The UN Security Council on Wednesday adopted a resolution condemning and demanding an immediate halt to attacks by Yemen’s Houthi rebels on commercial vessels in the Red Sea.
The text, co-sponsored by the US and Japan, received 11 votes in favour and four abstentions – Russia, China, Mozambique and Algeria.
The resolution "condemns in the strongest terms the at least two dozen Houthi attacks on merchant and commercial vessels since November 19, 2023, when the Houthis attacked and seized the Galaxy Leader and its crew".
It calls for the immediate release of the Galaxy Leader, a Japanese-operated cargo ship with links to an Israeli company.
The text "demands that the Houthis immediately cease all such attacks, which impede global commerce and undermine navigational rights and freedoms, as well as regional peace and security".
It notes the "large-scale" breaches of the arms embargo against the Houthis and reaffirms the need for all member states to "to adhere to their obligations".
Russia's top envoy at the UN, Vasily Nebenzya, who accused Washington of "politicising" the resolution, had proposed three amendments that were rejected by the Security Council.
They included replacing "takes note of the right of member states, in accordance with international law, to defend their vessels from attacks, including those that undermine navigational rights and freedoms", with "and in that regard takes note of applicable rights of member states in accordance with international law".
Another amendment would have added "the conflict in the Gaza Strip" to the list of factors contributing to tensions.
Linda Thomas-Greenfield, the US ambassador to the UN, told the Council all three of Russia's amendments were voted against because they "were divorced from reality".
"We voted against Russia's amendment that falsely suggests that the conflict in Gaza is the cause of the Houthis' brazenly opportunistic attacks," Ms Thomas-Greenfield said.
"The Houthis are simply intoxicated with power."
She said the resolution acknowledges regional dynamics, including Iran's provision of advanced weapons that enable the Houthis to attack commercial vessels, which have contributed to this situation.
"The facts are indisputable," Ms Thomas-Greenfield said.
Without naming Iran, the resolution condemns all arms dealings with the rebels, which violate Security Council sanctions and calls for “additional practical co-operation to prevent the Houthis from acquiring the materiel necessary to carry out further attacks.”
The resolution does not authorise the use of force but recognises the right to self-defense for countries whose vessels have been attacked.
Since the October 7 attacks on Israel, the Houthis, who control large parts of Yemen, have increased their attacks on international maritime traffic in the Red Sea.
The Iran-backed group claims to be acting in solidarity with the Palestinians in Gaza.
Washington formed an international coalition in December to protect maritime traffic from Houthi attacks in the strategically important zone through which at least 12 per cent of world trade passes.
The US and its allies have repeatedly warned the Houthis that such attacks will not go unanswered, although so far the international coalition patrolling the Red Sea has not struck Houthi missile-launch bases in Yemen.
“I’m not going to telegraph or preview anything that might happen,” US Secretary of State Antony Blinken told reporters in Bahrain.
"If this continues as it did yesterday, there will be consequences."
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
The biog
Age: 30
Position: Senior lab superintendent at Emirates Global Aluminium
Education: Bachelor of science in chemical engineering, post graduate degree in light metal reduction technology
Favourite part of job: The challenge, because it is challenging
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The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
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SPECS
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