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The EU's High Commissioner for Foreign Affairs, Josep Borrell, on Monday criticised Israeli Foreign Minister Israel Katz for wasting the time of the bloc's 27 foreign ministers during a meeting to discuss the Gaza war.
Mr Katz showed the ministers videos of "an artificial island" and "building a railway linking up the Middle East with India", Mr Borrell said at a news briefing after 10 hours of meetings with Arab and EU diplomats.
"I think that the minister could have made better use of his time and focus on the security of his country, bearing in mind the high number of deaths in Gaza," he said.
"The minister showed us very little, if nothing, to do with the proposal we were discussing."
Mr Borrell's comments came as the rift between Israel and the West on the future of a Palestinian state has become increasingly apparent.
The US and the EU have expressed disappointment at recent comments made by Prime Minister Benjamin Netanyahu rejecting Palestinian statehood.
Foreign affairs ministers from the Middle East made the rare move of attending a meeting of EU ministers in Brussels to discuss the humanitarian situation in Gaza, where more than 25,000 people have died in Israel's military operation since October 7 Hamas-led attacks killed about 1,200 Israelis.
Also on the agenda was a peace plan for the region put forward by the EU's external action service, led by Mr Borrell. It includes a Palestinian state, security guarantees for Israel and full normalisation with Arab states.
Mr Katz and Palestinian Foreign Affairs Minister Riyad Al Maliki held separate meetings with their EU counterparts and did not meet in person.
Israel's apparent lack of interest in the proposal may pose challenges for future discussions, said Mr Borrell.
"If Israel doesn't want that solution it's going to be difficult to take part in discussions to build that solution, but that doesn't stop everybody else from doing it," he said.
"If that proposal isn't agreed, then there is some leverage, but we're still in the early stages."
The EU has been deeply divided over the Gaza war, with some countries including Germany vigorously opposing the calls for a ceasefire supported by others such as France and Belgium.
Mr Borrell gave few details about Mr Katz's proposals about an artificial island, aside from saying that it was "some kind of port".
Mr Katz is known to have made proposals involving an artificial island off the coast of Gaza before.
A 2017 report by the Times of Israel said he had raised the idea for years.
It involved building a $5 billion island with international funds over 534 hectares, which would remain under Israeli security control and provide Gaza with essential services.
Mr Al Maliki on Monday also rejected the plan after media reports that it involved the displacement of Palestinians to the island.
“The land of Palestine is ours and we will remain there,” he told reporters.
Mr Al Maliki said that “those who had the idea” of creating an artificial island may go live on it if they wish.
Several EU ministers criticised the Israeli government's rejection of a two-state solution.
“Which are the other solutions they have in mind?” said Mr Borrell ahead of the talks.
“To make all the Palestinians leave? To kill off them? From now on, I will not talk about the peace process but about the two-state solution process. We are serious about that.”
German Foreign Minister Annalena Baerbock said: “The two-state solution is the only solution, and even those who don't want to know about it have not yet come up with any other alternative."
Israel “cannot just be left unaccountable” for rejecting a two-state solution, said Jordan's Foreign Minister Ayman Safadi.
Mr Katz, however, did not address the possibility of a Palestinian state to the media.
Holding pictures of Israeli hostages in Gaza, including one-year-old baby Kfir Bibas, he said Israeli soldiers were fighting in the enclave with two goals: “to bring back our hostages and restore security for citizens of Israel".
Reluctance to call for a ceasefire in Gaza has caused bewilderment in much of the Arab world, most of all from Palestinians who have accused the West of double standards.
“We have to call collectively for a ceasefire,” said Mr Al Maliki.
He also called on Brussels to introduce sanctions against Israel, which is unlikely to happen.
Talk of blacklisting extremist settlers from European soil has been delayed due to reluctance from some member states. The EU issued sanctions on Hamas last week.
“The collective responsibility of the EU right now lies in this particular moment at a time when they have to show leadership and courage,” Mr Al Maliki said.
“Otherwise, what we have been saying for a long time about double standards will be clearly shown.”
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
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
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
