"Childhood in Yemen is a special kind of hell." Antonio Guterres, the UN SecretaryGeneral, did not mince his words at Monday's fundraising meeting for the country. More than three quarters of Yemen's population are expected to go hungry this year. Five million are at risk of famine.
And yet, foreign aid to the nation is faltering. In 2020, the UN received $1.9 billion, a little over half the amount it requested. This year, the total fell to $1.7bn, now under 50 per cent of the target figure of $3.85bn. This is just money pledged. The amounts delivered are frequently less.
As funding decreases, the intensity of Yemen's crisis increases. Houthi terrorists maintain their grip on large parts of the country and, by the day, are pushing further into new territory.
Economic recovery from Covid-19 is the top priority for governments across the world. Foreign aid budgets are regarded as easy targets for spending cuts. And when crises drag on, some donors can become weary. Others insist on maintaining their commitments. Saudi Arabia has committed $430 million, by far the largest annual pledge of any country at the meeting. The UAE promised $230m, America $191m and Germany $240m. The future of Yemen has global consequences, and the effort to secure it must involve more countries.
Millions are at risk of famine in Yemen. EPA
This year, total pledges fell to $1.7bn, under 50 per cent of the target figure of $3.85bn
Meanwhile, the UK, which has tried to rebrand itself as "Global Britain", has slashed its 2021 contribution. London has promised $121m, almost half of what it pledged in 2020. While frugality is not a bad quality for a state to have, well-spent foreign aid is an investment that can pay big dividends in terms of national security and international influence.
Donor reluctance is understandable. There is room for international organisations to spend more efficiently, and some experts justifiably wonder whether money would be used more efficiently if given directly to local governments, even in cases where they may misappropriate a portion of it or struggle without the full capacity to deploy the funds. To keep the pipeline flowing smoothly, the UN must enhance its efforts to maximise the returns for the intended beneficiaries of aid – that is to say, civilians on the ground. More engagement from donor countries, not less, will help to hold the organisation to high standards.
But used well, there is no doubt that aid saves lives. In 2018 and 2019, when the UN World Food Programme sought funds to fight global hunger, the success of its appeal helped to stave off famine.
Of course, foreign aid is not the total solution to Yemen's crisis. Houthi rebels continue hold the country hostage, killing and injuring the innocent, preventing the flow of aid into certain areas and using the impending environmental catastrophe of FSO Safer – a stranded, decaying tanker loaded with oil that could explode at any moment – as a bargaining chip.
But all the same, choosing to step back from foreign aid now, would make a bad situation worse.
One for Asia-Pacific Group (traditionally Arab state or Tunisia)
One for Latin America and Caribbean Group
One for Eastern Europe Group
Countries so far running:
UAE
Albania
Brazil
ARGENTINA SQUAD
Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez
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
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
