Mahmoud Abbas is increasingly challenged by factions within his own party. Reuters
Mahmoud Abbas is increasingly challenged by factions within his own party. Reuters
Mahmoud Abbas is increasingly challenged by factions within his own party. Reuters
Mahmoud Abbas is increasingly challenged by factions within his own party. Reuters

Abbas can cancel elections but not anger in Palestine


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Palestinian President Mahmoud Abbas has his reasons for not liking elections. Fifteen years ago, his authority was unexpectedly challenged when a vote delivered militant Islamist group Hamas victory over Fatah, the dominant party in the territory's politics. The shock was a blow to Mr Abbas's credentials and sparked lethal unrest.
Unlike in 2006, many Palestinians were expecting this year's election to bring some degree of change. New figures had emerged to challenge the Fatah-Hamas binary, and a young electorate – no Palestinian below the age of 34 has had the opportunity to participate in elections – could have broken with tradition.
Mr Abbas's decision on Friday to postpone the vote was, therefore, unsurprising. He claims to have done so because of the possibility that Israel would have imposed voting controls on Palestinian residents in East Jerusalem. Occupation has indeed gotten in the way of them exercising their democratic rights before. But this time round the issue was one of proportion. In 2006, roughly 6,300 voters cast ballots in these areas. Before Mr Abbas's decision, plans were already in place to mitigate potential difficulties, with post offices and even foreign missions being floated as possible polling stations in the event of an obstruction. And while Israeli limitations could have presented difficulties for some Jerusalemites, an estimated 150,000 Palestinian residents of the city were expected to cast their votes in suburbs outside the Israeli military's control.

There were fears that Hamas could have become more powerful after this year's vote. Reuters
There were fears that Hamas could have become more powerful after this year's vote. Reuters
No Palestinian below the age of 34 has had the opportunity to participate in elections

Mr Abbas's decision was, at best, disproportionate. It was more likely an attempt to protect his career. Palestinians had good reason to deliver a result not in his favour. The pandemic has worsened pre-existing economic and political difficulties. Unemployment is at almost 50 per cent in Gaza. Israeli settlements continue to expand in the West Bank and East Jerusalem. Authorities have proven ineffective at petitioning Israel, the foremost vaccinator against Covid-19 globally, for their fair share of doses. Improving governance in the face of occupation is, of course, hugely challenging. But ordinary Palestinians are growing tired of it being used as a catch-all excuse for lacklustre leadership.
It is true that Mr Abbas's brief is a tough one. The grip Hamas has on Gaza's politics limits his influence. There were fears that this year's election could have made them yet more powerful; after all, the organisation's victory in 2006 had deadly short-term consequences and continues to hamper progress years later

But blocking the democratic process is not going to get rid of the group or solve Palestinian problems. And while there was a chance that Hamas could have benefited from recent splits in Fatah, the militant organisation is itself based on corrupt political foundations that many Palestinians reject. A fair vote could have been the moment that the people, particularly the young, rejected not just the stagnancy of Mr Abbas's tenure, but Hamas's fringe politics as well.
Society in the Palestinian Territories is changing. With trust and fairness from its leaders, elections could have been the opening of a new and better chapter. With distrust, a dangerous stalemate remains. The decision to postpone the vote has placed Palestine on the wrong path.

Profile of Bitex UAE

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Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company

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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Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
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The five pillars of Islam

1. Fasting

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