Palestinian negotiator Saeb Erekat has called for a US-backed meeting taking place in Manama next week to be cancelled. World Economic Forum / Jakob Polacsek
Palestinian negotiator Saeb Erekat has called for a US-backed meeting taking place in Manama next week to be cancelled. World Economic Forum / Jakob Polacsek
Palestinian negotiator Saeb Erekat has called for a US-backed meeting taking place in Manama next week to be cancelled. World Economic Forum / Jakob Polacsek
Palestinian negotiator Saeb Erekat has called for a US-backed meeting taking place in Manama next week to be cancelled. World Economic Forum / Jakob Polacsek

Palestinian negotiator Saeb Erekat warns two-state solution at risk


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A senior Palestinian official warned on Sunday that the Israeli prime minister’s campaign pledge to annex West Bank settlements will be the death knell of the Palestinian Authority, while Oslo Accords veterans said such a rightward shift may make a two-state solution an unlikely possibility.

Speaking during a session at the World Economic Forum Mena at the Dead Sea in Jordan, Palestinian Liberation Organisation secretary general and negotiator Saeb Erekat said that if the Israeli government moves to annex West Bank territory, as promised by Benjamin Netanyahu on Israeli TV on Saturday, the Palestinian Authority would cease to exist as an entity.

“We have reached a point that to me as the Palestinian Authority, now I am not sustainable,” Mr Erekat said in a panel. “That is the number one warming I am giving to everyone: The Palestinian Authority may have to play a disappearing act; it cannot be sustained.”

Mr Erekat said that the annexation of settlements in Area C, combined with recent funding cuts to the Palestinian Authority and the US recognition of Jerusalem as Israel’s capital has left the Authority without funds or the authority to act as a governing entity. Area C is an Israeli-occupied area that comprises 60 per cent of the West Bank with more than 300,000 settlers that was originally designated to gradually be transferred to Palestinian control under the Oslo Accords.

"The politics of Netanyahu, particularly the annexation of settlement blocs in the West Bank, will lead to the destruction of the Palestinian Authority," Mr Erekat told The National. "In its place will be a Palestinian state in Gaza under the flag of Hamas. This seems to be what Netanyahu and Trump want."

The outcome of Tuesday’s elections in Israel weighed heavily on experts and former negotiators discussing the future of the peace process. Many say the outcome of the election will determine the status quo in Israel and Palestine, the success of the Trump administration’s plans for the region, and support in some corners for a binational state.

Former Israeli brigadier general and negotiator Michel Herzog said he and many other retired officers are concerned that should Netanyahu align with far-right parties, Israeli government policy may lead to a de-facto binational situation where Israel retains the economic, social, and political responsibility of the Palestinians.

Such a scenario would be an existential threat to Israel’s identity as a “democratic state and a Jewish state,” he said.

"If Netanyahu wins the election and forms a coalition that relies on the far-right, there will be pressure to annex parts of settlements in Area C in the West Bank," Mr Herzog told The National.  "That presents a trajectory that can lead to a creeping Israeli annexation of the West Bank and this is very troubling.

“Netanyahu has long resisted annexing parts of the West Bank because I think intellectually he understands the ramifications of such a decision, but I am not reassured he will withstand the political pressures to do so.”

The two-state solution remains the most viable solution to the Israeli-Palestinian conflict, said Terje Roed-Larson, a veteran of the 1993 Oslo agreement between Israel and the Palestine. This is in spite of the rightward shift in Israeli politics, the lack of a strong actor on the Palestinian side, and the confusion surrounding the Trump administration’s peace plan.

“The reoccupation of the West Bank and Gaza would be a disaster for the Palestinians and maybe an equal disaster for the Israelis,” said Mr Roed-Larson, who is a former Norwegian foreign minister.

When it comes to the US role in the peace process and the Trump administration’s determination to tear up nearly three decades of diplomacy, many observers remain sceptical of whether a peace agreement could be imposed on the Palestinians.

Following over 35 meetings with Trump administration officials, Mr Erekat said the White House’s policy of dictating terms, rather than facilitating discussions directly between the Israelis and Palestinians has made the yet-to-be-revealed “ultimate deal” a non-starter and has ended the US role as a mediator in the eyes of the Palestinians.

“I will not talk with them, period. Period,” Mr Erekat told the forum.  “America is no longer a broker in the conflict, it is a side of the conflict,”

He continued: “President Trump and his art of negotiation has put me in a position where I have nothing to lose; Jerusalem is the capital of Israel, settlements are now legal. What would I talk to him about?”

When it comes to the White House’s highly-touted but thin-on-detail peace deal, most senior negotiators and peace process veterans remained sceptical.

Mr Herzog, who questions whether the US administration “fully understands the complexity of the issue and what needs to be done,” doubted that the plan would represent a “breakthrough.”

Despite a change in regional priorities and rightward shifts in both Israeli politics and American diplomacy, a two-state solution providing both a Palestinian homeland and retaining Israel’s identity remains the only sustainable solution, whether it is reached in years or decades to come, said Mr Roed-Larson.

"Palestinian identity is glued to a Palestinian state, and that peace cannot be reached without a state as Palestinians will not give up that identity," he said.  "If it is not based on a two-state solution, it will not fly."

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

'Peninsula'

Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra

Director: ​Yeon Sang-ho

Rating: 2/5

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

In numbers

Number of Chinese tourists coming to UAE in 2017 was... 1.3m

Alibaba’s new ‘Tech Town’  in Dubai is worth... $600m

China’s investment in the MIddle East in 2016 was... $29.5bn

The world’s most valuable start-up in 2018, TikTok, is valued at... $75bn

Boost to the UAE economy of 5G connectivity will be... $269bn 

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

The biog

Favourite book: Homegoing by Yaa Gyasi

Favourite holiday destination: Spain

Favourite film: Bohemian Rhapsody

Favourite place to visit in the UAE: The beach or Satwa

Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19

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