Live updates: Follow the latest on Israel-Gaza
After 15 months of war that has destroyed most of Gaza and displaced 90 per cent of its 2.3 million people, Israel and Hamas have agreed to phase one of a ceasefire deal and hostage release plan.
The much-anticipated agreement is scheduled to take effect on Sunday, subject to the approval of the Israeli cabinet.
The three-phase deal promises the release of dozens of hostages held in Gaza by Hamas and hundreds of Palestinian detainees in Israel. It will allow hundreds of thousands of displaced Gazans to return to what remains of their homes and will also flood the territory with desperately needed humanitarian aid, mediators said.
The US, along with Egypt and Qatar, brokered months of indirect talks between Israel and Hamas that finally culminated in a deal.
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman said the success of the ceasefire would depend on the two sides “acting in good faith”. He spoke in the Qatari capital of Doha, the site of painstaking negotiations.
Complicating the picture, Israeli Prime Minister Benjamin Netanyahu said late on Wednesday that the agreement was still not complete and final details were being worked out.
Early on Thursday, his office followed up with a statement accusing Hamas of backtracking on an understanding that would have given Israel a veto over which detainees accused of murder are to be released. Mr Netanyahu said he told Israeli negotiators to stand firm on the earlier agreement, adding that the Israeli cabinet would not meet to discuss the deal until "mediators announce that Hamas has approved all the details".
Hamas senior official Ezzat Al Rashq said the group was committed to the deal.
Of about 240 people abducted by Hamas-led militants, nearly 100 remain in Gaza, although Israel’s military believes at least a third are dead.
The first phase of the ceasefire deal is expected to deliver an initial six-week halt in the fighting, along with the opening of negotiations on ending the war altogether.
Over those six weeks, 33 hostages – mostly women, children, older adults and the wounded – will be released in exchange for hundreds of Palestinian women and children detained by Israel. Remaining male captives will be freed in the second phase.
It remains unclear exactly when and how many displaced Palestinians will be able to return to their homes. There will be a surge in humanitarian aid deliveries to Gaza, with hundreds of lorries allowed in each day.
On the 16th day of the deal's implementation, negotiations will begin regarding the next stage, which will include the release of the remaining hostages. Israel will then withdraw its forces to a defensive belt that will serve as a buffer between Gaza and Israel.
The third stage of the deal will include returning the remains of dead hostages and a focus on the reconstruction of Gaza, supervised by Egypt, Qatar and the UN. Israel will be expected to fully withdraw from the territory.
The hostages were captured by Hamas on October 7, 2023 during an attack on southern Israel that killed around 1,200 people, triggering the war. The assault sparked an Israeli response that has killed more than 46,700 people and injured over twice that number, according to Gaza health authorities. Swathes of built-up areas in Gaza have been reduced to rubble, while dozens of Palestinians are still being killed daily.
It is unclear whether the ceasefire deal will bring a permanent end to the war. A key aim of Israel was to destroy the military and governing capacity of Hamas. The militant group has been severely weakened but is still able to operate and regroup.
It is also unknown how many of the hostages are alive, and if Hamas even knows where they all are. Deals between Israel and Hamas to stop wars in the past have broken down, indicating this agreement could be equally fragile.
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.”
Fireball
Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.
A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.
"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.
Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.
If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
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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
