WASHINGTON // Years of international efforts to broker and implement a peace deal between northern and southern Sudan will finally see results tomorrow as the south votes to determine whether or not the country is to remain united.
John Kerry, the chairman of the US Senate Foreign Relations Committee, said on Tuesday while visiting Sudan to offer diplomatic support for the referendum: "Sudan is at a pivotal moment. The United States played an important role in ending the civil war in Sudan and making the vote this Sunday possible. Our commitment to the Sudanese people will extend beyond the referendum, whatever its outcome."
Sudan has flickered on and off Washington's radar for decades. US security interests were triggered when al Qa'eda was headquartered in Khartoum during the early and mid-1990s.
Laura Jones, a policy analyst with the Enough Project, a Washington-based humanitarian group that is supported by several high-profile personalities, including such celebrities as George Clooney, said: "[US interests] changed over the years somewhat, because, of course, back 28 years or so we were looking at the fact that Sudan was harbouring terrorists. Osama bin Laden lived in Khartoum for quite a while, and had his outpost there. Since then it would appear that Sudan doesn't pose the same security risks that it once did."
Security concerns may have diminished over time, but the economic costs of conflict in Sudan for the region have not been lost on US policymakers, said Sally Smith, a co-ordinator with Sudan Now, a Washington-based Sudan advocacy group.
"I think people are starting to see the writing on the wall financially: that it is easier to prevent a war than to clean up the situation afterwards."
Sudan gained political attention during the Bush administration, particularly as the Darfur conflict began to gain more awareness with the public. Some observers attributed Mr Bush's interests to Sudan's Muslim-Christian divide, where the north's predominantly Muslim population is in stark contrast to the south's Christian majority.
"The other aspect, of course, is that during the Bush administration President Bush became very interested in the sort of religious and cultural dynamic of the war between the north and south, and that somehow extended into Darfur, though of course the war in Darfur was between Muslims and Muslims, but somehow it took on this religious element, which was unique to that administration," Ms Jones said.
For Sudan, tomorrow's referendum, which will last one week, is only the beginning. The following six months will see some of the most contested issues between the north and south come under negotiation. Marina Ottaway, the director of the Middle East programme at the Carnegie Endowment for International Peace, said those six months will be crucial for stability in Sudan and the broader region.
"It is stability in the sense that Sudan is part of a very unstable area, and greater instability in Sudan is going to complicate the issues in that entire region. Southern Sudan in particular is going to be a landlocked country of no particular strategic significance, so the US does not have any direct security interests in that area, it is more the security of that entire region."
A war between the north and south in the wake of the referendum, if voters choose to separate, seems highly unlikely. But the possibility of violence breaking out in three border regions, Abyei, Blue Nile and South Kordofan, is significant, according to Ms Ottaway. During the civil war these regions were major battlegrounds, and though they remain more or less north of the proposed border they contain populations that are highly sympathetic with the south.
If the south votes for secession, which some see as a foregone conclusion, both the north and south will need to address potentially volatile issues such as revenue-sharing, border demarcation, and citizenship. Each country will have thorny domestic issues to work through as well.
An independent south will have to build its state effectively from scratch. Since it was granted partial autonomy in 2005 as part of the peace agreement, Washington and Juba have worked closely in this endeavour. Still, Juba has much work to do.
"It has hardly any paved roads. It needs to essentially set up all the infrastructure of a state, and I think that means there is going to be a very significant [international] donor presence for years to come", Ms Ottaway said.
foreign.desk@thenational.ae
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
India cancels school-leaving examinations
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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Dubai World Cup Carnival card
6.30pm: UAE 1000 Guineas Trial Conditions (TB) US$100,000 (Dirt) 1,400m
7.05pm: Handicap (TB) $135,000 (Turf) 1,000m
7.40pm: Handicap (TB) $175,000 (D) 1,900m
8.15pm: Meydan Challenge Listed Handicap (TB) $175,000 (T) 1,400m
8.50pm: Dubai Stakes Group 3 (TB) $200,000 (D) 1,200m
9.25pm: Dubai Racing Club Classic Listed Handicap (TB) $175,000 (T) 2,410m
The National selections
6.30pm: Final Song
7.05pm: Pocket Dynamo
7.40pm: Dubai Icon
8.15pm: Dubai Legacy
8.50pm: Drafted
9.25pm: Lucius Tiberius
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million