Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty
Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty
Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty
Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty

Hezbollah 'blinds' Israeli defences with drone strike on Sky Dew airship


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Israel has suffered a substantial setback to its surveillance capabilities after a Hezbollah drone struck a $230 million advanced radar detection airship in its deepest attack into the country to date.

Israel's military has confirmed that the Sky Dew blimp, which can spot targets up to 250km away, had been damaged in an attack by a kamikaze drone. Local reports suggest the blimp was shot down.

Intelligence analysts told The National that Hezbollah is seeking to make northern Israel’s detection systems “go blind” potentially ahead of a more serious assault.

With Hezbollah strikes increasing in northern Israel, a local mayor has accused Prime Minister Benjamin Netanyahu of “ignoring reality” over the growing threat.

Sky Dew detection

Israel has been developing the Sky Dew project since 2022, giving its forces an advanced observation system for drones and cruise missiles striking from Iran and Syria, as well as Lebanon, by picking up smaller targets that are harder to detect in northern Israel's valleys.

It then gives precision targeting information to air defence weapons, including the Iron Dome system.

The Sky Dew blimp can spot targets up to 250km away. Getty Images
The Sky Dew blimp can spot targets up to 250km away. Getty Images

The balloon also has the key advantage of remaining airborne at low cost, without requiring fuel or crew replacement, whereas surveillance aircraft cost $40,000 an hour to operate.

But that capability has either been severely damaged or destroyed after Hezbollah launched a one-way attack drone that flew 33km undetected into Israeli airspace and struck the balloon close to the town of Tiberias.

The aircraft was probably an Iran-designed Ababil carrying a 40kg warhead travelling up to 370kph with a range of 120km.

Blinding defences

“What it is clear is that Hezbollah are trying to make the northern Israel detection defences go blind,” said Sarit Zehavi, a former lieutenant colonel in Israeli military intelligence.

Speaking from northern Israel, she had spent most of pre-dawn Friday awake after another drone strike, although air-raid sirens indicated this one had been detected.

Ms Zehavi, who is also a mother and runs Alma, an open-source intelligence centre, said she was discussing with neighbours “whether to stay at home during this Saturday or to go away” with the drone attacks increasingly frequent over the last two months.

Sarit Zehavi, founder of Alma open-source intelligence centre
Sarit Zehavi, founder of Alma open-source intelligence centre

Tal Hagin, a leading open-source intelligence analyst based in Tel Aviv, said there was “clearly something lacking in Israel's defence system at the moment” because a drone had been able to enter “from within Lebanese territory all the way into Israel, over 30km away”.

“Acting as a proxy for Iran, Hezbollah is essentially trying to take out the eyes of Israel’s northern defence capabilities,” he said.

He added that the precision of recent attacks suggested that just like the Israelis, Hezbollah had a “target bank” of sites it can hit in retaliatory strikes.

The Sky Dew attack came shortly after Israel confirmed it had killed a senior Hezbollah field commander on Wednesday.

No impact

Rear Admiral Daniel Hagari, Israel’s military spokesman, confirmed that a Hezbollah drone had scored a direct hit on Sky Dew but added there were no casualties and that it “had no impact to the IDF's aerial situational awareness capability in the area”.

Hezbollah confirmed in a statement that “a number of attack drones” had struck an Israeli airbase near Tiberias. “It accurately hit its designated targets and achieved what it wanted from this limited operation,” a spokesman said.

Hezbollah show of power

Hezbollah also used its air-to-surface missiles for the first time on Thursday, attacking a military target near the northern Israeli town of Metulla.

It was the first recorded instance of the use of the Russian S-5 missiles and, combined with the attack on the Sky Dew blimp, a reminder that the Iran-allied paramilitary has kept its full capability up its sleeve.

In an April 2024 speech Hezbollah leader Hassan Nasrallah warned Israel that his group had not yet begun using the bulk of its troops and arsenal.

“We haven’t even mandated our forces to remain stationed at the front,” he said. “They work on a rotation: for a period of time, then go rest at home, then a replacement comes and so on. And despite this, we have accomplished many losses in northern Israel.”

