EU approves continued Palestinian development aid

Live updates: Follow the latest news on Israel-Gaza

The European Union on Tuesday said it would continue sending aid to Palestinians after a review found no misuse of funds.

Announced on October 9, the EU audit into aid for Palestine included the screening of beneficiaries to check that funds were not being diverted to terrorist groups such as Hamas and that no recipients of aid had incited hatred or violence.

"The review found no indications of EU money having directly or indirectly benefited the terrorist organisation Hamas," executive vice president of the EU Commission Valdis Dombrovskis said on Tuesday.

"The review found that the control systems in place have worked.

"As a result, payments to Palestinian beneficiaries and [the UN agency for Palestinian Refugees] UNRWA will continue without delays."

EU Commission officials have said the review was necessary due to the unprecedented situation caused by the Hamas attacks on Israel that killed around 1,200 people, down from an initial estimate of 1,400. Israel has retaliated with intense bombing of the Gaza Strip, as well as a ground offensive, in which more than 13,000 have been killed, the enclave's authorities say.

"In this extremely polarised environment, there is a duty of care and a necessity to respect precautionary principles," an EU official said.

The bloc's review is seen widely as a face-saving exercise after announced a suspension of all aid to Palestinians that was immediately contradicted by senior EU officials including the bloc’s foreign policy chief Josep Borrell.

The probe was launched in unusual circumstances. It came after European Commissioner Oliver Varhelyi, from Hungary, announced all development funds would be "immediately suspended" after the Hamas attack.

"All projects put under review. All new budget proposals … postponed until further notice," he said.

Only hours later, the commission backtracked, saying in a terse statement there would be “no suspension of payments”. As the investigation showed, no payments to the Palestinians were even due.

Tuesday's announcement came as rumours of an imminent truce in the Gaza Strip intensified. EU countries are deeply divided between those who strongly support Israel and others who have voiced more concern for the lives of Palestinian civilians.

Speaking in Brussels, German's Economic Co-operation and Development Secretary Jochen Flasbarth said it was crucial "not forget who the aggressor was, and Israel has the right to defend itself".

"Of course, international law has to be respected," he added.

Belgium's Minister for Development Co-operation Caroline Gennez said more humanitarian aid was urgently needed in Gaza.

She voiced support for the UN's repeated calls for a ceasefire – a plea which has not been met with unanimous support among the bloc's 27 countries.

"Denying people food, water and medical supplies is a violation of international humanitarian law," said Ms Gennez.

"Bombing schools, hospitals, innocent civilians and aid workers is a violation of international humanitarian law. It is time to end the cycle of violence now.

"I would strongly urge Israel to open up humanitarian access from Erez and Kerem Shalom" said Ms Gennez, highlighting that only one border crossing, Rafah, is open through which aid can arrive in Gaza.

The EU has a no-contact policy with Hamas, which it has listed as a terror organisation, since 2007.

No breaches of contractual obligations were found by the Commission, which double-checked 119 contracts worth €331 million ($362.3 million), of which 65 per cent were cleared.

Infrastructure and energy projects worth €75.6 million in the Gaza Strip were deemed unfeasible in the current war context, of which €25 million has already been reallocated to programmes supporting Palestinians.

However, two unnamed projects, worth €8 million, involving Palestinian civil society organisations were suspended due to concerns over hate speech and the glorification of terrorism, officials said.

EU officials who conducted the review recommended to all 27 EU commissioners, collectively known as the Commission's college, apply stricter controls in monitoring hate speech and the promotion of anti-Semitism among Palestinian NGOs that receive aid.

Mr Dombrovskis did not mention whether the college adopted that proposal.

EU officials said the extra checks, which were suggested for all NGOs in Palestine and Israel, could include an anti-incitement clause. They described the potential checks as "proportionate" and not unprecedented. Such controls are already place for other aid programmes such as those aimed at Syrian refugees, they said.

The EU will continue supporting the Palestinian Authority, including with a programme that pays salaries and pensions in the occupied West Bank to 90,000 beneficiaries.

