Smoke billows over Khan Yunis in the southern Gaza strip during Israeli bombardment on December 17, 2023. AFP
Smoke billows over Khan Yunis in the southern Gaza strip during Israeli bombardment on December 17, 2023. AFP
Smoke billows over Khan Yunis in the southern Gaza strip during Israeli bombardment on December 17, 2023. AFP
Smoke billows over Khan Yunis in the southern Gaza strip during Israeli bombardment on December 17, 2023. AFP

Is the Israel-Gaza war killing the two-state solution?


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Live updates: Follow the latest on Israel-Gaza

The war in Gaza has emboldened Israeli hardliners to reject outright the two-state solution, long seen as the only way to end the decades-long conflict, but it has also shown that there were no concrete steps to move towards that objective even before October 7.

Now that the war has claimed the lives of thousands, the international community is refocusing its attention on the broader Palestinian-Israeli conflict, hoping to revive the goal of having two states that exist side by side in peace – a goal seemingly already defeated by Israel's continuous annexation and occupation of land.

Under the principle of two states – an unrealised goal of the Oslo Accords, which were signed in the White House in 1993 – the Palestinians would be able to establish their own country on land occupied by Israel since the 1967 Arab-Israeli War.

The last major push towards this goal was under US President Barack Obama. But Israel's hardline Prime Minister Benjamin Netanyahu, who was also head of the country then, refused to negotiate with President Mahmoud Abbas's Palestinian Authority, citing the existence of the militant group Hamas.

US President Barack Obama watches Israeli Prime Minister Benjamin Netanyahu (L) and Palestinian President Mahmoud Abbas (R) shake hands during a trilateral meeting in New York in 2009. Reuters
US President Barack Obama watches Israeli Prime Minister Benjamin Netanyahu (L) and Palestinian President Mahmoud Abbas (R) shake hands during a trilateral meeting in New York in 2009. Reuters

On Saturday, Mr Netanyahu boasted about what he described as his role in undercutting Oslo. He told reporters in Tel Aviv that the accords were a “fatal mistake” and that they had allowed Hamas to develop the ability to attack Israel from Gaza.

His government has continued to reject the two-state solution since the outbreak of the war.

“Israel's government is doubling down on the rejection of the two-state solution,” said Muriel Asseburg, a scholar on the Palestinian-Israeli conflict and a senior fellow at the German Institute for International and Security Affairs in Berlin.

“For Israelis, it would be more rational after the October 7 massacres to say, let us finally separate from the Palestinians.”

Last month, a survey commissioned by Israel's Mitvim Institute found that 52 per cent of Israelis support “political measures at the end of the military campaign that entails a degree of recognition of independent Palestinian sovereignty”. A quarter of Israelis favour “unilateral separation” from the Palestinians, while 27 per cent back a two-state deal if the normalisation process with Arab countries continues.

In the West Bank and Gaza, a survey conducted at the beginning of December by the Palestinian Centre for Policy and Survey Research found that post-October 7, support for Hamas had more than tripled in the West Bank, while rising slightly in the Gaza Strip.

Despite “the lack of confidence in the seriousness” of western powers in reviving the two-state solution, support for it remained steady at 34 per cent.

Although the Mitvim Institute survey indicates sizeable support for Palestinian independence, more Israeli politicians are arguing that a deal, even a unilateral withdrawal from occupied territory similar to Gaza in 2005, could make Israel more vulnerable to large-scale militant attacks from the West Bank.

A Palestinian draped in the Palestinian flag walks on top of the Israeli separation wall between the West Bank city of Abu Dis and East Jerusalem, during clashes with Israeli security forces in 2021. AFP
A Palestinian draped in the Palestinian flag walks on top of the Israeli separation wall between the West Bank city of Abu Dis and East Jerusalem, during clashes with Israeli security forces in 2021. AFP

Last week, Israeli President Isaac Herzog, a perceived moderate, joined extremist politicians in playing down the possibility of a two-state solution.

A western official who was on a fact-finding mission in the Middle East told The National that his Israeli counterparts kept telling him that Israel could no longer retreat from the West Bank and East Jerusalem, the essential step to achieving the two-state goal.

“They kept saying that Israel would come under attack, although their belief in their security apparatus and their technology has been shattered,” the official said during a stop in Amman.

“They don't want to admit the contradiction.”

A Muslim woman walks by armed police in the the Old City of Jerusalem. Getty Images
A Muslim woman walks by armed police in the the Old City of Jerusalem. Getty Images

But in Ramallah, the Palestinian Authority under Mr Abbas remains keen on a two-state solution because it wants to re-amass political capital and be seen as being able to deliver for its people, the western official said.

“They want to play an interlocutor role between Hamas and the international community and regain their footing as a relevant player.”

Meanwhile, the international push for a two-state solution is not backed by concrete steps.

Despite more vocal calls by US President Joe Biden and European countries for a two-state solution, they “are not preparing concrete steps to move toward that objective”, said Ms Asseburg.

Another problem has been Israel's “step-by-step, de facto annexing more of land”, she added.

In Cairo, one of the few Arab countries with leverage over Hamas, an Egyptian official said that even if Israel agrees to work in good faith with the Palestinians and mediators to reach the two-state goal, the negotiating process is likely to take many years.

