Palestinians in Gaza whistled and cheered as the ceasefire came into effect, while celebratory gunfire was also heard moments after 2am on Friday.
In East Jerusalem's Sheikh Jarrah neighbourhood, a focal point of Palestinian protests in recent weeks, drivers honked car horns to mark the moment.
Israel and Gaza rulers Hamas on Thursday committed to a ceasefire to go into force within hours, aimed at ending 11 days of deadly cross-border fire.
The deal brokered by Egypt was announced by the office of Israeli Prime Minister Benjamin Netanyahu after a meeting of security officials.
The security cabinet "unanimously accepted the recommendation of all of the security officials ... to accept the Egyptian initiative for a mutual ceasefire without pre-conditions", Mr Netanyahu's office said.
Abu Obida, the spokesman for Hamas's armed wing, said the group had prepared to launch rockets into Israel before the deal was reached.
"But we agreed to the ceasefire and we will watch the behaviour of the enemy until 2am," when the ceasefire is expected to come into effect, Abu Obida said.
Shortly after the announcement was made, Israeli sirens warned of incoming fire from Gaza.
A journalist for The National in Gaza City said Israeli shelling was continuing.
"The reality on the ground will determine how we move forward," Israeli Defence Minister Benny Gantz said.
The conflict broke out on May 10 when Hamas fired rockets towards Jerusalem, after weeks of violence in the ancient city left hundreds of Palestinians wounded.
Israeli police were accused of heavy-handed tactics across occupied East Jerusalem, particularly in Al Aqsa Mosque compound, which is the third-holiest site in Islam.
Tension was further inflamed by eviction orders hanging over Palestinian families in the Sheikh Jarrah neighbourhood in East Jerusalem, as well as police banning people from gathering at the Old City's Damascus Gate during Ramadan.
After rockets were fired towards Gaza, Israel launched a blistering attack on the enclave.
The country's military struck hundreds of targets it says were Hamas infrastructure, including a tunnel network.
Hamas and other militant groups in residential areas fired more than 4,000 rockets, according to the Israeli military, although hundreds fell short and most of the rest were intercepted.
At least 232 Gazans were killed, including 65 children, with 1,710 people wounded, the Gaza Health Ministry said.
Two children were among 10 people killed in Israel by rocket fire, while 118 were wounded, the Magen David Adom emergency services said.
Since the fighting began, Gaza’s infrastructure, already weakened by a 14-year blockade, has rapidly deteriorated.
Medical supplies and fuel for electricity are running low in the territory, which was put under a blockade by Israel and Egypt after Hamas seized power in 2007.
Israeli bombing damaged more than 50 schools across the territory, according to advocacy group Save the Children, completely destroying at least six.
About 91,000 Gazans fled their homes, two thirds of whom sought shelter in schools, the UN said.
Israeli attacks also damaged at least 18 hospitals and clinics and destroyed one, the World Health Organisation said.
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
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
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
UAE currency: the story behind the money in your pockets
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
