Civilian planes are having to use alternatives to GPS to help them land in Beirut because of signal jamming blamed on Israel. AFP
Civilian planes are having to use alternatives to GPS to help them land in Beirut because of signal jamming blamed on Israel. AFP
Civilian planes are having to use alternatives to GPS to help them land in Beirut because of signal jamming blamed on Israel. AFP
Civilian planes are having to use alternatives to GPS to help them land in Beirut because of signal jamming blamed on Israel. AFP


How war is putting Middle East aviation at risk


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  • Arabic

April 01, 2024

With more than 40 years' experience in aviation, including a stint as chief executive of Bahrain's Gulf Air and sitting on the International Air Transport Association's Board of Governors, Royal Jordanian’s CEO Samer Majali is someone who knows the industry in the Middle East – and its challenges – like few others. In an exclusive interview with The National yesterday, he spoke for many executives when he described how six months of violence in Israel and Palestine had hurt his airline and the region’s economy.

While the human cost is, of course, the biggest, and Palestinian society is bearing the brunt of this war, its consequences are far-reaching. The plummeting bookings, operational difficulties and financial losses being experienced by the aviation sector are being exacerbated by a widespread perception that the Middle East is in turmoil. “They lump the region as a homogeneous unit, which is unfair and bad,” Mr Majali said.

Tourists visiting Petra, Jordan's most famous tourist attraction, in 2015. The Gaza war is continuing to affect demand for travel to the Middle East and North Africa. Getty
Tourists visiting Petra, Jordan's most famous tourist attraction, in 2015. The Gaza war is continuing to affect demand for travel to the Middle East and North Africa. Getty

Sadly, the Jordanian carrier is just one of several that is feeling the destabilising fallout from six months of war. Earlier this month, The National reported how the Gaza conflict continues to affect demand for travel to the Middle East and North Africa, with forward ticket bookings to the region down 6 per cent in the second quarter of 2024. Flight bookings for travel to Lebanon in the second quarter fell 33 per cent year on year, with bookings to Jordan and Egypt down 31 per cent and 15 per cent, respectively. Israel too is feeling the consequences: flight bookings to the country fell by an annualised 61 per cent for travel in the second quarter of this year.

The knock-on effects on related industries such as tourism and hospitality will put many jobs and businesses at risk, but falling demand for air travel is just the tip of the iceberg. Last week, this newspaper reported on how civilian planes arriving at Beirut’s airport are having to use alternatives to GPS to help them land because of signal jamming being blamed on Israel; indeed, the country has admitted to increasing GPS jamming in the region in a bid to thwart attacks by Hamas and Hezbollah. Last week, a Turkish Airlines flight ran into difficulties as it began its descent into Beirut because it was still using GPS navigation. It circled the airport for about 40 minutes before being forced to return to Turkey.

Aside from the human cost of the war in Gaza and the associated economic instability, incidents such as these add to a perception of danger that deters foreign visitors and returning expats – something that has a particularly negative effect for struggling countries such as Lebanon where people rely on friends and relatives to come home carrying cash and scarce essential goods. Geopolitical and military tensions are bad for aviation: the accidental shooting down of Ukraine International Airlines Flight 752 as it took off from Tehran in January 2020 is a tragic reminder of what can go wrong.

The deleterious effect of the Gaza war on regional aviation stands in stark contrast with how Israel’s establishment of ties with several Arab countries three years ago were heralded with high-profile maiden flights and the admission of Israeli planes to more Arab airspace. We are a long way from those times now and it is a bitter truth that the Gaza war is threatening much in the region, including the very industry that was the most high-profile reflection of hopes for a new Middle East.

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

The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Non-oil%20trade
%3Cp%3ENon-oil%20trade%20between%20the%20UAE%20and%20Japan%20grew%20by%2034%20per%20cent%20over%20the%20past%20two%20years%2C%20according%20to%20data%20from%20the%20Federal%20Competitiveness%20and%20Statistics%20Centre.%C2%A0%3C%2Fp%3E%0A%3Cp%3EIn%2010%20years%2C%20it%20has%20reached%20a%20total%20of%20Dh524.4%20billion.%C2%A0%3C%2Fp%3E%0A%3Cp%3ECars%20topped%20the%20list%20of%20the%20top%20five%20commodities%20re-exported%20to%20Japan%20in%202022%2C%20with%20a%20value%20of%20Dh1.3%20billion.%C2%A0%3C%2Fp%3E%0A%3Cp%3EJewellery%20and%20ornaments%20amounted%20to%20Dh150%20million%20while%20precious%20metal%20scraps%20amounted%20to%20Dh105%20million.%C2%A0%3C%2Fp%3E%0A%3Cp%3ERaw%20aluminium%20was%20ranked%20first%20among%20the%20top%20five%20commodities%20exported%20to%20Japan.%C2%A0%3C%2Fp%3E%0A%3Cp%3ETop%20of%20the%20list%20of%20commodities%20imported%20from%20Japan%20in%202022%20was%20cars%2C%20with%20a%20value%20of%20Dh20.08%20billion.%3C%2Fp%3E%0A
The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

HUNGARIAN GRAND PRIX RESULT

1. Sebastian Vettel, Ferrari 1:39:46.713
2. Kimi Raikkonen, Ferrari 00:00.908
3. Valtteri Bottas, Mercedes-GP 00:12.462
4. Lewis Hamilton, Mercedes-GP 00:12.885
5. Max Verstappen, Red Bull Racing 00:13.276
6. Fernando Alonso, McLaren 01:11.223
7. Carlos Sainz Jr, Toro Rosso 1 lap
8. Sergio Perez, Force India 1 lap
9. Esteban Ocon, Force India  1 lap
10. Stoffel Vandoorne, McLaren 1 lap
11. Daniil Kvyat, Toro Rosso 1 lap
12. Jolyon Palmer, Renault 1 lap
13. Kevin Magnussen, Haas 1 lap
14. Lance Stroll, Williams 1 lap
15. Pascal Wehrlein, Sauber 2 laps
16. Marcus Ericsson, Sauber 2 laps
17r. Nico Huelkenberg, Renault 3 laps
r. Paul Di Resta, Williams 10 laps
r. Romain Grosjean, Haas 50 laps
r. Daniel Ricciardo, Red Bull Racing 70 laps

Updated: April 02, 2024, 9:30 AM