The US administration is looking to 'reset' relations with the Palestinians with a plan that includes $15 million in Covid-19 assistance and a rollback of several Trump administration positions that favoured Israeli settlement expansion in the West Bank and did not prioritise the two-state solution, an internal memo reveals.
The official document, obtained exclusively by The National on Wednesday, was raised to US Secretary of State Anthony Blinken on March 1, by acting assistant secretary of state for near eastern Affairs Joey Hood.
It was drafted by deputy assistant secretary of state for Israeli-Palestinian affairs Hady Amr and his team.
The memo, The US Palestinian Reset and the Path Forward, is the most detailed proposal so far by the Biden team to rebalance relations with the Palestinians after four years of Donald Trump, who cut ties with Ramallah.
The US memo acknowledges new challenges in approaching the Palestinian situation.
“As we reset US relations with the Palestinians, the Palestinian body politic is at an inflection point as it moves towards its first elections in 15 years,” it says.
“At the same time, we [the US] suffer from a lack of connective tissue following the 2018 closure of the PLO office in Washington and refusal of Palestinian Authority leadership to directly engage with our embassy to Israel,” the memo says.
It mentions growing disparities between Israelis and Palestinians and outlines a “reset under way and the path ahead”.
The memo defines the US vision on the issue as one “to advance freedom, security, and prosperity for both Israelis and Palestinians in the immediate term which is important in its own right, but also as means to advance the prospects of a negotiated two-state solution”.
The Trump administration's peace plan – unveiled at the White House in January 2020 – begrudgingly backed a two-state end goal for the conflict but was heavily critcised for ignoring key demands of Palestinian negotiators, including recognising east Jerusalem as the capital of a Palestinian state.
The Biden administration memo recommends voicing US principles on achieving Israeli-Palestinian peace under a two-state solution framework “based on the 1967 lines with mutually agreed land swaps and agreements on security and refugees”.
The new US team will “take a two-fold approach of maintaining and ideally improving the US relationship with Israel by deepening its integration into the region while resetting the US relationship with the Palestinian people and leadership,” the memo says.
It lays out current efforts towards that goal, including Mr Amr re-establishing diplomatic contact with the Palestinian Authority that was cut under Mr Trump who shut the US consulate in Jerusalem and kicked Palestinian diplomats out of the US.
The memo says that Mr Amr held “listening sessions with key counterparts at Israel’s [Ministry of Foreign Affairs] and Defence on the US-Israeli-Palestinian relationship” and that “they welcomed the restart of US-Palestinian relations”.
A key pillar of the new policy involves restarting assistance to the Palestinians, with plans for new Covid-19 aid that could be announced as soon as the end of this month.
“State and USAID are working towards a restart of US assistance to the Palestinians in late March or early April,” the memo says.
“We are planning a full range of economic, security and humanitarian assistance programmes, including through UN Relief and World Agency for Palestine Refugees in the Near East (UNRWA). Prior to the fuller launch, we plan to announce $15 million in Covid-related humanitarian assistance,” it says.
Mr Trump cut tens of millions in annual aid to UNRWA and other aid programmes as well as $60 million a year in funding for Palestinian security services.
UNRWA spokeswoman Tamara Al Rifai said the agency was hoping the US would resume funding and that this would encourage other countries to boost their support, which has dropped sharply in the past three years.
"UNRWA is very eager for a resumption of US financial but also political engagement with UNRWA," Ms Al Rifai told The National.
The document commits to engaging the international diplomatic community through the UN and the Quartet structures.
In an important gesture to the Palestinians, the document floats the idea of reopening a US mission in the Palestinian territories to signal a commitment to the two-state solution, but ideas and options are still being examined.
The document mentions a challenge in the coming Palestinian legislative elections planned for May 22 and presidential elections planned for July 31.
“The last Palestinian elections were held 15 years ago, and half of the young population has never had a chance to vote. But the implications of an election remain uncertain: the collapse of a power-sharing agreement after the prior elections led to the Hamas takeover of Gaza,” it says.
It mentions a request from the Palestinian Authority to the US to help “encourage an Israeli agreement to allow Palestinian voting once again in Jerusalem”.
“We are analysing the evolving situation and will propose a US posture together with the inter-agency.”
On the broader policy front, the new US team endorses some of Mr Trump’s steps in pushing for Arab-Israeli normalisation but promises to roll back other policies that have undermined the two-state solution.
On encouraging states to formally start relations with Israel, it says: “In these new normalised relationships, we will look for opportunities to support Israeli-Palestinian peace efforts and improve the quality of life for the Palestinian people.”
More specifically on the two-state solution, the document presents the idea to reduce incitement to violence by the Palestinians while at the same tackling Israeli violations related to settlement activity and military incursions.
It mentions “rolling back certain steps by the prior administration that bring into question our commitment or pose real barriers to a two-state solution, such as country of origin labelling”.
The Trump administration allowed products produced in illegal settlements to be labelled Israel as their country of origin.
It mentions talks as well “to obtain a Palestinian commitment to end payments to individuals imprisoned for acts of terrorism”.
The document reintroduces some of the themes that the George W Bush and the Barack Obama administrations pushed forward, such as the strengthening of Palestinian Institutions.
“This includes strengthening civil society, media watchdogs and other elements of the fourth estate, such as emphasising to the [Palestinian Authority] the need to protect civil society through the reductions of arrests of bloggers and dissidents.”
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
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
Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
Which honey takes your fancy?
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
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
MATCH INFO
Burnley 1 (Brady 89')
Manchester City 4 (Jesus 24', 50', Rodri 68', Mahrez 87')
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
