Live updates: Follow the latest from Israel-Gaza
British Foreign Secretary David Cameron arrived in Israel on Wednesday as regional tension threatens to spill over, with Iran warning of a “harsh response” to any Israeli attack on its territory.
Lord Cameron, visiting Israel alongside German Foreign Minister Annalena Baerbock, is expected to address the humanitarian crisis in Gaza, which has been overshadowed by growing concerns of an all-out war, as Israel threatens to retaliate against Iran's drone and missile attack at the weekend.
“It's clear the Israelis are making a decision to act,” Lord Cameron told reporters in Jerusalem.
“We hope they do so in a way that does as little to escalate this as possible.”
Britain wanted to see co-ordinated sanctions against Iran, he said, hours after Washington confirmed it would impose new sanctions against Tehran in the coming days.
Israeli President Isaac Herzog said he held talks with Lord Cameron and Ms Baerbock on Wednesday, and called on the world to act “decisively and defiantly” against Iran.
Tehran “is seeking to undermine the stability of the whole region”, Mr Herzog's office said.
Iran launched a barrage of more than 300 missiles and drones overnight on Saturday, in its first direct attack on Israel. Tehran said this was in response to the killing of Islamic Revolutionary Guard Corps commanders in an Israeli air strike on its Damascus embassy compound on April 1.
Israel said 99 per cent of the projectiles were intercepted, but Iran has said that any future attack would be stronger and much harder to repel.
Iranian leaders ramped up their warnings against Israeli retaliation in speeches on Wednesday to mark Army Day, saying Israel would face a “terrible confrontation” in the event of an attack on Iran.
“If the smallest aggression is made by the Zionist regime on our land, they will be dealt with fiercely and severely,” state outlet IRNA quoted President Ebrahim Raisi as saying.
The weekend attack was deliberately small, Mr Raisi added, claiming that “nothing would be left” of Israel if Iran decided to launch a full-scale attack.
Iranian air force chief Brig Gen Hamid Vahedi said Israel would face an “irreparable response” if it made the “mistake” of striking back.
“The IRGC's action against Israel was a punitive action, and if this regime wants to make mischief, then it will face a harsh response and a major attack,” the semi-official Tasnim news agency quoted him as saying.
Naval Commander Shahram Irani said Iran’s navy is escorting Iranian commercial ships to the Red Sea.
“The navy is carrying out a mission to escort Iranian commercial ships to the Red Sea and our Jamaran frigate is present in the Gulf of Aden in this view,” Mr Irani was quoted as saying by Tasnim.
Israel's war cabinet is set to meet again on Wednesday to discuss its response to the Iranian attack.
Iran is bracing for a variety of scenarios. The leadership expects possible Israeli strikes on military sites linked to the weekend attack, sources told The National on Tuesday. Iran's proxy groups may also attack Israel if the strikes are “more aggressive than expected”, they said.
The Wall Street Journal reported on Wednesday that IRGC bases in Syria – a frequent target of Israeli attacks – have been evacuated in anticipation of assaults.
Sources in Damascus sources told the outlet that “emergency measures” have been put in place at Iranian military installations in Syria, although some IRGC members remain behind to guard weapons stores.
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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.
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New process leads to panic among jobseekers
As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.
“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.
Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE.
“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.
“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”
