President Recep Tayyip Erdogan signs a Turkish drone at a military airbase in south-east Turkey, in 2018. AP
President Recep Tayyip Erdogan signs a Turkish drone at a military airbase in south-east Turkey, in 2018. AP
President Recep Tayyip Erdogan signs a Turkish drone at a military airbase in south-east Turkey, in 2018. AP
President Recep Tayyip Erdogan signs a Turkish drone at a military airbase in south-east Turkey, in 2018. AP

UK supplier stops sales of parts to Turkey’s drone programme


Thomas Harding
  • English
  • Arabic

A British arms manufacturer became the latest company to stop selling equipment to Turkey after its components were found in drones shot down during the Nagorno-Karabakh conflict.
Turkey has come under scrutiny for using advanced weaponry, including deadly Bayraktar drones, in support of Azerbaijan in the recent conflict with Armenia. Scores of Armenian civilians are thought to have been killed in strikes by Turkish-supplied Azeri forces.
Andair, a British defence company in Portsmouth, was approached by the Armenian embassy requesting it stop supplies because its valve parts were being used in the fuel pumps for the armed drones made by Baykar Defence in Istanbul.
"After the investigation it was apparent that this was the case and Andair immediately halted supply and cancelled all orders from Baykar," the company said.
Turkey used its Bayraktar TB2 drones to help what is regarded as a successful Azerbaijan offensive in the six-week war that began in September last year. More than 100 Armenian civilians were killed and 3,200 Armenian troops
The Bayraktar drone was developed in Turkey, partly using components from western countries, and can fly 24 hours non-stop, using its surveillance equipment to conduct precision-strike missions with thermobaric missiles. Each drone costs about $5 million (Dh18.4m) and they have proved effective at destroying tanks and infantry in Libya, Syria and against Kurdish civilians and fighters.

During the conflict, Azerbaijan's President Ilham Aliyev boasted that the UAVs had reduced his casualties. "These drones show Turkey's strength" and "empower Azerbaijanis", he said.
Tim Ripley, a defence analyst for Jane's Defence Weekly, said Andair's actions meant that defence companies now had to realise that Turkey, under the leadership of Recep Tayyip Erdogan, was ready to engage outside the country's border in conflicts under uncertain legal circumstances.
"Western countries are facing up to the reality that Turkey is potentially a rogue state that should not be supplied with arms. Both the French and Americans have given up on them and we're waiting to see what other countries do," he said.
"Defence companies should therefore be very cautious to ensure that they have all their 'end user certificates' documents certified by their national governments because it might come back to bite them."
British defence company sources said firms would be nervous about component sales to Turkey. "We have to be much more careful than we were in the past about where seemingly innocuous parts actually end up and there is a considerable degree of nervousness in Western Europe about this topic at the moment," said a defence company director. "It's only going to grow in the future because of the potential for companies to be linked to human rights abuses."
He said that given Turkey's involvement in several conflicts around the region its "belligerent positioning makes people very twitchy". While in past years Turkey has been a reliable Nato partner "it has now drifted into the arms of more strident people, which has caused a degree of anxiety for politicians and the military".
Andair's decision will mean that Baykar will now make components locally, which could lead to a delay in manufacture of the estimated 24 Bayraktar drones it builds each year. "There may be a slight interruption to the production chain but it's not going to impact the Turkish Air Force now, although maybe next year," Mr Ripley said.
European governments in upcoming summits are now expected to further restrict arms sales to Turkey. "They will need legislation as they are going to have to do more to tighten up sales because this can be an embarrassment to western governments," said the defence company director.

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

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How to help

Send “thenational” to the following numbers or call the hotline on: 0502955999
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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

The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright

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Crops that could be introduced to the UAE

1: Quinoa 

2. Bathua 

3. Amaranth 

4. Pearl and finger millet 

5. Sorghum

The Buckingham Murders

Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu

Director: Hansal Mehta

Rating: 4 / 5

Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

The biog

Hometown: Cairo

Age: 37

Favourite TV series: The Handmaid’s Tale, Black Mirror

Favourite anime series: Death Note, One Piece and Hellsing

Favourite book: Designing Brand Identity, Fifth Edition

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

MATCH INFO

Watford 1 (Deulofeu 80' p)

Chelsea 2 (Abraham 5', Pulisic 55')

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How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

INFO

What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Game Of Thrones Season Seven: A Bluffers Guide

Want to sound on message about the biggest show on television without actually watching it? Best not to get locked into the labyrinthine tales of revenge and royalty: as Isaac Hempstead Wright put it, all you really need to know from now on is that there’s going to be a huge fight between humans and the armies of undead White Walkers.

The season ended with a dragon captured by the Night King blowing apart the huge wall of ice that separates the human world from its less appealing counterpart. Not that some of the humans in Westeros have been particularly appealing, either.

Anyway, the White Walkers are now free to cause any kind of havoc they wish, and as Liam Cunningham told us: “Westeros may be zombie land after the Night King has finished.” If the various human factions don’t put aside their differences in season 8, we could be looking at The Walking Dead: The Medieval Years