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Israel and Hezbollah could be one false move from starting a devastating war that neither wants, experts and security officials have told The National.
Both sides have been escalating their rocket fire and air strikes for weeks, sparking fears that the conflict is about to break into all-out war.
According to one Lebanese official aligned with Hezbollah, the war has already started.
“If you compare the start to now, it is a war. The Israelis … they are everywhere. Their escalation shows that they want Lebanon engaged into war,” he told The National.
The Israeli military and Hezbollah possess vast arsenals that would eclipse the damage from their last war in 2006.
Hezbollah is thought to have up to 150,000 rockets – enough to fire up to 1,500 a day, by some estimates, compared to about 15,000 in 2006.
Israel, meanwhile, has one of the largest air forces in the world, responsible for laying waste to most of Gaza, where almost 37,400 Palestinians have been killed since war began on October 7, according to local health officials.
It was sparked by Hamas-led attacks on southern Israel that killed 1,200 people.
It’s clear the Israelis are looking to get Lebanon engaged with this war
Lebanese official
Karim El Mufti, a professor of international relations at Sciences Po Paris, said: “The 2006 war is small compared to what this is, and what this could ignite into.”
The month-long war that year, sparked by a Hezbollah cross-border raid, led to more than 1,200 people in Lebanon being killed and about $5 billion in damage to the country.
About 120 Israeli soldiers and 40 civilians were killed in Israel, while nearly half a million Israelis and one million Lebanese were displaced.
The sharp rise in attacks in recent weeks has led to fears of a return to 2006, only far worse.
Israel wants to remove the security threat posed by Hezbollah so about 60,000 displaced residents can return home near the border, while the Lebanese armed movement said it will not cease its attacks until Israel ends its bombardment of the Gaza Strip.
It said it does not want a full-scale war but is prepared for one.
The Hezbollah-aligned official said that Lebanon wants Israel to abide by UN Resolution 1701, which brought to an end the 2006 war between Hezbollah and Israel – even if it has never been fully implemented in the 18 years since.
While Lebanon and Israel are technically enemy states, and the Lebanese government has repeatedly criticised Israel's actions in Gaza, Beirut has said it does not want a war but has little control over Hezbollah.
Lebanon accuses Israel of regularly breaching the terms of Resolution 1701 – whether by launching attacks on Israel, infringing on the country’s territory, or occupying land claimed by Beirut.
“[The Israelis] are always escalating, not only by the border,” the official said. “They are targeting all of Lebanon. It’s clear the Israelis are looking to get Lebanon engaged with this war. Lebanon does not want this war.”
On the other side, Israel would point to the fact that UNSC 1701 also calls for the disarmament of non-state militias – a reference to Hezbollah.
Israel has vowed to push Hezbollah north of the Litani River, which the armed group firmly opposes.
Potential for ceasefire
The risk of escalation has led to a diplomatic effort by foreign powers, including the US and France, to avoid war.
US envoy Amos Hochstein visited Lebanon and Israel this week. He said it was both “achievable” and “urgent” that a resolution be achieved.
He also said that the US's ceasefire proposal for Gaza “provides an opportunity to end the conflict” in the Israel-Lebanon border area.
The US has been pressing Israel and Hamas to formally accept the ceasefire deal approved by UN Security Council members, which would allow an initial six-week pause to fighting.
Hezbollah said it will not end its attacks until there is a ceasefire in Gaza.
The Hezbollah-aligned official also accused Israel of refusing to agree to the ceasefire, while repeating the accusation often levelled at Benjamin Netanyahu that the Israeli Prime Minister seeks to prolong his stay in office by attacking Lebanon.
Israel has not formally said it supports the ceasefire proposal. Hamas has made positive indications while also submitting requested changes.
“We didn’t hear from Netanyahu or [Israeli Defence Minister Yoav] Gallant that they have accepted,” said the Lebanese official.
“If you look at warfare strategy throughout modern history, this is one of the most controlled escalations ever,” Prof El Mufti told The National.
“But the Pandora’s Box is open in Gaza and unless that front is closed there’s going to be a potential explosion between Hezbollah and Israel.”
While a ceasefire in Gaza is seen as the best chance of defusing tension on the Lebanese border, some experts have warned that the long-standing tension between Hezbollah and Israel will remain regardless.
