The recent visit to Washington, New York and Silicon Valley by Saudi Arabia’s deputy crown prince Mohammed bin Salman, might, like most diplomatic missions, quickly faded into irrelevance. But this trip also has the potential to one day be recalled as a watershed moment in US-Saudi relations. That will depend entirely on the fate of the sweeping economic and social reform agenda Prince Mohammed is championing in an attempt to transform Saudi society from the top down.
The deputy crown prince is not a head of state, or even government, but during his American trip he was treated like one. Prince Mohammed met Barack Obama and his secretaries of state and defence. He and his large delegation fanned out across Washington, visiting key congressional figures and various policy-framing opinion leaders.
Prince Mohammed’s message was at least as economic as political, and he spent several days reaching out to business leaders in New York and high tech honchos in California. The restructuring agenda he is leading, known as the National Transition Programme (NTP), presents itself as a policy of economic revitalisation. Its centrepiece is Saudi Arabia’s Vision 2030, a blueprint for the post-oil era, including monetising a large part of Saudi Arabia’s energy resources and creating a $2 trillion (Dh 7 trillion) sovereign wealth fund.
But behind this economic programme lies an implicit yet unmistakable vision to radically overhaul key aspects of Saudi society, and even culture, and promote national competitiveness by bringing it more into line with the international norms of a globalising world.
An obvious case in point is gender relations. The plan calls for greatly expanding women’s participation in government and the economy, since it is impossible for Saudi Arabia to be competitive in a post-oil environment without tapping its female human resources. That, in turn, is impossible unless extraordinary and ultimately unmanageable restrictions such as “guardianship” laws, extreme gender segregation in most public spaces, and the prohibition against women driving, are eliminated.
Prince Mohammed and his allies plainly understand this, and communicating that was a key element of their message to their American audience. He and his delegation, particularly behind closed doors, stressed that they understand the fairly extensive transformation their country needs (much of which has been pushed by Washington for many years, to no avail), and that they are earnestly and energetically attempting to implement those changes.
The United States, they were suggesting, needs to support this effort through promoting trade and investment, diplomatic support (including regarding the war in Yemen, which is the subject of increasing international concern), and recalibrating Washington’s relationship with Riyadh’s archrivals in Iran.
The message was couched in a striking new tone of warmth and friendship, following several years of bitter complaints, threats of “going it alone” and sullen allusions to finding alternative partners.
In recent months Saudi Arabia has been replacing such vinegar with large dollops of honey, which reflects both a new approach and a recognition that – for various reasons, including a growing sense that Washington is indeed getting tougher with Iran – relations genuinely have been improving.
The immediate result was a somewhat mixed bag. Prince Mohammed apparently impressed most of his American interlocutors with his personal qualities and determination. He gave the impression of being a serious and dynamic young leader with a strong grasp of the challenges facing his country and a genuine resolve to try to meet them.
But there is still an entirely reasonable American scepticism about how much of his vision can be successfully implemented. The obstacles are considerable.
On the administrative front, this agenda will ultimately require unprecedented levels of performance and accountability from a bureaucracy that does not have a good track record on fulfilling even much less ambitious projects. The change of tone at the top is evident, but it’s going to have to be matched by an adjustment at a number of crucial administrative levels.
Investors will be torn between an attraction to the kind of profits the Saudi energy sector might yield versus the lack of international norms of informational transparency, scrutiny and corporate governance regarding several crucial opportunities such as Saudi Aramco.
The arcane Saudi legal system is another significant disincentive to certain kinds of investment, and the country’s strikingly inadequate educational system will be an obstacle to some others.
Perhaps most dramatic, and politically threatening, is the prospect of concerted resistance from social conservatives, especially religious hardliners, to the vast social transformation that will be required if the NTP is to be even partially realised. Such a pushback is virtually guaranteed, and will be a real test of the government’s willingness and ability to insist on fundamental social changes despite powerful opposition.
Washington is understandably sceptical but pleased and intrigued by the transformation programme. If it succeeds, even partially, Prince Mohammed’s 2016 trip could well be recalled as the beginning of a promising new era in US-Saudi relations.
Hussein Ibish is a senior resident scholar at the Arab Gulf States Institute in Washington
On Twitter: @ibishblog
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
ALL THE RESULTS
Bantamweight
Siyovush Gulmomdov (TJK) bt Rey Nacionales (PHI) by decision.
Lightweight
Alexandru Chitoran (ROU) bt Hussein Fakhir Abed (SYR) by submission.
Catch 74kg
Omar Hussein (JOR) bt Tohir Zhuraev (TJK) by decision.
Strawweight (Female)
Seo Ye-dam (KOR) bt Weronika Zygmunt (POL) by decision.
Featherweight
Kaan Ofli (TUR) bt Walid Laidi (ALG) by TKO.
Lightweight
Abdulla Al Bousheiri (KUW) bt Leandro Martins (BRA) by TKO.
Welterweight
Ahmad Labban (LEB) bt Sofiane Benchohra (ALG) by TKO.
Bantamweight
Jaures Dea (CAM) v Nawras Abzakh (JOR) no contest.
Lightweight
Mohammed Yahya (UAE) bt Glen Ranillo (PHI) by TKO round 1.
Lightweight
Alan Omer (GER) bt Aidan Aguilera (AUS) by TKO round 1.
Welterweight
Mounir Lazzez (TUN) bt Sasha Palatkinov (HKG) by TKO round 1.
Featherweight title bout
Romando Dy (PHI) v Lee Do-gyeom (KOR) by KO round 1.
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