reopened for the first time since the fall of former ruler Bashar Al Assad six months ago. Syria's people must have confidence that the new government can deliver overall. EPA
A man waves a Syrian flag at Aleppo Airport, which reopened for the first time since the fall of former ruler Bashar Al Assad six months ago. Syria's people must have confidence that the new government can deliver overall. EPA
A man waves a Syrian flag at Aleppo Airport, which reopened for the first time since the fall of former ruler Bashar Al Assad six months ago. Syria's people must have confidence that the new government can deliver overall. EPA
A man waves a Syrian flag at Aleppo Airport, which reopened for the first time since the fall of former ruler Bashar Al Assad six months ago. Syria's people must have confidence that the new governmen


Six months on, Syria has to secure its recovery


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June 09, 2025

Six months on from the fall of Bashar Al Assad and despite the series of profound changes that have taken place in Syria since then, the country is best described as one that’s in a state of flux.

In many ways, the transformation seen so far is remarkable – millions who had been forced into exile are now able to visit their home country for the first time in many years, the misshapen command economy of the Assad era is giving way to billions of dollars in outside investment, thousands of Syrians are returning from exile, the banking sector is re-establishing itself and the new administration in Damascus is renewing important ties with governments across the Middle East and further afield.

However, to prevent this transition from stalling, the country’s people and foreign investors need to feel that Syria is a safe place. Without law and order or a professional, modern military and police force to maintain stability, there is the danger that Syria’s recovery will prove to be a house built on sand.

There are signs that Damascus is heading in the right direction on this critical issue. In a recent exclusive interview, a Syrian military official told The National that the authorities have so far recruited half of a planned 200,000-man army. Among this number is a 3,500-man brigade, comprising mostly of foreign fighters, allies of Hayat Tahrir Al Sham – the group that led the rebel offensive that removed the former regime last year.

In one sense, this is a sound strategic move; bringing HTS’s civil war allies into the fold meets a major US demand to contain them. It is also far from unprecedented – many professional armies employ foreigners or have entire units that are made up of foreign citizens or former militia members. However, caveats remain. Many of the fighters in Syria are not just foreign citizens, they have a political and religious agenda or loyalty to individual commanders. Some may be wanted men in their own countries.

Those overseeing Syria’s new army will have to monitor their ranks closely and build a culture of loyalty to the state and its laws. This is a test of Syrian unity, and although mistakes and setbacks should be expected, it is a test that Syria cannot be allowed to fail. The people must have confidence in those whose job it is to protect them.

Where the country stands six months from now will reveal if the government’s choices were the right ones

Similarly, the people must have confidence that the new government can deliver overall. Speaking recently to The National, a Damascus doctor gave a sober assessment of the country: “Economically, nothing has changed. People are still tired, salaries are low, there’s no money in the country, and there’s no electricity.” Without tangible improvements in employment, services and security, the momentum behind Syria’s transformation could wane.

In addition, the country faces a string of challenges. Significant armed groups, such as the Kurdish-led Syrian Democratic Forces and members of the Syrian National Army, remain outside the control of Damascus. SDF-run camps still house thousands of ISIS prisoners and their families. Meanwhile, Israeli troops continue to occupy Syrian territory, posing a significant and destabilising security problem.

But there are signs of progress on the security front. Last week, Syrian Interior Minister Anas Khattab said the government had seized control of all Captagon laboratories in the country, undermining a deadly criminal trade over the past decade that affected the entire region. When taken with moves to build a dependable army, it is possible to see the Syrian authorities building upon the euphoria the followed the end of the Assad era. Where the country stands six months from now will reveal if the government’s choices were the right ones.

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

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Updated: June 09, 2025, 3:00 AM