UAE Minister of State for Foreign Affairs, Dr Anwar Gargash speaks during a press conference at his office in Dubai on June 24, 2017. Giuseppe Cacace / AFP
UAE Minister of State for Foreign Affairs, Dr Anwar Gargash speaks during a press conference at his office in Dubai on June 24, 2017. Giuseppe Cacace / AFP
UAE Minister of State for Foreign Affairs, Dr Anwar Gargash speaks during a press conference at his office in Dubai on June 24, 2017. Giuseppe Cacace / AFP
UAE Minister of State for Foreign Affairs, Dr Anwar Gargash speaks during a press conference at his office in Dubai on June 24, 2017. Giuseppe Cacace / AFP

Fears of long-term consequences from Qatar crisis


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The impasse over Qatar's rejection of calls from its neighbours to stop incitement and support for extremists is hardening into a long-term division that will hurt the region, according to leading experts on Gulf politics.
Jane Kinninmont, deputy head of the Middle East and North Africa Programme at Chatham House in London, has warned that without a change of heart by Qatar the consequences of the boycott would be widely felt both in the economy of the Gulf, known in Arabic as Khaleej  Al Arabi, and in the politics of the wider Middle East. 
"UAE businesses can live without the Qatari market," Ms Kinninmont said, "but it's a blow to both businesses and families who have built transnational ties over the years, encouraged by promises of GCC integration and a growing sense of 'Khaleeji' identity. 
"[It] seems likely that the Gulf standoff will continue for the long term, and that even if it is resolved, bad blood will persist. This will make the rest of the region's conflicts more difficult to resolve, as Gulf states are influential in all of them and a divided Gulf will lead to further divisions elsewhere. 
"We've already seen Qatar-Saudi divisions play out within the Syrian opposition in the early days of the uprising there, weakening the opposition's cause," she continued.
Even the refining of The Quartet's initial 13 conditions into the set of six principles, has not seen the underlying causes of the crisis addressed. 
Statements on Wednesday by Dr Anwar Gargash, the UAE Minister of State for Foreign Affairs, has increased fear that the crisis will continue for some time.
Dr Gargash said that the quartet of nations, UAE, Saudi Arabia, Bahrain and Egypt, would  "have to go on without Qatar", signalling that the discord, which began last month, was no longer temporary and that looking beyond their neighbour state could become the new normal. 
"Now that [the] Qatar crisis has taken so long, important to look beyond 'crisis' & think of it as [a] new set of relations in [the] Gulf replacing old ones," Dr Gargash said in a series of tweets.
According to Ms Kinninmont: "Both sides of the Gulf dispute are sending the message that they can wait this out. Qatar hasn't caved under economic pressure, and meanwhile the UAE is signalling that it is committed to its strategy for the long term.
"Barring Qatar's review of past policies, [the] current state will continue for a while. New regional relationship will emerge & strengthen." 
The crisis has placed "a question mark over the future of the GCC, even though the UAE and KSA are keen to imply that the GCC could forge ahead without Qatar; even if they succeed in expelling Qatar," she said. 
Alison Woods, Gulf analyst for Control Risks, a global risk consultancy, told The National that what "we have seen over the last two weeks is that there has unwillingness on either side to back down", so Dr Gargash's remarks and his "frankness" were not surprising to close observers of the crisis.
While the strong message from Dr Gargash has set a new tone for the crisis, Ms Wood notes that there are continuing efforts from both within and outside the region to bring about a resolution or to at least set a framework for serious negotiations based on a change in Qatar's policies. 
"Conversations about compromise will have been taking place through back-channel negotiations," Ms Wood said.
Sources added that state leaders and people in positions of succession have remained resolute over the dispute.
"Dr Gargash's tweets suggest that the quartet is attempting to strike a balance between maintaining the pressure on Qatar and watering down any hopes for successful mediation of the crisis, while not escalating further in the absence of international support for formal new measures against Qatar," said Kristian Ulrichsen, a fellow at Rice University's Baker Institute and the author of The United Arab Emirates: Power, Politics and Policymaking.

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Born: 1972

Husband: Emirati lawyer Salem Bin Sahoo, since 1992

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UAE currency: the story behind the money in your pockets
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UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

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Engine: four-litre V6 and 3.5-litre V6 twin-turbo

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What: 11th edition of the Mubadala World Tennis Championship

When: December 27-29, 2018

Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams

Tickets: www.ticketmaster.ae, Virgin megastores or call 800 86 823

UAE currency: the story behind the money in your pockets
Start times

5.55am: Wheelchair Marathon Elites

6am: Marathon Elites

7am: Marathon Masses

9am: 10Km Road Race

11am: 4Km Fun Run

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Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

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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

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Egypt

Dh514 for citizens; Dh865 for tourists

Information can be found through VFS Global.

Jordan

Dh212

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Cambodia

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Winner: JAP Almahfuz, Royston Ffrench, Irfan Ellahi

6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: Mahmouda, Pat Cosgrave, Abdallah Al Hammadi

7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: AS Jezan, George Buckell, Ahmed Al Mehairbi

7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m
Winner: Dolman, Antonio Fresu, Bhupath Seemar

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Name: Hassan Mohsen Elhais

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Toss: Sindhis, elected to field first

Kerala Knights 103-7 (10 ov)

Parnell 59 not out; Tambe 5-15

Sindhis 104-1 (7.4 ov)

Watson 50 not out, Devcich 49

Infobox

Western Region Asia Cup Qualifier, Al Amerat, Oman

The two finalists advance to the next stage of qualifying, in Malaysia in August

Results

UAE beat Iran by 10 wickets

Kuwait beat Saudi Arabia by eight wickets

Oman beat Bahrain by nine wickets

Qatar beat Maldives by 106 runs

Monday fixtures

UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain

Where to submit a sample

Volunteers of all ages can submit DNA samples at centres across Abu Dhabi, including: Abu Dhabi National Exhibition Centre (Adnec), Biogenix Labs in Masdar City, NMC Royal Hospital in Khalifa City, NMC Royal Medical Centre, Abu Dhabi, NMC Royal Women's Hospital, Bareen International Hospital, Al Towayya in Al Ain, NMC Specialty Hospital, Al Ain

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Toilet cleaner

1 cup baking soda 

1 cup castile soap

10-20 drops of lemon essential oil (or another oil of your choice) 

Method:

1. Mix the baking soda and castile soap until you get a nice consistency.

2. Add the essential oil to the mix.

Air Freshener

100ml water 

5 drops of the essential oil of your choice (note: lavender is a nice one for this) 

Method:

1. Add water and oil to spray bottle to store.

2. Shake well before use. 

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October 4: Round One of Rotax Max Challenge, Al Ain (karting)

October 1: 1 Round One of the inaugural UAE Desert Championship (rally)

November 1-3: Abu Dhabi Grand Prix (Formula One)

November 28-30: Dubai International Rally

January 9-11: 24Hrs of Dubai (Touring Cars / Endurance)

March 21: Round 11 of Rotax Max Challenge, Muscat, Oman (karting)

April 4-10: Abu Dhabi Desert Challenge (Endurance)

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