Egyptian army soldiers guard their side of the Rafah crossing with Gaza. Chris Whiteoak / The National
Egyptian army soldiers guard their side of the Rafah crossing with Gaza. Chris Whiteoak / The National
Egyptian army soldiers guard their side of the Rafah crossing with Gaza. Chris Whiteoak / The National
Egyptian army soldiers guard their side of the Rafah crossing with Gaza. Chris Whiteoak / The National

Israel considers Egypt's proposals to settle Rafah and border dispute


Hamza Hendawi
  • English
  • Arabic

Live updates: Follow the latest on Israel-Gaza

Israel is considering Egyptian proposals for the withdrawal of its forces from the Palestinian side of the Egypt-Gaza border in exchange for security measures to stop the smuggling of weapons into the territory, sources told The National on Wednesday.

Israel in May captured the Palestinian side of the Rafah crossing, as well as a strip that runs the entire length of the Egypt-Gaza border, known as the Philadelphi Corridor. It said it has since destroyed underground tunnels that were being used by Hamas to smuggle weapons, funds and personnel from Egypt into the enclave.

Egypt has strongly rejected the allegations and responded to the Israeli capture of the two areas by closing the Rafah crossing, which had been the main channel for humanitarian aid going into to Gaza since Israel's war against Hamas started in October.

The sources said the Egyptian proposals include the phased construction of a giant wall along the 13km Gaza-Egypt border. The wall, they said, would stand six metres above ground and six underground, with the subterranean part serving as a barrier preventing the digging of new tunnels, according to the sources.

They said the wall would be fitted with cutting-edge security cameras and sensors.

For the Rafah crossing, Egypt’s proposals include overall UN supervision of a Palestinian administration of the Palestinian side, said the sources. That would be linked to but not directly from the West Bank-based Palestinian Authority headed by President Mahmoud Abbas. Hamas would not be involved.

Israel has yet to respond to the proposals, which Egyptian security officials and representatives of the Israeli domestic security agency Shin Bet have discussed over the past two weeks in Cairo, said the sources.

The collapsed minaret of a mosque following Israeli bombardment in Nuseirat in the central Gaza Strip on Wednesday. AFP
The collapsed minaret of a mosque following Israeli bombardment in Nuseirat in the central Gaza Strip on Wednesday. AFP

Their negotiations are conducted on a separate but related track to efforts by mediators from Egypt, the US and Qatar to broker a Gaza ceasefire, and a prisoner and hostage swap between Israel and Hamas.

Those negotiations are continuing through mid and high-level contacts between stakeholders but are not likely to see any significant movement before Israeli Prime Minister Benjamin Netanyahu’s visit to Washington later this month, said the sources.

The Associated Press on Wednesday quoted Cairo airport officials as saying an Israeli delegation had arrived in the Egyptian capital to resume talks. It did not identify the officials, but the sources had earlier said Shin Bet members were due in Cairo this week for talks on the Rafah crossing and the Philadelphi Corridor.

Settling the dispute over the Rafah crossing and the border strip is now a key part of any ceasefire and hostage-prisoner swap deal, said the sources. Both Egypt and Hamas insist there can be no deal without an Egyptian-Israeli agreement on the Gaza border crossing and the border strip.

However, Israel has in the past said it wants to retain control of the Gaza-Egypt border corridor and a say in the running of the Rafah crossing. It also seeks to retain the right to send back its troops to the area if necessary.

Israeli army vehicles transport a group of soldiers and journalists in the southern Gaza Strip. AFP
Israeli army vehicles transport a group of soldiers and journalists in the southern Gaza Strip. AFP

The dispute over the border crossing and corridor have further strained relations between Egypt and Israel, who are bound by a 1979 peace treaty sponsored by the US. Egypt has said it intended to join South Africa in its case presented to the International Court of Justice accusing Israel of genocide in Gaza.

However, the tension has not stopped Egyptian and Israeli officials from meeting on regular basis in a months-long bid to broker a Gaza ceasefire.

Egypt has traditionally attached significant importance to Gaza, considering the tiny enclave part of its national security sphere. It has been wary of the rise to power in Gaza of Hamas, whose brand of Islamic militancy mirrors that of Egyptian groups that have taken up arms against the government at intervals since the 1970s. Hamas has ruled Gaza alone since 2007 and is at loggerheads with the Palestinian Authority.

While Egypt follows a zero-tolerance policy at home towards political Islam, it has established close but pragmatic relations with Hamas in a bid to contain the group and ensure it does not forge an alliance with its home-grown militants.

Egypt, the most populous Arab nation with 106 million people, has for years been fighting militants in the north-east corner of the Sinai Peninsula abutting Gaza.

The war in Gaza was triggered by an attack on southern Israel by Hamas-led fighters who killed 1,200 people and took another 240 hostage. Israel responded with a relentless military campaign that has to date killed more than 38,800 Palestinians and injured more than twice that number.

The war has also displaced most of the enclave’s 2.3 million people and created a major humanitarian crisis.

Brief scoreline:

Manchester United 2

Rashford 28', Martial 72'

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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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  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
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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.

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3.

UAE

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T20 squad: Rohit Sharma (captain), Ruturaj Gaikwad, Shreyas Iyer, Surya Kumar Yadav, Sanju Samson, Ishan Kishan (wk), Venkatesh Iyer, Deepak Chahar, Deepak Hooda, Ravindra Jadeja, Yuzvendra Chahal, Ravi Bishnoi, Kuldeep Yadav, Mohammed Siraj, Bhuvneshwar Kumar, Harshal Patel, Jasprit Bumrah, Avesh Khan

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Where to buy art books in the UAE

There are a number of speciality art bookshops in the UAE.

In Dubai, The Lighthouse at Dubai Design District has a wonderfully curated selection of art and design books. Alserkal Avenue runs a pop-up shop at their A4 space, and host the art-book fair Fully Booked during Art Week in March. The Third Line, also in Alserkal Avenue, has a strong book-publishing arm and sells copies at its gallery. Kinokuniya, at Dubai Mall, has some good offerings within its broad selection, and you never know what you will find at the House of Prose in Jumeirah. Finally, all of Gulf Photo Plus’s photo books are available for sale at their show. 

In Abu Dhabi, Louvre Abu Dhabi has a beautiful selection of catalogues and art books, and Magrudy’s – across the Emirates, but particularly at their NYU Abu Dhabi site – has a great selection in art, fiction and cultural theory.

In Sharjah, the Sharjah Art Museum sells catalogues and art books at its museum shop, and the Sharjah Art Foundation has a bookshop that offers reads on art, theory and cultural history.

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