Hezbollah fighters at the funeral of a senior commander. The fear of an infiltration by the Lebanese militant group's Radwan Force commandos has grown in Israel. EPA
Hezbollah fighters at the funeral of a senior commander. The fear of an infiltration by the Lebanese militant group's Radwan Force commandos has grown in Israel. EPA
Hezbollah fighters at the funeral of a senior commander. The fear of an infiltration by the Lebanese militant group's Radwan Force commandos has grown in Israel. EPA
Hezbollah fighters at the funeral of a senior commander. The fear of an infiltration by the Lebanese militant group's Radwan Force commandos has grown in Israel. EPA

Put 'boots on the ground' in Lebanon, say northern Israelis


Thomas Harding
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For those living under the threat of deadly Hezbollah rocket fire in northern Israel the only enduring solution is to put “boots on the ground” in southern Lebanon, a retired Israeli general has told The National.

The fear of an infiltration by the Lebanese militant group's Radwan Force commandos has grown significantly since the Hamas-led October 7 attack, with villages preparing their own militias in defence.

That anxiety was evident as The National visited northern Galilee when a salvo of rockets struck the city of Safed killing a female soldier and wounding nine others.

It is that constant barrage that has led those living in the region to urge the government to consider mounting an invasion to remove the Hezbollah threat.

“It will be safe to go back home to live here only if Hezbollah suffer the strong hand of the Israeli military,” Retd Brig Gen Ilan Lavi told The National.

“There is no other choice, we cannot live near the border when Hezbollah can shoot direct fire into our houses.”

Cross-border clashes since October 8 on the border - when Hezbollah joined the latest war - have killed at least 268 people on the Lebanese side, most of them Hezbollah fighters but also 40 civilians, according to an AFP tally.

On the Israeli side, 10 soldiers and six civilians have been killed, according to the Israeli army.

An anti-tank missile that missed an Israeli car by two metres. Photo: Israeli activist group
An anti-tank missile that missed an Israeli car by two metres. Photo: Israeli activist group

Israel has invaded southern Lebanon three times in recent decades, firstly in 1978 and 1982, targeting Palestinian militants who were firing rockets into Israel, fighting bloody counterinsurgency campaigns as it became embroiled in the country's complex civil war.

With the formation of Hezbollah during Israel's 1985-2000 occupation of the south of the country, Iran-backed Shiite militancy became entrenched along the border and in 2006, the group attacked Israeli forces, killing two and kidnapping three.

In the ensuing 34-day war and Israeli ground incursion, about 1,200 Lebanese were killed, mostly civilians, and about 165 Israelis died, mostly soldiers.

Radwan commandos

Since October 7 more than 60,000 Israelis from the north have been evacuated from their farms and homes that sit within five kilometres of Lebanon’s border.

But there is a growing worry that Hezbollah could launch an attack with its 150,000 Iran-supplied missiles alongside a major ground infiltration.

That would be conducted by its force of 3,000 Radwan fighters who are well trained, many with combat experience from Syria’s civil war.

The force splits down into groups of about 25 who travel on quad bikes and SUVs to infiltrate towns around the border. “These are elite commando soldiers, it’s not a simple force, it's a strong force, different to Hamas,” said Brig Gen Lavi, former chief of staff for Israel’s Northern Command.

Sarit Zehavi, a former lieutenant colonel in Israeli intelligence, said the Radwan were much more skilled than the Hamas force that attacked on October 7.

“Hezbollah’s warriors are a more experienced and professional army because of what they did in Syria and if they invaded Israel and we are not prepared, it will be much more successful.”

Hezbollah fighters aiming a Kornet anti-tank guided missile in the south of Lebanon. AFP
Hezbollah fighters aiming a Kornet anti-tank guided missile in the south of Lebanon. AFP

Land attack

It is that fear of a force of more than 60,000 Hezbollah fighters with their huge missile arsenal, where a “simple anti-tank missile can penetrate the window of my bedroom” said one resident, that has pushed thinking towards a pre-emptive attack.

