EU approves continued Palestinian development aid

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The European Union on Tuesday said it would continue sending aid to Palestinians after a review found no misuse of funds.

Announced on October 9, the EU audit into aid for Palestine included the screening of beneficiaries to check that funds were not being diverted to terrorist groups such as Hamas and that no recipients of aid had incited hatred or violence.

"The review found no indications of EU money having directly or indirectly benefited the terrorist organisation Hamas," executive vice president of the EU Commission Valdis Dombrovskis said on Tuesday.

"The review found that the control systems in place have worked.

"As a result, payments to Palestinian beneficiaries and [the UN agency for Palestinian Refugees] UNRWA will continue without delays."

EU Commission officials have said the review was necessary due to the unprecedented situation caused by the Hamas attacks on Israel that killed around 1,200 people, down from an initial estimate of 1,400. Israel has retaliated with intense bombing of the Gaza Strip, as well as a ground offensive, in which more than 13,000 have been killed, the enclave's authorities say.

"In this extremely polarised environment, there is a duty of care and a necessity to respect precautionary principles," an EU official said.

The bloc's review is seen widely as a face-saving exercise after announced a suspension of all aid to Palestinians that was immediately contradicted by senior EU officials including the bloc’s foreign policy chief Josep Borrell.

The probe was launched in unusual circumstances. It came after European Commissioner Oliver Varhelyi, from Hungary, announced all development funds would be "immediately suspended" after the Hamas attack.

"All projects put under review. All new budget proposals … postponed until further notice," he said.

Only hours later, the commission backtracked, saying in a terse statement there would be “no suspension of payments”. As the investigation showed, no payments to the Palestinians were even due.

Tuesday's announcement came as rumours of an imminent truce in the Gaza Strip intensified. EU countries are deeply divided between those who strongly support Israel and others who have voiced more concern for the lives of Palestinian civilians.

Speaking in Brussels, German's Economic Co-operation and Development Secretary Jochen Flasbarth said it was crucial "not forget who the aggressor was, and Israel has the right to defend itself".

"Of course, international law has to be respected," he added.

Belgium's Minister for Development Co-operation Caroline Gennez said more humanitarian aid was urgently needed in Gaza.

She voiced support for the UN's repeated calls for a ceasefire – a plea which has not been met with unanimous support among the bloc's 27 countries.

"Denying people food, water and medical supplies is a violation of international humanitarian law," said Ms Gennez.

"Bombing schools, hospitals, innocent civilians and aid workers is a violation of international humanitarian law. It is time to end the cycle of violence now.

"I would strongly urge Israel to open up humanitarian access from Erez and Kerem Shalom" said Ms Gennez, highlighting that only one border crossing, Rafah, is open through which aid can arrive in Gaza.

The EU has a no-contact policy with Hamas, which it has listed as a terror organisation, since 2007.

No breaches of contractual obligations were found by the Commission, which double-checked 119 contracts worth €331 million ($362.3 million), of which 65 per cent were cleared.

Infrastructure and energy projects worth €75.6 million in the Gaza Strip were deemed unfeasible in the current war context, of which €25 million has already been reallocated to programmes supporting Palestinians.

However, two unnamed projects, worth €8 million, involving Palestinian civil society organisations were suspended due to concerns over hate speech and the glorification of terrorism, officials said.

EU officials who conducted the review recommended to all 27 EU commissioners, collectively known as the Commission's college, apply stricter controls in monitoring hate speech and the promotion of anti-Semitism among Palestinian NGOs that receive aid.

Mr Dombrovskis did not mention whether the college adopted that proposal.

EU officials said the extra checks, which were suggested for all NGOs in Palestine and Israel, could include an anti-incitement clause. They described the potential checks as "proportionate" and not unprecedented. Such controls are already place for other aid programmes such as those aimed at Syrian refugees, they said.

The EU will continue supporting the Palestinian Authority, including with a programme that pays salaries and pensions in the occupied West Bank to 90,000 beneficiaries.

Since 2017, the Gaza Strip has been excluded from this programme but poor and vulnerable families in the enclave still receive cash transfers, the EU official said.

Checks are already in place that beneficiaries are not on any sanctions list, with an error rate of 0.03 per cent, sources said.

The EU is waiting for more information from civil society organisations in the case of 51 contracts worth €39 million but has no reason to believe that contractual obligations were breached.

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'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

The years Ramadan fell in May

1987

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1921

1888

UAE currency: the story behind the money in your pockets

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 bio

Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home

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Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

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