France has taken the unprecedented step of recalling its ambassadors to the US and Australia in the continuing backlash over a major submarine deal announced this week.
French Foreign Minister Jean-Yves Le Drian made the announcement on Friday evening as the nation's anger builds over the cancellation by Australia of a £48 billion ($90bn) contract to buy conventional French submarines.
“I have decided to immediately recall our two ambassadors to the United States and Australia to Paris for consultations,” he said.
Mr Le Drian said the decision was made upon a request from President Emmanuel Macron and will now further escalate tensions following the announcement of the deal, known as the Aukus pact.
Under the trilateral deal, the US and the UK will help the Australian navy acquire for the first time a fleet of nuclear-powered submarines.
On Saturday, French envoy to Australia Jean-Pierre Thebault said the arms agreement between Paris and Canberra was supposed to be based “on trust, mutual understanding and sincerity."
“This has been a huge mistake, a very, very bad handling of the partnership,” he said.
“I would like to be able to run into a time machine and be in a situation where we don’t end up in such an incredible, clumsy, inadequate, un-Australian situation."
Australian Foreign Minister Marise Payne’s office said France's withdrawal of its representative was “regrettable”.
“Australia understands France’s deep disappointment with our decision, which was taken in accordance with our clear and communicated national security interests,” the statement said.
It added that Australia values its relationship with France and looked forward to future engagements together.
Mr Le Drian said the security pact was a “stab in the back” and called the move to remove the ambassadors as “justified by the exceptional seriousness of the announcements” made by Australia and the US.
He said the new partnership represented “consequences of which affect the very conception we have of our alliances, our partnerships and the importance of the Indo-Pacific for Europe".
He said the cancellation by Australia of a $90bn contract to buy conventional French submarines in favour of nuclear-powered subs built with US technology is “unacceptable behaviour”.
On Saturday, Peter Ricketts, a former permanent undersecretary at the Foreign Office and former UK ambassador to France, said the UK should also expect to face repercussions from France.
“Don’t underestimate reaction in Paris," he tweeted.
"It’s not just anger but a real sense of betrayal that UK as well as US and Australia negotiated behind their backs for six months. I lived the rupture in 2003 over Iraq. This feels as bad or worse.”
Lord Ricketts descried the recall as "unprecedented".
“Unprecedented between allied nations? Interestingly not from UK. A signal Paris regards Washington and Canberra as ringleaders in plot, with London as accomplice," he said.
"Expect further French measures targeting interests of all three.”
On Friday, a top French diplomat told The Associated Press that relations with the US are in “crisis”.
The diplomat, who spoke anonymously in line with customary government practice, said, for Paris, “this is a strategic question concerning the very nature of the relationship between Europe and the United States about the Indo-Pacific strategy".
He would not speculate on the effects the situation would have on France’s relationship with the US.
“There’s a crisis,” he stressed.
The US State Department on Friday confirmed to The National the US is in "close contact" with France.
"We understand their position," State Department spokesperson Ned Price said.
"France is a vital partner and our oldest ally, and we place the highest value on our relationship."
Mr Price said the US is aiming to continue talks with senior French officials.
"We hope to continue our discussion on this issue at the senior level in coming days, including at [the UN General Assembly] next week, in line with our close bilateral partnership and commitment to cooperation on a range of issues, including the Indo-Pacific," he said.
Mr Macron has not commented on the issue since President Joe Biden’s announcement of a strategic Indo-Pacific alliance with Australia and Britain, leading France to lose a deal to build diesel-electric submarines.
France has pushed for several years for a European strategy to boost economic, political and defence ties in the region, which stretches from India and China to Japan and New Zealand. The EU unveiled this week its plan for the Indo-Pacific.
Mr Le Drian on Thursday expressed “total incomprehension” at the move and criticised both Australia and the US.
“It was really a stab in the back. We built a relationship of trust with Australia, and this trust was betrayed,” he said.
“This is not done between allies.”
Earlier this week, Prime Minister Boris Johnson said Aukus was “not intended to be adversarial toward any other power”.
"It merely reflects the close relationship that we have with the United States and with Australia, the shared values that we have and the sheer level of trust between us that enables us to go to this extraordinary extent of sharing nuclear technology in the way that we are proposing to do," he said.
France has also cancelled a gala due to be held on Friday in the US to commemorate the anniversary of the Battle of Chesapeake Bay.
The crucial naval battle in the American Revolutionary War saw the French fleet defeat the British in 1781.
The Associated Press contributed to this report
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
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Short-term let permits explained
Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
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
The five pillars of Islam
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
LIVERPOOL%20TOP%20SCORERS
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The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
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Price: From Dh590,000
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The%20specs
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Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory