The ground beneath the Palestinian territories and Israel is shifting so rapidly that it is impossible to predict what is going to happen next. As I write this, Israeli forces may have decided to launch a ground invasion of Gaza, having determined that they cannot back down now, as Hamas continues to fire rockets into their territory in response to the violence on the streets of Jerusalem between Palestinians and Israelis.
Such an operation, however, will not only further enrage the residents of Gaza – the Palestinian territory under the control of Hamas – but those Arabs living within Israel as well. Whether the situation has slipped out of the Israeli government’s control or not, there is palpable anger on the streets days after Israeli right-wing extremists engaged in violence with ordinary Palestinians, including worshippers, around Al Aqsa Mosque in Jerusalem.
A ground invasion of Gaza could also overturn the balance of power in the country and its immediate neighbourhood, as it potentially entraps Israel on multiple fronts: within Israel itself, in Gaza to its west and in Lebanon to its north. The Iranian regime, which has allies in both Gaza and Lebanon and considers Israel to be a mortal enemy, may even consider firing its own rockets into the country for the first time. That calculation is not yet clear.
For the Israeli leadership, invasion could serve as a means to destroy Hamas by taking down Gaza’s military and civilian infrastructure, while containing its own home front and restoring deterrence. On the other hand, Hamas and its patrons in Tehran may seize the opportunity to defeat Israel through a barrage of missiles from the aforementioned fronts while weaponising Palestinian anger inside Israel.
Hezbollah, Tehran’s proxy group in Lebanon, is no doubt prepared to heat up the Lebanese front, the military logic behind which is that Israel may not be able to withstand attacks on two fronts. In all likelihood, Israel fears the Lebanese front more than it does the one in Gaza, because of the advanced Iranian military supplies delivered to Hezbollah.
In Tehran’s estimation, the international political climate could present it with an opportune moment to engage in confrontation with Israel.
One reason for this is the lack of effectiveness on the part of the members of the so-called Middle East Quartet – the UN, US, EU and Russia – who have historically been involved in mediating the Palestine-Israel peace process.
In the event of a confrontation, Tehran is betting on inaction from the European powers. It is anticipating little more than European sympathy for the Palestinians and its criticism of actions taken by Israel, Hamas and Hezbollah. Britain, France and Germany seem determined to revive the nuclear deal that the global powers had struck with Iran in 2015 before former US president Donald Trump pulled his country out of it. Talks are still under way in Vienna and Tehran is expecting them to maintain their focus on the same.
Russia, meanwhile, has long withdrawn from the role once played by the Soviet Union. It has become pragmatic and is closer to Israel than it was in the past. But for Moscow, the priority right now seems to be the upcoming meeting between Russian Foreign Minister Sergey Lavrov and US Secretary of State Antony Blinken in Reykjavik on Thursday. They are expected to discuss a broad range of issues, including the future of Ukraine and the summit between US President Joe Biden and his Russian counterpart, Vladimir Putin, scheduled for next month.
US President Joe Biden will be under pressure to resolve the ongoing crisis in Palestine and Israel. AP Photo
In Tehran's estimation, the international political climate presents it with an opportune moment to engage in confrontation with Israel
As for the US, Mr Biden will be forced to pay attention to the developments in Israel. This is not just due to America’s strategic relationship with Israel, but also because he will probably view the current crisis through the lens of the nuclear talks in Vienna. The revival of the 2015 deal is a priority for his administration, too.
One of the hurdles for Mr Biden, however, is that he won’t be able to mediate between Iran and Israel with the purpose of deescalating the situation in Gaza, Lebanon or Israel itself – in the unlikely event any of these fronts heat up. At present, there is some sympathy for ordinary Palestinians in the US media but that could change if there is indeed a military confrontation between Israel on the one side and Hamas, Hezbollah and Iran on the other.
