Jordan's Foreign Minister Ayman Safadi, right, shakes hands with his Syrian counterpart Faisal Mekdad before the meeting in Amman. EPA
Jordan's Foreign Minister Ayman Safadi, right, shakes hands with his Syrian counterpart Faisal Mekdad before the meeting in Amman. EPA
Jordan's Foreign Minister Ayman Safadi, right, shakes hands with his Syrian counterpart Faisal Mekdad before the meeting in Amman. EPA
Jordan's Foreign Minister Ayman Safadi, right, shakes hands with his Syrian counterpart Faisal Mekdad before the meeting in Amman. EPA

US 'encouraged' that Arab-Syria meeting emphasised shared priorities


Ellie Sennett
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  • Arabic

President Joe Biden's administration said it was “encouraged” after an Arab meeting in Amman to discuss normalising ties with Damascus, despite US opposition to bringing Syrian President Bashar Al Assad's regime back into the fold.

Jordan on Monday hosted Arab foreign ministers for talks “aimed at solving the Syrian crisis” in line with a 2015 UN Security Council resolution endorsing a road map for peace, and addressing the “humanitarian, political and security crisis”, a joint statement from Syria, Jordan, Egypt, Iraq and Saudi Arabia said.

A White House National Security Council representative told The National the Biden administration was “encouraged to see the joint communique mention many priorities that we and our partners share”.

“We sincerely hope that the Syrian regime will follow through on its commitments, in good faith and in accordance with international norms.”

The White House said it was particularly pleased that the communique emphasised UN Security Council Resolution 2254 of 2015, which aimed to create an internationally recognised bid for peace in Syria.

“We look forward to discussing and assessing the outcome of the meeting and will continue to make our position clear that UNSCR 2254 remains the only viable solution,” a State Department representative told The National.

The White House official added the administration was “encouraged” that the joint statement addressed the humanitarian crisis in Syria, which included an agreement on delivering humanitarian and medical aid to Syrians “in co-ordination with Damascus and the UN”.

“When it comes to any engagement with the regime, we have stressed to partners that credible steps to improve the humanitarian and security situation for Syrians should be front and centre … we were encouraged to see such steps mentioned in the joint communique issued today and sincerely hope to see their implementation,” the White House representative said.

The Biden administration has broadly maintained an anti-normalisation posture with the Assad regime, but that picture has become more complicated as normalisation efforts accelerated in the aftermath of February's earthquakes in southern Turkey and northern Syria.

The US lifted sanctions on humanitarian aid transactions to Syria, after the Assad regime had routinely blocked the UN from approving cross-border access to opposition-held north-west Syria.

The US lifted sanctions on delivering humanitarian aid to Syria in response to the earthquake in February. AP
The US lifted sanctions on delivering humanitarian aid to Syria in response to the earthquake in February. AP

As recently as last month, National Security Council spokesman John Kirby told reporters: “Nothing's changed about our desire not to see anybody normalising relations with Assad.

“We don't believe that's in anybody's interests in the region or beyond.”

But as Washington's Arab partners began engaging more with the Assad regime, senior administration official Barbara Leaf expressed a softer tone: “Our approach on that score is that make sure to get something for that engagement,” she said in late March.

Caroline Rose, director of Captagon research at the Washington-based New Lines Institute, told The National that the pace of re-engagement with the Assad regime may have “caught the United States by surprise”.

“These normalisation efforts have been not only moving so fast and happening so quickly … but also the progress and the level of co-ordination that has been struck in these discussions are much, much higher than I think anyone anticipated,” she said.

“We are starting to see, I wouldn't say a [US] green light on normalisation with the [Syrian] regime, but now it seems to be a yellow light,” she added in response to the White House expressing “encouragement”.

Mohammed Alaa Ghanem, policy chief at the Syrian American Council, told The National his organisation was “horrified by such a change in US policy”.

“This is not only severely inimical to US interests but also a clear violation of the will of the US Congress as expressed in laws such as the Caesar Act,” Mr Ghanem said.

US bill targets Syrian regime-linked Captagon drug trade — video

Among the pledges made by Damascus after Monday's talks was a commitment to curb the regional drug trade that has spread from Syria across much of the Middle East.

The Assad regime has used the illicit drug Captagon to prop itself up financially amid international sanctions. Estimates for the drug trade's worth range from $3.4 billion to as much as $30 billion.

According to the joint statement, Syria will work with Jordan and Iraq to form two joint political and security working groups to identify the sources of drug production and smuggling in Syria. The groups would search for drug lords and smugglers and take action to end smuggling operations.

“I would have assumed that the United States … would have reacted a bit more harshly to measures like that. But it seems to me that right now, at least they're curious to see where this goes,” Ms Rose said.

She added that Monday's developments show how Captagon has become an increasingly important factor in the Assad regime's normalisation efforts.

“We really are seeing the regime using and politicising and using Captagon as a pressure tactic, given that so many of these partners and these regional actors know that the regime has so much agency over the trade,” she said.

The White House official told The National that Washington takes “concerns about Captagon very seriously” and “is committed to working with international partners to confront this complex challenge”.

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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  • Be wary of other embeds lengthy fact boxes could crash into 
  • That's about it
History's medical milestones

1799 - First small pox vaccine administered

1846 - First public demonstration of anaesthesia in surgery

1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases

1895 - Discovery of x-rays

1923 - Heart valve surgery performed successfully for first time

1928 - Alexander Fleming discovers penicillin

1953 - Structure of DNA discovered

1952 - First organ transplant - a kidney - takes place 

1954 - Clinical trials of birth control pill

1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.

1998 - The first adult live-donor liver transplant is carried out

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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

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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. 

The biog

From: Upper Egypt

Age: 78

Family: a daughter in Egypt; a son in Dubai and his wife, Nabila

Favourite Abu Dhabi activity: walking near to Emirates Palace

Favourite building in Abu Dhabi: Emirates Palace

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Power: 220 and 280 horsepower

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Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.

Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50

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Founders: Tamara Hachem and Yazid Erman
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Updated: May 02, 2023, 3:47 PM