The US said approval of Turkey's request for F-16 jets depended on Ankara's approval of Sweden's Nato membership. Reuters
The US said approval of Turkey's request for F-16 jets depended on Ankara's approval of Sweden's Nato membership. Reuters
The US said approval of Turkey's request for F-16 jets depended on Ankara's approval of Sweden's Nato membership. Reuters
The US said approval of Turkey's request for F-16 jets depended on Ankara's approval of Sweden's Nato membership. Reuters

US approves sale of warplanes to Turkey and Greece


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US President Joe Biden's administration has approved a long-pending sale of F-16 fighter jets to Turkey, as well as the sale of F-35 fighter jets to Greece.

The administration formally notified Congress of the approvals on Friday, according to the State Department and the US Defence Security Co-operation Agency (DSCA).

The State Department sent the notification to advance the $23 billion sale of 40 Lockheed Martin F-16s and nearly 80 modernisation kits to Turkey a day after Ankara fully completed ratification of the Nato membership of Sweden, a move that became directly linked to deal.

The Biden administration simultaneously advanced the sale of 20 Lockheed F-35 Lightning stealth fighter jets to fellow Nato ally Greece in an $8.6 billion deal that Washington advanced as it tries to strike a balance between two alliance members with a history of tense relations.

The DSCA said the sale of F-35s to Greece would “support the foreign policy goals and national security of the United States by improving the air capabilities and interoperability of a Nato ally that is a force for political and economic stability in Europe”.

Turkey first made the request for the F-16 jets in October 2021, but Ankara's delay in approving the ratification of Sweden's Nato bid had been a major obstacle to winning congressional approval for the sale.

Following 20 months of delay, the Turkish Parliament earlier this week ratified Sweden's Nato bid, and subsequently Mr Biden wrote a letter to congressional committee leaders, urging them to approve the F-16 sale “without delay”.

Leaders of the Senate foreign relations committee and House of Representatives foreign affairs committees review every major foreign arms sale. They regularly ask questions or raise concerns over human rights or diplomatic issues that can delay or stop such deals.

Following the formal notification by the State Department, the Congress has 15 days to object to the sale, after which it is considered final.

Democratic Senator Ben Cardin, chairman of the Senate foreign relations committee, said his approval of the F-16 sale depended on Turkish approval of Sweden’s Nato membership, but also called on Ankara to improve its human rights record, co-operate better on holding Russia accountable for its invasion in Ukraine and to help de-escalate tensions in the Middle East.

“My concerns have been strongly and consistently conveyed to the Biden administration as part of our continuing engagement, and I am encouraged by the productive direction of their discussions with Turkish officials to address these issues,” he said.

US officials said they do not expect Congress to block either sale, despite criticism of Turkey by some members.

With reporting from Reuters.

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

Expert advice

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Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre 

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Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
 

Profile

Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari

Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.

Number of employees: Over 50

Financing stage: Series B currently being finalised

Investors: Series A - Audacia Capital 

Sector of operation: Transport

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Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

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UAE currency: the story behind the money in your pockets
How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Updated: January 27, 2024, 8:47 AM