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Iran is making the greater geopolitical gains in the Israel-Gaza war but would significantly lose influence if the Middle East conflict were to be resolved, according to submissions to a UK parliamentary review of the country's foreign policy in the region.
If left unchecked, Tehran's nuclear programme could also lead to major proliferation across the region with others looking to deter any attack by building their own weapons, the statements to the influential Foreign Affairs Select Committee showed.
But Iran’s power base could be substantially undermined if an enduring solution were to be found for the region’s Palestinian population.
Leading academics and groups who submitted written evidence to the committee also stated that the Gulf region had learnt to become less dependent on the West and was instead creating a “new multipolar world order” with the help of other powers.
Hamas may be leading the attack against Israel but it was Iran that “is set to make the greater geopolitical gains from this attack if the UK and the West do not develop a comprehensive policy to counter its regional role,” said Lina Khatib, director of London University’s Middle East Institute.
She argued that Britain and the West’s “lack of engagement” on Iran meant that Arab countries had to seek their own routes to de-escalation.
“But this does not resolve the bigger picture of the persistence of Iran’s destructive interventions in the Middle East,” she added.
However, Iran’s influence would be “greatly diminished” if the Palestinian-Israeli conflict were finally resolved.
“Such a resolution means that Iran would lose a huge part of the legitimacy narrative it uses to justify its support for Hamas and Hezbollah,” she said.
Britain’s key regional allies, the UAE and Saudi Arabia, had been “persistently warning” about the destabilisation Iran was causing and the UK, now outside the EU, needed to develop “distinct and comprehensive” policies to tackle the issues.
Iran’s continued nuclear programme was a “direct challenge to the already precarious (im)balance of power in the region” that not only threatens Israel but Saudi Arabia and other Arab states, said Anoush Ehteshami, joint director of the ESRC Centre for the Advanced Study of the Arab World at Durham University
He warned that if Tehran’s nuclear programme was “left unchecked”, it could become “a precursor to proliferation across the region”.
In its submission, the Foreign Office conceded that Tehran's nuclear programme was advancing despite international efforts.
“Iran’s nuclear programme is also now more advanced than at any time and continues to develop, threatening regional and international security,” it said.
“On tackling direct threats, the UK is working alongside our international partners to contain Iran’s destabilising influence in the region and to prevent nuclear escalation.”
The experts pointed out that it was necessary that any country violating the Non-Proliferation Treaty on nuclear weapons would “face a series of punishments”, including economic and military sanctions.
The Gulf has learnt the lesson of being overdependent on the West and as result there was now a conviction it could establish a multipolar world order with “the help of other burgeoning powers”, argued Angie Hesham Abdo of Harvard University.
With Saudi Arabia and UAE joining the Brics (Brazil, Russia, India, China, South Africa) alliance as well expanding ties with India and countries in the Association of South-East Asian Nations, the Middle East was “contributing significantly to the post-western world in many ways”, she added.
The European Council on Foreign Relations said London has new opportunities to engage in regional diplomacy.
“The emergence of a multipolar regional order highlights the need for the UK to increase its regional influence to secure its interests,” it said.
“The new regional landscape, where no single power is dominant, provides the need and space for the UK to more effectively work with partners.”
In the report titled the UK’s national interest in the Middle East and North Africa, Prof Ehteshami also argued that Britain needed to retain its “extensive military ties” with Gulf Arab states.
Britain could also assist in encouraging dialogue with Iran around shared interests such as “climate change, the shared bounties of the Gulf, efforts to contain water pollution and de-escalation of disputes”, the academic added.
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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Frankenstein in Baghdad
Ahmed Saadawi
Penguin Press
Race card
4pm Al Bastakiya Listed US$300,000 (Dirt) 1,900m
4.35pm Mahab Al Shimaal Group 3 $350,000 (D) 1,200m
5.10pm Nad Al Sheba Turf Group 3 $350,000 (Turf) 1,200m
5.45pm Burj Nahaar Group 3 $350,000 (D) 1,600m
6.20pm Jebel Hatta Group 1 $400,000 (T) 1,800m
6.55pm Al Maktoum Challenge Round-3 Group 1 $600,000 (D) 2,000m
7.30pm Dubai City Of Gold Group 2 $350,000 (T) 2,410m
The National selections:
4pm Zabardast
4.35pm Ibn Malik
5.10pm Space Blues
5.45pm Kimbear
6.20pm Barney Roy
6.55pm Matterhorn
7.30pm Defoe
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Mohammed bin Zayed Majlis