Palestinian refugee children in Baqaa camp, near Amman, in May 2018. Reuters
Palestinian refugee children in Baqaa camp, near Amman, in May 2018. Reuters
Palestinian refugee children in Baqaa camp, near Amman, in May 2018. Reuters
Palestinian refugee children in Baqaa camp, near Amman, in May 2018. Reuters

Financial effects of Ukraine war hitting Palestinian refugees hard, UN agency says


Khaled Yacoub Oweis
  • English
  • Arabic

Price rises linked to the Ukraine war have left millions of Palestinian refugees “hanging by a thread” and are deepening financial pressures on the main organisation caring for them, its head said on Monday.

Philippe Lazzarini, commissioner general of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), told reporters in Amman that the organisation's food procurements costs have risen in some cases by 60 per cent this year.

“This is a significant increase related to the overall financial and economic situation, which is fuelled by the crisis in Ukraine,” Mr Lazzarini said, after a meeting of representatives from 29 countries that comprise Unrwa's advisory board.

UNRWA needs $50 million to $80m to keep functioning for the next six weeks until the end of the year, he said.

“An increasing number of Palestinian refugees feel like they are hanging by a thread. We have also donors who are struggling,” he said.

Mr Lazzarini said that it is becoming increasingly difficult to mobilise donor countries in relation to the “protracted and forgotten” Israeli-Palestinian conflict when many of them are worrying about their internal situation.

He pointed out that 40 per cent of Gaza's schoolchildren are skipping breakfast. More than half of the 2 million population of the occupied territory are dependent on Unrwa’s food aid, compared with 80,000 in 2007.

He said Palestinian refugees in Lebanon “have hit rock bottom with almost every Palestinian refugee living at the poverty line.”

  • A view of the entrance to the Sabra Palestinian camp in southern Beirut. EPA
    A view of the entrance to the Sabra Palestinian camp in southern Beirut. EPA
  • A carpenter works in his workshop in the Palestinian refugee camp of Shatila. AFP
    A carpenter works in his workshop in the Palestinian refugee camp of Shatila. AFP
  • Children on a bus at Shatila refugee camp. AFP
    Children on a bus at Shatila refugee camp. AFP
  • An alley in Shatila refugee camp. AFP
    An alley in Shatila refugee camp. AFP
  • A street sweets vendor waits for customers in Shatila refugee camp. AFP
    A street sweets vendor waits for customers in Shatila refugee camp. AFP
  • A boy carries a flag of Palestine in the camp at Shatila. AFP
    A boy carries a flag of Palestine in the camp at Shatila. AFP
  • Palestinian refugees walk in an alley of the Shatila camp. AFP
    Palestinian refugees walk in an alley of the Shatila camp. AFP

It is “the same tragedy, same misery” in Syria, with some of the refugees going back to the rubble of shelled camps because they cannot afford to live anywhere else.

“In Jordan refugees are among those who paid the highest price for the economic crisis and Covid-19. Poverty is also on the rise,” he said.

One positive sign, he said, has been a $27m donation to UNRWA from Saudi Arabia in recent weeks, after years of low contributions from Arab countries.

This was still lower than some western countries' donations, particularly the US, which restored funding for UNRWA last year after it was severed under the Trump administration.

Washington donates $340m a year to UNRWA, making it the agency's largest contributor. The US was instrumental in founding the organisation in 1949.

The agency manages more than 700 schools for half a million mostly Palestinian girls and boys in the Levant.

It also provides health care for two million Palestinians, as well giving social assistance to those Mr Lazzarini described as “the poorest among the poor”.

Bio:

Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour

Favourite Hobby: Serving poor people 

Favourite Book: The Alchemist by Paulo Coelho

Favourite food: Fish and vegetables

Favourite place to visit: London

SPECS
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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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UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

England squads for Test and T20 series against New Zealand

Test squad: Joe Root (capt), Jofra Archer, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Jack Leach, Saqib Mahmood, Matthew Parkinson, Ollie Pope, Dominic Sibley, Ben Stokes, Chris Woakes

T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

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Updated: November 14, 2022, 10:36 PM