Iraq's autonomous Kurdish region has held its long-awaited referendum on independence despite mounting international opposition, with results expected to be heavily tipped in favour of separation.
But although the referendum will bolster calls for Kurdish independence from Iraq, the vote has no legal mandate.
Iraqi Kurdish president Masoud Barzani, who led the independence drive, has reassured the international community that the referendum is non-binding and is meant to provide his administration with a “legitimate mandate” to negotiate secession of Kurdish-controlled regions of Iraq from Baghdad.
Baghdad’s central government has repeatedly rejected the poll, describing it as “illegal” and “unconstitutional”, while Tehran and Ankara both fear the vote will ignite separatist aspirations among their own sizeable Kurdish minorities.
There is a widespread fear among the international community, meanwhile, that a "Yes" vote will unleash an unstoppable momentum in the push for independence that will eventually lead to revolt and bloodshed.
“Legally there is no process for separation in Iraq, so independence for Kurdistan has to come from a ruling outside of the Iraqi constitution,” Dr Renad Mansour, senior fellow at the British think tank Chatham House, said.
Article one of the Iraqi constitution stipulates that “the Republic of Iraq is a single, independent federal state with full sovereignty”.
As a result, for Iraqi Kurdistan to gain independence the “international community must recognise it [as a state]” Mr Mansour said.
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Read more on the referendum:
Uncertainty hovers over what happens next to the Kurds of Iraq
Excitement at polls contrasts with silence on streets
Iraq parliament demands troops be sent to Kirkuk amid Kurdish vote
Analysis: Independence vote a smokescreen for Barzani's domestic political woes
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Mohammed Hineidi, a Dubai-based expert on the Levant, said a "Yes" vote would give Mr Barzani a mandate to begin secession talks with the central Iraqi government, despite Baghdad saying it would not enter into independence negotiations with Erbil, the capital of the Kurdish region.
But, he added: “For Iraq now, not much will change on the ground, unless violence erupts in the oil rich contested city of Kirkuk, which the Iraqi government has threatened with military intervention.”
The ethnically diverse city of Kirkuk is one of a number of areas outside of the autonomous Kurdish region that are controlled by Kurdish forces but claimed by both Erbil and Baghad.
Mr Barzani stressed on Sunday that the referendum result would not draw borders, and that a "Yes" vote would result in talks with Baghdad lasting at least a year or two. However, he stressed that the "failed partnership" with the "sectarian state" of Iraq was over.
"Baghdad will likely make its move on the disputed areas prior to negotiations in order to limit Kurdistan just to Erbil, Dahok, Sulemanyia (the provinces that make up the autonomous Kurdish region) and this will reduce Kurdistan’s leverage even more," Michael Rubin, resident scholar at the DC-based American Enterprise Institute think tank, said.
"When it comes to negotiation, while Baghdad might eventually offer some sort of confederation, in the short term I wouldn’t expect any change. Baghdad will be content to let Kurdistan experience the economic hardship that it can expect if it tries to go it alone as a landlocked, politically divided country," Mr Rubin said.
As a landlocked region, an independent Iraqi Kurdistan would need to ensure it had friendly allies in neighbouring states, Mr Mansour added.
“The Kurds need friends to be able to import and export oil and gas; for them Turkey is the most important actor.”
Ankara has strongly declared its opposition to the referendum, carrying out military exercises near its border with the Iraqi Kurdish region.
But, Mr Mansour said, “behind closed doors the vote will not impact relations between the two as long as the Kurds do not declare independence".
So why has Mr Barzani pushed for a non-binding referendum?
Mr Mansour believes it is important to recognise the referendum within the prism of a post- ISIL Iraqi political settlement.
"With the military battle against ISIL declining, many of the political parties are coming to the table to negotiate what comes next for Iraq, to negotiate a rebuilding of the Iraqi state," Mr Mansour said.
"The Kurds believe that in order for them to have strong leverage and strong seat at the table in this process they need to have some sort of threat of independence or some sort of power."
In addition, Mr Barzani was "keen to hold the referendum now due to the economic woes in the Kurdistan Regional Government, and to distract from the criticisms being leveled against him and his administration", Mr Hineidi said.
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Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
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
Zayed Sustainability Prize