Palestinians carry bags of flour they grabbed from an aid truck near an Israeli checkpoint, as Gaza residents face crisis levels of hunger, amid the ongoing conflict between Israel and Hamas, in Gaza City, February 19, 2024. Reuters
Palestinians carry bags of flour they grabbed from an aid truck near an Israeli checkpoint, as Gaza residents face crisis levels of hunger, amid the ongoing conflict between Israel and Hamas, in Gaza City, February 19, 2024. Reuters
Palestinians carry bags of flour they grabbed from an aid truck near an Israeli checkpoint, as Gaza residents face crisis levels of hunger, amid the ongoing conflict between Israel and Hamas, in Gaza City, February 19, 2024. Reuters
Palestinians carry bags of flour they grabbed from an aid truck near an Israeli checkpoint, as Gaza residents face crisis levels of hunger, amid the ongoing conflict between Israel and Hamas, in Gaza

Gaza war: How Israel starved and strangled population for a year


Anjana Sankar
  • English
  • Arabic

Live updates: Follow the latest on Israel-Gaza

The Gaza war, which has dragged on for almost a year, has unleashed unprecedented death, destruction and mass displacement of the enclave's population.

What has turned this conflict into one of the most brutal of recent times is not only the scale of death and violence, but Israel’s ‘systematic obstruction’ of aid, international humanitarian agencies say.

Since the outbreak of hostilities on October 7, 2023 after militant group Hamas launched surprise attacks on Israel resulting in the deaths of more than 1,200 people and the kidnapping of 250, Gaza has borne the brunt of military retaliation.

The aerial bombardment and ground invasion have so far killed more than 41,700 people – mostly women and children – and destroyed two thirds of its infrastructure, including homes, schools, hospitals, even UN facilities.

For the 2.3 million people of Gaza, many of whom who were already dependent on humanitarian relief before the conflict, aid became the last straw in their battle for survival this past year.

Weaponisation of aid

But that critical supply of relief, international agencies say, has been systematically delayed, reduced, or outright denied to Gazans since the beginning of the war, a charge Israel vehemently denies. Prime Minister Benjamin Netanyahu says accusations of Israel limiting humanitarian aid were “outrageously false.”

“You can say anything – it doesn’t make it true,” he said in a press conference on Wednesday. But as the war drags on, Israel is continuing to manipulate aid, said the Norwegian Refugee Council.

Palestinians in Deir Al Balah receive food distributed by charity groups as Gaza faces a hunger crisis. Reuters
Palestinians in Deir Al Balah receive food distributed by charity groups as Gaza faces a hunger crisis. Reuters

Ahmed Bayram, communications adviser for the group, told The National the flow of aid into Gaza has "hit rock bottom", leaving more people facing starvation, disease and displacement. “The number of aid trucks going into Gaza is going down and down now, with an average of just 50 entering daily, far fewer than what is needed,” he said.

The UN independent investigator on the right to food, Michael Fakhri, has accused Israel of carrying out a “starvation campaign” against Palestinians. “Never in post-war history has a population been made to go hungry so quickly and so completely, as was the case for the 2.3 million Palestinians living in Gaza," he said this week.

A joint statement released by 15 international aid agencies said 83 per cent of the required food aid was not reaching the people as of September 2024. In August, more than one million people in southern and central Gaza did not receive any food rations, they added.

Medical supplies are also in need, with 65 per cent of the insulin required unavailable and half of the required blood supply undelivered, the statement read. This drastic reduction is having catastrophic consequences for the people of Gaza.

There is no soap, no shampoo. Some of our colleagues are using rags instead of sanitary napkins,” said Ruth James, regional humanitarian co-ordinator for Oxfam, who is currently in Gaza. Even those with money can't lay their hands on many items, she added. “In all of the south of Gaza, there is only one ATM that is functioning,” she said.

Collective punishment

Israel’s siege of Gaza and obstruction of aid represent what the UN has called “collective punishment”.

On October 9, 2023, two days after the Hamas attack, Israel’s Defence Minister Yoav Gallant announced a complete siege on Gaza. "There will be no electricity, no food, no fuel, everything is closed,” he said.

In the place of 500 aid and commercial lorries that were entering Gaza daily before the conflict began, the number by 75 per cent, according to aid groups. Fuel shortages also dipped to critical levels, with a huge gap between the estimated daily need of 400,000 litres for humanitarian purposes and fewer than 100,000 that is actually arriving.

