British Prime Minister Liz Truss's promise to "review" the location of the British embassy in Israel last month is a burning concern for Palestinians.
Domestic and international criticism rained down on the comment, made by Ms Truss to the Conservative Friends of Israel during her party leadership campaign.
For Palestinian ambassador to the UK Husam Zomlot, moving Britain’s embassy from Tel Aviv to Jerusalem would not only sour UK-Middle East relations, but also upend any viable peace plan.
“Who benefits from this? Will it make Israel more secure? Look at Jerusalem right now, it's almost a war zone,” Mr Zomlot told The National.
East Jerusalem is a part of the West Bank territories which have been occupied by Israel since 1967 in contravention to international law. The withdrawal of Israeli forces is an internationally-recognised requisite of any peace process, including a two-state solution.
“If the prime minister of Britain tells us that she wants to move the embassy then she tells us the two state solution is no longer sponsored by her,” said Mr Zomlot. He was speaking from the offices of the Palestinian mission in London.
“Because if you move the embassy to any part of Jerusalem, it's a tacit recognition of Israel's illegal annexation of East Jerusalem,” he said.
“So I want her to speak out and tell me what the alternative is … because the question is 'if you destroy the two state solution, then do you have a durable sustainable, comprehensive long term plan?' If so, what is it? How will you shift from an occupation that needs to end?”
Mr Zomlot said Ms Truss is veering away from growing sympathy for the Palestinian cause among the British public and politicians, even among the traditionally Israel-supporting Conservatives.
He says the move only represents Israeli interests “from a very certain right wing extreme perspective”.
From condemnation by former British foreign secretary William Hague to the concerns of Gen Sir Simon Mayall, the UK government’s former chief Arab adviser, and a chorus of dismay from church leaders, Ms Truss has been left isolated.
“Regrettably, the engagement has only been between the prime minister and a certain extreme maximalist side of the Israeli lobby here,” said Mr Zomlot. “I don’t think this is the view of the British government but rather just its head.”
The occupied city itself is currently engulfed in a wave of violence between Israeli forces and Palestinians in a besieged refugee camp in East Jerusalem.
Unrelated to Ms Truss statements the tensions demonstrate the incendiary effect of anything that touches the Holy City without regard to the overall Palestine-Israel conflict.
Echoing the worries of others in Westminster, the diplomat said the international impact of the UK, a permanent member of the UN Security Council, breaching one of its own resolutions would be “completely disastrous”.
“To see the impact on the UK vis-a-vis its role in the region and the peace process, to see the impact on the church and the Christian community in Jerusalem … it’s huge,” he said.
“I hope this does not indicate the end of the establishment and institutions, and the checks and balances that the UK is renowned for, and the beginning of more transactional politics.”
Israeli Prime Minister Yair Lapid and Ms Truss have agreed to establish teams to negotiate a free-trade deal as quickly as possible, but that may come at a cost.
Earlier this month a senior Conservative told The National that Arab leaders were ‘baffled’ by the developments with both Israeli and Gulf figures fearing the effects of an embassy move on the Abraham Accords, the agreement signed in 2020 to promote greater understanding between Israel and the UAE and Bahrain.
It comes at a particularly sensitive time as the UK and Gulf Cooperation Council countries are in the middle of negotiating a multi-billion dollar free trade agreement.
Given the significance of Jerusalem in Muslim countries — it is where the Masjid Al Aqsa, Islam’s third holiest site, is located — Mr Zomlot says signatories to the Accords cannot be happy to see their agreement “abused and exploited”.
“I'm sure that was not the purpose of that agreement,” Mr Zomlot told The National.
“A move serves nobody and it only entrenches division, it only creates further tensions. It presses the wrong buttons in terms of religious confrontations. No-one needs this at this point in time.”
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
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The%20specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A
