US Secretary of State Antony Blinken arrives in Algeria on Wednesday as Washington makes a geopolitical play in the North African nation to try to secure more energy supplies following Russia’s war in Ukraine.
It will be the first visit by a US secretary of state to the country since 2014.
Mr Blinken did not meet his Algerian counterpart Foreign Minister Ramtane Lamamra at the UN General Assembly last year.
Any diplomatic cold front has evidently dissipated following Russia's invasion of Ukraine on February 24, with Algiers thrust into the spotlight by recent European and US visits, including this month by Mr Blinken’s deputy Wendy Sherman.
Algeria has vast gas resources and is the EU's third-largest gas provider behind Russia and Norway.
According to S&P Global Platts Analytics, Algeria benefits from pipelines across the Mediterranean Sea to Spain and Italy, and has a liquefied natural gas (LNG) terminal that helped it export about 34 billion cubic metres of gas to the EU in 2021.
Now, the US and EU are looking for Algeria to increase its spare production, and the government has shown willingness to do so even if the amount does not come close to filling in Russian imports of 130 billion cubic metres in 2021.
Robert Ford, a former US ambassador to Algeria and a senior fellow at Yale’s Jackson Institute for Global Affairs, said Mr Blinken’s trip to Algeria so soon after his deputy visited sends a clear signal.
“It is no accident that the US diplomatic traffic to Algiers has picked up after Ukraine, the Algerians may not be the biggest [gas] suppliers but they’re important especially to Italy and Spain,” Mr Ford told The National.
But beyond Algeria’s willingness to increase its LNG capacity and discuss potential energy investments with US delegations, there are limitations on its co-operation with Washington, said Mr Ford.
The Biden administration has maintained former president Donald Trump's policy on the disputed Sahara region, where Washington recognises the legitimacy Morocco's claim to sovereignty over most of the area, "a policy that is 100 per cent against the Algerian position," Mr Ford said.
"I'm sure Wendy [Sherman] heard about it,” he noted.
Mr Trump introduced that policy a month before leaving office in December 2020. In return, Morocco agreed to normalise relations with Israel under the Abraham Accords. The Biden administration has shown no interest in reversing the decision.
Algeria has also shied away from taking a position on Russia’s war, and has abstained at the UN from condemning Moscow.
“The Algerians are proudly non-aligned,” Mr Ford said, stressing that despite a strong defence relationship with Moscow, Algeria is in the driver’s seat when it comes to pursuing their interests with US and Europe.
The US is also watching closely as China woos Algeria.
“China has recently developed greater relations with Algeria, prompting Washington to actively attempt to rebuild its own relations with Algeria for strategic reasons,” Mohammed Soliman, a scholar at the Middle East Institute said.
With sanctions aiming at Russia, the expert said Algiers will find more investment and commercial interests with US and Europe.
“Unlike Qatar, Algeria's closeness to Europe makes it a more realistic choice,” Mr Soliman told The National.
The void created by sanctions on Russia gives Washington a rare opportunity.
“US leading diplomats are aware of this fact and the fact that China under the Belt and Road Initiative would also be interested in filling the void if the US does not,” he said.
Mr Blinken is scheduled to meet Algerian President Abdelmadjid Tebboune, Mr Lamamra and other senior officials.
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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
