The US, European powers, Egypt, Jordan and the UN Security Council hailed a vote by Libya's parliament to approve a unity government to lead the North African nation to elections in December.
In a joint statement, the foreign ministers of France, Germany, the US, Italy and Britain said: "We applaud the Libyan people for their determination to restore unity to their country."
They reiterated a call for "the withdrawal of all foreign fighters and mercenaries from all of Libya".
"This outcome is a fundamental step on the path towards the unification of Libyan institutions and a comprehensive political solution to a crisis that has tested Libya and its people," the joint statement said.
Similar comments were made earlier at a joint news conference by the foreign ministers of France, Germany, Egypt and Jordan.
France's Jean-Yves Le Drian called it a "major advance" while his German counterpart Heiko Maas said it was an "excellent development".
Egypt's Foreign Minister Sameh Shoukry called the development "good news".
"The fact that yesterday there was a vote of confidence concerning the political process that has been started ... that's an important point," he said.
"It's a step towards stability, security and the sovereignty of Libya."
UK Foreign Minister Dominic Raab congratulated Libya "on an important step towards a more stable future."
"The priority now must be implementing the ceasefire, holding elections and delivering essential services for Libyans," Mr Raab said.
The EU also welcomed the new government, but said it could impose sanctions on foreign or domestic spoilers who undermine peace efforts.
"This is a significant breakthrough that creates the conditions to reunify institutions in Libya and lead the country towards national elections on December 24," EU foreign policy chief Josep Borrell said on behalf of the 27 member states.
"We call on all Libyan stakeholders to ensure a timely and seamless transfer of power to the Government of National Unity."
Later on Friday in New York, the UN Security Council agreed on a statement in support of Libya’s new unity government and urged it to pave the way for national elections on December 24 this year.
The 15-member body urged all Libyan forces to stick to the ceasefire deal, called for all foreign forces and mercenaries to exit the country and pushed for progress on a UN team to monitor the truce.
Oil-rich Libya descended into conflict after dictator Muammar Qaddafi was killed in a Nato-backed uprising in 2011, resulting in the rise of forces backed by competing foreign powers vying for control.
After two days of intense debate under heavy security in the central coastal city of Sirte, parliament on Wednesday approved the Cabinet of interim prime minister Abdul Hamid Dbeibah.
Mr Dbeibah will take the oath of office on Monday in Benghazi.
Libya was split between the Government of National Accord, based in the capital Tripoli and backed by Turkey, and an administration in the east supported by Field Marshal Khalifa Haftar, with the backing of Egypt and Russia.
"This is a historic opportunity for the Libyans to come together in a joint effort to rebuild their country as peaceful, stable and united, and restore Libya's national sovereignty and territorial integrity," the EU said.
It called for a truce deal and arms embargo, and that demands for the withdrawal of all foreign fighters and mercenaries be respected.
"In this regard, the European Union recalls its instrument of sanctions against possible spoilers," it said.
"We also invite the leadership of the Government of National Unity to demonstrate its strong resolve towards laying the foundations for a comprehensive reform in the security sector, including through genuine efforts to dismantle militias and unify armed forces under a civilian oversight."
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
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Know your cyber adversaries
Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.
Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.
Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.
Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.
Phishing: Aims to secure personal information, such as passwords and credit card numbers.
Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.
Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.
Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.
Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.
Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.
Zero-day exploit: Exploits a vulnerability in software before a fix is found.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
