US President Barack Obama shakes hands with Prince Faisal bin Bandar bin Abdelaziz Al Saud, Governor of Riyadh, as he arrives at King Khalid International Airport in the Saudi capital. Jim Watson / AFP
US President Barack Obama shakes hands with Prince Faisal bin Bandar bin Abdelaziz Al Saud, Governor of Riyadh, as he arrives at King Khalid International Airport in the Saudi capital. Jim Watson / AFP
US President Barack Obama shakes hands with Prince Faisal bin Bandar bin Abdelaziz Al Saud, Governor of Riyadh, as he arrives at King Khalid International Airport in the Saudi capital. Jim Watson / AFP
US President Barack Obama shakes hands with Prince Faisal bin Bandar bin Abdelaziz Al Saud, Governor of Riyadh, as he arrives at King Khalid International Airport in the Saudi capital. Jim Watson / AF

Will Obama’s presence at GCC summit help stop ‘strategic drift’ from Saudi Arabia?


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ABU DHABI // Barack Obama will meet with GCC leaders on Thursday in Riyadh to discuss progress in enhancing security cooperation, regional stability and increasing their role in the fight against ISIL.

He will also look to reassure the skeptical partners that he is not seeking to engage their chief rival Iran at their expense.

But expectations for any major improvement in the relationship that has grown increasingly strained over the last two years of Mr Obama’s presidency, particularly between Riyadh and Washington, were low.

The sense among observers was that the “strategic drift” between the partners will be difficult to overcome, even as progress is made on the enhanced cooperation working groups set up a year ago during the first GCC summit at Camp David.

“A new normal in relations may be emerging, however, where both sides publicly point to the many aspects of continuing security and economic cooperation, even as they privately, and not so privately, disagree on the diagnosis of the region’s many crises,” Perry Cammack, a former foreign policy advisor to the US secretary of state, wrote on the Carnegie Endowment for International Peace think tank’s website.

A stark illustration of the expectations for Mr Obama’s fourth, and probably last, trip to the kingdom was visible as he walked down the steps of Air Force One on Wednesday, where he was greeted only by the governor of Riyadh, not King Salman or the crown prince, and with little of the usual pomp of a presidential visit.

The king and US president met later in the afternoon at Erga Palace for talks, which were also attended by Crown Prince Mohammed bin Nayef and the Deputy Crown Prince Mohammed Bin Salman, who has become the most powerful figure in the kingdom under his father, the king.

Fundamental differences over how to approach the threat posed by Iran to the region have complicated negotiation efforts in Syria and placed the two sides at odds in Lebanon and Iraq. Unprecedented recent criticism of Riyadh in the US congress, including growing momentum behind a bill to allow lawsuits of 9/11 victims' families against the kingdom, has added a serious new element of tension.

At both the talks on Wednesday and the larger summit on Thursday, US and GCC leaders will work to bridge differences and continue work on the overlapping interests set out at Camp David, including strengthened GCC ballistic missile defences, counter-terrorism and intelligence sharing, streamlined weapons sales and choking off financial flows to extremists.

That the leadership-level summit has become an annual feature in itself may be one of the most important outcomes of the visit. “This is going to be a hopefully regular process that will take place every year between the US and the GCC at the leaders’ level,” Mr Obama’s top Middle East policy advisor, Rob Malley, said on Friday.

Gulf officials also hope it signals to the next US administration the importance and durability of the relationship.

“All the audiences other than this White House are really important,” said a Gulf source. “No one is suggesting [Obama] is going to change his mind about how he sees the world but it is important from a tactical perspective that the US and the GCC are on the same page on a number of important security initiatives.”

‘A cold peace’

The talks will have three broad areas — regional stability, counter-terrorism and the fight against ISIL, and countering Iran’s regional power projection activities.

For Riyadh, all these issues are seen through the prism of Iran, and what it views as Tehran’s push for regional hegemony, a strategy Gulf officials say has only intensified since the nuclear deal and the lifting of sanctions.

The premise of the Camp David working groups, according to Mr Obama, is to allow Gulf countries to engage with Iran through dialogue from a position of strength and come to a regional modus vivendi that would begin to stabilise the Middle East.

Riyadh, however, has pushed back Iranian allies and proxies militarily without relying on the US and tried to isolate Iran diplomatically, moves the White House sees as contributing to regional instability, not helping solve it. “Deep down, this conflict between the GCC and particularly between Saudi Arabia and Iran, it fuels chaos, sectarianism, and instability in the region, all of which help ISIL and other terrorist groups,” Mr Malley said.

