Ultra-Orthodox Jews burn leavened items in Jerusalem ahead of the Passover holiday, a tradition that dates back to the exodus from slavery in Egypt. AFP
Ultra-Orthodox Jews burn leavened items in Jerusalem ahead of the Passover holiday, a tradition that dates back to the exodus from slavery in Egypt. AFP
Ultra-Orthodox Jews burn leavened items in Jerusalem ahead of the Passover holiday, a tradition that dates back to the exodus from slavery in Egypt. AFP
Ultra-Orthodox Jews burn leavened items in Jerusalem ahead of the Passover holiday, a tradition that dates back to the exodus from slavery in Egypt. AFP

Ultra-Orthodox population in Israel up 500% from 1979


Thomas Helm
  • English
  • Arabic

Israel’s ultra-Orthodox population has grown by more than 500 per cent since 1979, new figures show, a rise that points to its rapidly changing demographics and increasing religiosity in recent decades.

The trend means that by 2048 — the year Israel marks its centenary — the group could make up more than 20 per cent of the country’s population, according to estimates seen by Israeli news channel i24.

Researchers at the Haredi Policy Research Institute mark 1979 as the first year when reliable data about the community’s numbers existed. At that time the ultra-Orthodox represented just 5.6 per cent of the population.

In January, data released by Israel’s Central Bureau of Statistics noted that the ultra-Orthodox population had the highest growth rate of any group in the country, at 4 per cent.

It is estimated that more than 1.2 million people are ultra-Orthodox in a population of more than 9 million in Israel.

A subsequent analysis by the Israeli Democracy Institute found that a 44 per cent poverty rate for the community in 2019 was almost twice that of the general population.

It marked an improvement on earlier years, however, when poverty in the community reached its peak in 2005 at 58 per cent, helped by an increased share of men and women — in the often isolated community — entering the workplace.

In recent years, many Israelis have criticised what they view as unfairly preferential government policies towards the community, which receives significant government handouts, tax breaks and exemptions from military service.

On a Times of Israel podcast released for Israel’s 75th anniversary, Yariv Ben-Eliezer, the eldest grandson of Israel’s founder David Ben-Gurion, said that in today’s country “half of the people will go to the army, and half will study Torah … This is not the people I want to live with.”

Police scuffle with ultra-Orthodox Jews at a protest against the Women of the Wall group holding their monthly prayer at the Western Wall, the holiest site where Jews can pray. AP
Police scuffle with ultra-Orthodox Jews at a protest against the Women of the Wall group holding their monthly prayer at the Western Wall, the holiest site where Jews can pray. AP

In March, demonstrators set up a mock draft office in the ultra-Orthodox city of Bnei Brak just outside Tel Aviv to protest against the community’s military exemptions.

Organisers said that ultra-Orthodox politicians, who form a significant bloc in today’s coalition government, have “declared war on us, the liberal public. So we’ll mass tomorrow in Bnei Brak, home to much of the [ultra-Orthodox] leadership, to say ‘this is where it stops.’”

In 2020, only about 1,200 ultra-Orthodox men served in the country’s military.

In 2014, members of the community took to Jerusalem’s streets in one of the largest demonstrations in Israeli history to protest against a proposed law to end exemptions.

The social rift mirrors similar concerns about the community’s inclusion in mainstream education. The Central Bureau of Statistics found that only 3.5 per cent are enrolled in fully state-run schools that teach all of Israel’s curriculum. The remainder go to private institutions that teach a smaller amount of the curriculum.

In October last year, just before Israel’s most recent elections, ultra-Orthodox politician Yitzhak Pindrus told a small group of journalists: “I teach my daughters English and Maths to a very high level … My boys I want to do very well in the tradition and the Torah.

“My 14-year-old boy works very hard, at least 12 hours a day in school. If he wants to learn maths when he’s older he can do it, but right now he’s studying religious issues, that’s my priority … That’s how we grew from 2 per cent of the Israeli population to 20 per cent.”

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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 specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T

Price, base: Dh840,000; Dh120,000

Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo

Transmission: Eight-speed automatic; seven-speed automatic

Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm

Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm

Fuel economy, combined: 9.9L / 100km; 11.6L / 100km

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What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Updated: April 27, 2023, 4:58 PM