The US Congress on Thursday advanced legislation that could hinder Azerbaijan’s multimillion-dollar military assistance packages that it has received yearly since 2002.
The powerful Appropriations Committee in the House of Representatives voted 32-25 along party lines to advance its annual foreign aid spending bill, which seeks to increase restrictions on Azerbaijani military aid by placing it within the context of the significantly smaller security assistance packages that Armenia typically receives.
The report accompanying the bill notes that “the committee is concerned by disparity in military assistance provided to Azerbaijan in comparison to Armenia".
The legislation would require Secretary of State Antony Blinken to consider “the military balance between Azerbaijan and Armenia and the diplomatic consequences of such disparity in military assistance” when issuing next year’s waiver to allow Azerbaijan to receive US security assistance.
Data compiled by the Centre for International Policy’s Security Assistance Monitor indicates that Washington provided Azerbaijan with over five times more military aid than Armenia in fiscal year 2019: about $45 million for Baku versus about $8m for Yerevan.
Congress first blocked military aid to Azerbaijan following its first war with Armenia over the disputed Nagorno-Karabakh territory. However, Congress passed legislation in 2001 that allowed the State Department to issue a waiver allowing Baku to receive military aid as tension mounted between Azerbaijan and neighbouring Iran over energy exploration in the Caspian Sea.
But the second conflict over Nagorno-Karabakh last year, which resulted in Azerbaijan once again seizing control of the territory with Turkish support, has drawn renewed scrutiny over US military aid to Baku among Armenia’s numerous allies in Congress.
The Armenian National Committee of America vocally condemned Mr Blinken's decision to issue the waiver for Azerbaijan to receive military aid in April. The waiver stipulates that the military assistance to Azerbaijan will not contribute to conflict in the region.
Lobbying disclosure records reviewed by The National indicate that the Armenian National Committee of America spent $30,000 lobbying Congress on several issues in January through March of this year, including on the foreign aid spending bill that includes the language focused on military aid to Azerbaijan.
“We welcome the US House report language as a first step towards rolling back President Biden’s reckless waiver … and stopping all US arms and aid to the oil-rich, racist and openly anti-Armenian Aliyev regime,” Tereza Yerimyan, the government affairs director for the Armenian National Committee of America, told The National.
“Not a single US tax dollar should ever be shipped to the Azerbaijani military to kill, cripple or capture Armenians.”
But Aykhan Hajizada, a political counselor for the Azerbaijani embassy in Washington, characterised the efforts as "misleading lobbying efforts in Congress to undermine America's partnerships around the world" that do not help Armenia "reach a lasting peace with neighbours and propserity in the South Caucasus."
"Azerbaijan and the United States enjoy a robust bilateral partnership, including in the areas of defence and security," Mr Hajizada told The National. "This partnership benefits both our nations and the wider region and contributes to global peace. Azerbaijan's role as a force contributor to the operation in Afghanistan and its key role as a unique transit route are just some of the examples."
The Armenian National Committee of America in April called on members of Congress to sign on to a letter to the foreign aid panel urging its powerful members to suspend security aid to Azerbaijan. The letter was spearheaded by Democrats Frank Pallone of New Jersey as well as Jackie Speier and Adam Schiff of California — the three co-chairs of the Congressional Armenian Caucus.
Democrat Barbara Lee of California, the chairwoman of the foreign aid spending panel that initially placed the provision on Azerbaijani military aid in the legislation, is also a member of the Congressional Armenian Caucus.
Two other members of the foreign aid panel — Democrat Grace Meng of New York and Republican Jeff Fortenberry of Nebraska — are also members of the caucus.
The Congressional Armenian Caucus exercises considerable clout in Congress. It has more than 120 members in the House of Representatives, reflecting the hundreds of thousands of Armenian Americans residing throughout the US.
Conversely, the Congressional Azerbaijan Caucus has only 10 members, led by Democrat Steve Cohen of Tennessee and Republican Steve Chabot of Ohio.
As such, Mr Cohen and Mr Chabot faced tough odds when they launched an opposition letter calling on the foreign aid panel to support Azerbaijan in the spending bill and route all US assistance to Nagorno-Karabakh through Baku.
They cited Azerbaijan’s role as a counter-terrorism partner with Israel and as a supply route to US forces in Afghanistan as well as Russia’s support for Armenia in their failed appeal to the foreign aid panel.
Azerbaijan’s lobbyist in Washington, BGR Government Affairs, promoted the letter, but Baku seems to have lost this particular battle.
UAE currency: the story behind the money in your pockets
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
McLaren GT specs
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Transmission: seven-speed
Power: 620bhp
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-5 C Conners (Can)
-3 B Koepka (US), K Bradley (US), V Hovland (Nor), A Wise (US), S Horsfield (Eng), C Davis (Aus);
-2 C Morikawa (US), M Laird (Sco), C Tringale (US)
Selected others: -1 P Casey (Eng), R Fowler (US), T Hatton (Eng)
Level B DeChambeau (US), J Rose (Eng)
1 L Westwood (Eng), J Spieth (US)
3 R McIlroy (NI)
4 D Johnson (US)
The specs: Lamborghini Aventador SVJ
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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
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
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THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.