Live updates: Follow the latest from Israel-Gaza
The US and UK are doubling down on their diplomatic efforts to find a lasting resolution to the Palestinian-Israeli conflict as Hamas and Israel were on Thursday studying proposals to reach a prolonged truce to the war in Gaza.
Hamas leader Ismail Haniyeh was expected to arrive on Thursday in Egypt, where other senior Hamas officials are set to join him to discuss truce plans with Egyptian mediators. The proposals were drafted by Egyptian, American, Israeli and Qatari mediators during meetings in Paris this week.
They envisage a ceasefire of up to three months, during which Hamas would release in batches 132 hostages it has held since October, while Israel would in tandem free Palestinians held in its prisons.
The proposals also provide for the entry into Gaza of substantial humanitarian aid to alleviate the suffering of the enclave's 2.3 million residents after nearly four months of relentless Israeli bombardment.
The Israeli onslaught is in response to a surprise attack by Hamas and its allies in southern Israel on October 7, when they killed about 1,200 people and took about 240 hostages back to Gaza. Hamas released 105 of the captives during a week-long truce in late November, in return for the release of 240 Palestinian detainees.
Egyptian sources with direct knowledge of the negotiations said Hamas remained adamant that any deal must include a full Israeli withdrawal from Gaza and international guarantees that the enclave would not be attacked again.
Israel has yet to give a public response to the proposals but has already said the war would not end until Hamas's military and governing capabilities have been dismantled. It has also insisted on retaining a security role over Gaza to ensure there can never be a repeat of the October 7 attack, which was Israel's deadliest day since it was created in 1948.
“The main points of contention now are the identity and number of Palestinian detainees to be released from Israeli prisons as well as Hamas's demand for guarantees that the war will end,” a source based in Gaza and known to be close to the Palestinian Authority in Ramallah told The National on Thursday.
Hamas, said the Egyptian sources, was concerned Israel would resume its military campaign in Gaza once all the hostages had been released.
Hamas is also insisting Palestinians released from Israeli prisons under the deal include high-profile political figures who are serving long jail terms or life sentences after their convictions in security-related cases.
However, a Palestinian official told Reuters on Thursday that Hamas was unlikely to reject the proposals but would not sign off on them without assurances that Israel was committed to ending the war.
“I expect that Hamas will not reject the paper but it might not give a decisive agreement either,” said the Palestinian official, who spoke on condition of anonymity. “Instead, I expect them to send a positive response and reaffirm their demands: for the agreement to be signed, it must ensure Israel will commit to ending the war in Gaza and pull out from the enclave completely.”
US considering Palestinian state
The wait for a public and final response by Hamas and Israel to the proposals coincided with a potentially seismic shift in the position of the US on the Palestinian-Israeli conflict.
State Department spokesman Matthew Miller said the creation of a Palestinian state would come with “real security guarantees for Israel, because we do believe that is the best way to bring about lasting peace and security for Israel, for Palestinians and for the region”.
“There are any number of ways that you could go about accomplishing that,” he said late on Wednesday.
“There are a number of sequencing of events that you can carry out to accomplish that objective. And we look at a wide range of options and we discuss those with partners in the region as well as other partners inside the United States government.”
Washington has faced domestic and international criticism for its steadfast support of Israel, whose forces have killed more than 27,000 Palestinians – mostly women and children – in Gaza since the war began.
US diplomats have conducted several tours of the Middle East in the months since but have failed to secure a lasting ceasefire agreement.
Secretary of State Antony Blinken has asked the State Department to conduct a review and present policy options on possible US and international recognition of a Palestinian state after the war in Gaza, according to a report by Axios published on Wednesday.
The UK, which has also offered Israel strong support since the war began, said it would look into recognising an independent Palestinian state.
Israeli Prime Minister Benjamin Netanyahu has rejected the creation of a Palestinian state. Hamas, for its part, has dismissed suggestions that such a state would be demilitarised.
October 7 lawsuit
Meanwhile, more than 60 US citizens and their family members who were killed, injured or taken hostage in the Hamas attacks on October 7 are suing Iran, demanding up to $1 billion from Tehran for aiding the group.
The lawsuit filed on Wednesday night in a federal court in Washington includes vivid details and photographs of the violence on that day.
It details Iran’s history backing Hamas and Palestinian Islamic Jihad – another Gaza-based militant group involved in the October 7 attack – including providing tens of millions of dollars each year, along with rockets and other weapons.
In the lead-up to October 7, this morphed into regular meetings between the Iranian military, Hamas, PIJ and the Lebanese group Hezbollah, during which Tehran gave the “green light” to attack Israel, according to the complaint quoted by Bloomberg.
US troops in Iraq, Syria and Jordan have been the targets of attacks by Iran-backed militias. The groups claim the attacks are in response to Washington's support for Israel, although some militia commanders have fought US forces for decades.
Three US soldiers were killed in a drone strike on a base in north-eastern Jordan on Sunday.
American warships have also been the targets of attacks by Iran-backed Houthi militants in Yemen, leading to US air strikes on territory held by the rebels.
Calls for a lasting truce have intensified as the death toll in Gaza mounts.
Chicago City Council on Wednesday approved a resolution that called for a permanent ceasefire in Gaza, making it the largest US city since October to issue such a call.
The resolution also demands greater humanitarian aid for the enclave and the release of the Israeli hostages still held in Gaza. The city, the third most populous in the US, is home to one of the largest Palestinian communities in the country.
Holly Johnston contributed to this report from Abu Dhabi.
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Company profile
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more from Janine di Giovanni
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Tickets to the MWTC range from Dh100 and can be purchased from www.ticketmaster.ae or by calling 800 86 823 from within the UAE or 971 4 366 2289 from outside the country and all Virgin Megastores. Fans looking to attend all three days of the MWTC can avail of a special 20 percent discount on ticket prices.
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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