Allies of Rishi Sunak say he favours a hard line on Iran. Simon Walker / No 10 Downing Street
Allies of Rishi Sunak say he favours a hard line on Iran. Simon Walker / No 10 Downing Street
Allies of Rishi Sunak say he favours a hard line on Iran. Simon Walker / No 10 Downing Street
Allies of Rishi Sunak say he favours a hard line on Iran. Simon Walker / No 10 Downing Street

How Rishi Sunak will approach Middle East, energy and climate


Tim Stickings
  • English
  • Arabic

UK Prime Minister Rishi Sunak has moved to restore Britain's credibility on the world stage by mending fences with fellow leaders in his first days in power.

He takes to the world stage as a relative unknown, having spent his ministerial career in domestic politics.

Building relations will be key to the UK improving its status on the global stage.

Mr Sunak quickly appointed a top team at the Foreign Office with experience dealing with Middle East countries.

Signals from his first few days in office are that he appreciates the need to be less combative than predecessor Liz Truss.

In a call with European Commission president Ursula von der Leyen, Mr Sunak stressed the importance of UK-EU relations and “working together as friends and allies”, Downing Street said.

“Hopefully the UK and EU can move to a more constructive and pragmatic relationship with Sunak now at the helm,” said Max Bergmann, an analyst on Europe and former US diplomatic official.

There was also a glimpse of closer relations with India, after Prime Minister Narendra Modi warmly commended the British Indian Mr Sunak and spoke of modernising the UK-India partnership.

And unlike Ms Truss, Mr Sunak was quick to open a channel of communication with Scotland's separatist First Minister Nicola Sturgeon.

“For Britain's interest, and frankly for those of wider Europe and the international community, as soon as British politics stabilises around a leader, the better it is for all of us,” former Australian prime minister Kevin Rudd told Sky News.

“We need Britain firmly back at the global table. Its voice is an important point in the world. When you've got rolling domestic political instability, the bottom line is, the level of political energy and policy energy within any government becomes distracted.”

The National looks at how Mr Sunak will deal with the Middle East and how he will handle key global topics such as the climate and energy issues which are set to play a large role in his administration.

Middle East

Mr Sunak opted for continuity at the Foreign Office by keeping former Middle East minister James Cleverly in the top post.

Mr Cleverly spent the day of the reshuffle in calls with fellow diplomats, including Sheikh Abdullah bin Zayed, the UAE’s Minister of Foreign Affairs and International Co-operation.

Anne-Marie Trevelyan, a former trade secretary who launched talks on a UK-Gulf trade deal in June, was made a junior Foreign Office minister.

Supporters of Mr Sunak have said he favours a hard line on Iran and welcomes the Abraham Accords between the UAE, Israel and Bahrain.

MP Liam Fox told The National in August that Mr Sunak would support “maximum sanctions” on Iran to pressure it into an agreement that goes beyond its nuclear programme.

Mr Sunak “regards Iran as a major threat to regional stability and beyond because its ballistic missile programme is in breach of the UN resolutions and continues apace”, Mr Fox said.

Former Middle East minister James Cleverly was re-appointed foreign secretary. Reuters
Former Middle East minister James Cleverly was re-appointed foreign secretary. Reuters

Another Sunak backer, Theresa Villiers, wrote in Jewish News that Mr Sunak wants to capitalise on Britain’s relationships with Gulf states to widen the Abraham Accords.

Speaking to the Conservative Friends of Israel in August, Mr Sunak said Jerusalem was “indisputably the historic capital” and that he was open to recognising it that way.

But “having not been foreign secretary, there must be some sensitivities involved, because if it was that easy it would have been done by now”, Mr Sunak said.

Mr Sunak is also a champion of low-tax freeports, such as the Thames investment zone backed by the UAE’s DP World. As a rookie MP in 2016 he wrote a paper, The Free Ports Opportunity, after the Brexit vote.

As chancellor of the exchequer, he dismayed some MPs by cutting the UK’s foreign aid budget despite warnings of the humanitarian effects in Yemen and Syria.

