Joseph Westphal, a former US ambassador to Saudi Arabia, has said the normalisation of ties between Saudi Arabia and Israel is “inevitable” and that President Joe Biden should seek a reset of relations with Riyadh during his coming trip.
“I think [normalisation is] coming, that’s absolutely coming and it's inevitable. It's inevitable,” Mr Westphal told The National on Monday.
Now a professor at the Lauder Institute at the University of Pennsylvania's Wharton School, Mr Westphal served as ambassador to Riyadh during former president Barack Obama's administration between 2014 and 2017.
Preparations under way for Biden Israel visit
Saudi Arabia never established diplomatic relations with Israel after its foundation in 1948, but recent efforts — including a push by the Biden administration before the president's trip to the region begins on Wednesday — have opened the door for the gradual improvement of ties.
Mr Westphal said the inevitability of normalisation is due to a generational shift in the kingdom, and a confluence of security and economic interests.
Saudi Arabia's "King Salman, who I got to know very well when I was there as ambassador and have huge respect for him, he is from the generation that really believes that we should do more to help the Palestinian people”, he said.
Crown Prince Mohammed bin Salman, however, “is of a different generation that sees the world with a different set of lenses”.
“Eventually it will shift as long as we [the US] continue to work to do something and support the Palestinian people,” Mr Westphal said.
Saudi Arabia's Prince Mohammed bin Salman receives Iraqi Prime Minister — in pictures
The diplomat and former secretary of the US Army said the normalisation would be gradual.
“You’ll see more and more Saudi Arabia and Israel coming together and [establishing] diplomatic relations,” he said.
He pointed to technological, cyber, economic and security co-operation with Israel as some of the main incentives for Riyadh.
Mr Biden will be the first US president to fly from Israel to Saudi Arabia on Friday. His predecessor, Donald Trump, was the first to make the journey from Riyadh to Tel Aviv in 2017.
The former ambassador described Mr Biden's visit as extremely important in the context of bilateral, regional and global politics, especially due to the fact that current US-Saudi relations are “fractured”.
For the past year and a half, US-Saudi tension has increased due to the killing of Saudi journalist Jamal Khashoggi and Riyadh's position on oil production, particularly following the Russian invasion of Ukraine.
“[The relationship is] fractured for a lot of reasons, some of which are political posturing on the part of everybody involved,” Mr Westphal said. “It’s time to reset it.”
Biden: Middle East trip not aimed at pressuring Gulf states for oil
The situation is becoming urgent for the US, he said, pointing to how China has made inroads in the Middle East both financially and economically.
“And that's not in our best interest,” he said. “We're losing a huge trade opportunity and a huge commercial opportunity.”
Mr Westphal — who worked directly with Mr Biden from 2009 to 2016 when he was vice president — expressed optimism over the president's ability to establish a working relationship with Prince Mohammed despite past remarks and criticism of Saudi Arabia's human rights record.
“I know President Biden. I've known him forever … One of his strongest characteristics is [that] he is a negotiator,” Mr Westphal said.
“He is a bridge builder. He did it for years and years in the Senate, with Republican opponents and sometimes with his own Democrats who opposed him … He will come around and find a way to work with Prince Mohammed and to restore this relationship in a positive [manner].”
The former ambassador added that Prince Mohammed has enacted sweeping social and economic reforms.
“We have to recognise that this is a leader that has made significant progress … along the way, he's made mistakes and he's realised those mistakes and now it's time to you to put everything on the table,” Mr Westphal said.
“It's time to recommit to our relationship and go forward.”
Security and regional defence issues will be at the top of the agenda during Mr Biden's visit, Mr Westphal said, especially during the meetings with the Gulf Corporation Council and Jordan, Iraq and Egypt (GCC+3), which will take place on Saturday.
The US plays unique role in the security of the region, he said.
“We have to step up. We can't say we're going to protect the sovereignty of a country and then when they get attacked, we don't do anything, which is what happened when the Iranians bombed Aramco [in 2019].”
Mr Trump decided not to respond to the attack despite his bombastic rhetoric on Tehran.
Mr Westphal supported the idea of a regional defence coalition within the GCC+3 framework.
“It focuses on things like security, cyber security, intelligence, as well as economic trade and development. In other words, to create a better union of these countries to protect the trade routes.”
This would require the US providing those countries “with the right defence mechanisms and equipment that they need, whether it's Patriot batteries or missile systems to equipment to counter ballistic missiles”.
Asked what would constitute a successful visit, the former ambassador said the proof would be in the follow-up meetings.
“This would be just the beginning, the first step, then we will send the secretary of defence, the secretary of state, the secretary of commerce, engage the private sector and others within the region to talk about how we work on all these issues,” Mr Westphal said.
Who are the Soroptimists?
The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.
The organisation said its name is best interpreted as ‘the best for women’.
Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.
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BULKWHIZ PROFILE
Date started: February 2017
Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)
Based: Dubai, UAE
Sector: E-commerce
Size: 50 employees
Funding: approximately $6m
Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait
Villains
Queens of the Stone Age
Matador
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
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.
Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
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Leap of Faith
Michael J Mazarr
Public Affairs
Dh67
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
Sholto Byrnes on Myanmar politics
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
More on Quran memorisation:
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
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Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
