President-elect Joe Biden smiles as he speaks at The Queen theater in Wilmington, Delaware. AP Photo
President-elect Joe Biden smiles as he speaks at The Queen theater in Wilmington, Delaware. AP Photo
President-elect Joe Biden smiles as he speaks at The Queen theater in Wilmington, Delaware. AP Photo
President-elect Joe Biden smiles as he speaks at The Queen theater in Wilmington, Delaware. AP Photo

After Biden’s win, all eyes in Lebanon turn towards Iran


Sunniva Rose
  • English
  • Arabic

Lebanon has been anxiously watching the US presidential race after four years of increasingly crushing sanctions against Hezbollah and its allies.

But the effect of Joe Biden's victory on the small Mediterranean country will only be clear once the new president-elect takes a clear stance on Iran, analysts told The National.

“Look at Iran and the rest will follow,” said Joseph Bahout, director of the Issam Fares institute at the American University of Beirut.

The effect of Mr Biden’s presidency on Lebanon will be a “biproduct of what happens between the new administration and Iran", Mr Bahout said.

Mr Biden is widely expected to try to revive the nuclear deal struck between Iran and world powers in 2015, and abandoned three years later by Mr Trump, who imposed crippling sanctions on Tehran.

Reopening talks with Iran would also probably loosen the noose around Iran's main ally in Lebanon, Hezbollah, which the US considers to be a terrorist organisation.

“It’s a trickle-down mechanism. It’s too early to talk about a change in position or posture,” Mr Bahout said.

Mr Trump’s administration also increased sanctions against Hezbollah’s allies in Lebanon, last week hitting the country’s most powerful Christian leader, Gebran Bassil, for corruption.

  • A supporter of Lebanon's Hezbollah gestures as he holds a Hezbollah flag in Marjayoun, Lebanon May 7, 2018. Reuters
    A supporter of Lebanon's Hezbollah gestures as he holds a Hezbollah flag in Marjayoun, Lebanon May 7, 2018. Reuters
  • In 2019, Israel said this was a Hezbollah-dug tunnel under the "blue line", a demarcation line drawn by the UN to mark Israel's withdrawal from southern Lebanon in 2000. AFP
    In 2019, Israel said this was a Hezbollah-dug tunnel under the "blue line", a demarcation line drawn by the UN to mark Israel's withdrawal from southern Lebanon in 2000. AFP
  • Lebanon's Hezbollah members hold party flags as they listen to their leader Sayyed Hassan Nasrallah. Reuters
    Lebanon's Hezbollah members hold party flags as they listen to their leader Sayyed Hassan Nasrallah. Reuters
  • A banner depicting Hezbollah leader Sayyed Hassan Nasrallah and an United Nation's post in Lebanon. Reuters
    A banner depicting Hezbollah leader Sayyed Hassan Nasrallah and an United Nation's post in Lebanon. Reuters
  • Hezbollah leader Hassan Nasrallah has direct ties with Iran's supreme leader Ayatollah Ali Khamenei. Reuters
    Hezbollah leader Hassan Nasrallah has direct ties with Iran's supreme leader Ayatollah Ali Khamenei. Reuters
  • The Israeli military claimed that Hezbollah, with Iranian assistance, had been bringing specialised equipment to a weapons factory in southern Lebanon. Screengrab/YouTube
    The Israeli military claimed that Hezbollah, with Iranian assistance, had been bringing specialised equipment to a weapons factory in southern Lebanon. Screengrab/YouTube
  • Lebanon's Hezbollah deputy leader Sheikh Naim Qassem gestures as he speaks during an interview with Reuters in Beirut, Lebanon March 15, 2018. Reuters
    Lebanon's Hezbollah deputy leader Sheikh Naim Qassem gestures as he speaks during an interview with Reuters in Beirut, Lebanon March 15, 2018. Reuters
  • Hezbollah fighters put Lebanese and Hezbollah flags at Juroud Arsal, Syria-Lebanon border, July 25, 2017. Reuters
    Hezbollah fighters put Lebanese and Hezbollah flags at Juroud Arsal, Syria-Lebanon border, July 25, 2017. Reuters
  • Lebanese soldiers try to block Hezbollah supporters as they gesture and chant slogans against anti-government demonstrators, in Beirut. Reuters
    Lebanese soldiers try to block Hezbollah supporters as they gesture and chant slogans against anti-government demonstrators, in Beirut. Reuters
  • A Hezbollah supporter holds a placard of its leader Hassan Nasrallah, during a protest against the US in Beirut. AP Photo
    A Hezbollah supporter holds a placard of its leader Hassan Nasrallah, during a protest against the US in Beirut. AP Photo
  • Lebanese soldiers on patrol drive by UN vehicles on the border with Israel on July 28, 2020. AP
    Lebanese soldiers on patrol drive by UN vehicles on the border with Israel on July 28, 2020. AP
  • A Lebanese police officer gesturing on the site of an explosion in Beirut that killed ex-premier Rafik Hariri in 2005. AFP
    A Lebanese police officer gesturing on the site of an explosion in Beirut that killed ex-premier Rafik Hariri in 2005. AFP
  • Israeli soldiers monitor the country's border with Lebanon near the northern town of Metula, in July 14, 2020. AFP
    Israeli soldiers monitor the country's border with Lebanon near the northern town of Metula, in July 14, 2020. AFP
  • In this file photo obtained on July 29, 2011 from the Special Tribunal for Lebanon shows a combo of pictures showing four Hezbollah suspects indicted in the assassination case of former Lebanese prime minister Rafiq Hariri. AFP
    In this file photo obtained on July 29, 2011 from the Special Tribunal for Lebanon shows a combo of pictures showing four Hezbollah suspects indicted in the assassination case of former Lebanese prime minister Rafiq Hariri. AFP
  • A car drives past a poster depicting Lebanon's Hezbollah leader Sayyed Hassan Nasrallah in Adaisseh village, near the Lebanese-Israeli border, Lebanon July 28, 2020. REUTERS/Aziz Taher
    A car drives past a poster depicting Lebanon's Hezbollah leader Sayyed Hassan Nasrallah in Adaisseh village, near the Lebanese-Israeli border, Lebanon July 28, 2020. REUTERS/Aziz Taher