As Israeli tanks pushed deeper into the northern parts of Gaza supported by a massive aerial bombing campaign, more than a million people were asked to move south. This first wave of mass displacement further squeezed humanitarian aid.

Mohammed Sadiq, a resident of Gaza city, said his children went without proper food for weeks after they moved southwards last October.

"You have to be lucky to find some bread or canned beans. There were long queues to get a small cup of soup. I had to see my children fall asleep on half-empty stomachs," Mr Sadiq told The National.

Aid agencies were faced with another challenge – a communication blockade when Israel cut off telephone and internet connections in Gaza. Louise Wateridge, spokeswoman for the agency for Palestinian refugees (UNRWA) told The National that the first 10 weeks of war "was utter chaos".

“We were in a situation where we could not even get in touch with our own colleagues on the ground,” she said.

Hunger and disease spread rapidly across the Gaza Strip within the first three months of the war, with the UN's Office for Co-ordination of Humanitarian Aid (Ocha) declaring in December that only 10 per cent of Gaza’s food needs were met in the first 70 days.

In a report issued in December, Human Rights Watch accused Israel of using starvation as a method of warfare by deliberately blocking the delivery of food, water and fuel into Gaza. The organisation warned this practice constituted a war crime under international law.

UN experts had warned about an impending famine in Gaza as early as May. Later in June, the findings from the Integrated Food Security Phase Classification (IPC) analysis, conducted from May 27 to June 4, said about 495,000 people – 22 per cent of the population – were experiencing the highest level of starvation, known as IPC Phase 5.

The report said about 2.1 million people, or 96 per cent of the population, would face high levels of acute food insecurity through to September.

UN experts later declared famine had spread across much of Gaza, particularly in the north, where Israel had focused much of its military campaign. On June 22, the government media office reported at least 34 children had already died of malnutrition.

The impact on health care has also been devastating, with Israel’s siege of hospitals, and detention of doctors and medical workers. By January, more than 600 healthcare workers had been killed, the World Health Organisation said, and 94 medical facilities had come under attack, including 26 hospitals and 79 ambulances.

Hunger when aid is plentiful

The biggest irony of the hunger crisis in Gaza is that Israel and the UN agencies agree there is enough aid to feed the population. But they disagree on whether it is reaching the people.

Israel's Co-ordinator of Government Activities in the Territories (Cogat) claims there is no famine in Gaza.

"One million tonnes of aid entered Gaza since the start of the war, 70 per cent was food," Cogat said last week in a post on X. The agency claims more than 3,000 calories per day per person has entered Gaza since January, citing an independent academic study.

Lorries carrying aid queue on the Egyptian side of the Rafah border crossing with the Gaza Strip. AFP
Lorries carrying aid queue on the Egyptian side of the Rafah border crossing with the Gaza Strip. AFP

"Over 53,989 trucks containing approximately 1,058,804 tonnes of humanitarian aid, including more than 819,943 tonnes of food and 51,350 tonnes of water, have been delivered to the Gaza Strip," a Cogat spokesman told The National.

He also claimed only 498 of 53,000 aid lorries had been denied entry due to containing dual-use items that require specific security evaluation to prevent their exploitation by Hamas for military purposes.

The spokesman said Israel has worked to expand routes through which aid can enter Gaza, including extending working hours of Kerem Shalom and the opening of new crossings such as Erez East, Erez West and Crossing 96.

Despite mounting international pressure and criticism, Israel argues the delays and shortages in aid distribution are the result of logistical failures on the part of the UN and other organisations, not a deliberate policy.

However, these claims have been disputed by numerous NGOs and aid agencies on the ground, which cite harsh inspections, restrictions on goods and exhaustively long delays in getting permits as a major obstacle to the smooth flow of aid.

Ruth James, Oxfam's regional humanitarian co-ordinator, told The National that lorries laden with food, water and medicine often sit for days at Israeli checkpoints, awaiting clearance that sometimes never comes. The process is fraught with rejection and delay, she said.

“Even basic items such as chlorine for water purification and bandages or scissors for hospitals have been held up or denied entry,” she said.

Ms Wateridge of UNRWA said her colleagues are forced to "constantly reinvent humanitarian response" on a day-to-day or weekly basis due to the constant displacement of people, the access restrictions and the changing security situation on the ground.

