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Hezbollah on Tuesday declared its support for a ceasefire with Israel without tying it to a truce in Gaza for the first time, signalling a significant shift in the group's stance after heavy setbacks.
In a speech from an undisclosed location, deputy leader Naim Qassem said the Iran-backed militant group was open to discussing postwar conditions in Lebanon once a ceasefire is established.
“We support political efforts … which work towards a ceasefire,” he said in his second speech since long-time Hezbollah leader Hassan Nasrallah was assassinated by Israel 11 days ago.
It is the first time Hezbollah has publicly said it supports a ceasefire without directly linking it to a similar agreement in Gaza.
Mr Qassem's comments come as the US is reportedly moving away from pushing for a ceasefire agreement, with officials telling CNN the White House is looking to “shape” Israel's invasion of Lebanon rather than halt it altogether.
Hezbollah, Iran's main proxy group in the Middle East, has suffered severe blows in the past few weeks, from the assassination of its leadership to the explosion of booby-trapped pagers and walkie-talkies used by members to air strikes hitting its premises in Lebanon and Syria.
While the group attempts to rebuild, Israel has launched a ground invasion into south Lebanon in a bid to destroy Hezbollah's military capabilities and infrastructure in the region, which the group has been building up since the 2006 war with Israel, including tunnels and rocket launchers.
Despite the killings of its commanders, Mr Qassem stressed that fighters loyal to the group were still able to fire missiles towards Israel, push against the ground invasion and even defeat the Israeli army. Israel's military losses “could become a precursor for the end of the war”, he added. At least 10 Israeli soldiers have been killed in south Lebanon since the invasion started last week.
Mr Qassem insisted the assassinated commanders had already been replaced, saying the Hezbollah party, which has an influential political arm in Lebanon, would elect a new secretary general at the right time.
Hezbollah's battle with Israel is about “who screams first”, he said. “We will not scream.”
About 60,000 Israelis have been displaced from the north since the conflict began a year ago. Israeli Prime Minister Benjamin Netanyahu says the aim of the conflict with Hezbollah, which the group started one year ago in support of its ally Hamas in Gaza, is to ensure the return of the residents to their homes.
“Netanyahu says he wants to return the settlers … but multiple times more will be displaced,” Mr Qassem said.
A western diplomat and Lebanese political sources told The National last week that Hezbollah had agreed to an internationally brokered ceasefire with Israel only a day before Mr Nasrallah was killed on September 27. Israel had initially agreed to the ceasefire but later “caught mediators off guard” by assassinating Nasrallah and intensifying its attacks on Lebanon, the sources said.
Before the negotiations, Hezbollah reaffirmed it would press on with its attacks as long as there is no ceasefire in Gaza, linking the fate of the Lebanese front to a truce in the Palestinian enclave. However, the diplomatic source said Israel's announcement of a low-intensity phase in Gaza was meant to provide an opportunity for the Iran-backed group to agree to the proposed deal.
France, along with the US through its special envoy Amos Hochstein, led talks for border de-escalation throughout the year. These discussions involved the implementation of UN Resolution 1701, which ended the 2006 war between Israel and Hezbollah on both sides of the border.
The resolution called for Hezbollah to withdraw to the north of the Litani river, 30km from the border, and for the Lebanese Army to be stationed in the south, while Israel was to stop breaching Lebanon's airspace. This was intended to pave the way for the demarcation of the disputed land border between the two countries.
“All details can be discussed and decided upon reaching a ceasefire,” Mr Qassem said, opening the door for negotiations regarding the day-after situation at the border region.
More troops to the south
Shortly after his speech, the Israeli military said 85 projectiles had been launched from Lebanon towards Haifa, the largest barrage since the start of the war. The army did not say how many of the rockets were shot down, but Israeli media reported shrapnel and rockets falling in the city, causing damage. There were injuries, Israel’s ambulance service said.
A woman in her 70s was struck on the arm by shrapnel that caused a “mild to moderate” injury, the ambulance service said. Six others were injured while seeking shelter.
Haifa is one of Israel's largest cities and home to infrastructure that Hezbollah has consistently said is in its sights. Video showed smoke streaming across the skies above the city as Israel’s vast air defence network engaged the projectiles. Smoke could then be seen rising from the city after a few rockets made it through.
The Lebanese group claimed responsibility for the attack, saying it was in response to the “barbaric Israeli violation” of Lebanese cities and villages. Around the same time, the Israeli military announced it had carried out strikes against Hezbollah in Beirut's southern suburbs.
Earlier on Tuesday, the Israeli army claimed an air strike on Beirut had killed Sohil Hossein Hosseini, head of Hezbollah's logistical headquarters, in Lebanon.
Mr Hosseini was a member of the group's Jihad Council and oversaw weapons transfers from Iran, the army said on X. It claimed he was involved in managing “the most sensitive parts of the organisation”, including war plans. Hezbollah has yet to comment on the Israeli claims.
Israel's announcement came as it continued attacking Lebanon overnight, striking across the south and Baalbek in the east. Dawn air strikes were reported in the southern district of Tyre and the Nabatiyeh village of Arabsalim. On Monday, the Israeli army issued an eviction order to residents to avoid the coastline south of the Awali river, north of Sidon, effectively cutting off the southern third of the country from the rest of Lebanon.
