Demonstrators outside the Green Zone in Baghdad, which houses the US Embassy, during a protest against Israeli attacks on Iran. AP
Demonstrators outside the Green Zone in Baghdad, which houses the US Embassy, during a protest against Israeli attacks on Iran. AP
Demonstrators outside the Green Zone in Baghdad, which houses the US Embassy, during a protest against Israeli attacks on Iran. AP
Demonstrators outside the Green Zone in Baghdad, which houses the US Embassy, during a protest against Israeli attacks on Iran. AP

How the Iran-Israel war is viewed in each neighbouring country



The war between Iran and Israel has intensified into an aerial conflict, prompting concerns in Levant countries about its effects on internal stability and their strategic positions.

Iraq has condemned the Israeli strikes on Friday that ignited the war. Despite their sharp political differences with Iran, both Jordan and Egypt have also accused Israel of violating international law and threatening regional security.

Only Syria has remained silent. A dramatic regime change in Damascus last year has ushered in the political ascendancy of Syria’s majority Sunnis and undermined Iran’s cross-border military reach.

Here is how the conflict is viewed in each of the region’s capitals:

Damascus

A source close to the country’s new rulers said that the Israeli attacks on Iran, the main regional backer of the former Assad regime, are seen as “positive” because they undermine Iran’s ability to destabilise Syria as it emerges from decades of hostility towards Washington.

Strengthening Damascus as a bulwark against Iran and possibly drawing the country into the Abraham Accords were the main reasons behind US normalisation with Damascus last month, according to American officials.

President Ahmad Al Shara does not want Iranian proxies, who had free rein in Syria until the removal of the regime in December, to penetrate the country again and launch attacks on Israel, the source said.

Remains of a drone that fell in the northern fields of Jasim city, near Daraa, in south-western Syria. AFP
Remains of a drone that fell in the northern fields of Jasim city, near Daraa, in south-western Syria. AFP

A week before the Israel-Iran war, a small group in southern Syria that once formed part of Iran’s regional network, was suspected of carrying out a rocket attack on an Israeli-occupied area in the Golan Heights, drawing Israeli retaliation against Syrian military targets.

“For Al Shara, Israel is targeting its most dangerous enemy. Issues with Israel can always be negotiated. But for him, Iran is personal,” the source said.

Amman

Jordan has trodden carefully whenever conflicts involving Israel have erupted since the two countries signed a peace treaty in 1994. The kingdom also has a defence pact with the United States that governs the presence of 3,800 American soldiers in the country.

Its population, however, contains a large proportion of people of Palestinian origin, and anti-Israeli sentiment pervades the public discourse. Officials have shied away from public criticism of Iran despite viewing Tehran and its proxies as a threat to the stability of the system.

In his first public comments on the conflict, Jordan’s King Abdullah said on Sunday that the country will not be a theatre of war and will not allow anyone to interfere with its internal stability, in an apparent warning to groups that might try to attack the country or US interests.

Iranian missiles hit Haifa in latest wave of attacks

Amid the Gaza war in January last year, a drone attack in north-eastern Jordan by a Shiite militia in Iraq supported by Tehran killed three US soldiers. The attack was seen as part of the Iranian response to the Israeli invasion of Gaza, but also retaliation for the assassination of Iranian military officials in Syria.

As soon as Iran started retaliating against Israel on Friday, Jordan announced that its air force had intercepted missiles and drones entering its airspace. A military official later said the projectiles were heading from east to west, in a clear indication that they were Iranian.

Baghdad

Iraq, which is among the world’s biggest oil exporters but imports virtually everything else, is one of the nations most vulnerable to the fallout from the escalating conflict between Israel and Iran. This is largely because of the government’s weak influence on myriad Iran-backed groups in the country.

On the security front, Iraq faces the risk of becoming a battleground for proxy warfare. There are fears that it could be pulled deeper into this confrontation if the Tehran-allied militias choose to join.

On Friday, the powerful militias said they would enter the conflict only if US forces based in Iraq intervened to support Israel. However, one group declared on Monday that it will join the fight, vowing to attack Israel and “anyone who supports it” in Iraq and the region.

A reassertion of military sway over foreign policy also threatens Iraq’s delicate balancing act between maintaining relations with both Iran and the West, particularly the US, and undermines its efforts to assert sovereignty and pursue an independent foreign policy.

A demonstrator in Basra, Iraq, waves an Iranian flag during a protest against Israel's attack. AFP
A demonstrator in Basra, Iraq, waves an Iranian flag during a protest against Israel's attack. AFP

Economically, the war could affect a process of recovery dating back to the low oil prices of five years ago. If the conflict expands and Iran closes the Strait of Hormuz, financial returns from Baghdad’s oil sales could again plummet, plunging the country into another crisis.

Past pressures on Tehran have also weakened the Iraqi dinar, which is trading at around 1,300 to the US dollar. Whenever Tehran has become more isolated, Iranians have bought what is known as the “cheap dollar” from Iraq, causing foreign currency scarcity in Iraq and undermining the dinar.

