A controversial legal bill to reform Israel's judiciary has plunged the country into chaos — airports are closed, thousands have taken to the streets and a minister has been sacked, all in one day.
But this saga has been rumbling for months. Here's what you need to know about Israel's judicial reform bill and why the situation exploded this week.
What is Israel's judicial reform bill?
The government has been pushing for changes that would limit the Supreme Court's powers to rule against the legislature and the executive, while giving coalition lawmakers more power in appointing judges.
The panel for selecting judges requires politicians and judges who sit on it to agree on appointments. The present proposal would change that, giving coalition governments decisive sway.
Prime Minister Benjamin Netanyahu, though formally barred from involvement in the initiative because he is on trial for graft charges he denies, has said such changes aim to balance and diversify the bench. He has also accused the media of misrepresenting the plan and fanning the flames of protest to topple his government.
Israeli lawmakers are due to vote on a central part of the government's proposals next week, which foresees changing the way judges are appointed.
What do critics of the bill say?
Israel's democratic “checks and balances” are relatively fragile. It has no constitution, only “basic laws” meant to safeguard its democratic foundations. In its one-chamber Knesset, the government controls a majority.
Critics say that the changes will weaken the courts and hand unbridled power to the government, endangering rights and liberties with catastrophic effects for the economy and relations with Western allies, who have already voiced concern.
A judiciary no longer seen as independent could also strip Israel of one of its main defences in international legal cases.
Even Mr Netanyahu's own Defence Minister Yoav Gallant came out against the legal change on Saturday calling on the government to halt legislation on changes to the judiciary. He said the bitter dispute over the measures poses a danger to national security.
“The deepening split is seeping into the military and defence institutions — this is a clear, immediate and real danger to Israel's security,” said Mr Gallant, in a brief televised statement.
He was promptly removed from his post on Monday.
Will the government take the bill off the table?
A row back looks unlikely, despite mounting calls for one.
Mr Netanyahu said last week that the legislation “does not take control of the court but balances and diversifies it”.
He and other critics of the Supreme Court say the bench is left-leaning and elitist and has become too interventionist in the political sphere, while often putting minority rights before national interests.
A parliamentary committee has amended the draft law with the aim of making it more palatable to opponents, but the opposition has ruled out backing any part of the reform package until all legislative steps are halted.
How does the move affect Mr Netanyahu?
Critics fear Mr Netanyahu wants to leverage the judicial push to freeze or void his trial. He has denied having any such plan.
The opposition also says his nationalist allies want to weaken the Supreme Court to establish more settlements on land the Palestinians seek for a state. Ultra-Orthodox Jewish parties in the coalition want to pass a law exempting their community from service in the conscript military, which they worry may be struck down by the court if its powers are not cut back.
What happens next?
Mr Netanyahu's governing coalition is aiming for final ratification of the changes to bench selection by April 2, when lawmakers go on spring break time. Other changes, some of which have been approved at the Knesset's plenum in the first of three readings required for ratification, have been deferred until parliament reconvenes on April 30.
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
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
Gender pay parity on track in the UAE
The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.
"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."
Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.
"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.
As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general.