Hardline clerics spewing hatred must be stopped


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There are two worrying currents running at the same time in today’s Middle East. One is the number of small and large conflicts that are occurring at the same time: all the post-Arab Spring countries are still undergoing unrest of various degrees; Iraq is still precarious and other nations, like Lebanon, face deep internal divisions. These conflicts and these divisions are political, but too often expressed in sectarian terms.

The second is the tendency of fringe ideas to dominate religious discussion. Minor preachers with inflammatory messages easily have their voices heard both on- and offline. Sectarian messages are too easily spread. The discourse of Islam needs to be shifted back towards the moderate centre, as exemplified by the scholarship of Al Azhar in Cairo. Unfortunately, these fringe ideas lead people into very dangerous territory: dangerous for them and dangerous for others because it can sometimes lead them towards violent activities.

It is from that perspective that the latest decree from the Islamic affairs authority needs to be understood. Earlier this week, Sheikh Mohammed bin Rashid, Vice president and Ruler of Dubai, issued a decree regulating the behaviour of pilgrims during Hajj or when conducting Umrah in Saudi Arabia. Of particular note was the decree warning that any pilgrims preaching or handing out leaflets while on a trip must have approval from the UAE’s General Authority of Islamic Affairs and Endowments, or risk a Dh100,000 fine. The decree comes against a background in other Arab Gulf states at trying to rein in preachers who contribute to the rising extremism and sectarianism in the wider region. Last month, Kuwait resumed recording the sermons of clerics, while reports suggested that Saudi Arabia had suspended more than a dozen clerics.

From one perspective, these are worrying developments for the exercise of free speech. But the moves come at a critical juncture in the Arab world, and there is a difference between free-speech and hate-speech. Many of the ideas expressed by fringe figures are clearly hate-speech: targetting other Muslims because of their religious sect, or seeking to divide Muslims from one another, or suggesting that one way of being a Muslim is by attacking adherents of other religions, such as Christianity, Judaism or Hinduism. The Gulf states have a responsibility to tackle this hate speech, to try and stop these messages being disseminated, and heading off some of the chaos that too often follows.

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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