The White House has offered reassurances in the past that it is not seeking a rapprochement with Iran in order to leave a balance of power in the region while the US focuses on its interests in the Asia Pacific region. But Mr Obama’s comments in Atlantic magazine last month that Iran and Saudi Arabia should learn to “share the region” and come to a “cold peace” were met with disbelief by Gulf leaders. They felt the president was equating a long-time US partner with an avowed enemy, and a sense that he had finally voiced his true intentions.

“The United States, they believe, has been too accommodating towards Iran rather than isolating Iran, countering its regional policies,” said Zalmay Khalilzad, the former US ambassador to Iraq, on Tuesday. “They believe the US is seeking normalisation of relations with Iran, engagement with Iran and sees Iran as a partner in countering ISIS.”

Mr Obama will ask his Gulf partners to contribute more to the fight against ISIL, particularly in Iraq, where the government of Prime Minister Haidar Abadi is cash-strapped and needs help to re-build Sunni areas re-taken from the extremists. The UAE pledged US$10 million (Dh36.7m) to these efforts on Tuesday, but analysts said it is unlikely that Riyadh will begin working more closely with Baghdad, which it sees as a key member of an Iranian-led regional coalition, along with Russia, Syria and Hizbollah.

Military aid

On Syria, Riyadh and Qatar — the main GCC backers of Syrian rebels — are preparing for the breakdown of the US-brokered ceasefire and increasing military aid, something the US is still reluctant to back, Mr Khalilzad said.

Yemen may offer more potential for successful cooperation, as both US and Gulf interests would be served by a successful political settlement with Houthi rebels. The chaos in Yemen has allowed the Al Qaeda branch there to control the port city of Mukalla and a stretch of coastline, which is of grave concern to counter-terrorism officials in Washington and Gulf capitals. Reuters reported last week that the UAE, which has led ground operations against the Houthis, is planning to turn its focus on Al Qaeda in Yemen, and has requested US assistance.

Gulf officials may ask US counterparts at the talks in Riyadh for US military commitments to help maintain security during a political transition, if talks in Kuwait bear fruit, and help fight AQAP, a western diplomat based in the region said.

They will also seek clarification and commitments from Mr Obama on Iran’s recent testing of new ballistic missiles, which Washington has said violate a UN Security Council resolution. “The GCC wants to know what the administration is going to do to manage this ballistic missile threat,” the Gulf source said.

Nato summit

Ongoing sovereignty issues and political considerations within the GCC have plagued the integration of regional ballistic defences, key to deterring Iran. The US and GCC will also discuss how deeper cooperation between the bloc and Nato might proceed.

“There is more momentum now than we have seen in a long time,” said Barry Pavel, who served on Mr Obama’s National Security Council and is now with the Atlantic Council think tank. “The question is will the key player in GCC — KSA — see enough in a deal here, politically, militarily and in other ways, to take a more meaningful step.”

Despite the drift in relations, both the US and GCC still share crucial mutual interests that will underpin the relationship regardless of the nature of personal ties between leaders.

“President Obama has and King Salman has made an effort to do our best to discuss those issues and to make sure that, regardless of those differences, our interests and our policies are fully aligned on…. our common fight against terrorism and on trying to stabilise and shore up the world economy,” Mr Malley said.

“The differences are not going to disappear, but our work together is not going to disappear either.”

tkhan@thenational.ae

The Pope's itinerary

Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport


Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial


Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
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How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

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What is type-1 diabetes

Type 1 diabetes is a genetic and unavoidable condition, rather than the lifestyle-related type 2 diabetes.

It occurs mostly in people under 40 and a result of the pancreas failing to produce enough insulin to regulate blood sugars.

Too much or too little blood sugar can result in an attack where sufferers lose consciousness in serious cases.

Being overweight or obese increases the chances of developing the more common type 2 diabetes.

Best Academy: Ajax and Benfica

Best Agent: Jorge Mendes

Best Club : Liverpool   

 Best Coach: Jurgen Klopp (Liverpool)  

 Best Goalkeeper: Alisson Becker

 Best Men’s Player: Cristiano Ronaldo

 Best Partnership of the Year Award by SportBusiness: Manchester City and SAP

 Best Referee: Stephanie Frappart

Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)

Best Sporting Director: Andrea Berta (Atletico Madrid)

Best Women's Player:  Lucy Bronze

Best Young Arab Player: Achraf Hakimi

 Kooora – Best Arab Club: Al Hilal (Saudi Arabia)

 Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)

 Player Career Award: Miralem Pjanic and Ryan Giggs

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

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

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5