Already a war?
The tens of thousands of residents on either side of the border who have been displaced from their homes might say that war has already begun.
Both sides have expanded the scope and intensity of their attacks – with Hezbollah using ever more advanced weaponry and Israel hitting as far as Lebanon's northern border with Syria on the other side of the country.
The Lebanese official aligned said that Israeli escalation showed it wanted “Lebanon engaged into war”.
UN officials in Lebanon recently said that the risk of miscalculation remained high, a view heard elsewhere in the region.
“One mistake is a rocket hitting a bus full of school kids. That's World War Three and Four all together,” said Lior Shelef, an Israeli army reservist, who lives in Kibbutz Snir, a few kilometres from the Lebanese border.
“It's what will happen when this one mistake happens and it will happen eventually. It's just a question of when.
“When the game was in the buffer zone inside Lebanon, we could make sure that we're not making mistakes from our side. And if they're going to make mistakes, they're going to suffer the consequences.
"The problem is that today a mistake that will happen here can be severe. And the problem is that it will be very hard for us to convince people to come back and live here.”
While the risk of miscalculation remains high, Prof El Mufti said there were too many parameters to consider to know what “the straw that breaks the camel’s back” would be.
“This is very new for Israel. They don’t have solutions and they’re unable to think outside the box,” he added.
“They only have violent solutions that won’t work in this case.” For this reason “the Israelis will lose it first given how Hezbollah has behaved throughout the conflict".
“I don’t see Hezbollah overreacting because they have more to lose than the Israelis,” Prof El Mufti said.
Despite losing about 300 fighters, Hezbollah has maintained a policy of restraint since October 8, when it launched its first attack on Israeli positions.
Meanwhile, Israel is more likely to be a catalyst for an all-out war “because they have nothing to lose", Prof El Mufti said.
"They’ve already broken so many boundaries regarding their relationship to the US and the world’s perception of them, disengaging with international law and the ICJ and ICC … and getting away with it so far.
“They’ve been avoiding civilian targets, showing they abide by international law even though they are not recognised internationally as a resistance except by [its allies] and the Lebanese state.”
With strong Iranian backing, Hezbollah is also eager to re-establish deterrence. On Tuesday the group released drone footage deep in Israeli territory, over the port city of Haifa and nearby cities.
The drone had filmed Israeli military and civilian locations, sending a powerful reminder that the group is capable of doing much more damage in Israel than it did in 2006 – but that it has thus far restrained itself.
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
Torque: 520Nm
Price: Dh332,800
On sale: now
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
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
The specs: 2018 Mercedes-Benz S 450
Price, base / as tested Dh525,000 / Dh559,000
Engine: 3.0L V6 biturbo
Transmission: Nine-speed automatic
Power: 369hp at 5,500rpm
Torque: 500Nm at 1,800rpm
Fuel economy, combined: 8.0L / 100km
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
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Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
The Specs
Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
On sale now
Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
Abu Dhabi Grand Slam Jiu-Jitsu World Tour Calendar 2018/19
July 29: OTA Gymnasium in Tokyo, Japan
Sep 22-23: LA Convention Centre in Los Angeles, US
Nov 16-18: Carioca Arena Centre in Rio de Janeiro, Brazil
Feb 7-9: Mubadala Arena in Abu Dhabi, UAE
Mar 9-10: Copper Box Arena in London, UK
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
If you go
Flights
Emirates flies from Dubai to Phnom Penh with a stop in Yangon from Dh3,075, and Etihad flies from Abu Dhabi to Phnom Penh with its partner Bangkok Airlines from Dh2,763. These trips take about nine hours each and both include taxes. From there, a road transfer takes at least four hours; airlines including KC Airlines (www.kcairlines.com) offer quick connecting flights from Phnom Penh to Sihanoukville from about $100 (Dh367) return including taxes. Air Asia, Malindo Air and Malaysian Airlines fly direct from Kuala Lumpur to Sihanoukville from $54 each way. Next year, direct flights are due to launch between Bangkok and Sihanoukville, which will cut the journey time by a third.
The stay
Rooms at Alila Villas Koh Russey (www.alilahotels.com/ kohrussey) cost from $385 per night including taxes.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059