Relatives mourn Fatima Abdallah, a 10-year-old girl killed after hundreds of paging devices exploded in a deadly wave across Lebanon on Tuesday. AFP
Relatives mourn Fatima Abdallah, a 10-year-old girl killed after hundreds of paging devices exploded in a deadly wave across Lebanon on Tuesday. AFP
Relatives mourn Fatima Abdallah, a 10-year-old girl killed after hundreds of paging devices exploded in a deadly wave across Lebanon on Tuesday. AFP
Relatives mourn Fatima Abdallah, a 10-year-old girl killed after hundreds of paging devices exploded in a deadly wave across Lebanon on Tuesday. AFP

Israel Hezbollah all-out war closest since October after massive pager attack


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Full-scale war between Israel and militant group Hezbollah, who have been trading fire since October 8, has never been closer after a massive asymmetric attack struck thousands of the group's members across Lebanon.

The attack, widely believed to have been carried out by Israel, despite it not claiming so, simultaneously exploded pagers belonging to members of the organisation, killing 12, including two children, and injuring almost 3,000, many of them gravely, overwhelming health care facilities and striking terror across Lebanon.

Since the attack, Israel has moved a new division, between 10,000 to 20,000 troops that include elite paratroopers and commandos, to its northern border, and security officials huddled late into the night as tensions with its well-trained and highly equipped northern enemy soared.

Northern Israel has been pummelled by Hezbollah since October 8, forcing residents to evacuate, while putting massive political pressure on the government. Patricia Martinez for The National
Northern Israel has been pummelled by Hezbollah since October 8, forcing residents to evacuate, while putting massive political pressure on the government. Patricia Martinez for The National

Orna Mizrahi, a former senior Israeli security official, said the incident would be "the stamp for the decision to make the north Israel’s main front, not the south … I think we are closer to full-scale war".

"Hezbollah cannot contain such a dramatic action. They will want to retaliate and try to do it with some sort of very unusual action … I suppose it will take time to do that. They have to learn what’s going on … It’s a dramatic blow," she added.

"We learn from this event that Israel is no longer deterred from the prospect of a full-scale war. If there was some kind of a political solution on the horizon then this wouldn’t have happened. But in Israel, there is an understanding that a full-scale war is very close."

Almost one year into the Gaza war, Israeli officials have been steadily hinting in recent weeks that the country is shifting focus to its northern front, where Hezbollah is a far deadlier adversary than Gaza-based Hamas, and where the potential for an expanded campaign to trigger a wider regional war is greater. Perhaps even directly involving Israel's archenemy, Iran.

Ms Mizrahi said the pager attack could "rush" Iran's promise to respond to the assassination of former Hamas leader Ismail Haniyeh in Tehran in July.

There was chaos across Lebanon on Tuesday as hospitals struggled to treat thousands injured in the explosions. EPA
There was chaos across Lebanon on Tuesday as hospitals struggled to treat thousands injured in the explosions. EPA

It remains unclear whether Tuesday's attack was part of an Israeli pre-emptive opening salvo in a full-scale war. Ms Mizrahi believes it was not, saying: "The main reason is the fact Israel’s hasn’t taken any responsibility for the action. But the possibility is there on the Israeli side because there is a lot of pressure on the Israeli government [to attack Hezbollah]."

Tensions were already high before the attack.

Reports in Israeli media suggested Prime Minister Benjamin Netanyahu was about to replace his defence minister with a candidate more hawkish towards Hezbollah.

For Lebanese military expert Walid Zaytouni, the "escalatory statements so far by the Israelis are within the framework of military intimidation because they will lose any ground invasion".

"They went for a security operation so that the response would be a security act," he added.

Just hours before the attack, Israel's internal security agency Shin Bet said it thwarted an imminent Hezbollah assassination against a former senior Israeli security official using an explosive device. The network who attempted was responsible for a bombing in Tel Aviv last year, the agency added.

Tal Hagin, a leading open-source intelligence analyst, suggested that following the intelligence failures over the October 7 attacks, the explosive pagers had “put Mossad on the map again”.

Former Israeli intelligence official Avi Melamed, who described the explosions as “taking out Hezbollah’s spine in seconds, said Tuesday’s attack dealt a “very significant blow” to the group on all levels.

“If there’s going to be an all-out war, conditions for Hezbollah are clearly less favourable than they were on September 16," he told The National.

Iran and Hezbollah are, more and more, finding themselves in the dilemma of either sustaining accumulative damage and eroding their image of deterrence, or launching an attack and risking all-out war, thus risking Hezbollah and Iran.

"The Hezbollah of September 16 is not the same as Hezbollah of September 17," said Mr Melamed.

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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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The specs

Engine: 2.0-litre 4-cylturbo

Transmission: seven-speed DSG automatic

Power: 242bhp

Torque: 370Nm

Price: Dh136,814

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.”

Updated: September 19, 2024, 6:41 AM