Fighting between Israel and Hezbollah has intensified substantially in the past week. Friday saw the killing of three people in southern Lebanon – a Hezbollah fighter and two civilians, one of whom was a 13-year-old child – in a wave of Israeli strikes near the southern city of Sidon, around 30km from the border.

The two civilians were killed in a strike on a stone factory while the third person, who Hezbollah acknowledged was a member in a statement announcing his death, was targeted in his vehicle.

A statement by the Israeli military said the air force had “struck terrorist infrastructure” where Hezbollah was operating.

The southern Lebanese village of Kfar Kila during Israeli bombardment. AFP
The southern Lebanese village of Kfar Kila during Israeli bombardment. AFP

In Israel on Thursday, there were 133 threat sirens, warning of missile and drone attacks and adding to the sense of danger for residents.

Since October 7, fighting between Israel and Hezbollah has driven tens of thousands of people from their homes on both sides of the Lebanon-Israel border. There are no signs residents will be able to return any time soon, more than seven months into the conflict.

Many Israeli residents have signalled their unwillingness to return to the north while Hezbollah remains on the border. Their departure could now become permanent said Moshe Davidovitch, head of the regional council, in a letter to Mr Netanyahu.

“Given the manner in which this national issue is being handled, the northern conflict zone will be abandoned – not only the towns that have been evacuated but the entire conflict area in which our people believe things are business as usual while inexplicably ignoring reality,” he wrote on Sunday.

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UAE currency: the story behind the money in your pockets
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6.30pm: Handicap (rated 95-108) US$125,000 2000m (Dirt).
Winner: Don’t Give Up, Gerald Mosse (jockey), Saeed bin Suroor (trainer).

7.05pm: Handicap (95 ) $160,000 2810m (Turf).
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7.40pm: Handicap (80-89) $60,000 1600m (D).
Winner: Claim The Roses, Mickael Barzalona, Salem bin Ghadayer.

8.15pm: UAE 2000 Guineas Trial (Div-1) Conditions $100,000 1,400m (D)
Winner: Gold Town, William Buick, Charlie Appleby.

8.50pm: Cape Verdi Group 2 $200,000 1600m (T).
Winner: Promising Run, Patrick Cosgrave, Saeed bin Suroor.

9.25pm: UAE 2000 Guineas Conditions $100,000 1,400m (D).
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Favourite Book: The Prophet by Gibran Khalil Gibran

Retail gloom

Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.

It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

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ABU DHABI CARD

5pm: UAE Martyrs Cup (TB) Conditions; Dh90,000; 2,200m
5.30pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 1,400m​​​​​​​
6pm: UAE Matyrs Trophy (PA) Maiden; Dh80,000; 1,600m​​​​​​​
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7pm: Sheikha Fatima bint Mubarak (IFAHR) Ladies World Championship (PA) Prestige; Dh125,000; 1,600m​​​​​​​
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Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster with a decades-long career in TV. He has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others. Karam is also the founder of Takreem.

Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.

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Multitasking pays off for money goals

Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.

That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.

"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.

Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."

People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.

"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."

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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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Director:Matt Reeves

Rating: 5/5

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Company name: SimpliFi

Started: August 2021

Founder: Ali Sattar

Based: UAE

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Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

Results

2pm: Serve U – Maiden (TB) Dh60,000 (Dirt) 1,400m; Winner: Violent Justice, Pat Dobbs (jockey), Doug Watson (trainer)

2.30pm: Al Shafar Investment – Conditions (TB) Dh100,000 (D) 1,400m; Winner: Desert Wisdom, Bernardo Pinheiro, Ahmed Al Shemaili

3pm: Commercial Bank of Dubai – Handicap (TB) Dh68,000 (D) 1,200m; Winner: Fawaareq, Sam Hitchcott, Doug Watson

3.30pm: Shadwell – Rated Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Xavier Ziani, Salem bin Ghadayer

4pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,600m; Winner: Rakeez, Patrick Cosgrave, Bhupat Seemar

4.30pm: Al Redha Insurance Brokers – Handicap (TB) Dh78,000 (D) 1,800m; Winner: Capla Crusader, Bernardo Pinheiro, Rashed Bouresly

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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Rating: 5/5

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Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars 

Updated: May 17, 2024, 3:16 PM