Despite the cut, said he was proud of “food parcels stamped with a Union Jack arriving in famine-stricken countries such as Syria and Somalia”.

Climate and energy

One of Mr Sunak’s first announcements was to reinstate a ban on fracking for onshore gas.

His predecessor, Liz Truss, had moved to lift the ban, resulting in a farcical House of Commons vote that contributed to her downfall.

But Mr Sunak told MPs that he stood by the Conservative manifesto in 2019, which opposed fracking because of concerns from local communities.

Mr Sunak was elusive on whether he would support new onshore wind projects, another Truss initiative that is now in doubt.

He had promised to oppose onshore wind during his battle with Ms Truss for the votes of homeowning Tory members.

“The important thing is to focus on our long-term energy security. That means more renewables, more offshore wind and indeed more nuclear,” he said on Wednesday.

He did not mention oil and gas, but he agreed with Ms Truss during the summer campaign that Britain should exploit more of its North Sea fossil fuel reserves.

Rishi Sunak wants to use North Sea oil and gas to help make Britain energy independent. AFP
Rishi Sunak wants to use North Sea oil and gas to help make Britain energy independent. AFP

Another early move was to downgrade the role of Alok Sharma, Britain’s negotiator for the Cop27 summit, by dropping him from the Cabinet.

Caroline Lucas, the UK’s only Green Party MP, said it was “utterly shameful” to sideline Mr Sharma just weeks before the summit.

There is no word yet on whether King Charles III, a lifelong environmentalist, will attend Cop27, after Ms Truss reportedly told him not to.

Mr Sunak said in August that he was committed to the 2050 target for net zero greenhouse gas emissions.

But he said he would add a second target of making Britain energy independent by 2045.

He said at the time that he would split off a new Department of Energy from the business brief where it currently sits.

However, the Department for Business, Energy and Industrial Strategy remains intact for now with Grant Shapps as its new chief.

Mr Shapps replaces the traditionalist Jacob Rees-Mogg, whose appointment by Ms Truss was described as “deeply unserious”.

The energy squeeze is expected to dominate Mr Sunak’s first months in office as Britain braces for an expensive winter.

Mr Sunak said he would make it a priority to bring down inflation, which he described as an enemy.

He said the government would “provide support to those who need it as we do so”.

But Chancellor Jeremy Hunt has said the government cannot afford to subsidise energy bills for the two-year period envisaged by Ms Truss.

