Israel's US-backed Arrow-3 ballistic missile shield is seen during a series of live interception tests over Alaska, US. Reuters
Israel's US-backed Arrow-3 ballistic missile shield is seen during a series of live interception tests over Alaska, US. Reuters
Israel's US-backed Arrow-3 ballistic missile shield is seen during a series of live interception tests over Alaska, US. Reuters
Israel's US-backed Arrow-3 ballistic missile shield is seen during a series of live interception tests over Alaska, US. Reuters

'Successful' tests of Israel's Arrow 3 missile shield a warning to Iran, says Benjamin Netanyahu


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The long delayed test for Israel's US-backed Arrow-3 ballistic missile shield has passed a series of live interception tests over Alaska, Prime Minister Benjamin Netanyahu said on Sunday.

The Israeli leader cast the achievement as a warning to Iran.

Jointly manufactured by US firm Boeing Co, Arrow-3 is billed as capable of shooting down incoming missiles in space, an altitude that would destroy any non-conventional warheads safely. It passed its first full interception test over the Mediterranean Sea in 2015 and was deployed in Israel in 2017.

"The performance was perfect – every hit a bull's eye," Mr Netanyahu, who doubles as defence minister, said in a statement announcing the three secret tests.

Unlike the shorter-range Iron Dome batteries, Israel views the Arrow-3 as a bulwark against the ballistic missiles fielded by Iran and Syria.

Iran has been locked in a spiralling confrontation with the United States over its nuclear programme and missile projects.

Washington said last week that Iran appeared to have tested a medium-range ballistic missile that flew about 1,000 km. Tehran said such tests are for its defensive needs although there is a growing concern in Europe over the range and sophistication of such weapons.

"Today Israel has the capabilities to act against ballistic missiles launched at us from Iran and from anywhere else," Mr Netanyahu said. "All our foes should know that we can best them, both defensively and offensively."

Arrow-3's Alaska trials had been expected last year but were postponed, following earlier difficulties in testing the system.

A handout picture shows the launch of the Arrow-3 hypersonic anti-ballistic missile at an undisclosed location in Alaska. AFP, HO
A handout picture shows the launch of the Arrow-3 hypersonic anti-ballistic missile at an undisclosed location in Alaska. AFP, HO

Its first full trial, scheduled in 2014, was aborted due to what designers said was a faulty flight by the target missile. Follow-up Israeli tests in late 2017 and early 2018 were also called off at short notice due to technical problems.

The system's success in Alaska was held up by both Israel and the United States as a sign of the strength of their alliance.

The US ambassador to Israel, David Friedman, attended Sunday's meeting of Mr Netanyahu's cabinet, where he and the ministers watched a video of an Alaska missile interception.

Israel's Ministry of Defence said that, as part of the Alaska tests, Arrow-3 was successfully synched up with the AN-TPY2 radar – also known as X-band – that provides the United States with extensive global coverage. Israel hosts an X-band battery.

"We are committed to assisting the government of Israel in upgrading its national missile defence capability to defend the state of Israel and deployed US forces from emerging threats," Vice Admiral John Hill, director of the Pentagon's Missile Defence Agency, said in a statement.

Arrow-3 and an earlier generation system, Arrow-2, serve as the top tier of an integrated Israeli shield built up with US backing to withstand various potential missile or rocket salvoes. The bottom tier is the short-range Iron Dome interceptor while David’s Sling shoots down mid-range missiles.

Iron Dome batteries have been used to shoot down Hamas rockets during surges in violence between Israel and the group that controls the Gaza Strip.

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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Al Ghaf Honey

The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year

Sidr Honey

The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments

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A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.