TEHRAN // Kuwait’s Emir Sheikh Sabah al-Ahmad Al-Sabah on Sunday started a landmark visit to Tehran focused on mending fences between Shiite Iran and the Sunni-ruled monarchies in the Gulf.
The two-day visit comes amid a thaw in ties between Tehran and the six-nation Gulf Cooperation Council (GCC) since the election of Iran’s moderate president Hassan Rouhani in June 2013.
Sheikh Sabah, on his first visit to Tehran as head of state, flew in at the head of a high-level delegation including the foreign, oil, finance, commerce and industry ministers.
“Our ties with Kuwait are very important to us and we hope this trip would be a new chapter to boost cooperation,” Iranian foreign minister Mohammad Javad Zarif told state news agency Irna.
The visit will also focus on controversial regional issues, including Iran’s military involvement in Syria, the situation in Iraq and Egypt, and the Middle East peace process, Kuwaiti officials said.
Relations between Iran and the Gulf, namely signs of rapprochement between regional power brokers Saudi Arabia and Iran, will also be discussed during the visit, Kuwaiti foreign ministry under-secretary Khaled al-Jarallah told Al-Hayat newspaper.
He said Kuwait, which currently holds the rotating presidency of the GCC, has balanced links with Tehran and is willing to mediate between Riyadh and Tehran.
Saudi Arabia and its GCC partners are deeply suspicious of Iran’s nuclear ambitions and wary of the talks under way between Tehran and western powers aimed at striking a long-term compromise.
Riyadh is also at odds with Iran over the Syria war, in which Tehran backs the government and Saudi Arabia the rebels, as well as its involvement in Iraq, Bahrain and other countries in the region.
Last month, Saudi foreign minister Prince Saud al-Faisal invited his Iranian counterpart Zarif to visit Riyadh.
Saudi Arabia has also invited Iran to attend a two-day meeting of the Organisation of Islamic Cooperation that opens on June 18 in Jeddah, with Tehran welcoming the invite as a “friendly” gesture.
But Mr Zarif told Irna on Sunday that he will not be able to attend because the timing coincides with the next round of nuclear talks between Iran and world powers, scheduled for June 16-20 in Vienna.
In December, Zarif toured Kuwait, the UAE, Oman and Qatar, but skipped Bahrain and Saudi Arabia.
Kuwait’s ambassador to Tehran, Majdi al-Dhafiri, told Kuwait’s official news agency Kuna that Sheikh Sabah and RMr ouhani will discuss a number of “strategic projects” useful for the whole region. He did not elaborate.
* Agence France-Press
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Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
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Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
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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
UAE currency: the story behind the money in your pockets
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
