Lebanese boats protesting against Israeli plans to drill for gas in a disputed area of sea were met by patrol vessels from Israel as they neared its waters on Sunday.
Patrol boats from Lebanon were also seen in the area, AP reported.
The protest comes before a new round of talks between Lebanese and Israeli delegations, mediated by the UN and, recently, the US.
In June, the Israeli navy escorted a drilling rig operated by British company Energean to the Karish gas field, which is claimed by both countries and lies in an area of 860 square kilometres of disputed sea.
Maritime boundary dispute
Lebanon says its maritime border stretches further south than Israel’s claimed area of territorial waters. Israel says its maritime border lies further north of what Lebanon accepts.
The US has released several optimistic statements hoping that the two countries can strike a compromise on the disputed energy resources.
“We welcome the consultative and open spirit of the parties to reach a final decision with the potential to yield greater stability, security and prosperity for Lebanon as well as Israel,” US State Department spokesman Ned Price said in August.
But Lebanese politicians have said the Israeli actions represent a violation of the country’s sovereignty.
Militant group Hezbollah has gone further, launching unarmed drones towards the drilling rig in July, a move condemned by prime minister-designate Najib Mikati, who called Hezbollah’s actions “unacceptable” and said the group had exposed the country to “unnecessary risks”.
Lebanon hopes to exploit offshore gas reserves as it grapples with the worst economic crisis in its modern history.
Sunday's flotilla carried Lebanese flags and banners, with slogans in Arabic, French, and Hebrew expressing what they say is Lebanon’s right to its maritime oil and gas fields.
“We are demanding our right to every inch of our waters,” Aya Saleh, one of the protesters on a fishing boat, told AP. “And we are sending a message from the Lebanese people.”
Lebanese and Israel navy vessels were present, although there were no tensions.
Amos Hochstein, a senior adviser for energy security at the US State Department, has shuttled between Beirut and Jerusalem to mediate the talks. He was last in Beirut in late July, when he informed Lebanese officials of Israel's response to a proposal Lebanon made in June, and signalled optimism after his trip.
According to Lebanese President Michel Aoun’s office, Mr Hochstein notified adviser and deputy parliament speaker Elias Bou Saab that he will visit Beirut later this week.
Lebanese media have speculated that both countries could soon reach an agreement.
However, tensions between Iran-backed Hezbollah and Israel have remained in recent months amid the border talks.
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
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Itcan profile
Founders: Mansour Althani and Abdullah Althani
Based: Business Bay, with offices in Saudi Arabia, Egypt and India
Sector: Technology, digital marketing and e-commerce
Size: 70 employees
Revenue: On track to make Dh100 million in revenue this year since its 2015 launch
Funding: Self-funded to date
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
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
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Ahmed Saadawi
Penguin Press
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions