Sunni militants’ march into Iraq undo what US sought


  • English
  • Arabic

WASHINGTON // The sweep by militants through northern Iraq and the collapse of the Iraqi army threaten to undo whatever was accomplished after the US invaded the country and ousted dictator Saddam Hussein 11 years ago.

The region now faces the creation of a de facto militant Sunni state along the Syrian-Iraqi border that could serve as a safe haven and training zone for the Islamic State in Iraq and the Levant (ISIL), a group with a declared interest in attacking the West.

For the US president Barack Obama, who’s built his foreign policy legacy on ending the wars in Iraq and Afghanistan, the militants’ swift victories raise questions about his 2011 decision to withdraw all US troops from Iraq and his reluctance to help arm moderate Syrian rebels fighting Sunni extremists in that country.

“Now, in the middle of the Middle East, we have a big, gaping hole where the Iraqi-Syrian border has broken down,” said Andrew Tabler of the Washington Institute for Near East Policy. “It’s a threat to the regional security architecture, the boundaries of the region we’re invested in, and a threat to a lot of the assets we’ve built up inside Iraq.”

The US has not responded so far to a request last month from the Iraqi prime minister Nouri Al Maliki to mount air attacks against militant training camps in western Iraq, according to two US officials.

One of the officials said Mr Obama is reluctant to revisit a war that he opposed and repeatedly has declared over.

The administration is weighing options including drone strikes and expedited equipment and training for the Iraqi military, according to a White House official.

The US should determine how it “can effectively help in stabilising the present situation” because “we spent a lot of very precious lives to try to stabilise Iraq, give them the opportunity for democracy,” Steny Hoyer, a member of the House of Representatives, said yesterday.

ISIL has long held areas in Anbar province to Baghdad’s west. It seized oil-rich areas north of the capital, including Tikrit and parts of Kirkuk province, after taking Mosul.

Those changes are probably “semi-permanent”, said Michael Knights, a fellow with the Washington Institute.

ISIL can be expected to “consolidate their hold on huge swathes of Iraq, cutting the country into three pieces” along ethnic and geographic lines.

“This is not an out-of-the-blue development,” said Mr Knights. “It’s the culmination of many trends, warning signs ignored, enlightened paths not taken by the Iraqi government. This is a game-changing moment in the country’s security.”

Mr Knights and other analysts said the return of Sunni extremism and the collapse of the Iraqi military are traceable in part to a series of American and Iraqi policy blunders over the years.

After the decision to invade Iraq, the first mistake, said a former Bush administration official, was the May 16, 2003, US edict purging all members of the Saddam’s Baath party from the military and security services – a move that to the puzzlement of some officials exceeded US president George W Bush’s order to de-Baathify the military only down to the rank of battalion commander.

The second blunder cited is Mr Al Maliki’s use of his government and the military as a tool to enforce Shiite rule after years of Saddam’s minority Sunni oppression.

The result now, said a US intelligence official, is that it is hardly surprising to find Sunni soldiers unwilling to fight others of their religion, no matter how extreme, on behalf of a Shiite government.

The former Bush administration official flagged another issue: Mr Obama had little choice but to withdraw the last American forces by the end of 2011, when an agreement could not be reached granting them immunity from prosecution in Iraqi courts.

Their departure undid both the gains made rebuilding Iraqi security and the progress that the “surge” of US forces in Anbar and other Sunni provinces made towards marginalising Sunni extremists.

“We shouldn’t have walked away from Iraq,” said Ken Pollack, a senior fellow at the Brookings Institution, a Washington policy group, pointing to the Obama administration’s decision to withdraw all troops.

“This is nothing 10,000 or 20,000 troops couldn’t have fixed,” Mr Pollack said.

The speed and extent of the ISIL offensive and the disintegration of Iraqi forces, who left almost all their weaponry and equipment for ISIL to collect, has caught the Obama administration off guard, said two US intelligence officials.

So far, the officials said they have seen no evidence that the militants have picked up Hellfire anti-armour missiles or other weapons.

There is some evidence, they said, that ISIL is delivering some captured weapons, including machine guns, rifles and vehicles, to its fellow militants in Syria.

Asked about reports that ISIL has captured tanks and ammunition, the State Department spokeswoman Jen Psaki said the US is “trying to obtain confirmation on what assets ISIL may have obtained on the ground.”

The situation on the ground, she said, “is very murky”.

* Bloomberg

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

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.”

'Ghostbusters: From Beyond'

Director: Jason Reitman

Starring: Paul Rudd, Carrie Coon, Finn Wolfhard, Mckenna Grace

Rating: 2/5

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

Company Fact Box

Company name/date started: Abwaab Technologies / September 2019

Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO

Based: Amman, Jordan

Sector: Education Technology

Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed

Stage: early-stage startup 

Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.

88 Video's most popular rentals

Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.  

Sholay: a 1975 Indian action-adventure film. It follows the adventures of two criminals hired by police to catch a vagabond. The film was panned on release but is now considered a classic.

Lucifer: is a 2019 Malayalam-language action film. It dives into the gritty world of Kerala’s politics and has become one of the highest-grossing Malayalam films of all time.

Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Astra%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202022%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EAbdallah%20Abu%20Sheikh%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20technology%20investment%20and%20development%3Cbr%3E%3Cstrong%3EFunding%20size%3A%3C%2Fstrong%3E%20%24500m%3C%2Fp%3E%0A
Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

Available: Now

Scoreline:

Cardiff City 0

Liverpool 2

Wijnaldum 57', Milner 81' (pen)

In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff

THE SPECS

Engine: 2.0-litre four-cylinder turbo

Transmission: eight-speed automatic

Power: 258hp at 5,000-6,500rpm

Torque: 400Nm from 1,550-4,400rpm

Fuel economy, combined: 6.4L/100km

Price, base: from D215,000 (Dh230,000 as tested)

On sale: now

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Who is Mohammed Al Halbousi?

The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.

The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.

He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.

He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.

He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.