China's top diplomat Wang Yi is flanked by Saudi Minister of State and national security adviser Musaed bin Al Aiban, left, and Iranian Admiral Ali Shamkhani, secretary of the Supreme National Security Council, in Beijing on Friday. Reuters
China's top diplomat Wang Yi is flanked by Saudi Minister of State and national security adviser Musaed bin Al Aiban, left, and Iranian Admiral Ali Shamkhani, secretary of the Supreme National Security Council, in Beijing on Friday. Reuters
China's top diplomat Wang Yi is flanked by Saudi Minister of State and national security adviser Musaed bin Al Aiban, left, and Iranian Admiral Ali Shamkhani, secretary of the Supreme National Security Council, in Beijing on Friday. Reuters
China's top diplomat Wang Yi is flanked by Saudi Minister of State and national security adviser Musaed bin Al Aiban, left, and Iranian Admiral Ali Shamkhani, secretary of the Supreme National Securit

US sidelined as China brokers Saudi-Iran diplomatic breakthrough


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The Beijing-brokered diplomatic thaw in relations between Saudi Arabia and Iran saw the US sidelined from negotiations and is the latest sign of China's growing influence in the Middle East.

In a joint statement on Friday, Tehran and Riyadh said they had reached an agreement to resume diplomatic relations.

Saudi Arabia cut ties in 2016 after protesters invaded Saudi diplomatic posts in Iran following the execution in the kingdom of a prominent Shiite cleric.

The US appeared to have been caught off guard by the rapprochement.

White House National Security Council spokesman John Kirby said Washington was “not involved” in the mediation process.

“It appears to us that this road map announced today was the result of multiple rounds of talks,” Mr Kirby said.

The NSC said earlier that it had been “aware” of reports of the deal, and hoped it would help end conflict in Yemen and reduce regional tension.

A Saudi-led coalition intervened at the request of Yemen's internationally recognised government in 2015, after Iran-backed Houthi rebels seized the capital Sanaa.

When asked for his reaction to the deal, President Joe Biden did not answer directly. Without mentioning Iran, China or Saudi Arabia, he said: “The better the relations between Israel and the Arab neighbours, the better it is for everybody.”

James Oberwetter, a former US ambassador to Saudi Arabia under President George W Bush, said Riyadh no longer sees the US as a reliable partner and is “perplexed” by Washington.

“We have moved administration by administration, from one party to the next, pulling them one way and then pushing them away, pulling them back and pushing them away,” Mr Oberwetter told The National.

The former US diplomat said China was capitalising on a “vacuum” that the Biden administration had allowed to develop with its “bewildered” policy in the region.

“The US has just sent many mixed signals,” he said.

“China is looking at this as an area of interest. They, like other major powers in the world, want oil to keep flowing in the Middle East so they do not want the Middle East to be in a warring state.”

Saudi Crown Prince Mohammed bin Salman greets US President Joe Biden after his arrival in Jeddah last July. Saudi Press Agency via AP
Saudi Crown Prince Mohammed bin Salman greets US President Joe Biden after his arrival in Jeddah last July. Saudi Press Agency via AP

Ryan Bohl, a senior Middle East and North Africa analyst at the Rane Network risk intelligence company, said it was unlikely Washington would have been able to broker such an agreement because of tension with Iran.

“It's a signal the Iranians are trying to send specifically to Washington, that China’s influence is rising in the region, and that Iran is hoping that China will try to supplant the United States as either a broker of diplomatic processes like these, but even potentially as a security guarantor of countries like Iran,” Mr Bohl told The National.

The Beijing-sponsored talks between Tehran and Riyadh came as Washington ramps up efforts to combat China's global influence.

The Biden administration on Thursday launched its new budget proposal, in which it continued a pivot away from the Middle East and expanded its focus on Russia and the Indo-Pacific region, particularly China.

