Workers of Maldives President Mohammed Muizzu display a flag with the slogan 'India Out', in the capital Male. Reuters
Workers of Maldives President Mohammed Muizzu display a flag with the slogan 'India Out', in the capital Male. Reuters
Workers of Maldives President Mohammed Muizzu display a flag with the slogan 'India Out', in the capital Male. Reuters
Workers of Maldives President Mohammed Muizzu display a flag with the slogan 'India Out', in the capital Male. Reuters

Maldives asks India to withdraw troops from its soil as relations strain


Taniya Dutta
  • English
  • Arabic

Maldives has asked India to withdraw its military personnel from the archipelago by March amid a souring of relations between the two countries, including a row over derogatory remarks about Indian Prime Minister Narendra Modi.

The island nation in the Indian Ocean has been a close and critical neighbour of New Delhi, but their ties have become strained as Male has warmed to China, India’s main regional rival, in recent years.

There are around 75 Indian military personnel in Maldives. They were reportedly deployed in the country in 2020 to maintain and operate aircraft for emergency evacuations.

“Indian military personnel cannot stay in the Maldives. This is the policy of President Dr Mohamed Muizzu and that of this administration,” Abdulla Nazim Ibrahim, public policy secretary at the President’s Office, said on Sunday after talks in Male between officials from both countries.

New Delhi has not commented directly on the demand. A statement from the Indian foreign ministry said both sides "held discussions on finding a mutually workable solution to enable continued operation of Indian aviation platforms that provide humanitarian and medvac services to the people of Maldives".

Male has historically has been the biggest beneficiary of India’s Neighbourhood First Policy and has received significant public welfare and humanitarian assistance from New Delhi. In 2020 India committed $500 million for a project to link Male to three nearby islands. It also extended financial assistance of $250 million to Maldives during the Covid pandemic.

But the relationship took a sharp downward turn after Mohammad Muizzu, a pro-China politician, took office in November after winning an election which many say was won on the plank of anti-India rhetoric.

Mr Muizzu promised to remove “foreign military boots” from Maldivian soil if he came to power, with many supporters of the ruling People's National Congress rallying around "India out" slogans.

Relations between Maldives and China improved under Mr Muizzu's mentor Abdulla Yameen, who was president from 2013 to 2018.

China has invested $1.37 billion in the Maldives since 2014, according to data from the American Enterprise Institute think tank.

It also remains the Maldives' largest external creditor, accounting for about 20 per cent of its total public debt, according to World Bank data.

The two countries announced a number of partnerships when Mr Muizzu visited Beijing last week, breaking a tradition of Maldivian presidents making New Delhi their first port of call after being elected.

Kalpeni island in India's Lakshadweep archipelago off its western coast. Alamy Alamy
Kalpeni island in India's Lakshadweep archipelago off its western coast. Alamy Alamy

The visit to Beijing took place amid a row on social media sparked by Mr Modi’s visit to India’s Lakshadweep islands, which are known for their white sand beaches and natural beauty.

Mr Modi’s government is trying to turn the federally administered archipelago into a global tourist hotspot like its southern neighbour the Maldives, despite it being an ecologically sensitive region.

While neither Mr Modi nor his government made any reference to the Maldives, many online Hindu nationalist users exhorted Indians to visit Lakshadweep instead of Maldives, prompting reactions from Maldivians that escalated into a diplomatic row.

At least three Maldivian ministers including Mariyam Shiuna, the Deputy Minister of Youth Empowerment, Information and Arts, allegedly called the Indian prime minister a “clown” and “diver in a life jacket” in now-deleted Twitter posts. The three ministers were later suspended.

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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Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports

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Harry Kane, Tottenham, Premier League, 24 goals, 48 points
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Lionel Messi, Barcelona, La Liga, 22 goals, 44 points

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

LILO & STITCH

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Director: Dean Fleischer Camp

Rating: 4.5/5

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  • Former US president Barack Obama
  • Philanthropist and businessman George Soros
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800 tonnes of RDF replaces 500 tonnes of coal

Two conveyor lines treat more than 350,000 tonnes of waste per year

25 staff on site

 

White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: January 15, 2024, 12:07 PM