Officials discussed strengthening collaboration against regional security challenges. EPA
Officials discussed strengthening collaboration against regional security challenges. EPA
Officials discussed strengthening collaboration against regional security challenges. EPA
Officials discussed strengthening collaboration against regional security challenges. EPA

Greece blasts Turkey’s 'irrational' regional actions


Jamie Prentis
  • English
  • Arabic

Greek officials hit out at Turkey's "irrational" actions on Thursday and accused the country of undermining peace in the region.

Greece’s Foreign Minister Nikos Dendias singled out Turkey’s actions in the Eastern Mediterranean and said Ankara was interfering in the internal domestic affairs of unspecified countries.

He was speaking alongside senior officials from the UAE, Bahrain, Cyprus, Egypt and Saudi Arabia after they held talks in Athens over strengthening relations and co-operation between the Mediterranean and the Gulf.

French Foreign Minister Jean-Yves Le Drian joined by video link.

“Unfortunately, on an everyday basis, peace is threatened by powers who wish to overturn it not based on logic, but irrational arguments and they are involved in a series of irrational actions such as the Turkish-Libyan memorandum and other actions,” Mr Dendias said.

He was referring to the maritime pact signed between Ankara and authorities in Tripoli in 2019, which was condemned by some for infringing on Greece’s borders.

“What unites us all today is this condemnation of illegal, irrational acts which undermine peace and stability and security. Our purpose is to build a buffer against distortion of religion, irrationality and illegal actions,” Mr Dendias said.

"This is a position ... based on our common principles, which are enshrined in the charter of the UN, such as good neighbourhood relationships and resolving disputes based on international law."

Greece and Turkey are in dispute over maritime boundaries in the Eastern Mediterranean, which led to a military build-up in the region last year.

Greek Prime Minister Kyriakos Mitsotakis said the initiative between the countries meeting on Thursday – which officials insisted did not seek to exclude any particular state – sought collaboration on interfaith dialogue, energy and the digital economy.

But he also underlined Greece’s backing for a one-state, federal solution to the long-running dispute about the future of Cyprus. This was in contrast to Turkey’s President Recep Tayyip Erdogan, who on Wednesday reiterated his support for a two-state future Cyprus.

Mr Mitsotakis said there would be regular meetings and contacts between the countries participating in the Athens summit in the future.

“It is natural for Greece to seek out this type of co-operation. Multidimensional challenges in our wider neighbourhood make it necessary,” he said at the start of the talks.

Representing the UAE was Minister of State for International Co-operation Reem Al Hashimy, who said the detrimental effects of Covid-19 were discussed.

"There is a demand for collaboration in a balanced way ... to lay the foundations for stability, peace and generate prosperity for our people," she said.

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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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