Yemen's Houthi rebels warned airlines on Sunday that flights to Israel are “unsafe” after a drone attack breached Israeli air defences and shut down the southern Ramon Airport.
Two people were injured as shrapnel fell at the airport near the southern city of Eilat. Israel closed its airspace in the area before the military allowed flights to resume on Sunday evening.
The Israeli army said several drones were fired towards its territory from Yemen on Sunday. Some were intercepted, but one drone “fell in the Ramon Airport area”, it said.
The military was investigating after sirens failed to sound and Israel's renowned air defences were unable to shoot down the drone. Houthi rebels in Yemen regularly launch drones at Israel but it is relatively rare that they cause damage.
Israel's initial findings were that the drone was detected but not classified as hostile, the army said. "Accordingly, the interception and alert systems were not activated."
The Houthis claimed responsibility for the attack late on Sunday, calling it a “large-scale military operation” in which eight drones were fired. They said attacks would continue until Israel ends its “aggression” against Gaza.
“We warn all airlines that airports inside occupied Palestine are unsafe and will be continuously targeted,” the Houthi armed forces said, referring to Israel. “Airlines must leave occupied Palestine and avoid returning to these airports, as they are no longer secure.”
The Houthis have emerged as one of Israel's most durable foes during its war on Gaza. Prime Minister Benjamin Netanyahu said on Sunday that Israel had “dealt very hard blows” to the group, which saw much of its leadership killed in an Israeli strike on Sanaa last month.
Mr Netanyahu also claimed that 100,000 people had left Gaza city as Israeli troops advance. Many have been reluctant to leave, fearing an Israeli attempt to force Palestinians out of their homes for good.
Israel's airports authority said Ramon Airport had reopened after “safety and security checks” and the “final approval” of the Israeli air force. It said the first flight was taking off to Ben Gurion Airport near Tel Aviv.
Israel's ambulance service, Magen David Adom, said two people were injured and taken to hospital. One was a 63-year-old man with mild shrapnel wounds to his limbs, and the other a 52-year-old woman who was injured in a fall. It said several people were showing symptoms of anxiety.
Israel’s airport authority said a drone hit the arrivals hall. Video from the scene showed shattered windows and glass shards littering an open space close to baggage security check area.
For most of the war, people in Israel have had to rely on a small number of domestic carriers, which dramatically pushed up prices, particularly on key routes to the US. El Al, the national carrier, has faced anger and accusations of price gouging, which it denies, despite making massive profits.
With the gradual return of foreign carriers, the price and selection of flights on offer has become much better – raising the concern that the attack on Ramon might reverse this trend if carriers get jittery again.
In a broader sense, the fact that the Houthis, about 2,000 kilometres away from Israel, are able to evade Israeli air defences and target vital infrastructure despite sustaining heavy US and Israeli attacks is a sign of how complex it is for Israel to manage the problem.
Sunday’s attack came two weeks after the Israeli strike on Sanaa, the Houthi-held capital of Yemen, that killed the prime minister of the Houthi government, along with much of his cabinet.
Prime Minister Ahmed Ghaleb Al Rahawi was the most senior Houthi official killed so far in the Israeli-US campaign against the Iran-backed rebels.
In May, a Houthi missile exploded near Israel’s main airport, injuring four people and causing many airlines to cancel their flights to Israel for months. Israel later struck and destroyed the main airport in Sanaa.
The rebels have been launching missiles and drones towards Israel in solidarity with Palestinians during the Gaza war, as well as attacking Red Sea shipping.
Israel's Defence Minister pledged on Thursday to inflict the biblical 10 plagues of Egypt on the Houthis after they increased their missile attacks against Israel.
“The Houthis are firing missiles at Israel again. A plague of darkness, a plague of the firstborn – we will complete all 10 plagues,” Israel Katz posted on X.
He was referring to the 10 disasters that the Book of Exodus says were inflicted on Egypt by God to convince the pharaoh to free the enslaved Israelites.
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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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