The US has begun reducing its military forces and capabilities in the Gulf region, the Wall Street Journal reported on Thursday.
President Biden directed the Pentagon to move resources away from the region as the administration looks to reduce its military presence in the Middle East.
The US has removed at least three Patriot anti-missile batteries from the Gulf region, including one from Prince Sultan Air Base in Saudi Arabia that had been placed there in recent years, the Journal reported.
Other military reductions include an aircraft carrier and surveillance systems, which will be redirected to other undisclosed regions, and more are being considered.
With the removal of military equipment, a reduction in personnel can also be expected.
As of late 2020, there were 50,000 American troops stationed in the region, down from a high of about 90,000 at the beginning of the year, when tensions between former president Donald Trump and Iran were at an all-time high.
"The Office of the Secretary of Defense and the Joint Staff continue to work with Combatant Commanders and the Services to advise the Secretary of Defense on resource allocations for US operations around the world according to priorities, threats and opportunities," Pentagon Spokesperson Commander Jessica L. McNulty told The National.
"Without speaking to specific capabilities, we continue to take a strategic approach to the allocation of forces and routinely make adjustments to account for a wide number of factors.”
The move to reduce America’s military presence in the Gulf comes as attacks from Yemen's Houthi forces against longtime US ally Saudi Arabia have intensified and increasingly targeted civilians.
On Thursday, Yemen’s Houthi rebels claimed an attack against Saudi Arabia’s capital city Riyadh, with military spokesman Yahya Saree saying four explosive-laden drones targeted "sensitive and important sites".
Saudi Arabia has not confirmed the attack.
Weeks into his presidency, Mr Biden announced the US would end support for Saudi-led offensive operations in Yemen.
Mr Biden has been reshaping the US role in the Middle East as he looks to detach from the region, which has been a top US military priority for decades.
He has instead focused on dealing with what he considers to be top competitors, like China and Russia, in his foreign policy.
Mr Biden faces a May 1 deadline to decide on whether to pull US troops from Afghanistan, where they have been deployed for nearly two decades.
The US has 2,500 troops in Afghanistan but is looking for a political settlement between Taliban insurgents and the government in Kabul that would allow them to leave.
“It’s going to be hard to meet the May 1 deadline just in terms of tactical reasons," Mr Biden has said. "It’s hard to get those troops out."
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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
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Read more from Aya Iskandarani
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
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