Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty
Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty
Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty
Israel's Sky Dew advanced radar detection airship has been struck by a Hezbollah drone. Getty

Hezbollah 'blinds' Israeli defences with drone strike on Sky Dew airship


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Israel has suffered a substantial setback to its surveillance capabilities after a Hezbollah drone struck a $230 million advanced radar detection airship in its deepest attack into the country to date.

Israel's military has confirmed that the Sky Dew blimp, which can spot targets up to 250km away, had been damaged in an attack by a kamikaze drone. Local reports suggest the blimp was shot down.

Intelligence analysts told The National that Hezbollah is seeking to make northern Israel’s detection systems “go blind” potentially ahead of a more serious assault.

With Hezbollah strikes increasing in northern Israel, a local mayor has accused Prime Minister Benjamin Netanyahu of “ignoring reality” over the growing threat.

Sky Dew detection

Israel has been developing the Sky Dew project since 2022, giving its forces an advanced observation system for drones and cruise missiles striking from Iran and Syria, as well as Lebanon, by picking up smaller targets that are harder to detect in northern Israel's valleys.

It then gives precision targeting information to air defence weapons, including the Iron Dome system.

The Sky Dew blimp can spot targets up to 250km away. Getty Images
The Sky Dew blimp can spot targets up to 250km away. Getty Images

The balloon also has the key advantage of remaining airborne at low cost, without requiring fuel or crew replacement, whereas surveillance aircraft cost $40,000 an hour to operate.

But that capability has either been severely damaged or destroyed after Hezbollah launched a one-way attack drone that flew 33km undetected into Israeli airspace and struck the balloon close to the town of Tiberias.

The aircraft was probably an Iran-designed Ababil carrying a 40kg warhead travelling up to 370kph with a range of 120km.

Blinding defences

“What it is clear is that Hezbollah are trying to make the northern Israel detection defences go blind,” said Sarit Zehavi, a former lieutenant colonel in Israeli military intelligence.

Speaking from northern Israel, she had spent most of pre-dawn Friday awake after another drone strike, although air-raid sirens indicated this one had been detected.

Ms Zehavi, who is also a mother and runs Alma, an open-source intelligence centre, said she was discussing with neighbours “whether to stay at home during this Saturday or to go away” with the drone attacks increasingly frequent over the last two months.

Sarit Zehavi, founder of Alma open-source intelligence centre
Sarit Zehavi, founder of Alma open-source intelligence centre

Tal Hagin, a leading open-source intelligence analyst based in Tel Aviv, said there was “clearly something lacking in Israel's defence system at the moment” because a drone had been able to enter “from within Lebanese territory all the way into Israel, over 30km away”.

“Acting as a proxy for Iran, Hezbollah is essentially trying to take out the eyes of Israel’s northern defence capabilities,” he said.

He added that the precision of recent attacks suggested that just like the Israelis, Hezbollah had a “target bank” of sites it can hit in retaliatory strikes.

The Sky Dew attack came shortly after Israel confirmed it had killed a senior Hezbollah field commander on Wednesday.

No impact

Rear Admiral Daniel Hagari, Israel’s military spokesman, confirmed that a Hezbollah drone had scored a direct hit on Sky Dew but added there were no casualties and that it “had no impact to the IDF's aerial situational awareness capability in the area”.

Hezbollah confirmed in a statement that “a number of attack drones” had struck an Israeli airbase near Tiberias. “It accurately hit its designated targets and achieved what it wanted from this limited operation,” a spokesman said.

Hezbollah show of power

Hezbollah also used its air-to-surface missiles for the first time on Thursday, attacking a military target near the northern Israeli town of Metulla.

It was the first recorded instance of the use of the Russian S-5 missiles and, combined with the attack on the Sky Dew blimp, a reminder that the Iran-allied paramilitary has kept its full capability up its sleeve.

In an April 2024 speech Hezbollah leader Hassan Nasrallah warned Israel that his group had not yet begun using the bulk of its troops and arsenal.

“We haven’t even mandated our forces to remain stationed at the front,” he said. “They work on a rotation: for a period of time, then go rest at home, then a replacement comes and so on. And despite this, we have accomplished many losses in northern Israel.”

Fighting between Israel and Hezbollah has intensified substantially in the past week. Friday saw the killing of three people in southern Lebanon – a Hezbollah fighter and two civilians, one of whom was a 13-year-old child – in a wave of Israeli strikes near the southern city of Sidon, around 30km from the border.

The two civilians were killed in a strike on a stone factory while the third person, who Hezbollah acknowledged was a member in a statement announcing his death, was targeted in his vehicle.

A statement by the Israeli military said the air force had “struck terrorist infrastructure” where Hezbollah was operating.

The southern Lebanese village of Kfar Kila during Israeli bombardment. AFP
The southern Lebanese village of Kfar Kila during Israeli bombardment. AFP

In Israel on Thursday, there were 133 threat sirens, warning of missile and drone attacks and adding to the sense of danger for residents.

Since October 7, fighting between Israel and Hezbollah has driven tens of thousands of people from their homes on both sides of the Lebanon-Israel border. There are no signs residents will be able to return any time soon, more than seven months into the conflict.

Many Israeli residents have signalled their unwillingness to return to the north while Hezbollah remains on the border. Their departure could now become permanent said Moshe Davidovitch, head of the regional council, in a letter to Mr Netanyahu.

“Given the manner in which this national issue is being handled, the northern conflict zone will be abandoned – not only the towns that have been evacuated but the entire conflict area in which our people believe things are business as usual while inexplicably ignoring reality,” he wrote on Sunday.

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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.”

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Updated: May 17, 2024, 3:16 PM