SANA'A // The caretaker Yemeni government is under pressure to cede power during the absence of the country's injured president, Ali Abdullah Saleh, and various groups are jockeying for positions in the new power structure that could emerge.
The acting head of state, vice-president Abdo Rabu Hadi, is fielding demands from religious leaders, opposition groups, youth protesters and the international community to form a joint transitional government, a senior aide to the vice president said yesterday.
"Vice-president Abdo Rabu Hadi was given a short deadline to reach agreement between political factions and he is taking this seriously," the aide said.
Even so, the fractious nature of the country's political arena has made the composition of any new government, or even the transitional council, increasingly complex.
As Tawakkol Karman, a leader of Yemen's democratic youth movement, wrote in an opinion piece for Saturday's New York Times, "Following months of peaceful protests that reached every village, neighbourhood and street, Yemen is now facing a complete vacuum of authority; we are without a president or parliament. Mr. Saleh may be gone, but authority has not yet been transferred to a transitional presidential council endorsed by the people."
Although Mr Saleh is in Saudi Arabia, where he is recovering from wounds suffered in an assassination attempt on June 3, his family and supporters still control what remains of the government.
According to critics, what remains is not much. Witnesses in Sana'a said streets are not secure because of roaming gunmen, shops have closed, and rubbish is piling up in every street. They said electricity is cut throughout the day, petroleum and diesel are impossible to find, and tens of thousands have lost their jobs.
On Saturday, more than 100 influential religious clerics and tribal leaders called for Mr Saleh to step down and elections to choose a new leader, adding their weight to the opposition movement seeking to end nearly 33 years of autocratic rule.
Senior officials in the main opposition group, the Joint Meeting Parties, confirmed yesterday that the formation of the joint government is expected to be signed within weeks.
Both sides have accepted the concept of a joint transitional government to be divided evenly between Yemen's ruling party and main opposition. Parties left out of the two-sided power-sharing pact have expressed disappointment at the deal.
Hasan Zaid, the secretary general of the opposition Haq party, said: "No country in the world can survive without a government. Yemen has no government due to the presidential palace attack and this cannot continu. The new government will be formed very soon and the political wheel in Yemen will start moving again with the absence of President Saleh."
According to Zaid Thari, a ruling party political adviser, the US ambassador, EU ambassador and Saudi and Gulf Cooperation Council officials are all putting pressure on the vice president and opposition JMP to agree to a joint transitional government.
Mr Zaid if no government is formed within the next two weeks, militants and armed gangs will turn the country into a lawless state.
In the past, world powers have warned that a void in governance could only increase the threat of terrorist organisations such as al Qa'eda.
Mohammed Basendowah, the president of the opposition dialogue committee, said: "The US ambassador is worried that the ongoing political crisis will make terror groups stronger and raise the insecurity in the country."
At least 12 militants and four soldiers were killed in two clashes yesterday in southern Yemen, where Islamists and separatists have launched several attacks during the country's bloody political crisis.
Mr Hadi has insisted that the situation in the country must be stable before any government is formed.
"A transition government is a must, but please help me bring life back to normal in Yemen and ensure security before that can happen," Mr Hadi told the opposition parties when he met with them earlier last week.
Senior officials in Yemen's ruling party said that the vice president is having difficulty convincing the ruling General Peoples Congress party to agree to a unified transitional government.
Mr Thari said the ruling party is divided between those who stand with the vice president in going ahead with a transitional joint government and those who demand a stall in the political process until Mr Saleh is back in Yemen.
Opposition parties also have their share of problems. Differences have arisen on how to divide the 50 per cent stake in government it receives among its many powerful allies.
Critics also believe that giving the ruling party 50 per cent of the transitional government is too much for a party expecting to see a strong downfall.
Ali Saif, chairman of the Political Development Forum, said: "One year from now, the ruling party will be ineffective. The party was led by a family. When the family leaves the political arena the party leaves as well."
Pro-democracy youth protesters represent another aspect to the political equation. They have to date emphasised that any transitional council be formed without the ruling party.
Waseem Qirshi, spokesperson for the revolution youth organising committee, in reference to the estimated 400 protesters who have been killed by government forces since protests erupted in January, said: "The council must not include the ruling party as it is behind the death and killing or hundreds of protesters.
"If the ruling party is involved in the next government, our revolution will go down the drain."
foreign.desk@thenational.ae
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KILLING OF QASSEM SULEIMANI
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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
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Price: From Dh149,900
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
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TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
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SERIE A FIXTURES
Saturday Spezia v Lazio (6pm), Juventus v Torino (9pm), Inter Milan v Bologna (7.45pm)
Sunday Verona v Cagliari (3.30pm), Parma v Benevento, AS Roma v Sassuolo, Udinese v Atalanta (all 6pm), Crotone v Napoli (9pm), Sampdoria v AC Milan (11.45pm)
Monday Fiorentina v Genoa (11.45pm)
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5