Sultan Sooud Al Qassemi is a writer and researcher, and the founder of Barjeel Art Foundation
February 09, 2024
Over the past few months, much has been said about the relationship between the UAE and Saudi Arabia, some of it strikingly shallow and misinformed, with recent op-eds characterising it as a “rivalry” or a “rift”, and one going as far as calling it a “theatre of confrontation” as though their relations are a zero-sum game. Such alarmism led me to wonder if we were even discussing the same two countries.
That said, is there competition and differences of opinion and approach on some issues between the two Gulf powers? There certainly is. Competition, in fact, is one of the secret recipes of the UAE’s very own success. One emirate’s liberalisations of investment policies encourage the others to do the same. Today, the UAE itself has more than one leading airport, and airline, more than one leading ports operator and more than one financial hub. Can’t this be the case with Saudi Arabia, too? Furthermore, disagreements arise even among family businesses of the same generation (including my own family’s), which is where the ideas of conflict management and conflict resolutions are best utilised.
Last month, I had the opportunity to travel between Saudi Arabia and the UAE to co-teach a course titled “Leadership and Social Transformation” with Harvard professor Tarek Masoud, director of the Kennedy School’s Middle East Initiative. Over 10 packed days, we had the opportunity to meet with more than 30 senior leaders in both countries, in fields as varied as foreign policy, economics, culture and sport, and not a single one of them spoke even with the slightest hint of reservation about the growth of the other country.
In fact, on our first day at the Arab Strategy Forum, a panel discussion involving two senior leaders set the tone for the entire visit. The moderator of the session asked: “What we see on social media is [are references] to a tug of war between both sides [UAE and Saudi]. What is the story?”
The Neom stand the Arabian Travel Market. Antonie Robertson / The National
One emirate’s liberalisations of investment policies encourage the others to do the same
Prince Turki Al Faisal, a former Saudi ambassador and head of intelligence, turned to Dr Anwar Gargash, Diplomatic Adviser to the UAE President, and asked in a friendly way, “Is there anything between us?” to the audience’s laughter and applause. Dr Gargash himself replied: “Everything that is happening in Saudi Arabia is positive for the UAE and everything that is happening in the UAE is positive for Saudi Arabia.”
A few days later, a panel at the World Economic Forum in Davos moderated by The National’s editor-in-chief, Mina Al-Oraibi, and composed of officials and industry leaders from across the Gulf, agreed that these states “complement, rather than compete” with each other.
To explore this issue further, I turned to the Emirati political science professor Abdulkhaleq Abdulla and asked him about the Saudi Arabia Regional Headquarters Programme, which aims to attract foreign companies to set up their regional bases in the kingdom. “Even if 10 per cent of the firms end up relocating to Saudi Arabia,” Dr Abdulla told me, “the rate at which Dubai attracts firms means this 10 per cent will be replenished within a short time.”
In fact, the social and economic liberalisation that Saudi Arabia is undergoing in recent years, partly to encourage initiatives such as the Regional Headquarters Programme, will only benefit the kingdom and the wider region, not least the UAE. Let’s go back in history to see the bigger picture.
Following the devastation of the Second World War, Jean Monnet, then commissioner general of the French National Planning Board, proposed what later became known as the “Monnet Plan”, which ultimately led to greater economic co-ordination between France and Germany and, eventually, to the EU. Although Mr Monnet was French and despite the fact that both states had just fought each other in a war, he considered German economic prosperity and closer economic ties between France and Germany as essential.
Similarly, and in the Gulf region itself, as documented in the 2021 book Building Sharjah, co-edited by Todd Reisz and I, in 1951 the state of Kuwait started a programme dedicated to the Trucial Coast emirates, in which it paid for doctors and teachers (including my own mother) to care for and educate the people of what later became the UAE.
