In a rare and in-depth interview on Tuesday, Saudi Arabia's Crown Prince Mohammed bin Salman said his country is not opposed to talks with Tehran to discuss ways the two regional powers could co-operate in the interests of peace. The decades-old rivalry between Saudi Arabia and Iran has been exacerbated in recent years by the proliferation of Iranian-backed militant groups across the Middle East, including on Saudi Arabia’s own border, in Yemen. As the Crown Prince noted, these groups present the primary roadblock to progress in bilateral relations.
For Iran to give them up will be difficult. On Tuesday Gen Kenneth McKenzie, head of the US military's Central Command, described a nuclear deal signed between western powers and Iran in 2015 as a "flawed document" but better than nothing, encouraging a collective response to the threat posed by Tehran. It was, unfortunately, not inclusive. Without the participation of Arab allies, the deal's collaborative intentions were never realised. The Biden administration could make the same mistake in its desire to return to a similar arrangement as soon as possible.
Iran must realise the limits of a diplomatic model built on aggression
In 2015, the most obvious threat to global security was Iran's nuclear programme. Six years later, it is much more. Tehran's expansionism, proxies, militia networks, ballistic missile programme and asymmetric warfare flourished because the deal on the nuclear issue. Permanent members of the UN Security Council must acknowledge this new and dangerous reality. If current talks with Iran in Vienna are to make the world safer, leaders must demand that Tehran closes its Pandora's box.
Iran will be unwilling to give up these strategic wins. They are, however, built on shaky ground. Tehran's network of militias has been weakened by the power vacuum that followed America's killing of senior IRGC commander Qassem Suleimani last year. The absence of his emblematic presence has loosened a once infamously well organised command structure. Gen McKenzie's statement on Tuesday even suggested that Iran's supreme leader, Ayatollah Ali Khamenei, is not entirely in control of the IRGC. Recent audio leaks of Foreign Minister Javad Zarif cause further confusion.
This is not something to be celebrated. Yesterday the US Navy released footage of what it claimed to be IRGC boats harassing its ships in the Gulf. This strategic disintegration could lead to Iranian forces overstepping the mark. But a security breakdown also leaves Tehran vulnerable. The assassination of a leading atomic scientist and a separate explosion at its Natanz facility have rocked the country's nuclear programme, key leverage that it has over regional nations.
Crown Prince Mohammed's latest interview summarised the many ways Saudi Arabia is changing at home and abroad, with a clear strategic vision. Riyadh wants détente with Tehran, but only if it is built on a genuine effort to curtail its militant and aggressive activities. Iranian leaders, wherever power truly lies, must realise the limits of a diplomatic model built on aggression. Until then, peace is difficult to attain, even with all the goodwill in the world.
SPECS
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The specs
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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
More from Aya Iskandarani
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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