“That’s if it ever comes to fruition,” explained the official, who has direct knowledge of regional negotiations between Israel and Arab countries regarding Gaza.

The source said it would take years to rebuild the coastal enclave, especially if Israel goes ahead with its reported plan to pump seawater into Hamas’s underground tunnels, which could render farmlands in Gaza unfit for cultivation.

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

Brief scores:

Everton 0

Leicester City 1

Vardy 58'

'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

RESULTS

5pm: Maiden (PA) Dh80,000 2,200m
Winner: Arjan, Fabrice Veron (jockey), Eric Lemartinel (trainer).

5.30pm: Maiden (PA) Dh80,000 1,400m​​​​​​​
Winner: Jap Nazaa, Royston Ffrench, Irfan Ellahi.

6pm: Al Ruwais Group 3 (PA) Dh300,000 1,200m​​​​​​​
Winner: RB Lam Tara, Fabrice Veron, Eric Lemartinal.

6.30pm: Shadwell Gold Cup Prestige Dh125,000 1,600m​​​​​​​
Winner: AF Sanad, Bernardo Pinheiro, Khalifa Al Neyadi.

7pm: Shadwell Farm Stallions Handicap (PA) Dh70,000 1,600m​​​​​​​
Winner: Jawal Al Reef, Patrick Cosgrave, Abdallah Al Hammadi.

7.30pm: Maiden (TB) Dh80,000 1,600m​​​​​​​
Winner: Dubai Canal, Harry Bentley, Satish Seemar.

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

Squads

Australia: Finch (c), Agar, Behrendorff, Carey, Coulter-Nile, Lynn, McDermott, Maxwell, Short, Stanlake, Stoinis, Tye, Zampa

India: Kohli (c), Khaleel, Bumrah, Chahal, Dhawan, Shreyas, Karthik, Kuldeep, Bhuvneshwar, Pandey, Krunal, Pant, Rahul, Sundar, Umesh

UAE currency: the story behind the money in your pockets
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

UAE currency: the story behind the money in your pockets

The Freedom Artist

By Ben Okri (Head of Zeus)

MATCH STATS

Wolves 0

Aston Villa 1 (El Ghazi 90 4' pen)

Red cards: Joao Moutinho (Wolves); Douglas Luiz (Aston Villa)

Man of the match: Emi Martinez (Aston Villa)

Top 5 concerns globally:

1. Unemployment

2. Spread of infectious diseases

3. Fiscal crises

4. Cyber attacks

5. Profound social instability

Top 5 concerns in the Mena region

1. Energy price shock

2. Fiscal crises

3. Spread of infectious diseases

4. Unmanageable inflation

5. Cyber attacks

Source: World Economic Foundation

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Teams

India (playing XI): Virat Kohli (c), Ajinkya Rahane, Rohit Sharma, Mayank Agarwal, Cheteshwar Pujara, Hanuma Vihari, Ravichandran Ashwin, Ravindra Jadeja, Wriddhiman Saha (wk), Ishant Sharma, Mohammed Shami

South Africa (squad): Faf du Plessis (c), Temba Bavuma, Theunis de Bruyn, Quinton de Kock, Dean Elgar, Zubayr Hamza, Keshav Maharaj, Aiden Markram, Senuran Muthusamy, Lungi Ngidi, Anrich Nortje, Vernon Philander, Dane Piedt, Kagiso Rabada, Rudi Second

Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

SPEC SHEET

Display: 10.4-inch IPS LCD, 400 nits, toughened glass

CPU: Unisoc T610; Mali G52 GPU

Memory: 4GB

Storage: 64GB, up to 512GB microSD

Camera: 8MP rear, 5MP front

Connectivity: Wi-Fi, Bluetooth 5.0, USB-C, 3.5mm audio

Battery: 8200mAh, up to 10 hours video

Platform: Android 11

Audio: Stereo speakers, 2 mics

Durability: IP52

Biometrics: Face unlock

Price: Dh849

MATCH INFO

FA Cup final

Chelsea 1
Hazard (22' pen)

Manchester United 0

Man of the match: Eden Hazard (Chelsea)

THE SPECS

Engine: 4.0L twin-turbo V8

Gearbox: eight-speed automatic

Power: 571hp at 6,000rpm

Torque: 800Nm from 2,000-4,500rpm

Fuel economy, combined: 11.4L/100km

Price, base: from Dh571,000

On sale: this week

Tuesday's fixtures
Group A
Kyrgyzstan v Qatar, 5.45pm
Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm
The specs: 2018 Infiniti QX80

Price: base / as tested: Dh335,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 400hp @ 5,800rpm

Torque: 560Nm @ 4,000rpm

Fuel economy, combined: 12.1L / 100km

The specs: 2018 Maxus T60

Price, base / as tested: Dh48,000

Engine: 2.4-litre four-cylinder

Power: 136hp @ 1,600rpm

Torque: 360Nm @ 1,600 rpm

Transmission: Five-speed manual

Fuel consumption, combined: 9.1L / 100km

Teams

Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq

Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi

Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag

Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC

Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC

Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium

Format 10 overs per side, matches last for 90 minutes

Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals

Updated: December 19, 2023, 4:20 AM