“The only way it can be resolved is if Israel removes Hezbollah as a military entity,” said Brig Gen Lavi, who has two children serving in the Israeli army.

“There can be a limited war using our strike capabilities without putting boots on the ground and then there can be boots on the ground.”

“Israel has a lot of capabilities but ultimately if you want to win a war to win, you need to put boots on the ground. You cannot win wars only by striking from the air, but with boots on ground you do pay a price with casualties.”

Retd Brig Gen Ilan Lavi, former chief of staff of Northern Command, says air strikes alone are not enough against Hezbollah
Retd Brig Gen Ilan Lavi, former chief of staff of Northern Command, says air strikes alone are not enough against Hezbollah

The US and France are leading efforts to bring a ceasefire into place to allow the displaced Israeli population to return home, with an eye to further talks on border demarcation and pulling militias back from the border. But even a truce will not bring an enduring peace to the region, argued Ms Zehavi.

“The problem is that the ceasefire now being engineered, is a ceasefire that is not going to be a solution,” she said. “It's going to be just a ceasefire.”

The founder of the Alma Research Centre, that analyses open source intelligence, said Hezbollah’s desire was for a ceasefire that would remove most of the three Israeli divisions deployed to the border.

“It’s to make us go to sleep, to deceive us then Hezbollah will choose the timing of an invasion,” she warned. “Meanwhile who is going to go back and live in the country if this problem is not solved?”

Rapid response

The first force to combat an infiltration would be the civilian defenders known as the Rapid Reaction Force (RRF).

More than 1,000 of these militiamen sit in control rooms and patrol their towns on a 24-hour basis while still maintaining jobs as farmers or IT specialists.

“If there is an infiltration, then we want to contain it,” said Sivan Yechieli, leader of the Kfar Vradim RRF that is less than 9km from the border.

“It's like an energy wave that comes in and we absorb some of that energy to slow it down, especially in a killing spree.”

A civilian member of Israel's Rapid Response Force in the town of Kfar Vradim, northern Israel.
A civilian member of Israel's Rapid Response Force in the town of Kfar Vradim, northern Israel.

Armed with semi-automatic weapons, radios and a local knowledge of the terrain, the RRF has a constant patrol out ready to react.

During the October 7 assaults a quick reacting RRF at the Nir Am kibbutz, a team of 12 aged from 26 to 59 years old, fended off the attackers for three hours.

“Armed people who can cope and actually engage the enemy makes a huge difference,” said Mr Yechieli, speaking at the operational centre just minutes before a Zoom call with his investment company. “If you're ready rather than looking for your weapons the results are much different.”

Existential fear

Just before the drive to an army base a few kilometres from the border, The National was briefed that the road was under regular attack by anti-tank missiles that cannot be intercepted by the Iron Dome defence system.

“They are very accurate and very scary,” said Ms Zehavi, standing next a dashcam picture of a missile in mid-flight missing a car by just two metres.

She suggested we take a zigzag mountainous route among the olive groves rather than the relative danger of the straight road.

As a result of the retaliatory air strikes, the Israeli military called the trip off, but for a moment this reporter had a glimpse into the anxiety experienced daily.

Sarit Zehavi, founder of Alma Research Centre, said Hezbollah’s desire is for a ceasefire that would remove most of the three Israeli divisions deployed to the border.
Sarit Zehavi, founder of Alma Research Centre, said Hezbollah’s desire is for a ceasefire that would remove most of the three Israeli divisions deployed to the border.

“It's an existential fear,” said Ms Zehavi. “As a mother, since October 7 I get up every morning and I look at my little girl and say: ‘I don't know how this day is going to end’.”

While the tension was always there, it was something people learnt to live with, said Mr Yechieli.

“The fear level, we get used to it,” he said. “It's like an earthquake or volcano eruption, at the beginning you think it's inconceivable then people just try to get back to their lives but they still remain afraid.”

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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

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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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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Updated: February 18, 2024, 8:38 AM