The budget included about $6.4 billion in spending for the Middle East. In the previous budget, the Biden administration allocated about $7.6 billion in funding to the region.

Mr Kirby said he wanted to “push back hard” on any suggestion that the US is scaling back its involvement in the Middle East.

UN Secretary General Antonio Guterres meanwhile thanked China for hosting the recent talks and for promoting dialogue between Saudi Arabia and Iran.

China’s mediation boosts its regional clout and underscores the “folly” of the Biden administration wanting to pivot from the region, said Behnam Ben Taleblu, a senior fellow at the Foundation for Defence of Democracies think tank.

“As the biggest trade partner of both Tehran and Riyadh, China has been one of the few countries capable of walking the diplomatic tightrope” in the Gulf, he said.

Impact on Saudi-Israel ties

Dennis Ross, a former US diplomat and Middle East co-ordinator under former president Bill Clinton, noted that both Saudi Arabia and Iran have an interest to try to defuse tension.

“Restoring diplomatic relations can help them manage some things — especially Iranian pilgrims to the Hajj — and maybe keep open a communications channel more easily,” he said.

“Do I think it portends a genuine reconciliation? No — Iran has not given up its aim of dominating the region and forcing countries like Saudi Arabia to accommodate their interests.”

Diplomatic progress between Riyadh and Tehran could also herald a way forward in ending the conflict in Yemen.

Talks to build on last year's fragile truce and end the war took place in January.

Jonathan Lord, Director of the Middle East Security programme at Washington's Centre for a New American Security think tank, argued that Riyadh is taking a “balanced, two-pronged approach to dealing with a difficult neighbour”, and that the resumption of diplomatic ties with Tehran may ultimately ease restraints on Riyadh in forming ties with Israel.

“The Saudis are likely expecting that as part of this deal, Iran will reduce lethal aid support to the Houthis and to refrain from attacks,” Mr Lord told The National.

“The Saudis likely believe that having an open diplomatic channel with Iran will buy down the risk of a punitive response from Tehran should the prospect of normalisation with Israel continue to make headlines.”

Simon Mabon, a senior lecturer in international relations at Lancaster University in England, who has written books on Saudi Arabia and Iran, believes China’s role in brokering the talks is a warning sign for the US that also calls into question any future talks surrounding the Joint Comprehensive Plan of Action nuclear deal with Tehran.

Under the 2015 deal with China, France, Germany, Russia, the UK and the US — plus the EU, Iran agreed to limits on its nuclear programme in exchange for sanctions relief. In 2018, the US pulled out of deal, imposed tough sanctions and Iran breached the terms of the agreement.

Efforts to revive the JCPOA have resulted in deadlock.

“China's role in facilitating the move raises a number of questions about the future of US engagement in the region, about the future of dialogue over the JCPOA and about increased Chinese engagement in the Gulf,” Mr Mabon told The National.

“Washington will be increasingly concerned about this development amidst a fractious relationship between US President Joe Biden and Saudi Crown Prince Mohammad bin Salman.”

SUCCESSION%20SEASON%204%20EPISODE%201
%3Cp%3E%3Cstrong%3ECreated%20by%3A%20%3C%2Fstrong%3EJesse%20Armstrong%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Brian%20Cox%2C%20Jeremy%20Strong%2C%20Kieran%20Culkin%2C%20Sarah%20Snook%2C%20Nicholas%20Braun%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

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

Trump v Khan

2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US

2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks

2019: Trump calls Khan a “stone cold loser” before first state visit

2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”

2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.

Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

Mia Man’s tips for fermentation

- Start with a simple recipe such as yogurt or sauerkraut

- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.

- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.

- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.

 

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

LIVING IN...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

SPEC%20SHEET%3A%20APPLE%20IPHONE%2015%20PRO%20MAX
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'Operation Mincemeat' 

Director: John Madden 

 

Cast: Colin Firth, Matthew Macfayden, Kelly Macdonald and Penelope Wilton

 

Rating: 4/5

 
How the bonus system works

The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.

