Democratic Senator Ben Cardin speaks to the media at the US Capitol in Washington. EPA
Democratic Senator Ben Cardin speaks to the media at the US Capitol in Washington. EPA
Democratic Senator Ben Cardin speaks to the media at the US Capitol in Washington. EPA
Democratic Senator Ben Cardin speaks to the media at the US Capitol in Washington. EPA

US and Mena allies working on pathway towards Palestinian state, says top senator


Ellie Sennett
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Live updates: Follow the latest news on Israel-Gaza

The US and its allies in the Middle East have been focused on establishing “responsible leadership” in Gaza “that could lead to the West Bank and Gaza forming a sovereign state”, the top foreign affairs senator has told The National.

Senate foreign relations committee chairman Ben Cardin this week met Qatar's Prime Minister, the Jordanian ambassador to Washington and will soon meet Israeli officials, he said, for conversations “looking at what happens after the war is over in regards to a path forward”.

“There needs to be responsible leadership for the people of Gaza that can protect their security and respects Israel's security and provides an economic future,” Mr Cardin explained.

“That seems to be the common thread I hear from all the leaders in the region, and that could lead to the West Bank and Gaza forming a sovereign state living in peace with Israel.”

He told The National at a press round-table: “We are seeing through this tragedy, that unless we want to see a repeat of this in the future, we need to have a more permanent way of solving the Palestinian issue.”

But he cautioned that “it's going to take some time”.

“The connection between the West Bank and Gaza is not easy. Security is not easy. The ability to effectively operate a government is not easy,” he added, emphasising that Hamas must be “neutralised”.

President Joe Biden's administration has continued Washington's legacy of funding Israel's military and defending its policies towards Palestinians.

That has included billions of dollars in funding and twice circumventing congressional authorisations to provide more in military sales, as Israel continues its campaign in Gaza, which officials say has killed more than 27,000 Palestinians.

Since the war began, the Biden administration and its allies in Congress have adopted rhetoric vaguely endorsing “political horizons for the Palestinians”.

Gaza protest in Washington – in pictures

  • Pro-Palestinian demonstrators take part in a protest against the continuing war in Gaza outside Union Station in Washington on February 1. EPA
    Pro-Palestinian demonstrators take part in a protest against the continuing war in Gaza outside Union Station in Washington on February 1. EPA
  • Tens of thousands of Palestinians have been killed since the militant group Hamas launched an unprecedented attack on Israel from the Gaza Strip on October 7. EPA
    Tens of thousands of Palestinians have been killed since the militant group Hamas launched an unprecedented attack on Israel from the Gaza Strip on October 7. EPA
  • Israeli has responded with a military onslaught in the Palestinian enclave. EPA
    Israeli has responded with a military onslaught in the Palestinian enclave. EPA
  • The rally in the US capital drew protesters from far and wide. EPA
    The rally in the US capital drew protesters from far and wide. EPA
  • Meanwhile, US Defence Secretary Lloyd Austin has said Joe Biden's administration must do more to address the issue of the besieged Palestinian people. EPA
    Meanwhile, US Defence Secretary Lloyd Austin has said Joe Biden's administration must do more to address the issue of the besieged Palestinian people. EPA
  • Mr Austin said in regular talks with Israel he has stressed the need to protect civilian lives and provide humanitarian aid to the Palestinians. EPA
    Mr Austin said in regular talks with Israel he has stressed the need to protect civilian lives and provide humanitarian aid to the Palestinians. EPA
  • Demonstrators block a junction near the US Capitol as President Joe Biden attends the National Prayer Breakfast. Getty Images
    Demonstrators block a junction near the US Capitol as President Joe Biden attends the National Prayer Breakfast. Getty Images
  • Protesters in Washington call for a ceasefire in Gaza. Reuters
    Protesters in Washington call for a ceasefire in Gaza. Reuters
  • Pro-Palestine demonstrators shut down interstate ramps on the street on Capitol Hill, Washington. Reuters
    Pro-Palestine demonstrators shut down interstate ramps on the street on Capitol Hill, Washington. Reuters
  • Gaza protests in Washington. The National
    Gaza protests in Washington. The National
  • A person participates in the protest in Washington. The National
    A person participates in the protest in Washington. The National
  • Metropolitan Police Department officers as members of the anti-Zionist Jews group Neturei Karta join pro-Palestinians people blocking a street close to the US Capitol in Washington DC. AFP
    Metropolitan Police Department officers as members of the anti-Zionist Jews group Neturei Karta join pro-Palestinians people blocking a street close to the US Capitol in Washington DC. AFP
  • Members of the anti-Zionist Jews group Neturei Karta join pro-Palestinians people blocking a street close to the US Capitol in Washington. AFP
    Members of the anti-Zionist Jews group Neturei Karta join pro-Palestinians people blocking a street close to the US Capitol in Washington. AFP

