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After years of war, Washington is seeing a “moment of opportunity and hope” for Yemen, the US special envoy to the country said on Wednesday.
Tim Lenderking praised both Saudi Arabia and the Houthis during an event at the Asia Society in New York, which took place on the sidelines of the UN General Assembly, saying both sides were now “talking about the future of Yemen and how peace can come”.
Mr Lenderking said Washington was “keen” for all the parties involved to seize the “moment”.
The conflict, which began in 2014 when the Iran-backed Houthi rebels over threw the Sanaa government, has calmed in recent months.
In April last year, the UN helped to broker a six-month ceasefire, which expired in October. A flurry of diplomatic activity in Yemen in the months since has continued at the UN General Assembly.
Yemen has been a major topic of discussion during the high-level week, with the Saudi delegation arriving in New York as a Houthi delegation completed their first visit to Riyadh.
Omani Foreign Minister Badr Al Busaidi said a “road map” is needed for Yemen to “be at peace with itself”.
“We have to facilitate a Yemeni dialogue, and it is still not in our hands or within reach,” he added.
Speaking at another event on the sidelines of the General Assembly on Wednesday, Mr Al Busaidi stressed that a “Yemen-led process” was needed for peace to be achieved, while still lauding the Saudi-Houthi talks.
Mr Lenderking referenced the recent UN-led operation that removed more than one million barrels of oil from a decaying supertanker off the coast of Yemen, calling it a “metaphor” for the current progress being made.
The operation, which helped to avert an environmental disaster in the Red Sea, required the help of “so many people”, Mr Lenderking said.
His comments came a day after Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs, Saudi Foreign Minister Prince Faisal bin Farhan and US Secretary of State Antony Blinken met to discuss the situation in Yemen.
According to a readout from the US State Department, the three leaders discussed “their commitment to a durable resolution to the conflict in Yemen in close co-ordination with Yemeni parties”.
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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