The USS Carney crosses the Suez Canal. AFP / US Department of Defence
The USS Carney crosses the Suez Canal. AFP / US Department of Defence
The USS Carney crosses the Suez Canal. AFP / US Department of Defence
The USS Carney crosses the Suez Canal. AFP / US Department of Defence

US launches Operation Prosperity Guardian to counter Houthi attacks on ships in Red Sea


Sara Ruthven
  • English
  • Arabic

The Pentagon announced on Monday the formation of a new international mission focused on countering attacks on commercial vessels in the Red Sea.

“The recent escalation in reckless Houthi attacks originating from Yemen threatens the free flow of commerce, endangers innocent mariners and violates international law,” US Defence Secretary Lloyd Austin said in a statement.

“This is an international challenge that demands collective action.”

Operation Prosperity Guardian is a multinational security initiative involving 10 countries including the US, the UK, Bahrain and Seychelles.

It will “jointly address security challenges in the southern Red Sea and the Gulf of Aden, with the goal of ensuring freedom of navigation for all countries and bolstering regional security and prosperity”.

The announcement comes as a string of commercial vessels has been attacked by Houthi rebels in Yemen in recent weeks during the Israel-Gaza war. The Iran-backed Houthis are allied with Hamas.

Shortly after the outbreak of the war, the Houthis announced their intention to block Israeli ships from travelling across the Red Sea – although the attacks have mostly been launched against non-Israeli vessels.

“The Red Sea is a critical waterway that has been essential to freedom of navigation and a major commercial corridor that facilitates international trade,” said Mr Austin, who is in the Middle East meeting various allied nations.

About 10 per cent of annual global trade passes through the Red Sea.

The attacks, several of which have damaged vessels, have led some shipping companies to order their ships not to enter the Bab Al Mandeb until the security situation can be addressed.

Three US warships – the USS Carney, the USS Stethem and the USS Mason – have been moving through the Bab Al Mandeb daily to help deter and respond to attacks from the Houthis, AP reported.

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Don’ts 

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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

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Updated: December 19, 2023, 10:02 AM