A leading defence think tank says the proliferation of armed drones is creating significant security challenges, particularly where states, notably Iran, use the build-up as an instrument of foreign policy.
The International Institute for Strategic Studies highlighted the spread of unmanned aerial vehicles (UAVs) in its 2022 Military Balance survey of the global security landscape.
The report said Yemen's Iran-backed Houthis “demonstrated increased missile and uninhabited vehicle capabilities” in dozens of attacks last year.
John Chipman, the director general of the IISS, said there were growing risks to civilian infrastructure, as well as to military targets in this Iranian policy. He spoke of incidents recently reported in the Emirates.
“The UAE attacks carried out by Yemen's Houthi rebels against oil and aviation facilities also highlight how the distribution of these UAV capabilities to non-state actors can be a tool of state policy, in this case for Iran, a key supporter of the Houthis,” he said at a launch event in London.
“Iran has previously transferred UAV capabilities to Hezbollah in Lebanon and to the Syrian government and Iran has also transferred ballistic and cruise missiles, including to the Houthis.”
Mr Chipman said the issue was a global concern, with armed UAV systems now in the inventories of at least 20 countries, while others are seeking to acquire these systems.
“These range from small hobbyist-style systems employed by some non-state groups to large long-range platforms capable of being fitted with sensors and air-to-surface weapons,” he added.
Experts at the London institute highlight the issue of scale in the use of drones in particular.
“The challenge of defending against UAVs will only intensify as they evolve, the latest test being the emergence of hybrid systems, which combine the characteristics of a UAV and of an air-to-surface weapon,” Mr Chipman said.
“Armed UAVs are no longer the exception, they are rapidly becoming the norm. Indeed, a problem for defending forces is the sheer variety of threat systems that can now be employed by some state and non-state actors, including high, low, fast and slow weapons.
"If these are co-ordinated, as in recent Houthi attacks, the challenges are sharper still.
“Responding effectively places a premium not only on layers of defensive weapons, but also on the cost of sensor systems and computing power needed to effectively address these threats.
"Not all states will be able to afford investments either in the weapons or in the systems needed to counter them.”
Wicked problem
Doug Barrie, the institute's military aerospace expert, said the variety of drones that can be used at the same time meant their users could acquire attacking threat without spending a great deal of resources.
“We've seen the emergence of a subclass of UAV,” Mr Barrie said. “If you'd like the Costco-Poundland cruise missile, where a comparatively simple vehicle is fitted with a warhead.
“It makes it simpler but it does provide the ability to attack area targets, such as an oil installation or an airfield. The propaganda value of such attacks generally far outweighs any damage actually achieved.
“The use of what are sometimes called lethal UAVs, or direct attack munitions, has on occasion been carried out in concert with ballistic and cruise missile attacks.
"Such co-ordination complicates the task of defending against an attack, because you’ve got to identify, track and engage targets across a broad range of altitudes and speed regimes.
“For air defenders this is already a wicked problem, and it's one that is only likely to become yet more demanding.”
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
What are the influencer academy modules?
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Killing of Qassem Suleimani
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
2020 Oscars winners: in numbers
- Parasite – 4
- 1917– 3
- Ford v Ferrari – 2
- Joker – 2
- Once Upon a Time ... in Hollywood – 2
- American Factory – 1
- Bombshell – 1
- Hair Love – 1
- Jojo Rabbit – 1
- Judy – 1
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- Learning to Skateboard in a Warzone (If You're a Girl) – 1
- Marriage Story – 1
- Rocketman – 1
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At Eternity’s Gate
Director: Julian Schnabel
Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen
Three stars
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.