Senior figures at home and abroad are piling pressure on Israeli Prime Minister Benjamin Netanyahu over what they believe is his diminishing ability to control an unruly coalition.
In recent days, the Prime Minister has faced high-profile resignations and protests within his own government as concerns mount, particularly among colleagues furthest on the right, over broken promises and a sluggish pace implementing manifesto promises.
On Monday, opposition leader Yair Lapid said the government had “lost control”, of a deteriorating security situation.
On Tuesday, EU diplomats told Israeli media that “we don’t see the control behind the scenes that [Mr Netanyahu] led us to believe he has”.
“Prime Minister Benjamin Netanyahu doesn't like changing the status quo, but we can't continue in a situation where the most basic task that a government must fulfil, ensuring security, is not provided,” Benjamin Sipzner, an activist for the Religious Zionism party whose politicians have voiced frustration on a number of occasions this month, told The National.
“At some point there really is a line for us and the patience of the population and certain Knesset members will disappear. We're heading there right now. The current situation cannot continue.”
While many Israelis decry the new government — the most conservative in the country's history — Mr Netanyahu's solid mandate and an ascendant far right during the most recent elections brought about the strongest coalition seen for some time, ending a tumultuous period that saw five elections in three years.
But the difficult task of implementing the many promises that coalition parties made to their voters is proving divisive.
On Monday, far-right politician Avi Maoz, the Noam party's sole representative in the Knesset, resigned. His letter of resignation to the Prime Minister said he was “shocked to find there was no serious intention of honouring the coalition deal”.
As part of negotiations to form a government, Mr Netanyahu agreed to Mr Maoz's petition to head an authority on Jewish national identity, something that Mr Maoz says never materialised.
The Noam politician is famous for his hardline stance on promoting conservative religious values, including revising the school curriculum and changing policy on an egalitarian prayer zone at the Western Wall in Jerusalem.
His departure comes as other key members of the coalition express mounting disquiet across a range of policy areas.
Security, a priority for so many in Israel, is proving particularly contentious. As violence in the West Bank escalates, ministers that ran on hawkish campaigns are under particular strain.
Knesset boycott
On Monday, lawmakers from the far-right Otzma Yehudit party boycotted a Knesset session over what it described as a lenient “policy of containment” after deadly violence in the West Bank.
Earlier in the month, their leader, National Security Minister Itamar Ben-Gvir, warned he would resign in three months if the government does not implement some of his policies, even if it means bringing down the coalition.
Religious issues are also proving problematic.
On Tuesday, a lawmaker from the ultraorthodox United Torah Judaism party resigned from a government role heading the annual Jewish pilgrimage to Mount Meron, as other parties representing the community complain that the government is not allocating enough funds for their institutions.
It is not known whether such resignations are permanent or temporary in Israel's fast-moving, complex political system.
Mr Sipzner told The National it is “unrealistic” for his party to get “all that it wants”.
“We are only two months in and hopefully things will settle,” he said.
“I don't think we're going to walk away. As things are currently going, I anticipate a lot of pushing and threats to leave Knesset sessions and maybe even ministerial positions temporarily. But overall there's way too much to lose. This is the most right-wing coalition Israel has ever had, and we can't afford for it to fail.”
But there is a growing chance that recent trouble for Mr Netanyahu is more than internal political manoeuvring, and disquiet will likely only rise as the government is forced to confront mounting challenges.
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
UAE currency: the story behind the money in your pockets
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
Teams
India (playing XI): Virat Kohli (c), Ajinkya Rahane, Rohit Sharma, Mayank Agarwal, Cheteshwar Pujara, Hanuma Vihari, Ravichandran Ashwin, Ravindra Jadeja, Wriddhiman Saha (wk), Ishant Sharma, Mohammed Shami
South Africa (squad): Faf du Plessis (c), Temba Bavuma, Theunis de Bruyn, Quinton de Kock, Dean Elgar, Zubayr Hamza, Keshav Maharaj, Aiden Markram, Senuran Muthusamy, Lungi Ngidi, Anrich Nortje, Vernon Philander, Dane Piedt, Kagiso Rabada, Rudi Second
Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
RESULTS
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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
UAE currency: the story behind the money in your pockets
