After weeks of diplomatic pressure and dire warnings, Jordan is preparing for the consequences of West Bank annexation and a wider falling out with one-time peace partner Israel.
After months of lobbying US, European and Jewish groups, sources say Jordan is now abandoning hope of stopping the Israeli annexation of occupied West Bank land and instead shifting to gradually freezing relations with Israel and preparing for the next stage in their strained relationship.
Israel reportedly sent messages to Jordan saying that Prime Minister Benjamin Netanyahu was walking back his plan to include the Jordan Valley in his annexation bid. Annexing the area would physically cut off Jordan from the West Bank, and cross a red line Amman has said would upend their 26-year-old peace treaty.
But the sources say Jordan responded that even should Israel restrict its annexation to a single West Bank settlement bloc, such a move would be seen as killing the two-state solution, setting a precedent for further annexation and leaving Jordan solely responsible for stateless Palestinians.
Jordan insists that any annexation of West Bank territory breaks the 1994 Jordan-Israel peace treaty.
“With any type of annexation, Israel will be committing a flagrant violation of the peace treaty and in actuality is threatening Jordan,” says Jawad Anani, former Royal Court chief and minister, who negotiated the peace treaty for Jordan.
According to sources, the Royal Palace's planned response to any annexation aims to "let Israel be the one to break the peace treaty" in the eyes of the world.
Jordan will gradually impose diplomatic and economic costs on Israel for breaking the treaty, while itself retaining both the peace treaty and broad international backing.
Should annexation take place, Jordan is preparing to recall its ambassador from Tel Aviv and potentially expel the Israeli ambassador from Amman.
Also on the chopping block is the $15-billion (Dh55.09bn) natural gas deal between Jordan and Israeli-American consortium Noble Energy, which because of a plunge in oil and gas prices and the rise of new alternatives such as Iraqi oil, has become a liability for the Jordanian government. The deal was forced through in 2016 amid protests and without the required approval of the Jordanian parliament.
With MPs mounting a second attempt to challenge the agreement and a growing desire to abandon the deal to send a message to Tel Aviv, there is no longer the political will nor economic incentives in Amman for the deal to survive.
Jordan is also threatening to downgrade security co-operation, which Israel relies heavily on and Amman knows is an acute pressure point for Tel Aviv.
Sources say further retaliatory steps include a freeze in co-operation within the West Bank and Jerusalem, where Jordan acts as a custodian of Muslim and Christian sites, a refusal to act as a go-between for Israel and the Palestinian Authority, and even urging the Palestinian leadership not to co-operate with Israel.
"Jordan carries large burdens in providing security, diffusing tensions, being a mediator and providing services in Jerusalem and the West Bank," said a source.
“If Israel wants to legitimise an apartheid state, it is time for them to feel the burdens Jordan has been carrying for them.”
Even without a final decision, officials and observers agree the annexation drama itself has already pushed ties between Jordan and Israel to an all-time low since their official end of hostilities in 1994.
King Abdullah gave a warning in May that West Bank annexation would put the two nations on course for a “massive conflict”.
The Royal Palace has refused to return several calls by Mr Netanyahu, sources confirmed.
In recent weeks, Jordan has also soured on co-prime minister Benny Gantz, who Amman had initially hoped would be a “voice of reason” and a “partner” within the Israeli government.
Now, Jordan believes that the White House sees the largely-passive Mr Gantz as giving a veneer of legitimacy to Mr Netanyahu's annexation bid. Amid this frustration, the palace rebuffed several requests by Mr Gantz to meet senior officials and the king himself in Amman.
Annexation is not only angering the palace, but it is a particularly pressing issue among the Jordanian people themselves.
In a public opinion survey conducted by the University of Jordan's Centre of Strategic Studies in mid-June, 33 per cent of Jordanians named Israel and annexation as "the greatest external threat" facing Jordan, the top reported answer.
In comparison, Covid-19 – the second-biggest perceived threat – was named by 5 per cent of Jordanians.
Jordan is also eyeing the fallout from annexation as an opportunity to recalibrate its relationship with Israel and pressure Tel Aviv to renegotiate articles of the peace treaty and co-operation.
It has long been disappointed in several treaty articles that remain unfulfilled, particularly regarding trade. Jordan still struggles to enter Palestinian markets because of tough Israeli restrictions and protectionist policies.
The kingdom's annual exports to the West Bank hover between $300 million (Dh3.1bn) and $400m in largely agricultural goods, compared to Israel’s $4bn exports to the West Bank.
Other frustrations include Israel's reversal over a pledge to share the King Hussein airport in Aqaba, and the moribund Red Sea-Dead Sea water conveyance project to boost desalination and save the Dead Sea.
Should Mr Netanyahu or a future Israeli government wish to return to the partnership of the peace-treaty era, sources say Jordan will demand a revision to all these areas as a precondition.
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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 DETAILS
Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
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Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
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Golden Shoe top five (as of March 1):
Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points
The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra