In 2011, after the Arab uprisings reached Libya, the nation turned away from the iron-fisted and eccentric rule of Muammar Qaddafi to become a country with great hopes but few rules.
There is nothing positive to say about the tyrannical leadership of the nation's former dictator. But his total grip on power in the country for decades and the suddenness of his departure, through popular protest and Nato intervention, created a vacuum that was soon filled by a variety of malign forces. Some originated domestically, but many came from abroad. Despite the fact that the military intervention in Libya was sanctioned by the UN, no international forces were posted to protect the country after the collapse of Qaddafi's regime.
Libyans watched as smugglers overran their country, trafficking guns, narcotics and, most tragically, people. Victims of these gangs, particularly migrants attempting to reach Europe, are vulnerable to all forms of abuse and live in appalling conditions, adding to the trauma of their already dangerous journey. Meanwhile, militias that emerged in the fight against Qaddafi became powerful players, getting salaries directly from Libya’s state budget.
Extremist groups flourish in the chaos. As ISIS's presence in Syria and Iraq waned, parts of the organisation regrouped in Libya. With no national security services to battle it, ISIS lives on in the nation largely undisturbed.
Fighting has blighted Libya for years. AFP
This threatens neighbouring states. Egypt, for example, shares a border with the country that extends over 1000 kilometres, making it extraordinarily difficult to secure. Terrorists targeting Europe continue to use Libya as a base for training and organising attacks.
The moral ambitions of Libya’s uprising were poisoned early on. Islamists quickly found a place in the Government of National Accord. Another factions were found in the rival Libyan National Army.
Egypt shares a border with the country that extends over 1000 kilometres, making it extraordinarily difficult to secure
Now, the UAE along with other powers is calling for a peaceful settlement through renewed diplomatic efforts and political solutions. Lana Nusseibeh, the UAE's Permanent Representative to the UN, recently backed a Security Council call for all foreign forces to withdraw from Libya.
With so many different players involved, settling on a route to peace is not easy. Ms Nusseibeh's statement advocates securing and maintaining a ceasefire as the surest first step. She also called for the implementation of conclusions reached in last year's Berlin conference.
At that conference, 12 nations and a host of international bodies gathered to agree on a framework for stability in Libya. Its conclusions included an acknowledgement that there could never be a military solution to the crisis, the necessity of maintaining an arms embargo and the need for robust monitoring of the situation in the country.
The conference also reaffirmed the importance of a domestically led political process, something that would empower the group most marginalised by the conflict: the Libyan people. Yesterday, Libyan delegates met once again in Geneva, in an effort to choose a new executive body to help bring the country to elections next December. A stable transition of power would benefit Libyans and the world greatly.
Without international recognition that Libyan affairs rest foremost in Libyan hands, citizens of the country – 10 years on from the tyranny of Muammar Qaddafi – will be locked in the different tyranny of a failed state.
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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
Ahmed Raza (captain), Chirag Suri (vice-captain), Rohan Mustafa, Mohammed Usman, Mohammed Boota, Zahoor Khan, Junaid Siddique, Waheed Ahmad, Zawar Farid, CP Rizwaan, Aryan Lakra, Karthik Meiyappan, Alishan Sharafu, Basil Hameed, Kashif Daud, Adithya Shetty, Vriitya Aravind
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
