Senior political figures say Iran poses a threat to Britain. EPA
Senior political figures say Iran poses a threat to Britain. EPA
Senior political figures say Iran poses a threat to Britain. EPA
Senior political figures say Iran poses a threat to Britain. EPA

Labour urges UK government to get tough on Iran


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Labour’s shadow home secretary Yvette Cooper has said the UK has failed to effectively counter threats from Iran and called for a tougher approach.

Speaking to The National, she said “tensions” between ministers in Rishi Sunak's cabinet had prevented the government from adopting a united line on crucial issues, such as whether the Islamic Revolutionary Guard Corps should be proscribed and designated a terrorist group.

The opposition party would establish a “joint cell” run by the Foreign Office and Home Office to address threats posed to national security, including from Iran, if it gets into government, she said.

Ms Cooper threw further weight behind cross-party calls for Britain to adopt a more stringent approach to Tehran. Senior political figures, including two former defence ministers, a former leader of the Liberal Democrat party and the head of the parliamentary committee on foreign affairs, warned a shake-up was long overdue.

Speaking at the Royal United Services Institute in London on Monday, Ms Cooper laid out her vision for a Labour-run Home Office and Foreign Office to work in tandem on counter-terrorism strategies.

“Some of the things that we have in mind [are], for example, the failure from the government to respond sufficiently to some of the threats from the IRGC in the UK, where there have obviously been tensions between different departments,” she said in response to a question from The National.

People protest against the IRGC at a rally in London. Getty
People protest against the IRGC at a rally in London. Getty

“We believe you actually need the Foreign Office and the Home Office working closely together to deal with some of those homeland security threats.

“In terms of how those international threats impinge on our homeland security, on our domestic security, that’s where we believe we now need that co-ordinated approach between the Home Office and the Foreign Office."

MPs from across the political spectrum are calling on the government to wake up to the acute threats posed by Iran and have laid bare their concerns in a letter to Foreign Secretary James Cleverly.

“Iran is the Middle East’s largest, most aggressive power, with an obvious commitment to revising the global order, with a growing alliance with Russia and a desire to deepen it," the letter read.

The document was signed by Menzies Campbell, former leader of the Liberal Democrats, Michael Fallon, former secretary of state for defence, Alicia Kearns, chairwoman of the Commons foreign affairs select committee, Gen David Richards, former chief of defence staff, George Robertson, former Nato secretary general and former secretary of state for defence, and Mark Sedwill, former national security adviser and former cabinet secretary.

The letter supports the analysis and recommendations of a new report from the Policy Exchange think tank, which claims "Iran is fundamentally committed to creating a new Middle Eastern status quo where it is the region’s dominant power".

The report said treating Iran's nuclear ambitions as a single and separate issue to broader security concerns had to change.

"The most obvious failure of western policy, and particularly British and European policy, has been to compartmentalise the nuclear issue diplomatically and then treat this as the central policy issue in relations with Iran," the report said.

"Nuclear developments, while an important part of the package, must be situated within a more comprehensive understanding of the wider threat posed by Iran.

"Iran policy, meanwhile, must begin with the strategic threat that Iran poses, not the single, symptomatic element that is its nuclear programme."

A letter has urged British Foreign Secretary James Cleverly to take a tougher stance on Iran. AP
A letter has urged British Foreign Secretary James Cleverly to take a tougher stance on Iran. AP

The 70-page report argues that the UK government should be doing more to counter both open and covert Iranian operations within Britain, to "prevent assassinations and kidnappings in the UK, including by tasking the Joint Terrorism Analysis Centre and National Crime Agency’s intelligence capabilities, along with MI5 and MI6 to hire more Persian analysts and better fuse MI5, MI6, and NCA capabilities".

'Isolate Iran'

Policy Exchange's report also called for tougher sanctions and a crackdown on illicit Iranian finances. as well as disrupting Iran's relations with Russia.

It recommended a snapback process of the Joint Comprehensive Plan of Action, the 2015 Iran nuclear deal and part of UN Security Council Resolution 2231.

A diplomatic move, this would "isolate Iran, ensure international support for an anti-Iranian coalition, and force the issue over Iran among the JCPOA’s signatories".

Meanwhile, a deepening of the UK's security and intelligence relationships with the "key powers that surround Iran", including the UAE was also recommended.

In their letter to the Foreign Secretary, the senior political figures point out that Britain's security and counter-terrorism forces have uncovered 15 Iranian plots on UK soil in the past 18 months, but also that "Iran is also becoming more brazen in its prosecution of international disruption".

"Iran’s increasingly appalling human rights record, accelerating nuclear programme, sponsorship of proxies throughout the Middle East, extensive assistance to Russia in its brutal war on Ukraine, and sponsorship of terrorism and kidnapping makes it an obvious threat to international stability," the letter said.

Mr Cleverly this month paved the way for tougher measures against Iran by saying Britain would widen the criteria that can be used to impose sanctions.

He said the bill was a response to "credible threats" by Iran to kill or kidnap perceived enemies in the UK. Britain says at least 15 such plots have been detected since the start of last year.

The new powers to impose sanctions over involvement in the "use and spread of weapons or weapons technology" could also be used to prolong missile-related measures that are due to expire in October.

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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

The biog

Name: Abeer Al Bah

Born: 1972

Husband: Emirati lawyer Salem Bin Sahoo, since 1992

Children: Soud, born 1993, lawyer; Obaid, born 1994, deceased; four other boys and one girl, three months old

Education: BA in Elementary Education, worked for five years in a Dubai school

 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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10 million people given access to clean and affordable drinking water

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January 25 – Second T20, Lahore

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April 3 – One-off ODI, Karachi

April 5-9 – Second Test, Karachi

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

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October 4: Round One of Rotax Max Challenge, Al Ain (karting)

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November 1-3: Abu Dhabi Grand Prix (Formula One)

November 28-30: Dubai International Rally

January 9-11: 24Hrs of Dubai (Touring Cars / Endurance)

March 21: Round 11 of Rotax Max Challenge, Muscat, Oman (karting)

April 4-10: Abu Dhabi Desert Challenge (Endurance)

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Updated: July 17, 2023, 2:51 PM