She said the turning point for humanitarian distribution was the closure of southern Rafah crossing point on May 6 that disrupted the "rhythm and routine" of aid flowing in.

"After Rafah was closed, aid agencies had to relocate to the middle areas. We had to move hospitals, solar panels, generators and warehouses."

The collapse of law and order in the north, and the increase in looting of lorries in the north, where Israel dismantled the existing security apparatus, also dealt a severe blow to the humanitarian response, she said.

Israel's chokehold on aid supply

Israel tightly controls entry and exit from Gaza by land, air and sea, meaning aid cannot enter without its approval. Lorries that enter through Kerem Shalom are checked at the southern border crossing before being driven to Rafah city, where distribution is organised.

Lorries entering through the Rafah crossing are first scanned at Nitzana in Israel and then sent back over to Al Owga in Egypt and driving to Rafah before entering Gaza.

Most aid has been entering by lorries arriving from Egyptian territory through Kerem Shalom, since Israel shut the Rafah border crossing, the only land route to cross from Egypt to Gaza, in early May.

The floating pier built by the US in May to increase the flow of humanitarian aid into Gaza was short-lived and was dismantled several times before being scrapped permanently in July, leaving the land crossing as the most viable form for aid entry.

Cogat said private groups are moving their supplies into Gaza from the Erez crossing, also known as Beit Hanoun, in the north, that connects the enclave to the occupied West Bank.

As the conflict drags on, agencies have expressed deep frustration over the failure of diplomacy to secure the unimpeded delivery of humanitarian aid.

"The biggest disappointment over the last year is that diplomacy has failed the people of Gaza," said Mr Bayram of the Norwegian Refugee Council. "If the big powers were serious about helping, they would have put more pressure on Israel to allow the free flow of aid."

Political analysts and humanitarian workers alike agree that without a ceasefire and a comprehensive peace agreement, the crisis will only deepen. With Israel expanding its military campaign into southern Gaza, and with the conflict threatening to spill over into Lebanon and Iran, hopes for a ceasefire are growing dim.

Meanwhile, as winter approaches, aid agencies are scrambling to provide shelter for the more than one million people who have been displaced numerous times. "We’re preparing for a harsh winter and shelters are desperately needed," said Ms Wateridge. "But at the rate we’re going, with the level of supply we’re able to move, it could take years to meet those needs."

Despite the overwhelming scale of the crisis, aid agencies say they remain steadfast in their efforts to reach the people of Gaza. “We have the people, we have the resources, we have the means. It is the restrictions that are stopping us,” said Ms James.

“We need to see the political will in removing the restrictions and allowing unimpeded aid into Gaza," she said. Twelve months into the war, as Gaza is teetering on the brink of collapse, people will continue to suffer, with no end in sight if free flow of aid is not restored, she said.