Given the inherent bias the US has towards Israel, the Islamic Republic will test the Biden administration and the American media equally on one of the most difficult issues for them. It will put the US president in a spot by trying to force him to choose between his administration's support for Israel and his own determination to revive the nuclear deal with Tehran.
Meanwhile, important though it is to consider the geopolitical ramifications of a potential invasion of Gaza, one must not forget the humanitarian crisis it could engender as well as the possible setbacks for Israel’s neighbouring countries, including Egypt and Lebanon.
With the Biden administration seemingly distracted and with the potential for Israel to make a mistake, Iran could see this as its golden opportunity to achieve its goals.
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute and a columnist for The National
A demonstrator holding a Palestinian flag gestures during a protest over tension in Jerusalem and Israel-Gaza escalation, near Hawara checkpoint near Nablus in the Israeli-occupied West Bank, May 14, 2021. Reuters
A fireball and smoke billow up into the air during an Israeli air strike on Gaza City targeting the Ansar compound, linked to the Hamas movement, in the Gaza Strip. AFP
A nurse at Al Shifa Hospital holds a baby, who was pulled alive from under the rubble while seven other family members perished after an Israeli air strike struck Al Shati Refugee Camp in Gaza City. AFP
This satellite photo released by Planet Labs shows the Gaza Strip. AP Photo
A Palestinian girl sits on the floor next to her wounded grandmother at Al Shifa Hospital, after an Israeli air strike on Al Shati Refugee Camp in Gaza City. AFP
People inspect the damage done to Beit Hanoun after a night of Israeli raids in Gaza City, Gaza. Getty Images
A woman walks beside a broken asphalt, after an Israeli air strike on Beit Hanoun, in the northern Gaza Strip. Getty Images
A car drives through rubble, after an Israeli raid in northern Gaza City. Getty Images
Palestinian girls who fled home due to Israeli air and artillery strikes, wait to fill bottles with water at a school hosting refugees in Gaza city. AFP
Israeli police arrest a Palestinian demonstrator during a protest in Sheikh Jarrah neighborhood in east Jerusalem. EPA
Palestinian protesters hurl stones during clashes with Israeli forces in the Shuafat camp for Palestinian refugees, neighbouring the Israeli settlement of Ramat Shlomo, in Israeli-annexed east Jerusalem. AFP
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
Cryopreservation: A timeline
Keyhole surgery under general anaesthetic
Ovarian tissue surgically removed
Tissue processed in a high-tech facility
Tissue re-implanted at a time of the patient’s choosing
Full hormone production regained within 4-6 months
THE DETAILS
Solo: A Star Wars Story
Director: Ron Howard
2/5
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
FA Cup fifth round draw
Sheffield Wednesday v Manchester City
Reading/Cardiff City v Sheffield United
Chelsea v Shrewsbury Town/Liverpool
West Bromwich Albion v Newcastle United/Oxford United
Leicester City v Coventry City/Birmingham City
Northampton Town/Derby County v Manchester United
Southampton/Tottenham Hotspur v Norwich City
Portsmouth v Arsenal
THE SPECS
Engine: 1.5-litre, four-cylinder turbo
Transmission: seven-speed dual clutch automatic
Power: 169bhp
Torque: 250Nm
Price: Dh54,500
On sale: now
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.
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
FIXTURES (all times UAE)
Sunday
Brescia v Lazio (3.30pm)
SPAL v Verona (6pm)
Genoa v Sassuolo (9pm)
AS Roma v Torino (11.45pm)
Monday
Bologna v Fiorentina (3.30pm)
AC Milan v Sampdoria (6pm)
Juventus v Cagliari (6pm)
Atalanta v Parma (6pm)
Lecce v Udinese (9pm)
Napoli v Inter Milan (11.45pm)
How it works
1) The liquid nanoclay is a mixture of water and clay that aims to convert desert land to fertile ground
2) Instead of water draining straight through the sand, it apparently helps the soil retain water
3) One application is said to last five years
4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare
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.”
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
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
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
