How does anyone solve problems as complicated as the ones that plague Iraq? The answer remains illusive.
Addressing domestic challenges, such as unemployment, endemic corruption and security breaches, is part of the solution. Iraq is in need of internal solutions and external support. The country faces inconsistent diplomacy from its western allies, which is often overhauled whenever power changes in Washington or other capitals. Iraq also endures intense foreign interference from groups with no interest in its citizens' prosperity. Strong bilateral and regional ties could benefit the country and the wider region.
Monday's visit by a GCC delegation to Iraq should give the nation hope as it deals with these problems.A 2019 visit to Baghdad by former secretary general Abdullatif Al Zayani and a subsequent spate of visits by Iraqi officials to Gulf capitals laid the foundations for closer ties. During the most recent visit, Secretary General Nayef Al Hajraf said that member states will support Iraq as it tries to bolster sovereignty, stability and prosperity.
Baghdad is struggling on multiple fronts. There are fears that terrorist groups, particularly ISIS, could be using conditions created by the pandemic and general instability to increase their operations. On January 21, ISIS suicide bombers killed 32 civilians and wounded dozens in the capital. On Monday, British jets struck two targets in northern Iraq associated with the group. Last week, the Iraqi military killed a senior ISIS commander, who had claimed to be the group's "deputy caliph".
The UAE is helping restore Iraq's cultural heritage. AFP
The support of a united GCC could provide timely help for the region, by the region.
Dissatisfaction at corruption and foreign interference also needs to be urgently addressed. Not doing so puts at risk the hopes for a better future among Iraqi citizens. Demonstrators have been calling for change since October 2019, with activists and protesters targeted by militias and extremists.
Diplomatic attempts to solve deeply entrenched problems are difficult to come by in Iraq. This is precisely why the GCC's renewed confidence in those efforts represents a refreshing development.
The UAE is already involved in the reconstruction of various sites in Mosul, a historically significant city devastated after its occupation by ISIS, and there have been previous efforts by Gulf states to support the nation financially. In 2018, a conference held in Kuwait on Iraqi reconstruction pledged support amounting to $30 billion.
Monday's discussions focused in part on the nature of a constructive economic support package. Mr Al Hajraf announced the GCC's desire to hold a joint investment conference. Empowering the country's private sector is vital to tackling youth unemployment rates that are said to be at 25 per cent. Bordering major economies such as Saudi Arabia and Kuwait gives Iraq an opportunity to open new fronts of economic activity, where it could replicate the success of its joint industrial zone with neighbouring Jordan. Delegates discussed progress on a plan to connect Iraq to the GCC's power grid, something that would provide much-needed cheap and reliable electricity to support the country's population and its economic development. Further collaboration between the two could have other major economic benefits, given their huge oil reserves and young, ambitious populations.
January's GCC summit in Al Ula, Saudi Arabia, reinvigorated a bloc that has historically had serious diplomatic heft in the Middle East. By supporting Baghdad, the GCC imprints its constructive ambitions on the region, which offer hope and a path out of the political quagmire of recent years. Its engagement with Iraq would also balance out the more nefarious influence of other foreign actors there.
Iraq is struggling. The support of a united GCC could provide timely help for the region, by the region.
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
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
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
