Bahrain's civil aviation authority has suspended flights to and from Lebanon as civil unrest in the Gulf state continues to disrupt airlines.
"This decision was taken after the irresponsible comments and stances from Lebanon against Bahrain, its people and leaders," the state-owned Bahrain news agency reported, citing a statement from the Civil Aviation Affairs department.
On Tuesday, Bahrain's foreign ministry warned Bahrainis not to travel to Lebanon for their own safety and said the warning was issued because of threats and interference.
Lebanon is the third country where Gulf Air and Bahrain Air, the two airlines based in Bahrain, have temporarily suspended services. Last week, the airlines cut routes to Iran and Iraq, two countries also featuring sizeable Shiite populations.
Samer Majali, the chief executive of Gulf Air, has said the unrest, and the postponement of the Bahrain Grand Prix that was scheduled to have taken place this month, has led to a "serious reduction" in bookings for the airline.
While it has not been affected by unrest in Tunisia, it has been forced to reduce operations to Egypt during the protests, he told Air Transport Intelligence, a trade publication.
Airlines across the Middle East have postponed growth plans and reduced services in response to the wave of unrest that has curtailed demand for trade and tourism. In Egypt, airlines have reduced capacity this week by more than 14,400 seats compared with last week, according to Innovata, the aviation data management firm.
The biggest drop in seats were from EgyptAir, Lufthansa, Emirates Airline, Gulf Air and Austrian Airlines.
Wataniya, the Kuwaiti airline, shut down last week. Only El Al of Israel increased capacity to Egypt.
After months of scaling back operations, EgyptAir is targeting a return to normal operations by the end of summer.
Its revised schedule "will feature a gradual growth in volume of operations over the summer season reaching normal volume towards the end of the season", the airline said.
The recovery plan comes after the carrier this year was forced to push back the arrival of Airbus wide-bodied aircraft by several months and also postponed launching routes to Canada and the US.
The Airbus A330-300s will be delivered up to four months later than planned, while the new services to Toronto and Washington were scheduled to begin in May but will now be launched during winter.
The airline has downplayed reports it was looking to lease out about 25 of its aircraft to other airlines to deal with the sharp drop in demand.
An internal communication was leaked that addressed "possible measures to alleviate the impact of the drop in passenger traffic during the peak of the crisis".
"Within the peak of the crisis, EgyptAir had diligently performed appropriate adjustments to the schedule that were required to enhance the efficiency of the network through altering frequencies and retiming," the airline said.
The regional tension will affect global air travel flows, the International Air Transport Association said yesterday.
"Momentum was strong at the start of 2011 and rising business confidence points to further gains in the months ahead," it said.
However, "the next two months' data will be negatively affected by the unrest in the Middle East and the Japanese earthquake and tsunami".
* with agencies
igale@thenational.ae
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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 five pillars of Islam
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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MATCH INFO
CAF Champions League semi-finals first-leg fixtures
Tuesday:
Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)
Second legs:
October 23
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
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About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
CHELSEA'S NEXT FIVE GAMES
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Mar 16: Lille(A)
Mar 19: Middlesbrough(A)
Apr 2: Brentford(H)
Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
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- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
RESULTS
5pm Wathba Stallions Cup Maiden (PA) Dh70,000 (Dirt) 1,400m
Winner Munfared, Fernando Jara (jockey), Ahmed Al Mehairbi (trainer)
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Winner Dergham Athbah, Pat Dobbs, Mohamed Daggash
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Winner Rajee, Fernando Jara, Majed Al Jahouri
7pm Conditions (PA) Dh80,000 (D) 1,800m
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Winner Pharoah King, Pat Dobbs, Doug Watson
8pm Conditions (PA) Dh85,000 (D) 2,000m
Winner Sauternes Al Maury, Dane O’Neill, Doug Watson
Changing visa rules
For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.
Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.
It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.
The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.
The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million