Benjamin Netanyahu, Prime Minister of Israel, said Middle East nations had come together to confront Iranian ambitions (Laurent Gillieron/Keystone via AP)
Benjamin Netanyahu, Prime Minister of Israel, said Middle East nations had come together to confront Iranian ambitions (Laurent Gillieron/Keystone via AP)
Benjamin Netanyahu, Prime Minister of Israel, said Middle East nations had come together to confront Iranian ambitions (Laurent Gillieron/Keystone via AP)
Benjamin Netanyahu, Prime Minister of Israel, said Middle East nations had come together to confront Iranian ambitions (Laurent Gillieron/Keystone via AP)

Davos 2018: Netanyahu praises 'extraordinary' alignment against Iran


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The looming threat posed by Iran has created alignments across the Middle East that would have been unimaginable ten years ago, Israeli prime minister Benjamin Netanyahu said Thursday.

Mr Netanyahu said there had been a convergence of interests because of a common stance against Iran and a “common enemy” of extremism.

“There’s an alignment of Israel and other countries in the Middle East that would have been unimaginable ten years ago and certainly in my life time,” Mr Netanyahu said during a session of the World Economic Forum. “It’s an extraordinary thing.”

Mr Netanyahu did not identify countries but had been asked about a “closer strategic” alignment with Egypt and Saudi Arabia during the session at Davos, Switzerland.

Both Israel and Saudi Arabia opposed the 2015 nuclear deal struck between Iran and the six world powers to limit its nuclear ambitions and led to the lifting of sanctions. Washington has since imposed new sanctions over Tehran’s long-range missile programme.

Mr Netanyahu said on Thursday that the nuclear deal was so deeply flawed that it guaranteed that Iran would get what it needed to make nuclear weaponry. He said that he didn’t particularly care if the deal was scrapped or fixed but warned: “We will not let them acquire a nuclear weapon.”

Senior Israeli military and political leaders have spoken of cooperating with moderate Arabs, including through the sharing of intelligence, to counter the threat of Iran.

The United States is in talks with the EU about tightening the sanctions regime, the US House of Representatives speaker Paul Ryan told a conference in the UAE on Thursday.

Donald Trump has issued a 120-day ultimatum to come up with a tougher approach to Iran or see full sanctions re-imposed. The US president has called it the “worst deal ever negotiated”.

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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UAE currency: the story behind the money in your pockets
Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
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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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