Iraqi Prime Minister Mustafa Al Kadhimi has called the sectarian system imposed on Iraq in order to “create national balance … a big lie”.
In an exclusive interview with The National, Mr Al Kadhimi said that sectarianism is one of the main drivers of corruption in the country.
“There are defects in the structure of some state institutions since 2003, as they were wrongly built on sectarian and ethnic divides, leading to political divisions [known as muhasasa].
"It is a big lie to say that a national balance was created by sectarian divisions, rather these are political divisions that lead to the weakening of the state and corrupting its institution”. As part of his reform programme, Mr Al Kadhimi said: “We are working at securing state entities, and at fighting the individuals inside these entities who are not patriotic.”
We will hold these individuals to account for the crimes that they have committed
The Iraqi Prime Minister has vowed to strengthen security forces and bring those behind the killing of Iraqi activists to justice.
Mr Al Kadhimi said “the groups that believe they are above the law will soon see serious moves from our security forces”. He added “our government programme is built on stressing the sovereignty of the state, which includes limiting the use of force to official security forces and prohibiting the use of weapons outside of the law".
"In the past, there was a concerted effort to diminish the state’s security forces and corrupt them," he said. "We are now working on re-establishing these forces, and cleansing them of all corrupt elements. This will take time. But we will hold these individuals to account for the crimes that they have committed”.
Mr Al Kadhimi came to office after protesters took to the streets last October, demanding reforms and the end of corruption and militia rule. Since being tasked with leading the country last April, Mr Al Kadhimi has promised to deliver on these reforms but has faced great challenges, from militias whose interests are at risk and from the impact of Covid-19 and collapsing oil prices.
The majority of parliamentary blocs are not supporting efforts that will ultimately hinder their patronage networks, not to mention curb the continued corruption and mismanagement across all government spending. Mr Al Kadhimi says “everyone has to understand that the strength of the state applies to them all. A prerequisite for any reform process is respecting the decisions of the state and implementing them. There are those who will not accept the sovereignty of the state easily, but we have ways of dealing with them”.
As the efforts of Mr Al Kadhimi to face off with militias were stepped up, they have been ramping up their attacks on those calling for reforms, including a respected analyst Husham Al Hashemi, who Mr Al Kadhimi knew well and considered a friend.
Asked who stands behind the assassinations, Mr Al Kadhimi referred to "criminal groups that abuse the vulnerabilities in some of our security apparatus".
"For this reason, one of the key goals of my government’s programme is to investigate and reveal the facts regarding the killing of protesters.
"We have placed a plan, which started with the announcement last week of the names of those who have been killed and injured and their families the support they need. We continue to investigate those who have been killed, after the attacks on activists and intellectuals after I came to office”.
Mr Al Kadhimi asked for patience, saying “judicial timeframes are different from political ones, and we cannot be driven by emotions or political stances in dealing with matters that require accuracy and justice. We will follow the assassinations of Dr Reham Al Yacoub, Dr Hisham AlHashemi and Tahseen Oussama. We have some leads but the investigations will require time”.
However, Mr Al Kadhimi was confident that the killers would be caught, stating “we will get the offenders for sure”.
“We will be transparent in announcing the results of the investigations so that everyone can be privy to them.”
On a regular basis, armed groups launch rockets into security areas. “We continue to arrest those behind these attacks, and their aim is clear, that is to embarrass the government. The assassination attempts against young people are also part of that effort. They want the government to appear weak, these reckless rocket attacks hurt Iraqis also.”
Unlike his predecessors, Mr Al Kadhimi has been keen to hear from regular Iraqis frequently, meeting with those who do not enjoy the security of 24-hour electricity of the fortified Green Zone in Baghdad. On the first day of Eid Al Fitr in May, he spend the day visiting Baghdad’s largest hospital, Medical City. He has visited a number of state entities, including the pensions authority which is notorious in delaying payments to pensioners.
He has visited provinces such as Kirkuk, Ninevah and Basra, and spent time surveying their problems. One of the key issues raised by Iraqis is the lack of electricity, with some areas getting less than 4 hours of electricity from the national grid a day. Mr Al Kadhimi admits this is a major issue and says “reliable electricity is a priority”.
