The UAE's relationship with the US will survive any challenge "from the outside", the new ambassador said on Monday.
John Rakolta, the US ambassador to the UAE, made his first public comments, on the sidelines of the Abu Dhabi International Petroleum Exhibition & Conference, since taking up the position on October 27.
He also said US President Donald Trump's administration is committed to “a political solution” to ease tensions with Iran.
“I have met with many of the leaders here and they have made it very clear to me that A, they are 100 per cent in support of a maximum pressure campaign [with Iran]; B, they don’t want to see violence resolve this; and C, a political solution — negotiation — is the only way going forward,” said Mr Rakolta.
The US, now the world’s largest oil producer, has the largest presence at Adipec, an annual four-day energy event, with 108 American companies in attendance.
On top of the agenda at Adipec, which attracts the top brass from the biggest oil and gas companies worldwide to the capital, is grappling with geopolitical uncertainty that is affecting energy prices.
“We are working very closely with the UAE to try to convince Iran that the only solution is a political solution,” said Mr Rakolta. “The president of the United States has made that abundantly clear over and over and over again that the only solution is a political solution. There is no place for violence here in the Middle East, it has to stop.”
The US ambassador post was vacant for 18 months since Barbara Leaf left in 2018. Mr Rakolta, 71, is the first political appointee to become ambassador to the UAE, a position that is usually reserved for career diplomats.
Since 1980, he was chairman and chief executive of the 100-year-old multinational construction company Walbridge. His long career in the private sector shone through momentarily when he referred to the UAE and US as “companies” rather than countries, as he emphasised the importance of a strong trade alliance.
“The UAE has enormous reserves, it is one of the best places in the world to do business and so that’s a great partnership that started over 50 years ago,” Mr Rakolta said. “It will survive any challenge from the outside and will go forward and build and strengthen the ties of our two countries together through energy.”
Last year, total trade between the two countries totalled $24.5 billion, with the US exporting $19.5bn to the UAE. The resulting $14.5bn trade surplus for the US is America’s fourth largest trade surplus globally, according to the American embassy.
Scoreline:
Everton 4
Richarlison 13'), Sigurdsson 28', Digne 56', Walcott 64'
Manchester United 0
Man of the match: Gylfi Sigurdsson (Everton)
UAE currency: the story behind the money in your pockets
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Director: Chris Winterbauer
Stars: Lana Condor and Cole Sprouse
Rating: 3/5
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The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
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More coverage from the Future Forum
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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