President Sheikh Mohamed, Bahrain's King Hamad, Saudi Arabia's Crown Prince Mohamed bin Salman, Turkish President Recep Tayyip Erdogan, Sheikh Tamim bin Hamad Al Thani, Emir of Qatar, Oman's Deputy Prime Minister Sayyed Fahd bin Mahmoud, Kuwaiti Foreign Minister Salem Abdullah Al Sabah and Jasem Mohamed Al Budaiwi, Secretary General of the GCC at the summit in Doha. Abdulla Al Neyadi / Presidential Court
Dr Anwar Gargash, diplomatic adviser to the President, speaks to Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, at the 44th GCC Summit in Qatar. Abdulla Al Neyadi / Presidential Court
Sheikh Mohamed with King Hamad of Bahrain and Crown Prince Mohamed. Abdulla Al Neyadi / Presidential Court
Sheikh Tahnoun bin Zayed, UAE National Security Adviser and Deputy Ruler of Abu Dhabi, speaks to Prince Abdulaziz bin Salman, Saudi Arabia's Minister of Energy. Abdulla Al Neyadi / Presidential Court
President Sheikh Mohamed is received by Qatari Emir Sheikh Tamim in Doha. Mohamed Al Hammadi / Presidential Court
Recent Gulf diplomacy has focused on securing a quick end to Israel's war in Gaza and a return to a multilateral peace process. Mohamed Al Hammadi / Presidential Court
Sheikh Mohamed is leading the UAE delegation, which includes Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, Sheikh Tahnoun bin Zayed, National Security Adviser and Deputy Ruler of Abu Dhabi, and Sheikh Abdullah bin Zayed, Minister of Foreign Affairs. Mohamed Al Hammadi / Presidential Court
Sheikh Mansour is welcomed by Sheikh Tamim upon his arrival in Doha. Mohamed Al Hammadi / Presidential Court
Sheikh Abdullah with GCC secretary general Jasem Al Budaiwi in Doha. Mohamed Al Hammadi / UAE Presidential Court
Sheikh Abdullah, Sheikh Theyab bin Mohamed, chairman of the Office of Development and Martyrs' Families Affairs at the Presidential Court, Sheikh Hamdan bin Mohamed and Sheikh Mohamed bin Hamad, private affairs adviser in the Presidential Court, attend a reception in Doha. Mohamed Al Hammadi / Presidential Court
Sheikh Tahnoun is received by Sheikh Abdullah bin Hamad upon his arrival in Doha. Mohamed Al Hammadi / Presidential Court
Other topics on the agenda of the GCC meeting include the Gulf railway project. Mohamed Al Hammadi / Presidential Court
GCC leaders are also expected to discuss tourist visa strategies for the period 2023 to 2030. Mohamed Al Hammadi / Presidential Court
Sheikh Tamim urged the UN Security Council to press Israel to return to the negotiating table. Mohamed Al Hammadi / UAE Presidential Court
Dr Khalid Al Attiyah, Qatar's Deputy Prime Minister and Minister of State for Defence Affairs, and Sheikh Jasem bin Hamad attend a reception for Sheikh Mohamed before the start of the GCC meeting. Mohamed Al Hammadi / Presidential Court
In a landmark speech in 1997, Mahathir Mohamad, then prime minister of Malaysia, coined the term “prosper-thy-neighbour”. The concept Dr Mahathir went on to explain basically means “if you help your neighbour to prosper, you will prosper along with it”. That stands in stark contrast to the infamous mercantilist economic concept of “beggar-thy-neighbour”, in which countries pursue self-interested economic policies even if they impoverish their neighbours. Countries that follow the “prosper-thy-neighbour” doctrine understand that their own long-term economic growth largely depends on being in a prosperous neighbourhood.
In The Bottom Billion, economist Paul Collier writes that one of the reasons that countries fail is having “bad neighbours” (especially if the country is landlocked). Improving one’s neighbourhood thus becomes key to one’s own prosperity. Even today, Norway, a Scandinavian oil-rich country that is not itself an EU member, supports the “European Neighbourhood Policy”, which aims to “promote economic, political and social development to the south and east of the EU’s borders”. Norway is one of the leading contributors to the European Economic Area Agreement, and through Norway Grants, has supported countries in Eastern Europe that later became members of the EU. Norway, being a major trader with the EU, understands that the more prosperous its European neighbourhood is, the more prosperous and safer its own people will be.
In recent years, economic integration between the Gulf states has only intensified with talk of a joint Gulf tourism visa, the $1.6 trillion GCC electricity interconnection grid and a GCC-wide rail network being but a few examples of this gathering pace that, in some cases such as the electrical grid, is also being opened to non-Gulf states such as Iraq, Jordan and Egypt.
Today, the Arab world is a region of 400 million people that will, according to the UN, need 33 million more jobs by 2030. Competition among Arab states to reform and invest in education and infrastructure as well as attract talent and foreign investment is essential. What is happening between Saudi Arabia and the UAE is not a zero-sum game, but a positive-sum game in which we can all be winners.
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
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
How to improve Arabic reading in early years
One 45-minute class per week in Standard Arabic is not sufficient
The goal should be for grade 1 and 2 students to become fluent readers
Subjects like technology, social studies, science can be taught in later grades
Grade 1 curricula should include oral instruction in Standard Arabic
First graders must regularly practice individual letters and combinations
Time should be slotted in class to read longer passages in early grades
Improve the appearance of textbooks
Revision of curriculum should be undertaken as per research findings
Conjugations of most common verb forms should be taught
Systematic learning of Standard Arabic grammar
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
Daniella Weiss and Nachala Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
If you go...
Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
