President Barack Obama arrives at Andrews Air Force Base on January 24, 2015, to board Air Force One for a trip to New Delhi, India. Carolyn Kaster/AP Photo
President Barack Obama arrives at Andrews Air Force Base on January 24, 2015, to board Air Force One for a trip to New Delhi, India. Carolyn Kaster/AP Photo
President Barack Obama arrives at Andrews Air Force Base on January 24, 2015, to board Air Force One for a trip to New Delhi, India. Carolyn Kaster/AP Photo
President Barack Obama arrives at Andrews Air Force Base on January 24, 2015, to board Air Force One for a trip to New Delhi, India. Carolyn Kaster/AP Photo

Obama cuts short India visit to meet with new Saudi ruler


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NEW YORK // US president Barack Obama will cut short a planned visit to India and travel to Saudi Arabia this week for a meeting with the country’s new ruler, King Salman bin Abdulaziz, the White House said on Saturday.

There had been some concern in Washington that the kingdom’s succession process following the death of King Abdullah bin Abdulaziz Al Saud on Friday could usher in a period of unpredictability in its relations with Riyadh.

A key question was who among the younger generation of royals would be appointed to the key position of deputy crown prince.

However, the White House has been reassured by the selection of its close ally, Prince Mohammed bin Nayef, 55, who is known for leading the kingdom’s fight against extremist groups.

His appointment marks the first time the Saudi throne is expected to pass to a royal who is not a son of the country’s founder, King Abdulaziz ibn Saud.

Prince Mohammed is currently Saudi Arabia’s interior minister and counter-terrorism chief, and responsible for the crackdown on Al Qaeda inside the kingdom following a wave of attacks between 2003 and 2006.

As deputy crown prince, he is likely to be Saudi Arabia’s most influential decision maker on foreign and domestic security matters for years to come.

His influence stems from his success in crushing extremists and cracking down on internal dissent after the Arab Spring. He also belongs to the powerful Sudairi clan of sons and grandsons of King Abdulaziz, which is named for one of the founder’s favourite wives.

Prince Mohammed’s appointment, along with Saudi Arabia’s orderly transition of power on Friday, all point to continuity in regional policy and perhaps even closer cooperation with the US, analysts say.

“There are, and will remain, some tension on other issues – on the US role in Syria, on energy, on the US negotiations with Iran – those aren’t going to go away,” said Daniel Benjamin, who served as coordinator for counterterrorism at the US state department from 2009 to 2012 and now directs the John Sloan Dickey Center for International Understanding at Dartmouth College.

“But I would say that there will be a great deal of optimism with MBN’s continued ascent,” he added, using a common shorthand for the crown prince. “He was the go-to prince on many of the issues most important to the US. [Washington] has a superb counterterrorism relationship with Saudi Arabia and that is overwhelmingly because of MBN.”

After several tense years over disagreements on Middle East policy, relations between Washington and Riyadh began to normalise following the rise of ISIL in Iraq and Syria last year.

Faced with the threat of attacks by the extremist group, Mr Obama’s administration refocused its regional strategy on stability through traditional allied rulers and counter-terrorism, goals long championed by Saudi Arabia.

Washington and Riyadh will need to move swiftly to address a cascade of regional crises, from the Syrian civil war to the rise of ISIL and the Houthi takeover of Yemen’s capital.

Prince Mohammed, who took charge of Riyadh’s Syria policy a year ago, shifted away from the goal of deposing president Bashar Al Assad and ended support for hardline rebel groups, concentrating instead on the moderate southern front groups.

But the allies could experience another spat of tensions as US-led negotiations over Tehran’s nuclear programme come to a head this summer.

King Abdullah was incensed when the US did not inform Riyadh that it had initiated secret discussions with Tehran to get the nuclear talks restarted.

The initiative was seen by Arab Gulf countries as a sign of US determination to abandon its traditional stance in the region and free Iran to pursue its interests at their expense.

But the White House eventually convinced the Saudi leadership to “give the US the benefit of the doubt”, said Anthony Cordesman, a senior analyst on US-Gulf security relations at the Centre for Strategic and International Studies, a Washington-based think tank.

“We’ll either have a limited nuclear agreement with Iran where we’ll have to shift our policies to deal with the other aspects of the Iranian threat [in the region], or we will have a failure of that agreement and potentially a major security crisis,” said Mr Cordesman.

“The reality is that the US and Saudi Arabia need each other and that isn’t going to change fundamentally.”

If Washington and Tehran reach a deal, Prince Mohammed may prove to be a pragmatist on relations with Iran, just as he has shown himself to be on Syria policy.

While Tehran and Riyadh’s battle for Middle East influence will not subside soon, Saudi strategists have realised that Iranian influence in Lebanon, Syria, Yemen and Baghdad is a lasting reality.

Rather than Saudi Arabia dedicating resources to scale back Iran’s influence, the emergence of ISIL as a common threat may lead to increased cooperation between the two countries, according to some observers.

“The rise of the Islamic State in Syria as a common enemy for Saudi Arabia and Iran is likely to continue to push Riyadh to reach some form of compromise with Tehran further down the line,” the Carnegie Middle East Centre director, Lina Khatib, wrote on the research institute’s website on Friday, referring to the extremist group by its self-declared name.

It “has become clear that the major force behind the recent changes in Saudi policy, Mohammed bin Nayef, is the one to determine what Saudi Arabia does next in the Middle East.”

tkhan@thenational.ae

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

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 five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

Walls

Louis Tomlinson

3 out of 5 stars

(Syco Music/Arista Records)

In numbers

1,000 tonnes of waste collected daily:

  • 800 tonnes converted into alternative fuel
  • 150 tonnes to landfill
  • 50 tonnes sold as scrap metal

800 tonnes of RDF replaces 500 tonnes of coal

Two conveyor lines treat more than 350,000 tonnes of waste per year

25 staff on site

 

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%3Cp%3E38.7C%20(101.7F)%20set%20in%20Cambridge%20in%202019%3C%2Fp%3E%0A
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

GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

Director: Athale

Rating: 4/5

'Cheb%20Khaled'
%3Cp%3E%3Cstrong%3EArtist%3A%20%3C%2Fstrong%3EKhaled%3Cbr%3E%3Cstrong%3ELabel%3A%20%3C%2Fstrong%3EBelieve%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
FIXTURES

December 28
Stan Wawrinka v Pablo Carreno Busta, 5pm
Milos Raonic v Dominic Thiem, no earlier then 7pm

December 29 - semi-finals
Rafael Nadal v Stan Wawrinka / Pablo Carreno Busta, 5pm
Novak Djokovic v Milos Raonic / Dominic Thiem, no earlier then 7pm

December 30
3rd/4th place play-off, 5pm
Final, 7pm