An Iranian-made drone, operated by Hezbollah, flies near Lebanon's southern border with northern Israel. AFP
An Iranian-made drone, operated by Hezbollah, flies near Lebanon's southern border with northern Israel. AFP
An Iranian-made drone, operated by Hezbollah, flies near Lebanon's southern border with northern Israel. AFP
An Iranian-made drone, operated by Hezbollah, flies near Lebanon's southern border with northern Israel. AFP

Mounting Hezbollah drone attacks raise alarm in northern Israel


Thomas Harding
  • English
  • Arabic

Hezbollah’s drone strikes on northern Israel have tripled in three months with the weapons posing an increasingly serious threat to the area’s security, The National can disclose.

There is growing evidence that the Iran-backed Lebanese militia is now able to penetrate Israeli airspace with ease and conduct lethal strikes on military targets.

Former Israeli military intelligence officers also expressed concern that Hezbollah was constructing tunnels to give them the option of armed raids on communities close to the Lebanon border.

Aerial threat

In a report passed to The National, the number of drone incursions into Israel has gone from 23 in March to 42 in April to 60 in just the first three weeks of May.

“We demand our government eliminate Hezbollah’s capabilities,” said retired military intelligence lieutenant colonel Sarit Zehavi, who lives 20km from the border and has had to shelter her young family from several attacks.

“A lot of people in the world don’t understand what it's like living under the threat of rocket and drone attacks while at the same time, knowing the same enemy has the capability and intention to massacre us as brutally as Hamas did.”

A Hezbollah Ababil-T drone on display at the armed group's museum in Mleeta, southern Lebanon. Photo: Wikimedia
A Hezbollah Ababil-T drone on display at the armed group's museum in Mleeta, southern Lebanon. Photo: Wikimedia

Israel’s ability to defend against drones and cruise missiles was made significantly harder by Hezbollah’s destruction of its advanced $230 million Sky Dew surveillance airship on May 15.

The drone and missile campaign has also had an enormous social and economic impact, forcing more than 60,000 residents out of farms and homes that lie within 5km of the border.

Defensive gaps

Three of the six Israelis killed the area in the last month have died as a result of drones, most likely the Iran-manufactured Ababil T2 that carries a 40kg warhead and has a range of 120km.

While the drone’s speed is 300kph, this is slow compared to missiles and jets, making them difficult to detect by radar, especially in northern Israel’s steep valleys.

The Israeli Air Force's Sky Dew airship, equipped with advanced radar to detect incoming missiles and drones, was shot down by a Hezbollah drone. Getty
The Israeli Air Force's Sky Dew airship, equipped with advanced radar to detect incoming missiles and drones, was shot down by a Hezbollah drone. Getty

“Hezbollah is continually examining Israel’s detection system by launching UAVs [unmanned aerial vehicles] on multiple routes and flight profiles to uncover gaps and weaknesses,” said the report by Alma, an open source intelligence organisation run by Lt Col Zehavi.

Hezbollah has “detected gaps in the Israeli defensive system” and having pre-positioned many UAVs in olive groves and villages of southern Lebanon was able to launch them without detection, the report said.

Unlike the failed Iran drone attack in April, these weapons are much closer to Israel with a shorter flight time and are operated by skilled operators.

Ukraine lessons

The widespread GPS blockade the Israeli military has used to confuse drones and other precision weapons have proved ineffective as Hezbollah are using navigation techniques picked up from Iran, learnt through Russia’s experiences in Ukraine.

“Hezbollah may be employing 'roadblock-bypassing' techniques in this area, which Russia used successfully during its war with Ukraine,” the Alma report said.

“The Russian lessons learned are implemented in the Iranian UAVs operated by the Russians, and hence the path is very short to implement and improve the Iranian UAVs used by Hezbollah.”

Retired colonel Miri Eisen, a former military intelligence officer now with the International Institute for Counter-Terrorism think tank in Israel, said there were concerns that Hezbollah might also develop an emerging Russian tactic of drone swarms.

She said: “How do you protect against that if they send in 1,000 and if you still shot down 95 per cent you are going to get hit by 50?

“The point is that the drones are getting deeper and deeper into our territory and their capabilities are getting stronger and stronger.”

While Israel has used jets, helicopters and electronic warfare to stop the drones, they have proved “extremely difficult to thwart”, the Alma report said.

The report said that “It is evident that Hezbollah’s operation of UAVs poses a challenge” to Israel's detection and defence systems.

Tunnel threat

It is understood that Israeli intelligence has deep concerns that Hezbollah fighters are burrowing tunnels into the country from southern Lebanon.

Five years ago, a system of shafts was discovered that led into Israel. The fear now is that tunnelling has restarted with a view to launching an attack, similar to the one carried out by Hamas in southern Israel on October 7.

An Israeli soldier in a tunnel that crossed from Lebanon to northern Israel, near Zarit, that was discovered in 2019. AP
An Israeli soldier in a tunnel that crossed from Lebanon to northern Israel, near Zarit, that was discovered in 2019. AP

“We don't have specific information, but we evaluate that there are tunnels coming close to the border, which means that we will not be able to see them,” said Lt Col Zehavi.

She added that unlike the terrain around Gaza, the hilly terrain in northern Israel made it difficult to defend against a tunnel incursion.

Tal Hagin, a military analyst in Tel Aviv, said the tunnels would be important to a Hezbollah ground invasion as the steep valleys also made it difficult to invade with vehicles because of having to negotiate difficult terrain with sharp bends.

“There are huge concerns that Hezbollah special forces would use tunnels to enter Israel on foot for a rampage attack,” he added.

Mr Hagin added that it could also be the case that the “axis of resistance” – the informal Iran-led coalition that includes Hezbollah – “decides to change tactics and actually tries to occupy a part of northern 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.

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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.”

Updated: May 28, 2024, 6:59 AM