27 years ago, the US declared Sudan a state sponsor of terrorism, ushering in a raft of sanctions and strict controls to limit a range of nefarious activity by the regime of then-president Omar Al Bashir. On Monday, America removed Sudan from the list, which now includes only Iran, Syria and North Korea.
For three decades, Sudan's people suffered from paranoid and incompetent politics. This blighted the country's economy and global reputation, and bottled up the immense potential and goodwill of Sudanese citizens.
A popular protest movement demanding better government and living standards saw Al Bashir step down in April 2019, heralding a turnaround in Sudan's fortunes. Since then, the country, which is governed by a joint civilian and military executive, has taken steps to end its isolation. These include paying compensation to the victims of terrorist attacks carried out by Al Qaeda, an organisation Al Bashir's government supported. Now removed from the US State Department's list and free from the sanctions it entails, Khartoum can start looking to the future.
Sudan's ousted president Omar Al Bashir at his trial in Khartoum over the 1989 military coup that brought him to power. Reuters
Sudan's promising progress demonstrates the benefits open to countries when they re-enter the international fold
Sudan's transition to stability will not be immediate. There have been a series of clashes between security forces and protesters, and the economy continues to struggle. However, recent history shows that a complete retreat of security forces in the aftermath of popular protests can have even more serious consequences. And despite tragic moments, the country's revolution has been more stable than in other parts of the region, including Syria and Libya.
Khartoum's stability matters in both Africa and the Middle East. It shares large and, in some places, porous borders with Egypt, Libya and Ethiopia. Tensions among these countries have flared this year due to a new civil war in Ethiopia, as well as Addis Ababa's plans for the Renaissance Dam on the Nile.
Sudan's burgeoning relationship with states like the US and Israel will change its position in the diplomatic and security landscape of the region, but the country needs economic relationships, too. The vulnerability of its economy – which has been affected this year by locust plagues, the pandemic and pre-existing issues like widespread poverty – leaves the country open to more challenges, including high unemployment, protests and internal discontent. This is a real prospect, given the International Monetary Fund's prediction that Sudan's GDP will shrink by 8.5 per cent this year. The UAE announced a $1.5 billion grant to support the country in 2019, a critical lifeline at a critical time.
In the long term, however, the country will need to be able to support itself. The removal of US sanctions allows Sudanese people to build a private sector and engage with international markets on its own terms. A banking system can begin to emerge. A September report from the UN Development Programme found that roughly $3bn in remittances enter the country through unofficial means. If these were re-routed through a responsible banking sector, the resulting tax revenues would be significant.
Sudan's early, but promising, progress demonstrates the myriad benefits open to countries when they re-enter the international fold. If managed correctly, Sudan's transition to an open nation can stand out as an alternative for the pariahs that remain sponsors of extremism. And more importantly, it can forge a path forward for the people of a country that has much to offer the world.
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
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
