UAE pushes UN on Houthi 'act of piracy' after ship hijacking

The UAE has formally complained to the UN Security Council about an “act of piracy” in which Yemen’s Houthi rebels hijacked a vessel with 11 crewmembers earlier this month, it was reported on Monday.

A letter from the UAE’s ambassador to the UN Lana Nusseibeh said the UAE-flagged Rawabi cargo vessel was carrying crewmembers from India, Ethiopia, Indonesia, Myanmar and the Philippines, AFP said.

"This act of piracy is contrary to fundamental provisions of international law," said the letter, which was dated January 9.

"It also poses a serious threat to the freedom and safety of navigation as well as international trade in the Red Sea, and to regional security and stability."

Ms Nusseibeh said the Rawabi was a "civilian cargo vessel" that was leased by a Saudi Arabian firm and was carrying equipment for a field hospital. It was transiting an international route, she added.

Security Council members are set to discuss Yemen's war on Wednesday. The UAE will take part in the talks, having commenced its two-year term on the body on January 1.

Members of the Gulf Cooperation Council and the United States have condemned the Houthi rebel hijacking of the vessel off the coast of Yemen on January 2.

It was not the first time the Houthi rebels have targeted shipping.

In November 2019, the Houthis seized two South Korean vessels and a Saudi-flagged tug in the Red Sea a few kilometres off Uqban Island, north of Hodeidah. In July the previous year, Riyadh said the rebels attacked two Saudi-operated oil tankers in the Red Sea.

A Saudi-led military coalition intervened in Yemen to support the internationally recognised government in March 2015 after the Iran-backed Houthis captured the capital, Sanaa, the previous September.

The UN describes Yemen as the world's worst humanitarian crisis.

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 Brutalist

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