Beirut

Unlike Iraq, Lebanon’s Hezbollah, once Iran's go-to militia in Tehran’s so-called asymmetrical warfare against its foes, has indicated no desire to enter the fray, although it has kept up anti-Israeli rhetoric. Its military might has taken a blow after the 14-month war with Israel, causing it to lose its footing. Since its military defeat, western and Lebanese leaders have been working towards disarming the once-powerful group.

Israel understands only the language of “killing, fire, and destruction”, Hezbollah said in a statement following Israel’s initial assault on Iran. However, Riad Kahwaji, head of the Institute for Near East and Gulf Military Analysis, said the group is constrained and in no position currently to support Iran.

“Hezbollah has taken a very strong beating. Its capability has diminished considerably,” Mr Kahwaji said.

Meanwhile, Lebanese officials have fielded US and European warnings against allowing Lebanese territory to be used to support Iran. Hezbollah has been receptive to the pressure, with one of its officials telling Reuters last week that it would “not initiate its own attack on Israel in retaliation for Israel’s strikes”.

Still, an Israeli drone buzzed over Beirut at low altitude on Monday, its incessant noise overlaying the urban sounds of the capital. The message was clear: although Israel is busy fighting a high-stakes war with Iran, it can still cause significant destruction in the already devastated Lebanon.

Cairo

Egypt, home to the Suez Canal, is mainly worried about any spillover that could disrupt global shipping, as well as imports of commodities and energy.

The government, as indicated by emergency meetings it has convened, fears that Iran could retaliate against Israel by closing vital maritime chokepoints such as the Strait of Hormuz or Bab Al Mandeb, which could disrupt access to the Suez Canal.

Egypt is import-dependent and has limited sources for foreign currency, so it is particularly vulnerable to disruptions in food, fuel and other essential goods. On Sunday, the Federation of Chambers of Commerce issued a statement reassuring citizens that Egypt had strategic reserves to cover its needs for six to 12 months.

Markets tumble amid escalating Iran-Israel conflict

Moreover, Egypt’s energy security is under threat after Israel suspended natural gas exports to it due to the deteriorating security situation. With high summer temperatures driving higher energy demand, this could lead to power shortages and rolling blackouts, a politically sensitive problem that sparked a public backlash as recently as 2023.

Militarily, Egypt has put its armed forces on heightened alert, conducting nationwide air defence drills to ensure readiness. The Sinai Peninsula, which borders Israel, is on maximum alert, reflecting Cairo’s fear of further spillover from the conflict.

Incidents of stray projectiles landing on Egyptian territory, as seen with the Iranian-backed Houthis’ misfired rockets, have further underscored Egypt’s vulnerability.

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BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

How to come clean about financial infidelity
  • Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
  • Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help. 
  • Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
  • Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
  • Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported. 

Carol Glynn, founder of Conscious Finance Coaching

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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Bert van Marwijk factfile

Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder

Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia

Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands

COMPANY%20PROFILE
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Meatless Days
Sara Suleri, with an introduction by Kamila Shamsie
​​​​​​​Penguin 

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%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Dooda%20Solutions%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Lebanon%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ENada%20Ghanem%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20AgriTech%0D%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%24300%2C000%20in%20equity-free%20funding%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2011%3C%2Fp%3E%0A
The specs: 2018 Peugeot 5008

Price, base / as tested: Dh99,900 / Dh134,900

Engine: 1.6-litre turbocharged four-cylinder

Transmission: Six-speed automatic

Power: 165hp @ 6,000rpm

Torque: 240Nm @ 1,400rpm

Fuel economy, combined: 5.8L / 100km

Tentative schedule of 2017/18 Ashes series

1st Test November 23-27, The Gabba, Brisbane

2nd Test December 2-6, Adelaide Oval, Adelaide

3rd Test Dcember 14-18, Waca, Perth

4th Test December 26-30, Melbourne Cricket Ground, Melbourne

5th Test January 4-8, Sydney Cricket Ground, Sydney

Last-16

France 4
Griezmann (13' pen), Pavard (57'), Mbappe (64', 68')

Argentina 3
Di Maria (41'), Mercado (48'), Aguero (90 3')

PFA Team of the Year: David de Gea, Kyle Walker, Jan Vertonghen, Nicolas Otamendi, Marcos Alonso, David Silva, Kevin De Bruyne, Christian Eriksen, Harry Kane, Mohamed Salah, Sergio Aguero

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

Company profile

Company name: Suraasa

Started: 2018

Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker

Based: India, UAE and the UK

Industry: EdTech

Initial investment: More than $200,000 in seed funding

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.”

Past winners of the Abu Dhabi Grand Prix

2016 Lewis Hamilton (Mercedes-GP)

2015 Nico Rosberg (Mercedes-GP)

2014 Lewis Hamilton (Mercedes-GP)

2013 Sebastian Vettel (Red Bull Racing)

2012 Kimi Raikkonen (Lotus)

2011 Lewis Hamilton (McLaren)

2010 Sebastian Vettel (Red Bull Racing)

2009 Sebastian Vettel (Red Bull Racing)

 

Countries recognising Palestine

France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra

 

Updated: June 18, 2025, 10:11 AM