  • Smoke rises after Israeli air strikes targeted Palestine Tower in Gaza city on October 7, 2023. EPA
    Smoke rises after Israeli air strikes targeted Palestine Tower in Gaza city on October 7, 2023. EPA
  • Palestinians take control of an Israeli Merkava battle tank after crossing the border fence with Israel from Khan Yunis in the southern Gaza Strip on October 7, 2023. AFP
    Palestinians take control of an Israeli Merkava battle tank after crossing the border fence with Israel from Khan Yunis in the southern Gaza Strip on October 7, 2023. AFP
  • This video grab from footage released by the Israeli Hostage and Missing Families Forum campaign group on May 22 shows what the group described as Israeli female soldiers being captured by Palestinian Hamas militants during the October 7, 2023, attack on Israel. AFP
    This video grab from footage released by the Israeli Hostage and Missing Families Forum campaign group on May 22 shows what the group described as Israeli female soldiers being captured by Palestinian Hamas militants during the October 7, 2023, attack on Israel. AFP
  • Smoke rises following an Israeli air strike in Gaza city on October 9, 2023. EPA
    Smoke rises following an Israeli air strike in Gaza city on October 9, 2023. EPA
  • A rocket is launched from the coastal Gaza strip towards Israel by militants of the Ezz Al-Din Al Qassam militia, the military wing of Hamas movement, in Gaza city. EPA
    A rocket is launched from the coastal Gaza strip towards Israel by militants of the Ezz Al-Din Al Qassam militia, the military wing of Hamas movement, in Gaza city. EPA
  • Israel's Iron Dome anti-missile system intercepts rockets launched from the Gaza Strip, as seen from the city of Ashkelon, Israel, on October 9, 2023. Reuters
    Israel's Iron Dome anti-missile system intercepts rockets launched from the Gaza Strip, as seen from the city of Ashkelon, Israel, on October 9, 2023. Reuters
  • Lightning strikes as smoke billows following an Israeli air strike in Gaza city on October 9, 2023. AFP
    Lightning strikes as smoke billows following an Israeli air strike in Gaza city on October 9, 2023. AFP
  • An Israeli artillery unit fires at an area along the border with Gaza, southern Israel, on October 11, 2023. EPA
    An Israeli artillery unit fires at an area along the border with Gaza, southern Israel, on October 11, 2023. EPA
  • Ultra-Orthodox Jewish people carry their belongings before boarding a ship for US nationals and their immediate family members, as they leave Israel headed for Cyprus. Reuters
    Ultra-Orthodox Jewish people carry their belongings before boarding a ship for US nationals and their immediate family members, as they leave Israel headed for Cyprus. Reuters
  • Palestinian youths take cover behind a rubbish container as they clash with Israeli forces at the northern entrance of the West Bank city of Ramallah near the Israeli settlement of Beit El on October 20, 2023. AFP
    Palestinian youths take cover behind a rubbish container as they clash with Israeli forces at the northern entrance of the West Bank city of Ramallah near the Israeli settlement of Beit El on October 20, 2023. AFP
  • A man mourns as he attends a funeral of Palestinians killed in Israeli strikes in Khan Younis in the southern Gaza Strip on October 24, 2023. Reuters
    A man mourns as he attends a funeral of Palestinians killed in Israeli strikes in Khan Younis in the southern Gaza Strip on October 24, 2023. Reuters
  • A man holds a child, survivors of Israeli bombardment, as they are treated at a trauma ward at Nasser hospital in Khan Yunis in the southern Gaza Strip on October 24, 2023. AFP
    A man holds a child, survivors of Israeli bombardment, as they are treated at a trauma ward at Nasser hospital in Khan Yunis in the southern Gaza Strip on October 24, 2023. AFP
  • People search for survivors and the bodies of victims through the rubble of buildings destroyed during Israeli bombardment in Khan Yunis in the southern Gaza Strip on October 26, 2023. AFP
    People search for survivors and the bodies of victims through the rubble of buildings destroyed during Israeli bombardment in Khan Yunis in the southern Gaza Strip on October 26, 2023. AFP
  • Anti-war protesters raise their 'bloody' hands behind US Secretary of State Antony Blinken during a Senate Appropriations Committee hearing on President Biden's $106 billion national security supplemental funding request to support Israel and Ukraine, as well as bolster border security, on Capitol Hill in Washington on October 31, 2023. Reuters
    Anti-war protesters raise their 'bloody' hands behind US Secretary of State Antony Blinken during a Senate Appropriations Committee hearing on President Biden's $106 billion national security supplemental funding request to support Israel and Ukraine, as well as bolster border security, on Capitol Hill in Washington on October 31, 2023. Reuters
  • Palestinians run for cover after a strike near the Al Shifa hospital in Gaza city on November 1, 2023. AFP