The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.

There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).

All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

England Test squad

Joe Root (captain), Moeen Ali, James Anderson, Jonny Bairstow (wicketkeeper), Stuart Broad, Jos Buttler, Alastair Cook, Sam Curran, Keaton Jennings, Dawid Malan, Jamie Porter, Adil Rashid, Ben Stokes.

Company profile

Date started: Founded in May 2017 and operational since April 2018

Founders: co-founder and chief executive, Doaa Aref; Dr Rasha Rady, co-founder and chief operating officer.

Based: Cairo, Egypt

Sector: Health-tech

Size: 22 employees

Funding: Seed funding 

Investors: Flat6labs, 500 Falcons, three angel investors

Winners

Best Men's Player of the Year: Kylian Mbappe (PSG)

Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)

TikTok Fans’ Player of the Year: Robert Lewandowski

Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)

Best Women's Player of the Year: Alexia Putellas (Barcelona)

Best Men's Club of the Year: Chelsea

Best Women's Club of the Year: Barcelona

Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)

Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)

Best Coach of the Year: Roberto Mancini (Italy)

Best National Team of the Year: Italy 

Best Agent of the Year: Federico Pastorello

Best Sporting Director of the Year: Txiki Begiristain (Manchester City)

Player Career Award: Ronaldinho

Why%20all%20the%20lefties%3F
%3Cp%3ESix%20of%20the%20eight%20fast%20bowlers%20used%20in%20the%20ILT20%20match%20between%20Desert%20Vipers%20and%20MI%20Emirates%20were%20left-handed.%20So%2075%20per%20cent%20of%20those%20involved.%0D%3Cbr%3EAnd%20that%20despite%20the%20fact%2010-12%20per%20cent%20of%20the%20world%E2%80%99s%20population%20is%20said%20to%20be%20left-handed.%0D%3Cbr%3EIt%20is%20an%20extension%20of%20a%20trend%20which%20has%20seen%20left-arm%20pacers%20become%20highly%20valued%20%E2%80%93%20and%20over-represented%2C%20relative%20to%20other%20formats%20%E2%80%93%20in%20T20%20cricket.%0D%3Cbr%3EIt%20is%20all%20to%20do%20with%20the%20fact%20most%20batters%20are%20naturally%20attuned%20to%20the%20angles%20created%20by%20right-arm%20bowlers%2C%20given%20that%20is%20generally%20what%20they%20grow%20up%20facing%20more%20of.%0D%3Cbr%3EIn%20their%20book%2C%20%3Cem%3EHitting%20Against%20the%20Spin%3C%2Fem%3E%2C%20cricket%20data%20analysts%20Nathan%20Leamon%20and%20Ben%20Jones%20suggest%20the%20advantage%20for%20a%20left-arm%20pace%20bowler%20in%20T20%20is%20amplified%20because%20of%20the%20obligation%20on%20the%20batter%20to%20attack.%0D%3Cbr%3E%E2%80%9CThe%20more%20attacking%20the%20batsman%2C%20the%20more%20reliant%20they%20are%20on%20anticipation%2C%E2%80%9D%20they%20write.%0D%3Cbr%3E%E2%80%9CThis%20effectively%20increases%20the%20time%20pressure%20on%20the%20batsman%2C%20so%20increases%20the%20reliance%20on%20anticipation%2C%20and%20therefore%20increases%20the%20left-arm%20bowler%E2%80%99s%20advantage.%E2%80%9D%0D%3Cbr%3E%3C%2Fp%3E%0A
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The specs: 2018 Volkswagen Teramont

Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

The%20Letter%20Writer
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Layla%20Kaylif%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Eslam%20Al%20Kawarit%2C%20Rosy%20McEwen%2C%20Muhammad%20Amir%20Nawaz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Updated: March 12, 2023, 11:24 AM