Mr Bassil reacted with an angry speech on Sunday, denying the charges and arguing that America’s attempts to weaken his political party, the Free Patriotic Movement, will “force [Hezbollah] to defend itself, and it will win.”

He warned of sectarian strife between Sunni and Shiite Muslims and Christians.

Mr Bassil also set out new demands for the Cabinet formation, which will probably slow down attempts by Prime Minister-designate Saad Hariri.

Mr Hariri was appointed on October 22 and faces the daunting task of tackling Lebanon’s ever-worsening economic and financial crisis, which has pushed more than half of the country's population into poverty.

It remains unlikely that Mr Biden will withdraw sanctions on Lebanese political figures such as Mr Bassil.

“They are irreversible,” Mr Bahout said. “This is why the Trump administration was in a hurry to take them, because they know it’ll remain after them.”

Mr Biden’s victory was good news for most Lebanese politicians, not just Hezbollah and its allies, said Mohannad Ali, director of communications at Carnegie Middle East Centre in Beirut.

“I think that it was not just Hezbollah that wanted Biden to win," Mr Hage Ali said.

"The entire Lebanese political class, with a few exceptions, wanted Biden, because Trump’s maximum-pressure campaign wasn’t empowering anybody.

"It was more focused on destroying Hezbollah through collective punishment.

“It was inconsiderate in many ways and focused on an unattainable goal."

In Lebanon, power is shared among the country’s many religious groups.

Most of them are represented in government, pushing them to collaborate despite differences.

Hezbollah has been represented in Parliament since 1992 and in government since 2005.

US sanctions also focused on Lebanese financial institutions, forcing the closure of Jammal Trust Bank in late 2019 over claimed ties with Hezbollah.

“Sanctions became a regular event in which there were a lot of anticipation and worry about their impact,” Mr Hage Ali said.

"The US became a source of unexpected changes."

But Mr Biden, who will take office on January 20, might not have time to rekindle links with Iran before the Iranian presidential elections scheduled for June 2021.

Mr Hage Ali said that if he did not move quickly, it could mean another hardliner like former president Mahmoud Ahmadinejad takes over after eights years of the moderate Hassan Rouhani.

"This will affect the region,” he said. “I wouldn’t blame it all on the Biden administration. There was four years of Trump behind that."

MATCH INFO

Karnatake Tuskers 114-1 (10 ovs)

Charles 57, Amla 47

Bangla Tigers 117-5 (8.5 ovs)

Fletcher 40, Moores 28 no, Lamichhane 2-9

Bangla Tiger win by five wickets

Brief scores:

Toss: Sindhis, elected to field first

Pakhtoons 137-6 (10 ov)

Fletcher 68 not out; Cutting 2-14

Sindhis 129-8 (10 ov)

Perera 47; Sohail 2-18

FIXTURES

All games 6pm UAE on Sunday: 
Arsenal v Watford
Burnley v Brighton
Chelsea v Wolves
Crystal Palace v Tottenham
Everton v Bournemouth
Leicester v Man United
Man City v Norwich
Newcastle v Liverpool
Southampton v Sheffield United
West Ham v Aston Villa

Itcan profile

Founders: Mansour Althani and Abdullah Althani

Based: Business Bay, with offices in Saudi Arabia, Egypt and India

Sector: Technology, digital marketing and e-commerce

Size: 70 employees 

Revenue: On track to make Dh100 million in revenue this year since its 2015 launch

Funding: Self-funded to date

 

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
ENGLAND SQUAD

Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood

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.

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

Europe's top EV producers
  1. Norway (63% of cars registered in 2021)
  2. Iceland (33%)
  3. Netherlands (20%)
  4. Sweden (19%)
  5. Austria (14%)
  6. Germany (14%)
  7. Denmark (13%)
  8. Switzerland (13%)
  9. United Kingdom (12%)
  10. Luxembourg (10%)

Source: VCOe