Israel ushered in its most right-wing government on Thursday amid international criticism for its ultranationalist religious hardline stance under returning Prime Minister Benjamin Netanyahu.
Mr Netanyahu won in November 1 elections that were the fifth in two years after previous governments had failed to form lasting coalitions. He has vowed to expand settlements in his new term.
“I hear the constant cries of the opposition about the end of the country and democracy,” Mr Netanyahu said after taking the podium in parliament ahead of the government's formal swearing-in on Thursday afternoon.
“Opposition members: to lose in elections is not the end of democracy, this is the essence of democracy,” he said.
Mr Netanyahu outlined three “national goals” of his government in a speech to parliament, saying his cabinet will focus on confronting Iran's nuclear activities, a national bullet train project and expanding its peace accords with Arab countries.
He took office a day after his conservative Likud party published guidelines for his new government that placed West Bank settlement among the top priorities.
“These guidelines constitute a dangerous escalation and will have repercussions for the region,” said Nabil Abu Rudeineh, spokesman for Palestinian President Mahmoud Abbas.
The Knesset elected Likud member and former justice minister Amir Ohana as Parliamentary Speaker before the new cabinet was officially sworn in.
Mr Ohana has served as public security minister and is an ally of Mr Netanyahu.
Mr Netanyahu and his Cabinet were sworn in after the government received 63 out of 120 votes in parliament.
Mr Netanyahu, who is on trial for corruption charges that he denies, has attempted to downplay the severity of some members of his government, including Security Minister Itamar Ben-Gvir who leads the Otzma Yehudit (Jewish Power) party.
Under new laws passed days ahead of Thursday's swearing in, Mr Ben-Gvir's authority over the police has expanded. It puts him “in charge” of the police force on behalf of the Israeli government, as opposed to the government being in charge of the police.
Both Mr Ben-Gvir and Mr Netanyahu were heckled in the Knesset on Thursday, with some MPs calling them racist. Hours before the session, Israel's Ambassador to France Yael German resigned, saying she could not represent a government “so radically different from everything I believe in”.
Mr Netanyahu's alliance with the Religious Zionism and Jewish Power parties has faced criticism for opposing Palestinian statehood and the rights of Arab minorities in Israel.
In recent interviews, Mr Netanyahu has repeatedly insisted that the parties in his coalition will be taking their cues from him as their leader.
But coalition negotiations indicated this may not be the case, with Mr Netanyahu receiving demands from his allies on settlement expansion and religious law.
“We will establish a stable government for a full term that will take care of all Israel's citizens,” he said on Wednesday.
Only five women will serve as ministers in the new government.
Female ministers from Mr Netanyahu's Likud party will head up the transportation and environmental protection ministries, and the Prime Minister's office.
A woman will also take the helm of the national missions ministry, the newly-renamed settlement ministry. Orit Strock, of the Religious Zionism party, is a leading figure in the Hebron settler community and the founder of a settler group.
Addressing his final Knesset session as prime minister, Yair Lapid said he was handing over the reins “with an unquiet heart”.
“We are transferring a country to you in excellent condition. With a strong economy, with improved security capabilities and powerful deterrence, with some of the best international standing ever. Try not to ruin it, we’ll be back soon.”
He refused to shake Mr Netayanhu's hand as the new government was inaugurated.
Mr Netanyahu is the country's longest serving prime minister, having held office from 2009 until 2021 and for a stint in the 1990s.
Several thousand demonstrators stood outside the Knesset on Thursday, with some saying “we don't want fascists” in parliament. A protest was expected to take place in Tel Aviv later in the day.
Israel's new government has sparked fears of worsening violence in the occupied West Bank, which has seen its bloodiest year since 2005.
Jewish and Arab rights activists have warned the new government will encroach on millions of lives on both sides of the Green Line, with its guidelines threatening not only to prioritise settlements in the occupied West Bank but also to enforce new Orthodox-leaning rules on Israel's non-religious majority.
“We live in a terrifying time, facing realities that we couldn’t have dreamt about in our worst nightmares,” Noa Sattath, the executive director of the Association for Civil Rights in Israel, told Haaretz newspaper on Wednesday.
There are fears conflict could be ignited with neighbouring Jordan, which controls holy sites in occupied East Jerusalem, including the Al Aqsa compound.
King Abdullah II said Jordan was prepared to deal with any change in status of the holy sites, which he called a “red line”.
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.”
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
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UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Results:
6.30pm: Handicap | US$135,000 (Dirt) | 1,400 metres
Winner: Rodaini, Connor Beasley (jockey), Ahmad bin Harmash (trainer)
7.05pm: Handicap | $135,000 (Turf) | 1,200m
Winner: Ekhtiyaar, Jim Crowley, Doug Watson
7.40pm: Dubai Millennium Stakes | Group 3 | $200,000 (T) | 2,000m
Winner: Spotify, James Doyle, Charlie Appleby
8.15pm: UAE Oakes | Group 3 | $250,000 (D) | 1,900m
Winner: Divine Image, William Buick, Charlie Appleby
8.50pm: Zabeel Mile | Group 2 | $250,000 (T) | 1,600m
Winner: Mythical Image, William Buick, Charlie Appleby
9.20pm: Handicap | $135,000 (T) | 1,600m
Winner: Major Partnership, Kevin Stott, Saeed bin Suroor