The truce between Israel and Gaza Strip militants could hold for a few months, but a longer-lasting peace deal remains unlikely, analysts told The National.
After three days of violence that claimed the lives of 44 Palestinians inside the enclave, according to the Palestinian health ministry, Egypt brokered a ceasefire between Israel and militants in Gaza that came into effect on Sunday night.
The three-day conflict began when Israel launched targeted attacks on members of the Iran-backed Palestinian Islamic Jihad inside Gaza. The Israeli Defence Forces (IDF) said its operation, codenamed Breaking Dawn, was responding to threats from the militant group after the arrest of one of its senior members in the occupied West Bank last week.
Former Egyptian foreign minister Nabil Fahmy said the truce's fate will depend on factors including Israel’s ability to appease the PIJ in the coming days.
He said it is in Israel's best interests to end the violence, as it prepares for its latest legislative election in November.
“What I anticipate is for a short-term peace to be upheld between both sides which can even extend into the medium-term provided both sides get a decent takeaway from the negotiations,” Mr Fahmy said. “However, the ideological differences between both sides run far too deep for any long-lasting peace agreement to be reached.”
He said that because Israel, through its undeniable military supremacy over the Palestinian side, was able to claim the three-day conflict as a victory for its defence forces, the PIJ’s legitimacy as an effective resistance group took a hit. This could make it more aggressive towards Israel in the coming weeks if its demands are not met.
There was a marked difference between the tones of both sides’ public statements following the announcement of the truce. Where Israel was diplomatic and lauded Egypt’s efforts to broker the ceasefire, the PIJ was aggressive and promised to escalate the conflict further if Israel did not release Bassam Al Saadi and Khalil Awawda, two key PIJ figures in Israeli custody.
PIJ secretary general Ziad Nakhaleh issued a statement claiming that Israel had agreed to release the two prisoners but was now defaulting on its promise.
Mr Fahmy added that the imbalance in casualties in the latest round of violence, with 44 Palestinians dead compared to no Israeli casualties, had undoubtedly made the PIJ take a more hardline approach.
“The PIJ needs to get a takeaway from whatever agreement comes out because their legitimacy is going to be lessened if they don’t,” he said.
“If Israel wants a peace that extends beyond a simple military victory, they are going to have to provide some accommodation to the PIJ and they will therefore have to balance between appearing strong but also a little lenient when it needs to be.”
On Monday, an Israeli official told Times of Israel that the country’s security apparatus had not agreed to release either prisoner. But the official said Israel was “absolutely aware that there is an opportunity in the aftermath that we don’t want to miss” and that there was desire on Israel’s side to also bring Hamas into its negotiations with the PIJ. Hamas is holding two Israelis captive as well as the bodies of two others.
Operation Breaking Dawn has been widely denounced by rights groups all over the world. Human Rights Watch issued a statement on Monday saying that Israeli aggression in the Gaza Strip often goes unpunished and, in the absence of accountability, the violence is likely to continue.
“Every time Gaza is pounded by Israeli fire, focus is brought to bear on bringing about a ceasefire, and then the focus on bringing about a more sustainable solution ends," said senior associate fellow at the Royal United Services Institute and the Carnegie Endowment for International Peace H A Hellyer.
"Gaza is under occupation and under siege, according to the United Nations and most governments, with these periodic bombardments only increasing the difficulties that Palestinians in Gaza live under. However, as long as such operations prove to be popular in Israeli politics, and there is little accountability for them, the cycle of violence is likely to continue.”
Iran’s nuclear deal with the US could also play a role in the negotiations between Israel and Gaza. Mr Fahmy said that because Iran backs the PIJ through funding and armament, if its talks with the US fall through, it could encourage a more aggressive attitude towards Israel among the various militant groups it funds.
UAE currency: the story behind the money in your pockets
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Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
Emergency
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Rating: 2/5
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How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
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
OPINIONS ON PALESTINE & ISRAEL
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A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
How Beautiful this world is!