Turkey's President Recep Tayyip Erdogan has agreed to forward Sweden's application to join Nato to his country's parliament for approval, the alliance's head Jens Stoltenberg said on Monday.
The agreement came after a late-night breakthrough on the deadlocked issue, which flared up shortly after Sweden and Finland jointly applied for Nato membership following Russia's invasion of Ukraine in early 2022.
After Mr Erdogan and Sweden's Prime Minister Ulf Kristersson held talks in Vilnius, Mr Stoltenberg said Turkey had agreed to move forward on the accession process. The announcement means Sweden is back on track to become the bloc's 32nd member.
“This is a historic day,” the Nato Secretary General said. The Turkish leader thanked Mr Stoltenberg and the Swedish leader, whom Mr Erdogan said had worked hard to pull together the draft deal secured at the meeting.
US President Joe Biden swiftly welcomed the statement that Mr Erdogan would put the Swedish accession to the Grand National Assembly for ratification.
“I stand ready to work with President Erdogan and [Turkey] on enhancing defence and deterrence in the Euro-Atlantic area,” Mr Biden said.
“I look forward to welcoming Prime Minister Kristersson and Sweden as our 32nd Nato ally.”
Sweden’s Nato accession had been held up by objections from Turkey while Finland was able to complete its accession as the 31st member in April this year.
The Swedish government increased prosecutions of activists tied to Kurdish separatist movements – something Ankara insisted on – but faced setbacks as radical fringe groups staged demonstrations that included desecrations of the Quran.
After Mr Erdogan's recent re-election as Turkey's president, there were hopes that diplomacy would produce an agreement at the Vilnius summit.
In meetings on arrival in the Lithuanian capital, Mr Erdogan met Nato and Swedish leaders as well as European Council President Charles Michel, as frantic efforts came to a head.
A Turkish official said they had received assurances on key demands, including Stockholm’s approach to supporters of Kurdish separatists operating in its territory.
A Nato statement revealed the alliance would expand it counter-terrorism remit, including the appointment of the first Special Co-ordinator for Counter-Terrorism. Bilateral undertakings with Sweden were also laid out in an annual Security Compact summit.
“Sweden will present a road map as the basis of its continued fight against terrorism in all its forms and manifestations towards the full implementation of all elements,” it said.
The breakthrough, which followed months of arduous negotiations, came hours before a Nato leaders summit in Lithuania, where alliance members had originally hoped to be able to welcome Sweden as a new member.
The Swedish Prime Minister expressed relief that the issue had been resolved in pre-summit negotiations.
“This feels very good, this has been my aim for a long time, and I believe we had a very fine response today and took a very big step towards membership,” Mr Kristersson said after his talks with Mr Erdogan.
A statement after the three-way talks stated that Turkey and Sweden would work closely to boost bilateral trade ties and Turkey's wider European agenda.
“Sweden will actively support efforts to reinvigorate [Turkey's] EU accession process, including modernisation of the EU-Turkiye Customs Union and visa liberalisation,” the statement said.
Mr Michel said the talks with the Turkish leader had led to progress on how to revive Ankara's pathway to EU membership, and that crucial steps would be made in the coming weeks to see better progress.
Officials close to Hungarian Prime Minister Viktor Orban, another holdout on Sweden's membership bid, said Budapest would no longer block ratification, so Turkish approval would remove the last hurdle.
Mr Biden spoke to Mr Erdogan from Air Force One on the way to the Nato meeting and disclosed that he was offering some trade-offs that met Turkish needs, as well as those of neighbouring Greece.
“Turkey is looking for modernisation of F-16 aircraft,” he told CNN. “And [Greek Prime Minister Kyriakos] Mitsotakis in Greece is also looking for some help.
“What I’m trying to, quite frankly, put together is a little bit of a consortium here, where we’re strengthening Nato in terms of military capacity of both Greece as well as Turkey, and allow Sweden to come in. But it’s in play. It’s not done.”
Turkey requested in October 2021 to purchase $20 billion of Lockheed Martin Corp F-16 fighters and nearly 80 modernisation kits for its existing warplanes.
Nato through the years – in pictures
The Nato summit will also be attended by President Volodymyr Zelenskyy of Ukraine, who met Mr Erdogan last Friday.
During the meeting, the two Black Sea nations reportedly agreed that an arrangement to carry the country's grain crops out of Ukrainian ports would continue under Turkish naval protection.
Russia has been warning it would pull out of the UN-sponsored grain deal.
Officials confirmed that Nato allies were ready to drop the requirement that Kyiv complete a “Membership Action Plan”, a kind of road map to military reform that some allies have had to follow.
US officials confirmed a meeting of the Nato-Ukraine Council would be held at the level of heads of state and government, with Sweden, on Wednesday.
Mr Zelenskyy sent a message stating that Nato must find the specific words of confirmation that Ukraine was already a de facto part of the alliance in the closing communique.
“Our values are what the alliance believes in,” he declared. “Our defence is the very element of the formula of Europe that makes it united, free and peaceful. Vilnius must confirm all this.”
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What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.
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COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
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Current number of staff: 10
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The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press
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.
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MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
How tumultuous protests grew
- A fuel tax protest by French drivers appealed to wider anti-government sentiment
- Unlike previous French demonstrations there was no trade union or organised movement involved
- Demonstrators responded to online petitions and flooded squares to block traffic
- At its height there were almost 300,000 on the streets in support
- Named after the high visibility jackets that drivers must keep in cars
- Clashes soon turned violent as thousands fought with police at cordons
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Price, base / as tested: Dh283,080 / Dh318,465
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ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
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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The biog
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Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
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THE SPECS
Engine: 1.5-litre
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Company Profile
Name: JustClean
Based: Kuwait with offices in other GCC countries
Launch year: 2016
Number of employees: 130
Sector: online laundry service
Funding: $12.9m from Kuwait-based Faith Capital Holding
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The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Game Changer
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