Lorries laden with humanitarian aid wait at the Rafah border crossing between Egypt and the Gaza Strip. Reuters
Lorries laden with humanitarian aid wait at the Rafah border crossing between Egypt and the Gaza Strip. Reuters
Lorries laden with humanitarian aid wait at the Rafah border crossing between Egypt and the Gaza Strip. Reuters
Lorries laden with humanitarian aid wait at the Rafah border crossing between Egypt and the Gaza Strip. Reuters

Egypt refuses to reopen Rafah crossing while Israel controls its Gaza side


Hamza Hendawi
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Live updates: Follow the latest on Israel-Gaza

Egypt has told Israel it will not reopen the Rafah border crossing with Gaza while Israeli troops remain on the Gazan side, sources told The National, as the row between the two countries deepens.

Israeli forces took control of the Gazan side of the crossing on May 7 as part of Israel's offensive in Rafah that has strained relations with Egypt. In response, Egypt announced it will no longer work with Israel to transfer aid into Gaza through the crossing.

Israel tried to persuade Egypt to allow aid to enter the enclave through Mossad agents who visited Cairo on Wednesday, the sources said.

They said Israel made it clear that its military intended to retain control of the Palestinian side of the crossing even if a ceasefire deal was reached.

“The Egyptians countered that the Israeli position undermined efforts by Cairo, the United States and Qatar to broker a ceasefire and cast serious doubts on the prospect of a complete withdrawal from Gaza as demanded by Hamas,” one source said.

“Egypt will not reopen the crossing and that’s its final position despite significant US pressure on Cairo to do so.”

There has been no official announcement from Cairo on Wednesday’s meeting between the Mossad officials and their Egyptian counterparts.

Egypt, which signed a US-sponsored peace treaty with Israel in 1979, has reacted angrily to the Israeli military's seizure of the Gaza side of the crossing and its ground assault on the city of Rafah, which it said posed a serious threat to Egyptian national security.

Like the US and many western nations, Egypt has repeatedly warned that sending troops into Rafah would cause a surge in Palestinian deaths – already at more than 35,200, mostly civilians – and could cause a mass displacement of people into the Sinai Peninsula.

Rafah was home to about 1.4 million displaced Palestinians before Israel’s military launched operations there on May 6. The UN said at least 600,000 people have fled the city since then.

Egypt said mass migration from Gaza would harm the Palestinian cause, adding to the departure of hundreds of thousands of Palestinians from their homes since Israel’s creation in 1948.

Israeli Prime Minister Benjamin Netanyahu on Sunday pressed Egypt to reopen the Rafah crossing, claiming that Cairo was holding the people of Gaza “hostage” by not working with Israel on the key aid route.

Smoke rises from an explosion following an Israeli air strike in northern Gaza. Reuters
Smoke rises from an explosion following an Israeli air strike in northern Gaza. Reuters

Israel supports “maximum humanitarian aid flows” through Rafah, Mr Netanyahu told US financial news network CNBC. “We want to see it open,” he said, adding: “I hope we can come to an understanding” with Egypt.

“I hope Egypt considers what I'm saying now,” he said. “Nobody should hold the Palestinian population hostage in any way and I'm not holding them hostage. I don't think anyone should.”

Egyptian Foreign Minister Sameh Shoukry said on Tuesday that Israel’s control of the Rafah crossing exposed aid workers and lorry drivers to “imminent dangers”.

He said Israel was “solely responsible for the humanitarian catastrophe” in Gaza, where the UN has warned of risks of famine.

The US, Israel's top ally, warned against a Rafah offensive and also appealed for the Rafah crossing to be reopened.

Palestinians stand on the beach near makeshift shelters at a new camp for internally displaced people west of Khan Younis in southern Gaza. EPA
Palestinians stand on the beach near makeshift shelters at a new camp for internally displaced people west of Khan Younis in southern Gaza. EPA

Israel’s capture of the Gaza side of the Rafah crossing has strained relations to a degree not seen since the start of the Israel-Gaza war.

In its strongest rebuke, Egypt said on Sunday it was intervening in support of South Africa’s case before the International Court of Justice, in a case that accuses Israel of genocide.

It has also placed on high alert the Egyptian forces close to the borders with Gaza and Israel. On Wednesday, sources said Egypt created a legal panel of international law and constitutional experts to identify and assess further punitive actions against Israel over its actions in Rafah.

But government leaders have been seeking to calm a wave of anti-Israeli sentiment, as well as calls on social media and by talk-show pundits to suspend the 1979 peace treaty.

The treaty, which ended decades of hostilities between Egypt and Israel, has been a cornerstone of stability in the Middle East, altering a regional political landscape defined in large part by nearly a century of conflict between the Arabs and Israel.

Moreover, it may have in many ways paved the way for Jordan to follow suit in 1994 and, more recently, four other Arab nations that established diplomatic relations with Israel.

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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

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Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

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Updated: May 16, 2024, 2:27 PM