Israeli Foreign Minister, Yair Lapid, on Sunday proposed a plan to improve living conditions in Gaza in exchange for calm from the enclave's Hamas rulers, aiming to solve "never-ending rounds of violence".
Mr Lapid said the plan, which includes infrastructure and employment benefits, was to show Palestinians in the Israeli-blockaded enclave that Hamas's campaign of violence is "why they live in conditions of poverty, scarcity, violence and high unemployment, without hope".
He said he was not calling for negotiations with Hamas, because "Israel doesn't speak to terror organisations who want to destroy us".
Mr Lapid, due to take over as premier in two years as part of a rotation agreement, said his plan was not yet official policy in Israel's eight-party coalition government but it had support from Prime Minister Naftali Bennett.
In the first stage of the plan, the infrastructure in Gaza – an impoverished territory of two million people – would receive a much-needed upgrade, he told the Reichman University in Herzliya.
"The electricity system will be repaired, gas will be connected, a water desalination plan will be built, significant improvements to the healthcare system and a rebuilding of housing and transport infrastructure will take place," Mr Lapid said.
"In exchange, Hamas will commit to long-term quiet."
He said the international community would play a role in the process, especially Egypt, to Gaza's south.
"It won't happen without the support and involvement of our Egyptian partners and without their ability to talk to everyone involved," Mr Lapid said. "Any breach by Hamas will stop the process or set it back."
If the first stage went smoothly, an artificial island would be created off the Gazan coast that would allow a port to be built, and a transport link between Gaza and the West Bank would be established.
Mr Lapid said he had presented the plan to "partners in the Arab world", and to the US, Russia and the EU.
"There is still work to do," he said. "We're still on the drawing board, but if this plan has a chance to succeed and gains widespread support, I'll propose it to the government as the official position."
Hours later, the Israeli army said it intercepted a rocket launched from Gaza towards southern Israel, the third incident in as many days.
Israel and Hamas fought their last full-scale war in May, the fourth since 2008. The conflict ended in an Egyptian-brokered ceasefire.
The UN High Commissioner for Human Rights said in late May that Israeli air strikes on the territory had resulted in "the widespread destruction of civilian infrastructure".
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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
Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
