UN envoy urges Yemen parties to extend truce

Hans Grundberg, the UN special envoy to Yemen, said on Thursday that a peace deal is still possible and urged warring parties to demonstrate “flexibility”.

A truce between the Iran-backed Houthis and the Saudi-led coalition initially took effect in April and raised hopes for a longer pause in fighting as Yemen’s civil war entered in its eighth year.

But the truce came to an end on October 2 after UN-backed attempts to renew it failed. Still, an unofficial ceasefire seems to be largely holding.

“I personally believe that there is still a possibility for the parties to come to an agreement. The stakes are this high,” Mr Grundberg told the UN Security Council.

“It is critical that we do not lose this opportunity. The parties need to demonstrate the leadership, compromise and flexibility required to urgently reach an agreement on the renewal and expansion of the truce.”

Warning that a resumption of the conflict would have “destabilising effects” for the whole region, Mr Grundberg reiterated his call for all parties to abide by provisions of the UN-backed truce proposal in order to “find solutions that are in the best interest of the Yemeni population and to pursue every avenue for peace”.

US Special Envoy for Yemen Tim Lenderking this month called on the Iran-backed Houthi rebels to show more flexibility in the “maximalist and impossible” demands over a proposed mechanism to pay public sector wages.

UAE Deputy Ambassador to the UN Mohamed Abushahab urged the Security Council to take serious measures to stop systematic violations of the arms embargo imposed by various resolutions.

He also warned that a resumption of fighting would “further exacerbate the economic and humanitarian crisis caused by the ongoing war and global inflation”.

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Saudi National Day

Why the UAE has many reasons to celebrate its closest friend and ally

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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

EMERGENCY PHONE NUMBERS

Estijaba – 8001717 – number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries