A couple of jarring moments in the first days of his presidency demonstrate how challenging it will be for Joe Biden to repair US policy towards the Palestinians.
The first was a seemingly minor, but in fact highly instructive, kerfuffle over the language identifying the Twitter feed for the US ambassador to Israel. Shortly after Mr Biden was inaugurated, the account’s description was changed to say that the ambassador represents Washington in “Israel, the West Bank and Gaza” rather than simply Israel.
That's obviously true. But it contradicts persistent efforts by the previous administration to reverse decades of US policy that recognised the distinction between Israel and the Palestinian territories occupied in 1967. Under Donald Trump, the State Department gradually eliminated almost all references to occupation, occupied territories and even, at times, "the West Bank and Gaza Strip" as entities distinct from Israel.
This idea was most prominently expressed in the so-called "Peace to Prosperity" plan issued in January 2020 that encouraged Israel to annex huge chunks of the occupied West Bank and would have effectively eliminated the potential for a Palestinian state. But it was also reflected in language in numerous State Department documents, including US passports, that appear to recognise Israel's de facto sovereignty in occupied East Jerusalem and other parts of the West Bank.
The bottom line is that the Trump administration was opposed to a genuine, viable two-state solution whereas the Biden administration will seek to return to the US what had been a bipartisan consensus in favour of such an outcome. In that quest, they will enjoy the support of most professional diplomats at the State Department, who were deeply concerned by the Trump administration's abandonment of both international law and the terms of the 1993 Declaration of Principles, which was signed by the US and Israel and forbids unilateral annexation.
So, it's not surprising that somebody at the State Department moved immediately to correct the language on Twitter to reflect these understandings. However, conservative media and right-wing politicians such as Michael McCaul, the senior Republican on the House foreign affairs committee, howled in outrage.
The language was quickly restored to read simply "Israel" and the State Department insisted that it was all an inadvertent error and reflected no change in policy now or any planned one in the future.
That may be perfectly true. Someone certainly jumped the gun.
Yet while the language change was hasty, and clumsy in many ways, it nonetheless does reflect the kind of policy change towards the Palestinians the Biden administration could pursue, and the level of opposition that would face.
But the fact that such a simple, basic and, in a rational world, plainly unobjectionable phrase as "Israel, the West Bank and Gaza" could cause an uproar, and have to be withdrawn for reintroduction at some propitious future date, indicates how challenging it will be for the Biden administration to restore something as previously straightforward as the US commitment to a two-state solution.
That conundrum was further illustrated in the confirmation hearings for Secretary of State nominee Antony Blinken. He repeated the Biden administration's commitment to a two-state outcome, but when asked if the US would maintain its embassy in Jerusalem and its current policies towards Jerusalem, Mr Blinken answered quickly and simply: "Yes and yes."
Nobody expected Mr Biden to remove the US Embassy from Jerusalem. But Mr Trump's recognition of Israel’s sovereignty in Jerusalem seems, particularly to Israel, to involve both West Jerusalem and occupied East Jerusalem. If that really is US policy, which was never made explicitly clear, and the Biden administration maintains it, then their purported commitment to a two-state solution isn’t serious.
A compromise on occupied East Jerusalem, and particularly the Muslim and Christian holy places in what is known as the "holy basin", is an indispensable part of any viable two-state outcome. Israel's position that all of Jerusalem is its "eternal and undivided capital" leaves little room for any such understanding.
Fortunately, there is a way out for Mr Biden on this, and, ironically, it was provided by Mr Trump himself. In his December 6, 2017 proclamation on Jerusalem, Mr Trump specifically stated that "the specific boundaries of Israeli sovereignty in Jerusalem are subject to final-status negotiations".
This phrase was never further explained, but it hangs over the proclamation as a crucial caveat. What Mr Biden needs to do, sooner rather than later, is to explain that this can only mean, and that US policy is, that Washington recognises Israel's sovereignty in West Jerusalem but continues to view occupied East Jerusalem as a core final-status issue to be resolved only through negotiations as the 1993 Declaration of Principles stipulates.
It is not a difficult case to make, if you begin the conversation by asking what the "specific boundaries" passage was intended to signify and why it was included. In April 2017, Russia recognised West Jerusalem as Israel's capital, and added that it looked forward to recognising the Palestinian capital in East Jerusalem. That declaration angered no one.
The two-state solution was moribund even before Donald Trump's plan attempted to permanently bury it
Right-wing Israelis, greater-Israel advocates, evangelical fundamentalist Christians and diehard supporters of Mr Trump may feign outrage. But it's a necessary step if Mr Biden is interested in reestablishing the US position as one compatible with a viable peace.
The irony is that while Mr Biden is going to struggle mightily to restore this stance, it is hardly a major step forward. The two-state solution was moribund even before Mr Trump’s plan attempted to permanently bury it. Even if Mr Biden manages to exhume a pro-peace US policy, the two-state solution isn't likely to emerge greatly reinvigorated.
Crucially, Israel is now moving at top speed to finalise a major new settlement cutting occupied East Jerusalem off from the West Bank. Mr Biden must take a strong stance against the Givat Hamatos project, which would achieve practically what Mr Trump's rhetoric implied: that any Israeli compromise on Jerusalem is permanently off the table.
If that settlement is built, no amount of impeccable rhetoric or improved policies is likely to salvage the possibility of peace. Mr Biden can and must prevent it, but he will have to move quickly.
Hussein Ibish is a senior resident scholar at the Arab Gulf States Institute and a US affairs columnist for The National
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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
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Results
Stage three:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-43
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Tom Dumoulin (NED) Jumbo-Visma, at 14s
4. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
5. Joao Almeida (POR) UAE-Team Emirates, at 22s
6. Mikkel Bjerg (DEN) UAE-Team Emirates, at 24s
General Classification:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-13-02
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Jasper Philipsen (BEL) Alpecin Fenix, at 12s
4. Tom Dumoulin (NED) Jumbo-Visma, at 14s
5. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
6. Joao Almeida (POR) UAE-Team Emirates, at 22s
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
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Sholto Byrnes on Myanmar politics
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
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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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The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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.
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Most match wins on clay
Guillermo Vilas - 659
Manuel Orantes - 501
Thomas Muster - 422
Rafael Nadal - 399 *
Jose Higueras - 378
Eddie Dibbs - 370
Ilie Nastase - 338
Carlos Moya - 337
Ivan Lendl - 329
Andres Gomez - 322
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.