Rishi Sunak becomes prime minister — in pictures

  • Britain's new Prime Minister Rishi Sunak delivers a speech outside Number 10 Downing Street. Reuters
    Britain's new Prime Minister Rishi Sunak delivers a speech outside Number 10 Downing Street. Reuters
  • King Charles III invites Mr Sunak to become prime minister and form a new government in an audience at Buckingham Palace. PA
    King Charles III invites Mr Sunak to become prime minister and form a new government in an audience at Buckingham Palace. PA
  • Mr Sunak promised to bring stability amid what he called a “profound economic crisis”. PA
    Mr Sunak promised to bring stability amid what he called a “profound economic crisis”. PA
  • The new prime minister is applauded as he enters Number 10. Photo: Simon Walker/ No 10 Downing Street
    The new prime minister is applauded as he enters Number 10. Photo: Simon Walker/ No 10 Downing Street
  • Mr Sunak is greeted by Cabinet Secretary and Head of the Civil Service Simon Case as he enters 10 Downing Street. AFP
    Mr Sunak is greeted by Cabinet Secretary and Head of the Civil Service Simon Case as he enters 10 Downing Street. AFP
  • A worker loads a removal van with boxes outside 10 Downing Street. Reuters
    A worker loads a removal van with boxes outside 10 Downing Street. Reuters
  • Members of the public wait for the arrival of Mr Sunak near Downing Street. AP
    Members of the public wait for the arrival of Mr Sunak near Downing Street. AP
  • Staff in the Foreign and Commonwealth Office watch from the windows as Mr Sunak arrives in Downing Street. PA
    Staff in the Foreign and Commonwealth Office watch from the windows as Mr Sunak arrives in Downing Street. PA
  • An Indian artist in Mumbai creates a painting to congratulate Mr Sunak on becoming prime minister. EPA
    An Indian artist in Mumbai creates a painting to congratulate Mr Sunak on becoming prime minister. EPA
  • Mr Sunak arrives at Buckingham Palace. PA
    Mr Sunak arrives at Buckingham Palace. PA
  • Incoming prime minister Rishi Sunak arrives at the Conservative Party's headquarters with a wave. AFP
    Incoming prime minister Rishi Sunak arrives at the Conservative Party's headquarters with a wave. AFP
  • Rishi Sunak is greeted by colleagues upon his arrival. AFP
    Rishi Sunak is greeted by colleagues upon his arrival. AFP
  • Conservative MPs applaud as Rishi Sunak arrives. Reuters
    Conservative MPs applaud as Rishi Sunak arrives. Reuters
  • Rishi Sunak departs after making a statement inside the Conservative Party's headquarters. PA
    Rishi Sunak departs after making a statement inside the Conservative Party's headquarters. PA
  • Mr Sunak meets the 1922 Committee in Parliament after he was announced as the new leader of the Conservative Party when Penny Mordaunt dropped out. PA
    Mr Sunak meets the 1922 Committee in Parliament after he was announced as the new leader of the Conservative Party when Penny Mordaunt dropped out. PA
  • Sir Graham Brady, chairman of the 1922 Committee, announces Mr Sunak as the new leader of the Conservatives and therefore the prime minister. PA
    Sir Graham Brady, chairman of the 1922 Committee, announces Mr Sunak as the new leader of the Conservatives and therefore the prime minister. PA
  • Members of the media work outside No 10 Downing Street, the official residence of Britain's prime minister, in central London, as they await announcements. AFP
    Members of the media work outside No 10 Downing Street, the official residence of Britain's prime minister, in central London, as they await announcements. AFP
  • Mr Sunak leaves his campaign office in London. AP
    Mr Sunak leaves his campaign office in London. AP
  • A billboard of Liz Truss, the departing prime minister, in London. Bloomberg
    A billboard of Liz Truss, the departing prime minister, in London. Bloomberg
  • Members of the public look through the gates into Downing Street. Reuters
    Members of the public look through the gates into Downing Street. Reuters
  • Mr Sunak leaves his home in London on Monday morning. AFP
    Mr Sunak leaves his home in London on Monday morning. AFP
  • Leader of the House of Commons and Conservative leadership candidate Penny Mordaunt speaks to the media on Sunday. Ms Mordaunt pulled out of the race moments before the deadline for nominations. PA
    Leader of the House of Commons and Conservative leadership candidate Penny Mordaunt speaks to the media on Sunday. Ms Mordaunt pulled out of the race moments before the deadline for nominations. PA
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Marathon results

Men:

 1. Titus Ekiru(KEN) 2:06:13 

2. Alphonce Simbu(TAN) 2:07:50 

3. Reuben Kipyego(KEN) 2:08:25 

4. Abel Kirui(KEN) 2:08:46 

5. Felix Kemutai(KEN) 2:10:48  

Women:

1. Judith Korir(KEN) 2:22:30 

2. Eunice Chumba(BHR) 2:26:01 

3. Immaculate Chemutai(UGA) 2:28:30 

4. Abebech Bekele(ETH) 2:29:43 

5. Aleksandra Morozova(RUS) 2:33:01  

BUNDESLIGA FIXTURES

Friday (UAE kick-off times)

Cologne v Hoffenheim (11.30pm)

Saturday

Hertha Berlin v RB Leipzig (6.30pm)

Schalke v Fortuna Dusseldof (6.30pm)

Mainz v Union Berlin (6.30pm)

Paderborn v Augsburg (6.30pm)

Bayern Munich v Borussia Dortmund (9.30pm)

Sunday

Borussia Monchengladbach v Werder Bremen (4.30pm)

Wolfsburg v Bayer Leverkusen (6.30pm)

SC Freiburg v Eintracht Frankfurt (9on)

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

if you go
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The 12 breakaway clubs

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

Updated: October 27, 2022, 11:49 AM