The Israeli army announced a fourth army division had been mobilised to join the ground invasion of Lebanon. The 146th Reserve Unit was sent to south-western Lebanon overnight, joining three divisions operating in central and eastern parts of the south. The 146th is the first group of combat reserves to join the invasion and has been deployed in Gaza and the occupied West Bank.
More than 2,000 people have been killed in Israeli attacks across Lebanon since cross-border fighting began on October 8 last year. At least 1,400 of them have been killed in the past three weeks as Israel intensified aerial attacks and launched a subsequent ground invasion.
Entire families have been killed in bombardments that have flattened residential buildings, while Israel has also killed several senior Hezbollah officials, most notably leader Hassan Nasrallah.
A year after Hezbollah attacked Israeli forces in support of Hamas, the UN and its peacekeeping mission in the country said in a joint statement that further violence and destruction will neither solve the underlying issues nor make anyone safer.
“Quite the opposite,” said Jeanine Hennis-Plasschaert, the UN's Special Co-ordinator for Lebanon, and Gen Aroldo Lazaro, the head of peacekeeping force Unifil. “A negotiated solution is the only pathway to restore the security and stability that civilians on both sides so desperately want and deserve. The time to act accordingly is now.”
The Lebanese Armed Forces has insisted it will continue its duties despite recent Israeli attacks that led to the death of two soldiers. In a statement, the LAF said soldiers continued to be stationed across Lebanon, including in the areas that border Israel, have been subjected to intense shelling and remain in close co-ordination with Unifil.
While Lebanon and Israel are enemy states, the LAF and the state have stayed away from the clashes.
The developments came as diplomat Lolwah Al Khater, Qatar's Minister of State for International Co-operation at the Ministry of Foreign Affairs, was due to arrive in Beirut on Tuesday.
Racecard
6.35pm: The Madjani Stakes – Group 2 (PA) Dh97,500 (Dirt) 1,900m
7.10pm: Evidenza – Handicap (TB) Dh87,500 (D) 1,200m
7.45pm: The Longines Conquest – Maiden (TB) Dh82,500 (D) 2,000m
8.20: The Longines Elegant – Conditions (TB) Dh82,500 (D)
8.35pm: The Dubai Creek Mile – Listed (TB) Dh132,500 (D) 1,600m
9.30pm: Mirdif Stakes – Conditions (TB) Dh120,000 (D) 1,400m
10.05pm: The Longines Record – Handicap (TB) Dh87,500 (D) 1,900m
Specs
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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
Killing of Qassem Suleimani
'Champions'
Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
Visa changes give families fresh hope
Foreign workers can sponsor family members based solely on their income
Male residents employed in the UAE can sponsor immediate family members, such as wife and children, subject to conditions that include a minimum salary of Dh 4,000 or Dh 3,000 plus accommodation.
Attested original marriage certificate, birth certificate of the child, ejari or rental contract, labour contract, salary certificate must be submitted to the government authorised typing centre to complete the sponsorship process
In Abu Dhabi, a woman can sponsor her husband and children if she holds a residence permit stating she is an engineer, teacher, doctor, nurse or any profession related to the medical sector and her monthly salary is at least Dh 10,000 or Dh 8,000 plus accommodation.
In Dubai, if a woman is not employed in the above categories she can get approval to sponsor her family if her monthly salary is more than Dh 10,000 and with a special permission from the Department of Naturalization and Residency Dubai.
To sponsor parents, a worker should earn Dh20,000 or Dh19,000 a month, plus a two-bedroom accommodation
Results
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If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
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Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
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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
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
FULL%20FIGHT%20CARD
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((Disclaimer))
The Liechtensteinische Landesbank AG (“Bank”) assumes no liability or guarantee for the accuracy, balance, or completeness of the information in this publication. The content may change at any time due to given circumstances, and the Liechtensteinische Landesbank AG is under no obligation to update information once it has been published. This publication is intended for information purposes only and does not constitute an offer, a recommendation or an invitation by, or on behalf of, Liechtensteinische Landesbank (DIFC Branch), Liechtensteinische Landesbank AG, or any of its group affiliates to make any investments or obtain services. This publication has not been reviewed, disapproved or approved by the United Arab Emirates (“UAE”) Central Bank, Dubai Financial Services Authority (“DFSA”) or any other relevant licensing authorities in the UAE. It may not be relied upon by or distributed to retail clients. Liechtensteinische Landesbank (DIFC Branch) is regulated by the DFSA and this advertorial is intended for Professional Clients (as defined by the DFSA) who have sufficient financial experience and understanding of financial markets, products or transactions and any associated risks.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
ALRAWABI%20SCHOOL%20FOR%20GIRLS
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Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Ogram%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Karim%20Kouatly%20and%20Shafiq%20Khartabil%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20On-demand%20staffing%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2050%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3EMore%20than%20%244%20million%3Cbr%3E%3Cstrong%3EFunding%20round%3A%3C%2Fstrong%3E%20Series%20A%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EGlobal%20Ventures%2C%20Aditum%20and%20Oraseya%20Capital%3Cbr%3E%3C%2Fp%3E%0A
Heather, the Totality
Matthew Weiner,
Canongate
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.”
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.