Since 2017, the Gaza Strip has been excluded from this programme but poor and vulnerable families in the enclave still receive cash transfers, the EU official said.

Checks are already in place that beneficiaries are not on any sanctions list, with an error rate of 0.03 per cent, sources said.

The EU is waiting for more information from civil society organisations in the case of 51 contracts worth €39 million but has no reason to believe that contractual obligations were breached.

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RESULTS

2.15pm: Al Marwan Group Holding – Handicap (PA) Dh40,000 (Dirt) 1,200m
Winner: SS Jalmod, Antonio Fresu (jockey), Ibrahim Al Hadhrami (trainer)

2.45pm: Sharjah Equine Hospital – Maiden (PA) Dh40,000 (D) 1,000m
Winner: Ghallieah, Sebastien Martino, Jean-Claude Pecout

3.15pm: Al Marwan Group Holding – Handicap (PA) Dh40,000 (D) 1,700m
Winner: Inthar, Saif Al Balushi, Khalifa Al Neyadi

3.45pm: Al Ain Stud Emirates Breeders Trophy – Conditions (PA) Dh50,000 (D) 1,700m
Winner: MH Rahal, Richard Mullen, Elise Jeanne

4.25pm: Sheikh Mansour bin Zayed Al Nahyan Cup – Prestige Handicap (PA) Dh100,000 (D) 1,200m
Winner: JAP Aneed, Ray Dawson, Irfan Ellahi

4.45pm: Sharjah Equine Hospital – Handicap (TB) Dh40,000 (D) 1,200m
Winner: Edaraat, Antonio Fresu, Musabah Al Muhairi

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

The specs: 2018 Dodge Durango SRT

Price, base / as tested: Dh259,000

Engine: 6.4-litre V8

Power: 475hp @ 6,000rpm

Torque: 640Nm @ 4,300rpm

Transmission: Eight-speed automatic

Fuel consumption, combined: 7.7L / 100km

Leaderboard

63 - Mike Lorenzo-Vera (FRA)

64 - Rory McIlroy (NIR)

66 - Jon Rahm (ESP)

67 - Tom Lewis (ENG), Tommy Fleetwood (ENG)

68 - Rafael Cabrera-Bello (ESP), Marcus Kinhult (SWE)

69 - Justin Rose (ENG), Thomas Detry (BEL), Francesco Molinari (ITA), Danny Willett (ENG), Li Haotong (CHN), Matthias Schwab (AUT)

MEFCC information

Tickets range from Dh110 for an advance single-day pass to Dh300 for a weekend pass at the door. VIP tickets have sold out. Visit www.mefcc.com to purchase tickets in advance.

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

UNSC Elections 2022-23

Seats open:

Two for Africa Group
One for Asia-Pacific Group (traditionally Arab state or Tunisia)
One for Latin America and Caribbean Group
One for Eastern Europe Group

Countries so far running:

UAE
Albania
Brazil

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative

Read part one: how cars came to the UAE

While you're here

C Uday Bhaskar: The 'Asian Century' depends on China and India working together

Sholto Byrnes: This century was supposed to belong to Asia – and here’s how it still can

Sholto Byrnes: It is indeed Asia’s century and the western world better adapt to that

Mohammed bin Zayed Majlis

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Company profile

Name: Infinite8

Based: Dubai

Launch year: 2017

Number of employees: 90

Sector: Online gaming industry

Funding: $1.2m from a UAE angel investor

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.”

White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

Main report

Ten years on, the UAE's stateless people reflect on how life has improved and on the challenges ahead

Directed by: Craig Gillespie

Starring: Emma Stone, Emma Thompson, Joel Fry

4/5

Stan%20Lee

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Types of fraud

Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.

Smishing: The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.

Vishing: The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.

SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.

Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.

Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.

* Nada El Sawy

What's in the deal?

Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024

India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.

India will also cut automotive tariffs to 10% under a quota from over 100% currently.

Indian employees in the UK will receive three years exemption from social security payments

India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery