The Biden administration has, quite naturally, prioritised resolving some of America’s greatest domestic challenges, particularly the Covid-19 pandemic and the bitter partisan divide that has led to deep social fissures across the country. In fact, President Joe Biden will be dedicating a significant portion of his first many days in office sorting out matters at home, leaving his foreign policy team to deal with the pressing issues beyond its borders.
Secretary of State nominee Antony Blinken and Secretary of Defence Lloyd Austin will have their work cut out, as they go about the difficult task of re-engaging with an international community less trusting of the US following four chaotic years under the preceding Trump administration. Moves have already been made to assuage concerns among fellow members of the Nato security alliance, as well as treaty allies in East Asia, regarding American commitment towards their security. There is promise of a five-year extension to the New START arms control treaty with Russia, and the US State Department is already reviewing its North Korea policy.
There is also good news with regard to the Middle East.
Curiously, the Biden administration seems to have cooled on the one talking point its key personnel harped on during the political transition over the past couple of months: the revival of the 2015 Iran nuclear deal, which Donald Trump withdrew the US from almost three years ago. Iran, in turn, went on to breach major parts of the deal. These breaches include resuming uranium enrichment at 20 per cent purity, increasing Tehran’s low-enriched uranium stockpile by 12 times the amount allowed under the accord and testing advanced centrifuges.
Mr Blinken and Mr Biden’s National Security Adviser, Jake Sullivan, had previously expressed their keenness to pursue a two-track strategy of reviving the so-called Joint Comprehensive Plan of Action – or JCPOA – and lifting sanctions against Tehran before negotiating with the regime over their ballistic missiles programme.
The Biden team has since sought to tamp down expectations. There are signs that they will, instead, build on the Trump administration’s pressure tactics against Iran with a view to curb its destabilising activities in various parts of the Middle East, as Mr Blinken himself recently put it. He said returning to JCPOA is predicated upon Tehran’s compliance, while confirming that these conditions are not being satisfied at present.
“We are a long way from there,” Mr Blinken told the US Senate Foreign Relations Committee last week. “We would then have to evaluate whether they were actually making good if they say they are coming back into compliance with their obligations, and then we would take it from there.”
Antony Blinken has slowed down talk of rushing into talks with Iran. Reuters
Avril Haines, Director of National Intelligence, also said that a decision to return to the pact is not imminent. “[Mr Biden] has indicated that if Iran were to come back into compliance, he would direct that we do so as well. And I think, frankly, that we are a long ways from that,” she said.
Perhaps the new administration has other foreign policy priorities, particularly collective security in East Asia amid what it perceives to be the rising threat of China. Perhaps the Biden team listened to concerns expressed by voices in the Middle East about the dangers of returning to talks with an Iranian regime that has made ideological expansion across the region its ultimate goal. Indeed, it should be clear by now the damage being done by the Iranian regime, which includes the creation and sustenance of armed proxies in countries with weak governments, such as Iraq, Syria and Lebanon. Many politicians in these countries are little more than puppets being controlled by Tehran.
Perhaps the escalating tensions between the Trump administration and the regime in recent months have led to the pause, at least for the time being.
Leaders of the GCC countries in the Saudi city of Al Ula this month. AFP
Yet, despite the shift in mood in Washington, the Gulf countries will be watchful and the Biden administration should look to the Gulf Co-operation Council to play a vital role in keeping the peace.
It is clear that the GCC is determined to put its concerns and interests on the table if the Biden team were to begin renegotiation of the nuclear deal in the future. Amid the uncertainty, the six-nation grouping has sought to remind the administration of its unique understanding of Iran’s behaviour. As neighbours, the Gulf countries are all too aware of the consequences of Tehran’s actions in the Strait of Hormuz. “Whatever you [Washington] know about the region, we know more,” Nayef Al Hajraf, the GCC Secretary General, told me recently. “We are trusted partners and we have a strategic relationship.”
Indeed, the Biden administration must understand the GCC’s role as a responsible stakeholder in a region that is otherwise riddled with a range of issues. Even as other countries struggle to deal with the economic fall-out of the pandemic, the Gulf nations are already focused on diversifying their economies and empowering their youth. And for what it's worth, they have always been advocates for constructive dialogue with all their neighbours – including Iran.
As the former US Special Representative for Syria, James Jeffrey, said, the Biden administration will do well to “listen” to the region. “They will look to the people of the region to explain three things: one, why the region remains very important to Americans; two, what the region is doing to deal with these problems itself and can be counted on by the United States to do; and thirdly, what the region needs the United States to do.”
One of the truisms about an overstretched America, as Mr Jeffrey pointed out, is that there is only so much this administration can do – as there was only so much the previous administration could do. It must therefore rely on its partners on the ground. The dangers of not doing so are real.
“The last thing the new administrations wants," according to Mr Al Hajraf, "is to have a destabilised region that will affect the supply of the energy, which will further destabilise economic reform in the region and create tensions – fuelled and fed by Iranian behaviour."
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute and a columnist for The National
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
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
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
MATCH INFO
What: Brazil v South Korea When: Tonight, 5.30pm Where: Mohamed bin Zayed Stadium, Abu Dhabi Tickets:www.ticketmaster.ae
SERIE A FIXTURES
Saturday (All UAE kick-off times)
Lecce v SPAL (6pm)
Bologna v Genoa (9pm)
Atlanta v Roma (11.45pm)
Sunday
Udinese v Hellas Verona (3.30pm)
Juventus v Brescia (6pm)
Sampdoria v Fiorentina (6pm)
Sassuolo v Parma (6pm)
Cagliari v Napoli (9pm)
Lazio v Inter Milan (11.45pm)
Monday
AC Milan v Torino (11.45pm)
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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.
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