He added: “The electricity problem from 2003 until now is based on a lack of planning and the lack of a commitment to protect the dignity of the Iraqi people. Consecutive ministries did not work seriously on delivering these services, rather most were interested in benefiting financially and through corrupt means.”
With new contracts signed with GE and efforts under way to connect with regional grids and produce Iraqi gas, Mr Al Kadhimi says "we will put in all our efforts to ensure next summer will be better than this one".
Youth movements in Iraq have been active in organising protests and swaying public opinion, however their members have yet to formulate a strong political bloc, nor find an entry way into the political system. Mr Al Kadhimi said he was committed to providing them every aid possible, including through the ballot box.
Mr Al Kadhimi has called for early elections in June next year.
“Corrupt forces are working at full force to ensure sectarian divisions are maintained, as they can thrive under these circumstances," he said.
"The reform programme will require a long time. We will use all the strength we have to push for the principles of patriotism and nationalism. We will support nationalist forces as much as possible.”
Mr Al Kadhimi has said he will not stand for election, and he explained that his current focus is “allowing Iraqis to vote freely, without fraud or intimidation or the threat of the use of force".
"I am focused on creating the circumstances to allow for free and fair elections and regaining the trust of Iraqis in the electoral process. I am not thinking of anything else at this stage.”
Speaking to The National hours after landing from Amman, Mr Al Kadhimi was optimistic about Iraq's relations with the Arab world. He said that the summit hosted on Tuesday by Jordan's King Abdullah II and attended by Egyptian President Abdel Fattah El Sisi is part of an attempt to create a "New Levant", with economic, social and cultural ties forged to create a stable basin uniting these countries.
The outcomes of the summit include an agreement “to focus on trade, energy and agriculture sectors, with a focus on food security. The world is enduring great challenges due to Covid19, so we are working on creating food resources for our people but also the people of the wider region”.
He explained: “This summit is a continuation of long work with previous summits being held between Iraq, Jordan and Egypt, but at the same time it is the start of a new era to strengthen co-operation between these three countries. The societal, economic and historical circumstances of the three countries are similar, much binds them. We also face similar challenges and can face them together.”
“Our region is in need of a new vision, outside the polarised state today. We need to make economic and social development a priority in our relations, bringing to a halt the conflicts [in the region], while respecting the sovereignty of each country and ensuring non-interference in their internal affairs”.
He added: “We have to stand against the sectarian and ethnic divisions that have spread in the by region.
"On the other hand, we are facing another challenge and that is the global crises caused by Covid19 and the collapse of oil prices and its economic impact. We want this summit to become a framework for our three countries to work together and to be broadened to include other countries in the future.”
He was quick to add “this is not an effort against a particular party, rather working together to face our collective challenges, based on economic co-operation”.
Thirty years after the invasion of Kuwait, Iraq’s ties with Arab Gulf countries are improving but still in need of development.
“We have to learn lessons from the invasion of Kuwait. Without a doubt, the invasion of Kuwait was an unjustified attack by Saddam Hussein on a neighbour. The Gulf countries represent our strategic depth and we seek to develop our ties to the best possible level, as this will serve stability in the region, and will put a stop to the divisions and sectarianism that tore us apart in wars, and this is the desire of most Iraqis. Most Iraqis seek ties with the Gulf and believe in the need for these relations”.
A cornerstone in these ties is the possibility of investment opportunities in Iraq, including a GCC-Iraq electricity project supported by the US, but which has faced extensive delays. Asked about these delays, Mr Al Kadhimi said: “This is a new government and it is the first time that there is a serious step between Gulf countries and Iraq to face joint challenges.
I personally sensed an American commitment to developing our partnership
"The joint electricity project was delayed due to past mismanagement in Iraq, due to corruption and political interference in Iraq.” However, he explained that “today, there is a serious commitment to make this project a reality”.
Mr Al Kadhimi was due to visit Saudi Arabia last month but the visit was delayed due to King Salman requiring surgery. “There will be a visit soon to Saudi Arabia and we stress the brotherly ties there.”
