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Arabs across the region are boycotting western businesses, particularly American ones, reflecting anger over their perceived support for Israel in the Gaza war.
Disillusionment with the West, much of which has offered unconditional support to the right-wing government of Benjamin Netanyahu and its actions in Gaza, is also a factor in this movement.
The boycott has, over the little time it has been in force, picked up pace.
Outlets of brands such as Starbucks, McDonald's and Domino's Pizza sit empty or are lightly frequented in Arab cities such as Cairo, Amman, Beirut, Kuwait and Doha, indicating the depth of anger felt by many Arabs over the war.
It is harder to ascertain the effect the boycott has had on popular US products such as Pepsi and Coca-Cola, although a top regional executive from one of the two global brands told The National that stocks held by local distributors have increased in past weeks.
It may not be a game-changer and it may not last long enough to inflict serious damage, but it drives the point home that we, like the Israelis, are human beings whose lives matter just as much
Hany,
former sales executive for a US IT company
In some cases, he said, local employees have quit their jobs in protest.
“It may not be a game-changer and it may not last long enough to inflict serious damage, but it drives the point home that we, like the Israelis, are human beings whose lives matter just as much,” said Hany, a former sales executive in a US IT company.
Scenes coming out of Gaza showing small children killed or wounded in Israeli air strikes; or the helplessness painted on the faces of tens of thousands walking to supposedly safer parts of the Gaza Strip to escape Israeli bombardment, has left many angry.
Israel's relentless bombardment of Gaza since October 7 has killed more than 11,000 people, including at least 4,000 children, according to the Health Ministry in Gaza. It has also displaced about half the coastal enclave's 2.3 million residents and wiped out entire blocks in urban areas.
The bombardment is in response to a deadly rampage in southern Israel by Hamas militants that killed about 1,400 people. Israeli strikes have been branded as a “collective punishment” and a breach of international law by several Arab leaders.
More recently, Israel's aerial campaign and the subsequent ground offensive led to calls by western governments to Israel to reduce civilian casualties.
Often frustrated by the discord among their governments or their lack of effective action, ordinary Arabs had, in the past, tried to make their voices heard by boycotting western businesses, but not on the scale of the present one.
The boycott has revived scores of local brands in Egypt that have previously vanished or relegated to a negligible slice of the market after the market was opened to foreign products in the 70s.
“Last night, I had eight of my son's friends staying over. Normally, I would have ordered pizza from Papa Johns or Domino's for everyone,” said Hany, a father of two. “Instead, I ordered shawarma.”
Brands such as Spiro Spathis, a fizzy drink founded in 1920 by one of the thousands of Greeks who made Egypt their home, have made a notable comeback after decades of limited distribution in a market dominated by Coca-Cola and Pepsi.
So much is the demand on Spiro Spathis that the company has advertised 2,000 new jobs on its social media.
“It's a golden opportunity to revive local industries that were weakened or died altogether in the 1980s,” said Negad Borai, a prominent rights lawyer and a member of the board of trustees of the “national dialogue”, an inclusive panel of experts, academics and politicians tasked by President Abdel Fattah El Sisi to chart Egypt's economic and political future.
“What's so special about the boycott movement, too, is that it's an effective grass roots movement launched away from government interference and is spontaneously growing,” he told The National.
But the boycott across the Arab world is also raising questions on whether it could cost hundreds of thousands of jobs of those employed by local companies who own US and European franchises.
It's also raising questions on whether local franchise owners should be penalised for the perceived pro-Israeli policies of their mother companies.
Last month, people stormed several McDonald’s outlets across Lebanon, which shares a border with its long-time nemesis Israel. The protest did not take into account that the Lebanese franchise is not owned by the same company as the one in Israel, which announced free meals for Israeli soldiers.
In response to the controversy, the global fast food chain’s parent company last week rejected “inaccurate reports” over its position on the Gaza war.
“McDonald's Corporation is not funding or supporting any governments involved in this conflict, and any actions from our local development licensee business partners were made independently without McDonald's consent or approval,” it said.
A popular boycott of places like McDonald’s would devastate Lebanese supply chains. McDonald’s buys bread from Lebanese businesses, as well as chicken. It also employs around 1,400 Lebanese, according to Tony Nehme, a consultant and member of the Lebanese Franchise Association.
“The public needs to understand that boycott affects the Lebanese economy first and foremost before it affects anything else. The investors are Lebanese, the employees are Lebanese, the investment is money from Lebanon, and the supply chain is Lebanese.”
But Rami Salami of the Campaign to Boycott Supporters of Israel, Lebanon’s leading boycott campaign, explained that the issue goes beyond local economic consequences.
“Franchises in Lebanon should put pressure on the parent companies [that provide franchise licences]. It’s on them to find a solution to the problem – because simply put, they are tied to a company that supports Israel,” he told The National.
But Mr Borai, the Egyptian rights lawyer, believes boycotting McDonald's and Starbucks, regardless of the local consequences, affects only a small segment of the population in a country like Egypt.
“The loss of jobs will not be tragic either. Those who can fry chips and flip burgers can do that for local franchises,” he said.
In Jordan, the world's third-largest recipient of US aid after Israel and Egypt, some of the busiest McDonald's and Starbucks outlets in the capital Amman had a handful of people on Thursday night, usually the week's busiest time.
A large segment of Jordan's 10 million people are the second generation of Palestinian refugees who fled their homes to come to Jordan around the time Israel was created in 1948 and in the aftermath of the 1967 Arab-Israeli war when Israel captured the West Bank, Syria's Golan Heights and the Sinai Peninsula in Egypt.
Jordan in 1994 became the second Arab nation to sign a peace treaty with Israel after Egypt 15 years earlier.
Rana, a Jordanian mother of a teenage son, said she and her boy not only boycotted American brands but also French ones because of what she said was a rise in “French racism against Arabs” since the Gaza war began.
“We stopped going to Carrefour. We are buying local goods from a small grocery near the house,” said Rana.
Many small supermarkets in Amman have stopped stocking Pepsi and Coca-Cola. Instead, they are offering a brand of fizzy drink called Matrix, which is manufactured in Jordan and Iraq.
One manager at a private company in Amman who ordered food and Coca-Cola Zero on the popular delivery app Talabat said she received Matrix instead of Coca-Cola.
“They did not tell me,” she said.
The boycott movement also speaks to anti-western sentiments sustained by decades of heavy-handed handling of the Palestinians by Israel and the West's perennial failure to get it to accept the will of the international community and give them an independent state of their own in the occupied West Bank and Gaza.
These sentiments were revived by the war in Gaza.
“I regret the years I lived while convinced that the West offered an example to follow when it comes to respect of human rights, justice and transparency,” said a prominent Egyptian artist whose paintings and installations earned her lavish accolades in Europe.
“Say what you will about us, but now I am convinced that we are the better people, the more civilised and compassionate.”
Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
UAE currency: the story behind the money in your pockets
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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.”
Essentials
The flights
Return flights from Dubai to Windhoek, with a combination of Emirates and Air Namibia, cost from US$790 (Dh2,902) via Johannesburg.
The trip
A 10-day self-drive in Namibia staying at a combination of the safari camps mentioned – Okonjima AfriCat, Little Kulala, Desert Rhino/Damaraland, Ongava – costs from $7,000 (Dh25,711) per person, including car hire (Toyota 4x4 or similar), but excluding international flights, with The Luxury Safari Company.
When to go
The cooler winter months, from June to September, are best, especially for game viewing.
The Written World: How Literature Shaped History
Martin Puchner
Granta