Covid-19 patients in Iraq. The country has recorded its first death from black fungus infection, a rare disease linked to the overuse of steroids in the treatment of the coronavirus. Getty Images
Covid-19 patients in Iraq. The country has recorded its first death from black fungus infection, a rare disease linked to the overuse of steroids in the treatment of the coronavirus. Getty Images
Covid-19 patients in Iraq. The country has recorded its first death from black fungus infection, a rare disease linked to the overuse of steroids in the treatment of the coronavirus. Getty Images
Covid-19 patients in Iraq. The country has recorded its first death from black fungus infection, a rare disease linked to the overuse of steroids in the treatment of the coronavirus. Getty Images

Covid-19 'presents ominous future for struggling Middle East nations'


Layla Maghribi
  • English
  • Arabic

Covid-19 will throw the future of some Middle East states into doubt, a group of medical researchers and specialists warned at an online discussion hosted by the London School of Economics.

Looking at how regional politics continue to have a cumulative effect on health, the panellists discussed how the pandemic exacerbated existing problems in Palestine, Lebanon and Iraq.

Calling the recent explosion of a hospital in Baghdad a "diagnostic event", Omar Dewachi, associate professor of medical anthropology at Rutgers University in the US, said it was emblematic of Iraq's failing health system and, by extension, the state.

“We are dealing with two very interconnected problems. The burden of disease that we're seeing in Iraq, or in Palestine, or in Lebanon, is very much linked to the failures of the political elites, but also to the collapse of these kind of infrastructures,” Mr Dewachi said.

At least 82 people were killed and 110 injured when an oxygen tank exploded at a hospital treating Covid-19 patients on the outskirts of Baghdad. There were no safety systems, fire extinguishers or sprinklers in the three-storey building, which had a false ceiling made of flammable material.

Iraq’s health system has been toiling for decades, exacerbated by 23 years of financial and trade sanctions that effectively deprived the country of vital medicine, and then the US-led invasion in 2003.

Despite many promises to rebuild the health system after the 2003–2011 US war in Iraq, Mr Dewachi, who wrote the book Ungovernable Life: Mandatory Medicine and Statecraft in Iraq, said the last public hospital to be built in the country was in 1986.

Covid-19, he said, was making an already fragile health system worse and creating a burgeoning black market for oxygen. Mr Dewachi said an increasing number of patients are developing antimicrobial resistance infections and making hospitals increasingly toxic places.

Also speaking at the online panel was Dr Weeam S Hammoudeh, assistant professor at the Institute of Community and Public Health at Birzeit University in the West Bank. She said the continued fragmentation of Palestine, coupled with the Israeli occupation and an inadequate Palestinian political system, led to a deteriorating health service that was unequipped to deal with Covid-19.

A Palestinian man goes a local clinic in Gaza to receive a dose of the Astra Zeneca vaccine against the coronavirus last month. The West Bank and Gaza Strip - home to an estimated five million people - have received 37,440 doses of Pfizer-BioNTech vaccine and 24,000 doses of AstraZeneca vaccine via the Covax scheme.
A Palestinian man goes a local clinic in Gaza to receive a dose of the Astra Zeneca vaccine against the coronavirus last month. The West Bank and Gaza Strip - home to an estimated five million people - have received 37,440 doses of Pfizer-BioNTech vaccine and 24,000 doses of AstraZeneca vaccine via the Covax scheme.

Israel restricts the entry of medicine to the West Bank and has put the Gaza Strip under a military blockade for the past 14 years, effectively draining the territory of medical supplies.

Residents need permits to exit the territory for medical treatment, which the Israeli authorities do not always grant. Despite receiving the lowest number of these applications in a decade, Israel rejected more than a third in the first half of 2020.

Dr Hammoudeh said little has been done to build a sustainable Palestinian health system.

“This was one of the things that actually has come out quite markedly in terms of the Covid-19 response, where a lot of these systemic failures have really weakened the response issues around fragmentation or the lack of sovereignty ... how we are working across parallel bodies that don't necessarily co-ordinate well with one another has really stifled the response and also just the ongoing occupation.”

Although Israel was lauded internationally for its high rate of Covid vaccine take-ups among Israelis, it was criticised for failing to provide vaccinations in the occupied Palestinian territories, despite jurists arguing that, as the occupying power, it had a duty to do so under international law.

British Palestinian plastic and reconstructive surgeon Ghassan Abu Sittah suggested Covid-19 was hastening the fragmentation and disintegration of some Arab states.

“We see the state, in front of our eyes, failing in all of its aspects, whether it's the theft of vaccines by the Lebanese political elite, or the theft of the vaccines by the Palestine political elite, whether it's the Jordanian hospital that ran out of oxygen during the second wave or the Egyptian hospital that had the same experience,” he said.

Concluding the 90-minute session, Mr Dewachi offered an ominous forecast.

“I think the future looks very grim for the region in terms of where things are going. And I think they still haven't hit rock bottom, I think we're just now beginning to see these kind of major crises emerging under Covid.”

The drill

Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.

Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”

Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”

Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.” 

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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