    Palestinians run for cover after a strike near the Al Shifa hospital in Gaza city on November 1, 2023. AFP
  • Palestinian children run as they flee from Israeli bombardment in Rafah in the southern Gaza Strip on November 6, 2023. AFP
    Palestinian children run as they flee from Israeli bombardment in Rafah in the southern Gaza Strip on November 6, 2023. AFP
  • An injured Palestinian woman covered in dust and blood hugs an injured girl child at the hospital following the Israeli bombardment of Khan Yunis in the southern Gaza Strip on November 15, 2023. AFP
    An injured Palestinian woman covered in dust and blood hugs an injured girl child at the hospital following the Israeli bombardment of Khan Yunis in the southern Gaza Strip on November 15, 2023. AFP
  • Hostages released by Hamas Gal, left, and Tal Almog-Goldstein, second left, stand in a bus transporting them to an army base in Ofakim in southern Israel after they were released by the Palestinian militant group from the Gaza Strip on November 26, 2023. AFP
    Hostages released by Hamas Gal, left, and Tal Almog-Goldstein, second left, stand in a bus transporting them to an army base in Ofakim in southern Israel after they were released by the Palestinian militant group from the Gaza Strip on November 26, 2023. AFP
  • Palestinian boys stand in their makeshift tent at a camp set up on a schoolyard in Rafah in the southern Gaza Strip where most civilians have taken refuge, on December 13, 2023. AFP
    Palestinian boys stand in their makeshift tent at a camp set up on a schoolyard in Rafah in the southern Gaza Strip where most civilians have taken refuge, on December 13, 2023. AFP
  • Palestinians fleeing the north through the Salaheddin road in the Zeitoun district on the southern outskirts of Gaza city, walk past Israeli army tanks on November 24, 2023. AFP
    Palestinians fleeing the north through the Salaheddin road in the Zeitoun district on the southern outskirts of Gaza city, walk past Israeli army tanks on November 24, 2023. AFP
  • In this picture taken during a media tour organised by the Israeli military on December 15, 2023, soldiers visit a tunnel that Hamas reportedly used to attack Israel through the Erez border crossing on October 7. AFP
    In this picture taken during a media tour organised by the Israeli military on December 15, 2023, soldiers visit a tunnel that Hamas reportedly used to attack Israel through the Erez border crossing on October 7. AFP
  • Jewish protesters block the passage of aid trucks being sent to Gaza in Ashdod, Israel on February 1, 2024. Reuters
    Jewish protesters block the passage of aid trucks being sent to Gaza in Ashdod, Israel on February 1, 2024. Reuters
  • A man pulls water containers as he walks past destroyed buildings in Khan Younis on May 5, 2024. AFP
    A man pulls water containers as he walks past destroyed buildings in Khan Younis on May 5, 2024. AFP
  • Relatives of Hanan Yablonka, one of the Israeli hostages held in the Gaza Strip since the October 7, 2023 attack by Palestinian Hamas militants, mourn during his funeral in Tel Aviv on May 26. AFP
    Relatives of Hanan Yablonka, one of the Israeli hostages held in the Gaza Strip since the October 7, 2023 attack by Palestinian Hamas militants, mourn during his funeral in Tel Aviv on May 26. AFP
  • Humanitarian aid packages land after being dropped from a plane in Al Mawasi district of Khan Younis, on May 30, 2024. Reuters
    Humanitarian aid packages land after being dropped from a plane in Al Mawasi district of Khan Younis, on May 30, 2024. Reuters
  • Palestinians attend Eid al-Adha prayer in Khan Younis town, southern Gaza strip, on June 16. EPA
    Palestinians attend Eid al-Adha prayer in Khan Younis town, southern Gaza strip, on June 16. EPA
  • Displaced Palestinians play football in Jabalia on July 23, 2024. AFP
    Displaced Palestinians play football in Jabalia on July 23, 2024. AFP
  • Palestinians injured in an Israeli strike on a school ride on the back of a cart in Deir Al Balah on July 27, 2024. AFP
    Palestinians injured in an Israeli strike on a school ride on the back of a cart in Deir Al Balah on July 27, 2024. AFP
  • Palestinians gather to receive food cooked by a charity kitchen, amid the Israel-Hamas conflict, in the northern Gaza Strip, September 11. Reuters
    Palestinians gather to receive food cooked by a charity kitchen, amid the Israel-Hamas conflict, in the northern Gaza Strip, September 11. Reuters
  • Palestinians survey the damage at the site of Israeli strikes on a displacement camp in Khan Younis on September 10, 2024. AFP
    Palestinians survey the damage at the site of Israeli strikes on a displacement camp in Khan Younis on September 10, 2024. AFP
  • A medical staff member carries supplies through a destroyed section of Al Shifa hospital in Gaza city on September 17. AFP
    A medical staff member carries supplies through a destroyed section of Al Shifa hospital in Gaza city on September 17. AFP
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    People walk past makeshift graves in Gaza city on September 17. AFP