Mr Cardin himself has been one of the Democratic Party's most ardent advocates of the US-Israel relationship over his career.

But despite rejections from Israeli Prime Minister Benjamin Netanyahu, a more concrete resolve on Palestinian statehood has in recent days appeared to gain momentum in the West.

US outlets, citing unnamed administration officials, have reported that Secretary of State Antony Blinken asked his department to review policy options on possible US and international recognition of a Palestinian state after the war in Gaza.

And in the UK, Foreign Secretary David Cameron has called for the establishment of a diplomatic campaign by “all the friends of a Palestinian state”.

“We with allies will look at the issue of recognising a Palestinian state including at the United Nations,” Lord Cameron said this week.

“This could be one of the things that helps to make this process irreversible.”

All of this hinges on an end to Israel's Gaza siege and a return of hostages taken by Hamas during its deadly October 7 attack.

During his visit to Washington this week, Mr Cardin met Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani and they “had a chance to go over the current hostage offers”.

News circulated this week that a hostage framework had been achieved, including the freeing of Palestinian detainees held by Israel, at a rate of three detainees for each hostage, a temporary repositioning of Israeli troops away from high-population areas of Gaza and a significant increase in humanitarian aid flowing into the enclave.

Sheikh Mohammed has said in his meetings in Washington that hostage negotiations are “in a much better place than where we were few weeks ago”.

“We've seen a lot of starts that were not successful. We hope this one will be because it will not only lead to a large number of hostages being released, but also a pathway forward,” Mr Cardin said.

The US is “thoroughly involved” in efforts together with Egypt, Qatar and Israel to put together a proposal to forward to Hamas and kick off a deal to release the hostages including a humanitarian pause, US Assistant Secretary of State for Near East Affairs Barbara Leaf told reporters.

Displaced Gaza children describe living in a school – video

Brave CF 27 fight card

Welterweight:
Abdoul Abdouraguimov (champion, FRA) v Jarrah Al Selawe (JOR)

Lightweight:
Anas Siraj Mounir (TUN) v Alex Martinez (CAN)

Welterweight:
Mzwandile Hlongwa (RSA) v Khamzat Chimaev (SWE)

Middleweight:
Tarek Suleiman (SYR) v Rustam Chsiev (RUS)
Mohammad Fakhreddine (LEB) v Christofer Silva (BRA)

Super lightweight:
Alex Nacfur (BRA) v Dwight Brooks (USA)

Bantamweight:
Jalal Al Daaja (JOR) v Tariq Ismail (CAN)
Chris Corton (PHI) v Zia Mashwani (PAK)

Featherweight:
Sulaiman (KUW) v Abdullatip (RUS)

Super lightweight:
Flavio Serafin (BRA) v Mohammad Al Katib (JOR)

Meydan racecard:

6.30pm: Al Maktoum Challenge Round 2 (PA) Group 1 | US$75,000 (Dirt) | 2,200 metres

7.05pm: UAE 1000 Guineas (TB) Listed | $250,000 (D) 1,600m

7.40pm: Meydan Classic Trial (TB) Conditions $100,000 (Turf) 1,400m

8.15pm: Al Shindagha Sprint (TB) Group 3 $200,000 (D) 1,200m

8.50pm: Handicap (TB) $175,000 (D) 1,600m

9.25pm: Handicap (TB) $175,000 (T) | 2,000m

10pm: Handicap (TB) $135,000 (T) 1,600m

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: February 02, 2024, 4:36 AM