India risks losing its nuclear ally in Washington


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NEW DELHI // Barack Obama and his promise of change are music to the ears of most people, but not in India, where George W Bush is sorely missed. Last autumn, Mr Bush helped India lift a three-decade ban on nuclear trade, prompting the prime minister, Manmohan Singh, to tell the US president, who left office with only a 22 per cent favourability rating, that India "loved" him. New Delhi's intelligentsia cringed, but Mr Singh was not lying. Unfortunately for India, there is now a new US president who is firmly committed to nuclear nonproliferation. Lifting the nuclear trading ban without a requirement that India sign the Nonproliferation Treaty was controversial, both inside and outside India. Critics complained it rewarded India for developing nuclear weapons on the sly using fissile material provided for civilian purposes. They also objected to India's continuing refusal to sign the Comprehensive Test Ban Treaty. But the ruling Congress Party was jubilant, interpreting the move as a seal of approval for India's nuclear weapons programme. "Without compromising on our weapons programme, without compromising on our fast-breeder reactor programme, without signing the NPT, the CTBT or the Fissile Materials Cutoff Treaty, India has been able to access the entire spectrum of civil nuclear commerce on very much its own terms," Manish Tiwari of Congress said at the time. It has also sparked a nuclear arms race just as Mr Obama attempts to calm the region, including Afghanistan, where it is fighting a Taliban insurgency. Pakistan has promised to beef up its nuclear arsenal, while Russia and China have reacted badly to India's determination to achieve a US-sponsored ballistic missile defence shield. The Indian deal has also made it much harder for the United States to negotiate effectively with Iran to end its nuclear programme. Some thought that the initiative for the deal came from New Delhi, with its rickety grid and constant power blackouts and brownouts; India has since announced plans for up to 30 nuclear reactors. Some also suggested that the US civilian nuclear industry pushed Mr Bush into it. Others said Mr Bush is solely to blame. "The commercial aspect from the United States' point of view is secondary to the strategic political dimension," said Achin Vanaik, head of the political science department at the University of Delhi. "The initiative for this deal, actually, did come from the Bush administration, not from New Delhi, and it was motivated primarily by the desire to consolidate and deepen the strategic relationship." The Bush administration actively encouraged New Delhi to view itself as a "strategic partner" of the United States, and a counterweight to an emerging China, said M K Bhadrakumar, a former Indian diplomat. "Delhi's priority is to use the deal to provide the context for access to sensitive US military technology within the overall framework of the 'strategic partnership'," Mr Bhadrakumar told Asia Times. The only problem, he said, is that the US-China relationship is established and relatively stable, despite - or perhaps even because of - the financial crisis. "Obama threatens to shake up the daydreamers in Delhi," he said. Mr Obama's commitment to nonproliferation is firm. He has promised to make ratification of the test ban treaty a priority, and has threatened automatic international sanctions on any nation - including India - that refuses to comply with the Nonproliferation Treaty. Mr Obama supported lifting the ban partly because it provides a solution to India's crippling electricity shortage. But he quickly wrote to Mr Singh to clarify that he viewed the deal as a "central element" of US nuclear weapons policy. That means adherence to the test ban treaty, including a total and verifiable production ban on fissile material, as well as much more stringent accounting of all its nuclear material. It is unlikely that New Delhi will go along with this, but given US weakness in the civilian nuclear industry, Washington may not have much to bargain with. "We don't need them," one observer said. "The deal is signed." Mr Singh kept the letter under wraps for weeks, indicating both some unease about Mr Obama, and some concern about the durability of the strong US-India ties that developed under Mr Bush. Mr Bhadrakumar speculates that the "strategic relationship" may have existed less in reality and more in the minds of Mr Bush and Mr Singh. Mr Bush is now gone, and Mr Singh is now absent from office after undergoing heart bypass surgery at the weekend. He was moved out of intensive care at a New Delhi hospital yesterday, the Press Trust of India reported, and is making a "speedy recovery" at the state-run All India Institute of Medical Sciences, doctors were quoted as saying. Mr Singh's government faces an election before May 15, in which the Hindu nationalist party - the Bharatiya Janata Party - is expected to make a strong showing. The BJP opposes the deal, but only because it thinks it places too many restrictions on India. In the meantime, many energy experts say India is making a mistake investing in outmoded civilian nuclear projects rather than an renewable energy infrastructure that has limited political or environmental effect. * The National

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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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

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Five hymns the crowds can join in

Papal Mass will begin at 10.30am at the Zayed Sports City Stadium on Tuesday

Some 17 hymns will be sung by a 120-strong UAE choir

Five hymns will be rehearsed with crowds on Tuesday morning before the Pope arrives at stadium

‘Christ be our Light’ as the entrance song

‘All that I am’ for the offertory or during the symbolic offering of gifts at the altar

‘Make me a Channel of your Peace’ and ‘Soul of my Saviour’ for the communion

‘Tell out my Soul’ as the final hymn after the blessings from the Pope

The choir will also sing the hymn ‘Legions of Heaven’ in Arabic as ‘Assakiroo Sama’

There are 15 Arabic speakers from Syria, Lebanon and Jordan in the choir that comprises residents from the Philippines, India, France, Italy, America, Netherlands, Armenia and Indonesia

The choir will be accompanied by a brass ensemble and an organ

They will practice for the first time at the stadium on the eve of the public mass on Monday evening 

Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara