Turkey has officially lost an order of eight F-35 jets that has now gone to the US Air Force after Ankara decided to buy the Russian S-400 missile defence system last year.
The Department of Defence announced the decision to requisition the F-35s in its daily contract updates on Monday.
The contract involved buying the eight F-35A jets built by Lockheed Martin as part of a $861.7 million modification.
"This modification exercises options to procure eight Lot 14 F-35A Lightning II aircraft as a result of the Republic of Turkey's removal from the F-35 programme, and six Lot 14 F-35A aircraft for the air force," the contract read.
The decision came a year after Turkey was removed from the F-35 consortium in 2019 following its purchase of the S-400 system. The US also ended its F-35 training programme for Turkish personnel and blocked the transfer of the jets to its Nato ally.
Turkey joined the US' F-35 consortium in 2002, alongside the United Kingdom, Italy, the Netherlands, Canada, Turkey, Australia, Norway and Denmark. It had planned to buy 100 of the jets before deciding on the controversial deal with Russia. Each F-35 costs about $90 million (Dh331m).
The S-400 acquisition was deemed as a violation of Congress’ Countering America’s Adversaries through Sanctions Act (CAATSA) that passed overwhelmingly in 2017 to sanction any significant transactions with Russia. Leading US Senators urged swift sanctions on Turkey and its complete removal from the F-35 supply chain.
US officials also feared Russia could use the S-400 to acquire intelligence on the F-35 and Nato members' defence systems.
Katie Wheelbarger, acting assistant secretary of defence for international security, said last year that the two systems were incompatible.
"The S-400 is a computer. The F-35 is a computer. You don't hook your computer to your adversary's computer and that's basically what we would be doing.”
In losing its F-35 jet deliveries, Turkey now has an operability problem, according to Aaron Stein, the director of research at the Foreign Policy Research Institute think tank in Philadelphia, Pennsylvania.
“It is getting very hard to see how Turkey will operate this [F-35] jet in the future. It is also unknown what choices Turkey will make for a future fourth generation fighter,” he wrote in a tweet.
Turkey was negotiating with Russia last year to acquire its Su-35 Flanker-E fighter jets as an alternative to the F-35.
Such a deal, if agreed, will deepen the divide between Turkey and Nato, and accelerate US sanctions. US President Donald Trump has delayed the imposition of CAATSA sanctions on Ankara.
Mr Trump has fostered a close relationship with Turkish counterpart Recep Tayyip Erdogan, whom he called last week and discussed trade negotiations, according to the White House.
Armies of Sand
By Kenneth Pollack (Oxford University Press)
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Company profile
Name: Oulo.com
Founder: Kamal Nazha
Based: Dubai
Founded: 2020
Number of employees: 5
Sector: Technology
Funding: $450,000
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
At a glance - Zayed Sustainability Prize 2020
Launched: 2008
Categories: Health, energy, water, food, global high schools
Prize: Dh2.2 million (Dh360,000 for global high schools category)
Winners’ announcement: Monday, January 13
Impact in numbers
335 million people positively impacted by projects
430,000 jobs created
10 million people given access to clean and affordable drinking water
50 million homes powered by renewable energy
6.5 billion litres of water saved
26 million school children given solar lighting
Draw:
Group A: Egypt, DR Congo, Uganda, Zimbabwe
Group B: Nigeria, Guinea, Madagascar, Burundi
Group C: Senegal, Algeria, Kenya, Tanzania
Group D: Morocco, Ivory Coast, South Africa, Namibia
Group E: Tunisia, Mali, Mauritania, Angola
Group F: Cameroon, Ghana, Benin, Guinea-Bissau
SPECS
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Killing of Qassem Suleimani
Company Profile
Founder: Omar Onsi
Launched: 2018
Employees: 35
Financing stage: Seed round ($12 million)
Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners
The years Ramadan fell in May
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
LAST-16 EUROPA LEAGUE FIXTURES
Wednesday (Kick-offs UAE)
FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm
Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm
Inter Milan v Getafe (one leg only) 11pm
Manchester United (5) v LASK (0) 11pm
Thursday
Bayer Leverkusen (3) v Rangers (1) 8.55pm
Sevilla v Roma (one leg only) 8.55pm
FC Basel (3) v Eintracht Frankfurt (0) 11pm
Wolves (1) Olympiakos (1) 11pm
COMPANY%20PROFILE%20
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The specs
Engine: 5.0-litre V8
Power: 480hp at 7,250rpm
Torque: 566Nm at 4,600rpm
Transmission: 10-speed auto
Fuel consumption: L/100km
Price: Dh306,495
On sale: now
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