Syrians are increasingly being empowered to revive their nation – economically, politically and culturally. Getty
Syrians are increasingly being empowered to revive their nation – economically, politically and culturally. Getty
Syrians are increasingly being empowered to revive their nation – economically, politically and culturally. Getty
Syrians are increasingly being empowered to revive their nation – economically, politically and culturally. Getty


Lifting sanctions will help Syria's leaders to do their job of rebuilding the country


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July 09, 2025

In a sign of how much Syria has changed in just eight months, the country’s new leadership recently finalised a deal with a Qatari company to build a media and entertainment complex on the outskirts of Damascus. The City of Damascus Gate is an ambitious mega-project that could restore Syria to its former place as a regional leader in film, television and tourism.

Such a development is just one indicator of how Syria has turned a corner after the chaos of its civil war and the stagnation of the Assad years. With several countries along with the EU lifting many of their Assad-era sanctions, Syrians are increasingly being empowered to revive their nation – economically, politically and culturally. As US President Donald Trump said during his May speech in Riyadh, “Now it's their [Syria's] time to shine.”

However, many serious challenges continue to confront Syria’s transition. Among these is the fact that the country’s head of state and the backbone of its political administration are still subject to UN Security Council counterterrorism sanctions. Although interim President Ahmad Al Shara has been successfully forging personal relationships with several regional leaders – including President Sheikh Mohamed in Abu Dhabi this week – such important work is complicated by the Security Council’s restrictions.

A rethink of this sensitive issue is due. Sanctions are coercive instruments meant to encourage changes in behaviour and Mr Al Shara has clearly moved far beyond his political origins in Syria’s collection of militant opposition groups. After his Hayat Tahrir Al Sham rebels ousted Bashar Al Assad in December, Mr Al Shara began to overhaul a corrupt Syrian state, reach out to factions such as the Kurdish-led Syrian Democratic Forces, reform the country’s security forces and set in motion discussions to build a more representative Syria.

This is an imperfect process that has experienced many serious and deadly setbacks. However, by maintaining international sanctions against Syria’s head of state and many of its individual leaders, there is the risk of the Syrian transition facing obstacles in fully co-ordinating with the UN on political and security matters. Ironically, this could lead to less co-operation and co-ordination on issues such as terrorism and extremism. This would be a mistake, given that the UN is in a strong position to offer Syria vital technical and diplomatic support as it tries to build up its institutions.

The removal of sanctions, were it to happen, must also involve Syria’s leaders continuing to live up to their commitments to build a stable, just and tolerant country

The are suggestions that change is on the way. According to sources speaking to The National last week, the US is preparing to circulate to the Security Council a draft resolution calling for the lifting of sanctions on Mr Al Shara. Discussions are already under way between the council's permanent members – the US, France, UK, China and Russia – to potentially delist Mr Al Shara, his Minister of Interior Anas Khattab and HTS.

Such a move, were it to happen, must also involve Syria’s leaders continuing to live up to their commitments to build a stable, just and tolerant country. Issues such as the continued presence of foreign fighters in Syria’s armed forces is one that continues to sow concern about the path foward. But the best way to ensure there is no backsliding into extremism is to maximise Syria’s engagement with international institutions, such as the UN. Removing sanctions that have outlived their purpose would be one way to maintain the momentum of Syria’s transition.

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Courtesy: Crystal Intelligence

RESULT

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Man United: Dunk (66' og)

Man of the Match: Shane Duffy (Brighton)

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Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

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Flights: 149

Steps: 3.78 million

Calories: 220,000

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Rating: 1/5

Sam Smith

Where: du Arena, Abu Dhabi

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Rating: 4/5

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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Updated: July 09, 2025, 5:27 AM