The Transfiguration

Director: Michael O’Shea

Starring: Eric Ruffin, Chloe Levine

Three stars

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The specs: 2018 Maxus T60

Price, base / as tested: Dh48,000

Engine: 2.4-litre four-cylinder

Power: 136hp @ 1,600rpm

Torque: 360Nm @ 1,600 rpm

Transmission: Five-speed manual

Fuel consumption, combined: 9.1L / 100km

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Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

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Company profile

Date started: January, 2014

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Based: Dubai

Sector: Education technology

Size: Five employees

Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.

Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)

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THE SPECS

Engine: 3.9-litre twin-turbo V8

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Torque: 770Nm

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Price: Dh1,000,885

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5pm: Handicap (PA) | Dh80,000 | 1,600 metres

Winner: Dasan Da, Saeed Al Mazrooei (jockey), Helal Al Alawi (trainer)

5.30pm: Maiden (PA) | Dh80,000 | 1,600m

Winner: AF Saabah, Tadhg O’Shea, Ernst Oertel

6pm: Handicap (PA) | Dh80,000 | 1,600m

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6.30pm: Handicap (PA) | Dh80,000 | 2,200m

Winner: MH Tawag, Richard Mullen, Elise Jeanne

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Winner: RB Inferno, Fabrice Veron, Ismail Mohammed

7.30pm: Handicap (TB) | Dh100,000 | 1,600m

Winner: Juthoor, Jim Crowley, Erwan Charpy

ALL THE RESULTS

Bantamweight

Siyovush Gulmomdov (TJK) bt Rey Nacionales (PHI) by decision.

Lightweight

Alexandru Chitoran (ROU) bt Hussein Fakhir Abed (SYR) by submission.

Catch 74kg

Omar Hussein (JOR) bt Tohir Zhuraev (TJK) by decision.

Strawweight (Female)

Seo Ye-dam (KOR) bt Weronika Zygmunt (POL) by decision.

Featherweight

Kaan Ofli (TUR) bt Walid Laidi (ALG) by TKO.

Lightweight

Abdulla Al Bousheiri (KUW) bt Leandro Martins (BRA) by TKO.

Welterweight

Ahmad Labban (LEB) bt Sofiane Benchohra (ALG) by TKO.

Bantamweight

Jaures Dea (CAM) v Nawras Abzakh (JOR) no contest.

Lightweight

Mohammed Yahya (UAE) bt Glen Ranillo (PHI) by TKO round 1.

Lightweight

Alan Omer (GER) bt Aidan Aguilera (AUS) by TKO round 1.

Welterweight

Mounir Lazzez (TUN) bt Sasha Palatkinov (HKG) by TKO round 1.

Featherweight title bout

Romando Dy (PHI) v Lee Do-gyeom (KOR) by KO round 1.

UAE%20Warriors%2045%20Results
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THE%20HOLDOVERS
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'Saand Ki Aankh'

Produced by: Reliance Entertainment with Chalk and Cheese Films
Director: Tushar Hiranandani
Cast: Taapsee Pannu, Bhumi Pednekar, Prakash Jha, Vineet Singh
Rating: 3.5/5 stars

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206.5-litre%20V12%20and%20three%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E1%2C015hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C500Nm%20(estimate)%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Early%202024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh2%20million%20(estimate)%3C%2Fp%3E%0A
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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.”

MATCH INFO

What: Brazil v South Korea
When: Tonight, 5.30pm
Where: Mohamed bin Zayed Stadium, Abu Dhabi
Tickets: www.ticketmaster.ae

RIVER%20SPIRIT
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3ELeila%20Aboulela%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Saqi%20Books%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20320%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
%3Cp%3EBy%202030%2C%20Abu%20Dhabi%20aims%20to%20achieve%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%2039.3%20million%20visitors%2C%3C%2Fstrong%3E%20nearly%2064%25%20up%20from%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%20Dh90%20billion%20contribution%20to%20GDP%2C%3C%2Fstrong%3E%20about%2084%25%20more%20than%20Dh49%20billion%20in%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%20178%2C000%20new%20jobs%2C%3C%2Fstrong%3E%20bringing%20the%20total%20to%20about%20366%2C000%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%2052%2C000%20hotel%20rooms%2C%3C%2Fstrong%3E%20up%2053%25%20from%2034%2C000%20in%202023%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%207.2%20million%20international%20visitors%2C%3C%2Fstrong%3E%20almost%2090%25%20higher%20compared%20to%202023's%203.8%20million%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%E2%80%A2%203.9%20international%20overnight%20hotel%20stays%2C%3C%2Fstrong%3E%2022%25%20more%20from%203.2%20nights%20in%202023%3C%2Fp%3E%0A

Price, base / as tested From Dh173,775 (base model)
Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km

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

Updated: October 06, 2024, 2:38 PM