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Deadly border clashes between Israel and Lebanon are now in their second month – despite a surprise visit by US envoy Amos Hochstein to Lebanon the previous day to “calm tensions on the southern border” – as the conflict between the enemy states gradually threatens to become a broader regional war.
Hours after Mr Hochstein’s visit, Hezbollah – which has a paramilitary wing that rivals the Lebanese army – launched 20 missiles towards the Israeli-occupied Golan Heights.
The Israeli military retaliated hours later with some of the most severe air strikes since the conflict erupted on October 8, further undermining the US envoy’s efforts.
“Hezbollah and Israel are dancing on the precipice and not wanting to go into full-fledged war while also not wanting to fold their cards,” Nadim Houry, director of the Arab Reform Initiative, told The National.
“We don’t know if the US is exerting any pressure on Israel but they’re clearly exerting pressure on Hezbollah and the Lebanese side.”
The frontier between Lebanon and Israel has become a staging ground for a broader conflict over the past month, as armed groups, led by Iran-backed Hezbollah, continue to exchange fire with their southern neighbour in support of their ally Hamas, which controls the blockaded Gaza Strip.
Mr Hochstein’s visit appeared to be an attempt to diplomatically contain the conflict and urge Lebanese leaders to deter Hezbollah from engaging in deeper conflict with Israel.
But experts told The National that Hezbollah has already made it clear that it is not seeking war.
“It’s clear this is a regional diplomatic initiative by the Americans to try and protect their interests and to gain time for Israel to do whatever it’s doing in Gaza,” said Karim Al Mufti, professor of political affairs at Sciences Po in Paris.
“And, while Israel is committing atrocities, to limit the responses from actors that could potentially do harm [to Israel].”
In a long-awaited speech last week, Hezbollah leader Hassan Nasrallah said any potential escalation of the border conflict with Israel would directly correspond to Israel’s actions in Gaza or the killing of civilians in Lebanon.
It was not a declaration of war, Mr Al Mufti told The National, but an opportunity for the US to de-escalate, by pressuring Israel into ceasing its ground and air assault on the Gaza strip.
“Nasrallah took a responsible stance: ‘We do what we have to do to support our brethren in Gaza but we are not reckless, we won’t be held responsible for sparking a full-fledged war. If that happens, it’s on the US and Israel.'”
Saving face
The pattern of gradually escalating tit-for-tat clashes continued into Wednesday, when Hezbollah announced it attacked an Israeli infantry force, “causing confirmed casualties including dead and wounded” in response to Israel striking an ambulance earlier this week, which injured at least three paramedics.
On Sunday, three children and their grandmother were killed in an Israeli strike on their car. On the same day, an Israeli civilian was killed by an anti-tank guided missile launched by Hezbollah.
“If the United States is keen to keep the border quiet they need to exert pressure on Israel not to attack or kill Lebanese civilians, not just on the Lebanese side,” said Mr Houry.
“We haven't seen any public accountability.
“The US is actively supporting Israel directly by providing intel, military support and running interference internationally in diplomacy, so it is on them to stop Israeli actions: for instance the attack that killed civilians in Lebanon.”
Publicly, US officials have done little to admonish Israel for civilian casualties or pressure it into enacting a ceasefire in the Hamas-controlled strip. Instead, the White House has sought Israeli consensus on “temporary localised pauses in the fighting”, according to National Security Council spokesman John Kirby, speaking to reporters at a digital briefing earlier this week.
According to Mr Al Mufti, “pauses and ceasefire are the same thing”.
“There is nothing in international law called a ‘humanitarian pause’,” he continued.
“This is all diplomatic rhetoric to try and get the tiniest of concessions from the Israelis, calling it a pause so Israel won't lose face.”
Lebanese state 'on pause'
Lebanon, currently suffering through one of the worst economic crises in modern history, currently has no president, no functioning parliament and no empowered government.
Prime Minister Najib Mikati, who leads in a caretaker capacity, last week called for a five-day ceasefire in Gaza and said he would hold Israel responsible for the eruption of a full-scale war with Lebanon.
Meanwhile prominent former general security director Abbas Ibrahim – known for having a network of diplomatic ties and a close relationship with Hezbollah – returned to Lebanon from Qatar on Monday, where he took part in the Qatar-led hostage negotiations between Hamas and Israel.
“Mikati is trying to push a Lebanese perspective to meet with Qataris and the Americans,” Mr Houry said of Lebanon’s diplomatic efforts.
“But [the decision to go to war] is not a sovereign decision of a government. The ultimate decision towards war or peace for Lebanon rests with one man only, and that’s with Hassan Nasrallah.”
Mr Al Mufti agreed, saying: “It makes perfect sense. It’s a failed state. The state is on pause … and the country's leadership is aligned with Hezbollah's rhetoric.”
Both analysts agree that Hezbollah, Israel and the US do not want to risk igniting a broader war at this stage, but that without a ceasefire in Gaza, “the potential for miscalculation is high”, Mr Houry said.
UAE squad
Rohan Mustafa (captain), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan
Bharatanatyam
A ancient classical dance from the southern Indian state of Tamil Nadu. Intricate footwork and expressions are used to denote spiritual stories and ideas.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
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.”
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
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COMPANY%20PROFILE%20
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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
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
SERIE A FIXTURES
Saturday Benevento v Atalanta (2pm), Genoa v Bologna (5pm), AC Milan v Torino (7.45pm)
Sunday Roma v Inter Milan (3.30pm), Udinese v Napoli, Hellas Verona v Crotone, Parma v Lazio (2pm), Fiorentina v Cagliari (9pm), Juventus v Sassuolo (11.45pm)
Monday Spezia v Sampdoria (11.45pm)
WORLD CUP FINAL
England v South Africa
Yokohama International Stadium, Tokyo
Saturday, kick-off 1pm (UAE)
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
Jawan
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Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.