Of course relations with the US remain of paramount importance to Iraq and last week Mr Al Kadhimi was received by US President Donald Trump. Mr Al Kadhimi said that "the visit was a success … the most important outcome was the economic partnership between the two sides".
He added: “Our relationship has entered a new phase that does not rest solely on security co-operation, rather on economic co-operation and attracting American companies to Iraq and launching long term co-operation, especially in the areas of energy, technology, education and health.”
The US also provides vital support through backing credit lines from international financial organisations.
Asked about the withdrawal of American troops from Iraq, Mr Al Kadhimi insisted that a “redeployment” was taking place and that “combat troops” were no longer needed in the country.
“I personally sensed an American commitment to developing our partnership”.
The presence of US troops in Iraq is a contentious topic. The Iraqi Parliament held a vote in January on demanding American troops leave the country. Although no official count was made of the vote, the Speaker of Parliament Mohammed Al Halbousi announced that a majority had voted to demand US troops leave the country.
Asked whether he personally feels Iraq would be better off without American troops on the ground, Mr Al Kadhimi said: “We have moved into a new phase, we do not need combat troops on the ground as Iraqi forces are capable of fighting ISIS militants. However, they need logistical and technical support, in addition to training.” So support continues for an American presence in Iraq, with a lighter footprint.
When asked about Iran and Turkey, Iraq’s two neighbours who have extensively interfered in its affairs, his responses are brief and diplomatic. Mr Al Kadhimi faces a challenge primarily from political parties and militant groups supported by Iran. However, he had been careful to maintain good relations with Tehran, where he visited in July.
Asked about Tehran’s interference, Mr Al Kadhimi said: “We believe two principles should guide our relations. First, non-interference in the domestic affairs of each country and rejecting the use of the territories of either country to launch an attack on the other, and the second principle being that relations with Iran should be state-to-state based on mutual interests”.
Implicitly, he is referring to the need for Tehran to go through official channels, rather than proxies. The issue of non-interference was raised during the Prime Minister’s visit to Iran, and he said that “it is clear that there is a reassessment there towards relations with Iraq. It is in Iran’s interest that Iraq is stable”.
As for Turkey, which continuously carries out military actions in Iraq, Mr Al Kadhimi said: “Of course we reject the Turkish incursion in the Kurdistan region of Iraq. At the same time, we can understand Turkish concerns about [militant Kurdish group] PKK actions emerging from Iraq and which target Turkey… We need to remove the concerns of both sides so we can stabilise relations”.
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
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
How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
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Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
THE 12 BREAKAWAY CLUBS
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
Arabian Gulf Cup FINAL
Al Nasr 2
(Negredo 1, Tozo 50)
Shabab Al Ahli 1
(Jaber 13)
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
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Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
The specs: 2017 Dodge Ram 1500 Laramie Longhorn
Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
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Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
UAE currency: the story behind the money in your pockets
Men’s singles
Group A: Son Wan-ho (Kor), Lee Chong Wei (Mas), Ng Long Angus (HK), Chen Long (Chn)
Group B: Kidambi Srikanth (Ind), Shi Yugi (Chn), Chou Tien Chen (Tpe), Viktor Axelsen (Den)
Women’s Singles
Group A: Akane Yamaguchi (Jpn), Pusarla Sindhu (Ind), Sayaka Sato (Jpn), He Bingjiao (Chn)
Group B: Tai Tzu Ying (Tpe), Sung Hi-hyun (Kor), Ratchanok Intanon (Tha), Chen Yufei (Chn)
Mountain%20Boy
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
WHAT IS GRAPHENE?
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were experimenting with sticky tape and graphite, the material used as lead in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But when they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment led to graphene being isolated for the very first time.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics.
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
More on Quran memorisation:
In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
LAST 16 DRAW
Borussia Dortmund v PSG
Real Madrid v Manchester City
Atalanta v Valencia
Atletico Madrid v Liverpool
Chelsea v Bayern Munich
Lyon v Juventus
Tottenham v Leipzig
Napoli v Barcelona