FILE PHOTO: The U.S. Capitol building dome is seen in Washington, U.S., October 1, 2020. REUTERS/Erin Scott/File Photo
FILE PHOTO: The U.S. Capitol building dome is seen in Washington, U.S., October 1, 2020. REUTERS/Erin Scott/File Photo
FILE PHOTO: The U.S. Capitol building dome is seen in Washington, U.S., October 1, 2020. REUTERS/Erin Scott/File Photo
FILE PHOTO: The U.S. Capitol building dome is seen in Washington, U.S., October 1, 2020. REUTERS/Erin Scott/File Photo

Congress Democrats face uphill battle in bid to block UAE F-35 sale


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Democrats in the US Senate are planning to force a vote to block President Donald Trump’s proposed $23 billion sale of 50 F-35 Lightning II aircraft and other defence systems to the UAE.

But if history is any indication, their bid to thwart the sale appears unlikely to succeed.

Roy Blunt, the senior senator from Missouri and chairman of the Senate Republican policy committee, this week urged Congress not to block the sale.

“There'll be a Congressional vote on that issue," Mr Blunt said. "My personal view is it would be a big mistake not to move forward with that arms sale."

He said Israel had approved of the F-35 sale to proceed and joked that this might be the only issue on which the country's ruling coalition leaders, Prime Minister Benjamin Netanyahu and alternate prime minister Benny Gantz, agree.

The Missouri senator also highlighted the strengthening of US-UAE defence ties over the past two decades.

“For 20 years now, three different administrations, we have increasingly worked closely with the UAE on defence issues, on the ground together, in the air together, in at least six different extended deployments," Mr Blunt said.

"The UAE has been there."

Democrats have until December 11 to force a vote on their sale-blocking legislation, which is sponsored by Democratic senators Bob Menendez and Chris Murphy, and Republican Senator Rand Paul.

Mr Blunt expressed optimism that the legislation would fail.

“It will not successfully be stopped by the Congress, I don't believe, but it's a debate that we ought to be thinking about,” he said. “I certainly think we should continue with that arms sale.”

Mr Paul’s opposition to the sale means that Senate Democrats need to convince only two more Republicans to advance the legislation before it moves to the Democratic-held House of Representatives – as long as every Democrat votes in favour of it.

But even if Congress passes the legislation, Mr Trump is likely to veto it, and Democrats are highly unlikely to gather the two-thirds majority needed to override his veto.

It was a similar situation last year when Congress failed to block an $8bn emergency arms sale to the UAE and Saudi Arabia after Mr Trump vetoed the legislation.

Three senior US officials, David Schenker, Clarke Cooper and Michael Cutrone, briefed Congress this week in a closed session on the sale.

But after the meeting, Mr Murphy led the objection to the deal and warned against rushing the issue in a lame duck session of Congress.

On Thursday, the UAE ambassador to the US, Yousef Al Otaiba, rebutted Mr Murphy’s objections.

“For more than 20 years, the US has entrusted the UAE to purchase and operate F-16s, Patriots, Thaad and many other of the most advanced US-supplied defence systems,” he said, adding that the defence sale would support thousands of jobs.

Mr Al Otaiba said the sale was critical to the UAE’s protection and deepening ties with Washington.

“The US is the UAE’s security partner of choice," he said. "We want US defence equipment, training and co-ordination.

"In the world’s most dangerous neighbourhood, it is critical for our protection and for our shared interests and values with the US.”

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

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
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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

MATCH INFO

Uefa Champions League semi-finals, first leg
Liverpool v Roma

When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

The years Ramadan fell in May

1987

1954

1921

1888

The years Ramadan fell in May

1987

1954

1921

1888

While you're here
The specs

Engine: 2.0-litre 4-cyl

Power: 153hp at 6,000rpm

Torque: 200Nm at 4,000rpm

Transmission: 6-speed auto

Price: Dh99,000

On sale: now