• The US Department of Defence agreed with Lockheed Martin to build about 375 F-35 fighter jets over three years. This Pentagon-supplied photo shows a US Air Force F-35 Lightning II being refuelled over Poland in February 2022.
    The US Department of Defence agreed with Lockheed Martin to build about 375 F-35 fighter jets over three years. This Pentagon-supplied photo shows a US Air Force F-35 Lightning II being refuelled over Poland in February 2022.
  • A Lockheed Martin F-35 Lightning jet at the ILA Berlin Air Show 2022 in Schoenefeld, Germany, 22 June 2022. EPA
    A Lockheed Martin F-35 Lightning jet at the ILA Berlin Air Show 2022 in Schoenefeld, Germany, 22 June 2022. EPA
  • A Lockheed Martin F-35C Joint Strike Fighter is shown on the deck of the USS Nimitz aircraft carrier. Reuters
    A Lockheed Martin F-35C Joint Strike Fighter is shown on the deck of the USS Nimitz aircraft carrier. Reuters
  • An Israeli Air Force F-35 Lightning II fighter jet performing at the Hatzerim base in the Negev desert, near the southern city of Beer Sheva, Israel. AFP
    An Israeli Air Force F-35 Lightning II fighter jet performing at the Hatzerim base in the Negev desert, near the southern city of Beer Sheva, Israel. AFP
  • A US F-35 fighter jet flies over the Eifel Mountains near Spangdahlem, Germany on February 23, 2022. AP
    A US F-35 fighter jet flies over the Eifel Mountains near Spangdahlem, Germany on February 23, 2022. AP
  • F-35C Lightning IIs on a test flight in the Atlantic test range. The programme is now the most expensive in US military history. Lockheed has pledged to cut costs. AFP
    F-35C Lightning IIs on a test flight in the Atlantic test range. The programme is now the most expensive in US military history. Lockheed has pledged to cut costs. AFP
  • Lockheed Martin's F-35 helped the company boost profit in the first quarter. Reuters
    Lockheed Martin's F-35 helped the company boost profit in the first quarter. Reuters
  • Manufactured by Lockheed Martin, the F-35 is America's next-generation stealth fighter jet. Reuters
    Manufactured by Lockheed Martin, the F-35 is America's next-generation stealth fighter jet. Reuters
  • Three F-35A Lightning IIs assigned to the 4th Expeditionary Fighter Squadron taxi after landing at Al Dhafra Air Base, UAE. Photo: US Air Force
    Three F-35A Lightning IIs assigned to the 4th Expeditionary Fighter Squadron taxi after landing at Al Dhafra Air Base, UAE. Photo: US Air Force
  • A Lockheed Martin F-35A fighter jet on a training mission in Hill Air Force Base, Utah. Bloomberg
    A Lockheed Martin F-35A fighter jet on a training mission in Hill Air Force Base, Utah. Bloomberg
  • An RAF F-35B Lightning 11 supersonic stealth strike fighter, built by the US plane maker Lockheed Martin, touches down in the UK. Getty
    An RAF F-35B Lightning 11 supersonic stealth strike fighter, built by the US plane maker Lockheed Martin, touches down in the UK. Getty
  • An F-35 Lightning II, built by Lockheed Martin, at the Joint Reserve Base, Fort Worth, Texas. AFP
    An F-35 Lightning II, built by Lockheed Martin, at the Joint Reserve Base, Fort Worth, Texas. AFP
  • A US F-35A stealth fighter jet at an unspecified location. EPA
    A US F-35A stealth fighter jet at an unspecified location. EPA
  • A formation of US Air Force F-35 Lightning II fighter jets perform aerial maneuvers during as part of a combat power exercise. Reuters
    A formation of US Air Force F-35 Lightning II fighter jets perform aerial maneuvers during as part of a combat power exercise. Reuters
  • A US F-35A fighter jet prepares to land at Chungju Air Base in Chungju, South Korea. AP
    A US F-35A fighter jet prepares to land at Chungju Air Base in Chungju, South Korea. AP

UAE F-35 deal moving fast and not affected by changeover, says US official


James Reinl
  • English
  • Arabic

The $23 billion sale of stealth fighters and other military equipment to the UAE is moving ahead fast and will not be affected by next month’s change of administration, a senior US State Department official said on Wednesday.

R Clarke Cooper, an assistant secretary in the Bureau of Political-Military Affairs, said the sale of 50 F-35 Lightning II aircraft and other gear, which cleared a congressional hurdle this month, was “moving at a very deliberate pace”.

US and Emirati officials are now poring over the letters of offer and acceptance and assessing the deal “line by line” so the “parameters are understood before proceeding”, Mr Cooper said.

“Our intent is to have those done as soon as able."

The deal was brokered under President Donald Trump, but it would probably not be affected by the switch to the administration of President-elect Joe Biden on January 20, Mr Cooper said.

"When we make a decision, or commitment, as a government, that holds," he said.

“Commitments like that certainly would … hold in place and are transcendent of any kind of change of government.”

Democratic senators the past week failed to pass a bill to stop the arms sale, clearing the way for the UAE to become the first Arab nation to fly stealth fighters and the second country in the region after Israel.

The deal also includes precision-guided bombs and Reaper drones.

Mr Biden has not commented directly on the sale.

His nominee for secretary of state, Tony Blinken, has spoken of the need for Israel to maintain a military edge over its neighbours.

The Biden administration would look at the deal “very, very carefully", Mr Blinken said.

The UAE has long sought to acquire US-built stealth fighters, but signing the deal to normalise ties with Israel in September brought the sale to a conclusion.

Results:

Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.

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

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.

Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin

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

Jawan
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