Saudi Crown Prince Mohammed bin Salman and Jake Sullivan agreed to continue discussions around other important bilateral partnerships. AP
Saudi Crown Prince Mohammed bin Salman and Jake Sullivan agreed to continue discussions around other important bilateral partnerships. AP
Saudi Crown Prince Mohammed bin Salman and Jake Sullivan agreed to continue discussions around other important bilateral partnerships. AP
Saudi Crown Prince Mohammed bin Salman and Jake Sullivan agreed to continue discussions around other important bilateral partnerships. AP

Saudi Crown Prince and top Biden aide hail 'progress' in ending Yemen war


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Saudi Crown Prince Mohammed bin Salman and US national security adviser Jake Sullivan discussed the situation in Iran and steps aimed at ending the war in Yemen in a phone call on Tuesday.

"Mr Sullivan highlighted the remarkable progress in Yemen over the past year, during which fighting has nearly ceased under a UN-mediated truce," the White House said in a statement.

"He welcomed Saudi Arabia’s extraordinary efforts to pursue a more comprehensive road map for ending the war and offered full US support for those efforts."

The two sides also discussed a number of regional issues, including Washington's “unwavering commitment to ensure Iran can never acquire a nuclear weapon”.

They agreed to continue discussions around other important initiatives, such as the Global Infrastructure and Investment partnership, clean energy co-operation and investment in 5G and 6G Open Radio Access Network technology.

The call came amid talks in Yemen between Saudi Arabia, Oman and the Houthis in Sanaa, which began at the weekend.

US special envoy to Yemen Tim Lenderking is also scheduled to travel to the Gulf on Thursday, the White House said.

Mr Lenderking's visit to the region begins with the start of a three-day prisoner swap between the warring sides that will see 877 detainees being handed over.

As part of the exchange, an International Committee of the Red Cross flight from Sanaa to Riyadh will return more than 20 Saudi citizens to their country.

The swap was originally scheduled for Tuesday, but was later moved to Friday and then back to Thursday due to logistical reasons.

Crown Prince Mohammed bin Salman meets US Senator Lindsey Graham of South Carolina in Jeddah on Tuesday.
Crown Prince Mohammed bin Salman meets US Senator Lindsey Graham of South Carolina in Jeddah on Tuesday.

“On the first day of the exchange [Thursday], ICRC flights will transport detainees between Aden and Sanaa,” Yemen's Deputy Human Rights Minister Majed Fadhil, who is part of the negotiation committee, told The National on Tuesday.

Friday will see flights from Sanaa to Riyadh, Abhaa to Sanaa, and both ways between Mokha and Sanaa, while Saturday will see flights both ways between Marib and Sanaa, he added.

On Tuesday, Prince Mohammed and American Senator Lindsey Graham also discussed the kingdom's continuing reforms and trade between Saudi Arabia and the US trade during a meeting in Jeddah.

Saudi Arabia announced a deal worth up to $37 billion last month in which its two national airlines will order as many as 121 commercial jets from US aircraft maker Boeing.

“I look forward to working with the administration and congressional Republicans and Democrats to see if we can take the US-Saudi relationship to the next level, which would be a tremendous economic benefit to both countries and bring much-needed stability to a troubled region,” Mr Graham said.

Last week, CIA director William Burns met the kingdom's intelligence officials in Riyadh.

Yemen is in its eighth year of war since the Iran-backed Houthis took over the capital Sanaa in 2014, prompting the government to request assistance from Saudi Arabia to restore it to power.

Yemen's Foreign Minister Ahmad Awad bin Mubarak and analysts believe that Saudi Arabia's rapprochement with Iran last month gave political peace in Yemen a "positive momentum" and made reaching a deal with the Houthis more likely to happen, especially since talks over a prisoner swap had been stalled for at least three years.

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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

Updated: April 12, 2023, 9:42 AM