Egyptian army soldiers guard the shattered entrance of the Israeli embassy in Cairo yesterday after protesters stormed the building, trashing offices and prompting the evacuation of nearly the entire staff from Egypt in the worst crisis between the countries since their 1979 peace treaty. Nasser Nasser / AP Photo
Egyptian army soldiers guard the shattered entrance of the Israeli embassy in Cairo yesterday after protesters stormed the building, trashing offices and prompting the evacuation of nearly the entire staff from Egypt in the worst crisis between the countries since their 1979 peace treaty. Nasser Nasser / AP Photo
Egyptian army soldiers guard the shattered entrance of the Israeli embassy in Cairo yesterday after protesters stormed the building, trashing offices and prompting the evacuation of nearly the entire staff from Egypt in the worst crisis between the countries since their 1979 peace treaty. Nasser Nasser / AP Photo
Egyptian army soldiers guard the shattered entrance of the Israeli embassy in Cairo yesterday after protesters stormed the building, trashing offices and prompting the evacuation of nearly the entire

Israel's defence minister raises alarm over country's increasing isolation


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TEL AVIV // Israel is facing a new reality in the Middle East in which it has few friends and its policies are under escalating attack.

Its relationship with Egypt is the most strained since the two countries signed an historic peace pact in 1979. Its ambassador in Cairo left Egypt on Saturday after protesters stormed the Israeli embassy.

Its one-time sturdy alliance with Turkey is crumbling, with Israel's ambassador in Turkey expelled 10 days ago.

As if that were not enough, Israel also now faces a possible United Nations recognition of Palestinian statehood this month.

Yesterday Ehud Barak, the centrist Israeli defence minister, urged the predominantly right-wing government to hold a special session to debate how to to reverse the slide to greater isolation.

"There is a wide picture forming around us that includes what happened with Turkey, what is happening with Egypt and what is happening with the Palestinians," Mr Barak said.

"These are events that are not in our control, but we can certainly influence the way we will be positioned against them."

Mr Barak said Israel's position may suffer a further blow because its ties with the US, its staunchest ally, are "deteriorating".

Washington also has close relations with Turkey and Egypt.

As early as March, just weeks after Hosni Mubarak - a longtime Israeli ally - was removed as Egypt's president, Mr Barak had warned that Israel faces a "political tsunami" amid the pro-democracy revolutions in neighbouring Arab states and the deadlock in peace talks.

Friday's storming of Israel's embassy in Cairo, which had forced the Israeli ambassador to flee Egypt, was sparked by anger over the country's killing last month of five Egyptian soldiers. Israel had apologised for the incident but Egypt has called its response insufficient.

The Cairo riots took place just a week after Turkey expelled top Israeli diplomats over Israel's refusal to apologise for its killing of nine Turkish activists on board a Turkish-flagged aid ship that tried to break Israel's naval siege of the Gaza Strip in May 2010.

For some older Israelis, television footage of the Cairo embassy riots and evacuation was reminiscent of Iran's 1979 Islamic Revolution, when Israel withdrew its diplomats from its Tehran embassy in a move that ended its 30-year alliance with Iran and was the start of the enmity between the nations that endures to this day.

Now, some Israeli officials fear that Egypt and Turkey may become more Islamist, and in turn develop more hostility towards Israel and eventually end all their ties with the Jewish state.

Since Iran's revolution, Israel has increasingly grown to view Iran as its archenemy with nuclear ambitions that must be curtailed at any price, and it has relied on alliances such as those with Egypt to build a regional counterforce to Iran.

Mr Netanyahu and other government ministers have publicly warned that the Arab Spring may result in neighbouring Arab countries installing more fundamentalist regimes.

"Radical Islam is threatening moderate Arab regimes, and is leading to the firing of rockets and missiles on Israeli citizens," Mr Netanyahu said in a briefing late on Saturday.

"The threat will be immeasurably bigger if radical Islam obtains weapons of mass destruction."

Yesterday, Egypt's Muslim Brotherhood demanded a "revision" of relations with Israel and rejected heightened security measures imposed after the storming of the Israeli embassy.

Israel "must have received the message and understood that Egypt has changed, the entire region will change, and there is no room left for its arrogance and aggression," the Islamist group said.

The worsening relations with neighbours are prompting some commentators to call for the resignation of Mr Netanyahu, accusing him of hurting Israel's standing with a hard-line approach that led him to reject the demand of Turkey and Egypt to apologise for the killings.

Analysts also say the US and other allies have grown disappointed with how the premier's repeated statements on his hopes to restart the peace process do not match actions such as settlement expansion that are angering the Palestinians.

Yoel Marcus, a leading commentator with the Israeli daily newspaper Haaretz, said Mr Netanyahu's unyielding approach and the doubts allies have in his credibility are undermining Israel at a time when it needs to appear strong ahead of the UN vote on whether to recognise Palestinian statehood.

"Bibi is getting on the nerves of the entire world," wrote Mr Marcus. "And that is because of four words: they don't believe him. Israel is marching to the UN General Assembly weak and hated, under very difficult negotiating conditions."

 

 

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Date started: 2018

Founders: Charaf El Mansouri, Nisma Benani, Leah Howe

Based: Abu Dhabi

Sector: TravelTech

Funding stage: Pre-series A 

Investors: Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs

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SUNDERLAND 2002-03

No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.

SUNDERLAND 2005-06

Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.

HUDDERSFIELD 2018-19

Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.

ASTON VILLA 2015-16

Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.

FULHAM 2018-19

Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.

LA LIGA: Sporting Gijon, 13 points in 1997-98.

BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66

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Started: 2016

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Based: Vienna, Austria; started in Dubai

Sector: Health Tech

Staff: 119

Funding: €7.7 million (Dh31m)

 

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Group A

Bahrain, Maldives, Oman, Qatar

Group B

UAE, Iran, Kuwait, Saudi Arabia

 

UAE group fixtures

Sunday Feb 23, 9.30am, v Iran

Monday Feb 25, 1pm, v Kuwait

Tuesday Feb 26, 9.30am, v Saudi

 

UAE squad

Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed

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Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

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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. 

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