Last year, Israel found itself engaged in military conflicts on a number of fronts.
This was triggered by the unprecedented Hamas-led attacks on October 7, 2023, which killed about 1,200 people, according to Israeli tallies, and led Israel to declare war on Gaza. The ensuing military campaign has killed more than 48,300 Palestinians, according to local health officials, and left the enclave in ruins.
There were two large-scale Middle East wars in 2024. The Israel-Hamas conflict prompted Hezbollah, Iran’s proxy in Lebanon, to launch cross-border attacks on northern Israel – which escalated into an all-out war. The region also witnessed, for the first time, direct military strikes between Israel and Iran after years of shadow warfare.
Although ceasefires were reached in Lebanon and Gaza in late 2024 and early this year, respectively, Israel has, once again, intensified its military operations in the region. This time, however, it appears to hold the upper hand. Hezbollah and Hamas have been significantly weakened militarily after more than a year of war with Israel. The toppling of the regime of former Syrian president Bashar Al Assad in December marked a break in the chain of Iran’s regional influence.
Syria's new leadership is pursuing a policy of regional non-aggression, and Iran seems to be opting for covert operations and strategic posturing rather than open confrontation.
This comes one month after the return of US President Donald Trump to office. Mr Trump, one of Israel’s most supportive White House incumbents, took several actions during his first term that bolstered the government of Prime Minister Benjamin Netanyahu. His second term appears no different.
Early this month, Mr Trump proposed relocating Gaza's population to neighbouring countries so that the Strip could be rebuilt as a US-run “Riviera of the Middle East”. While the proposal sparked condemnation among Arab states and in much of Europe, Mr Netanyahu praised it. For many, the endorsement marked a shift, as the concept of population transfer, long considered taboo, was embraced by the Israeli prime minister.
There is a growing sense that Mr Netanyahu might feel confident he has the backing of Washington for his aggressive policies in Gaza and beyond, and may feel emboldened to push forward his security and territorial objectives under the second Trump administration.
“Israel is benefiting from this very strong alignment between its government and the current US administration,” Arman Mahmoudian, a research fellow at the Global and National Security Institute in Florida, told The National. “Unlike the previous administration, which sought to act as a mediator and, to some extent, a neutral third party, the current administration – under President Trump – has largely defined its policies in alignment with Israel. While it remains interested in mediation, it does so primarily as a supporter of Israel.”
Gaza and the West Bank
One month ago, both Israelis and Palestinians experienced a rare moment of optimism, as it seemed a path towards ending the war was finally in sight. However, the fragile truce between Israel and Hamas has since stumbled from crisis to crisis.
The 42-day ceasefire is set to expire this weekend unless an agreement is reached for an extension. Talks on a permanent resolution, originally scheduled to begin in early February, have yet to start. While Hamas said on Thursday it was ready to begin negotiations on the second phase of the ceasefire after several hundred Palestinians were released from Israeli jails overnight in return for the bodies of four Israeli hostages, the mood in Israel appears to be different.
“Israel is now focused on extending the first phase of the Gaza deal, rather than engaging in tough second-phase negotiations on issues like withdrawal of Israeli troops from Gaza and a permanent end to the war,” sources familiar with the talks told The National.
Israel's Foreign Minister Gideon Saar said on Thursday an Israeli delegation will go to Cairo to see if there is common ground to continue ceasefire negotiations.
In the West Bank, Palestinians fear Israel is planning to annex the occupied territory by force. Israel sent in tanks for the first time in more than 20 years and its forces have expanded operations in refugee camps, leading to the displacement of tens of thousands of Palestinians, as militant groups in Jenin and Tulkarm are being targeted. The UN's humanitarian agency, OCHA, said the military offensive there “appears to exceed law enforcement standards” and has had severe consequences.
Mr Trump this month refused to guarantee that Israel would not annex the West Bank when asked about the issue after his meeting with King Abdullah II of Jordan at the White House.
“I believe Israel’s preference is to establish a military or no-man’s zone as a newly created buffer between itself and what it perceives as hostile territories,” said Mr Mahmoudian. “However, it remains unclear whether Israel will necessarily be able to fully implement this preference. There is a possibility that, in the context of broader negotiations over Gaza’s future and Israel’s efforts to normalise relations with Arab states, it may find itself in a position where it has to compromise on some of these objectives.”
Arab leaders will meet in Cairo next week to counter Mr Trump’s plan for Gaza. Sources familiar with Cairo's diplomatic campaign and a senior Arab diplomat told The National that Egypt's effort is driven by its firm belief in the gravity of the situation in Gaza and that the March 4 summit can have an enduring impact on the Palestinian-Israeli conflict.
Lebanon and Syria
Despite the truce between Israel and Hezbollah, Lebanese authorities have reported hundreds of breaches of airspace by Israel. On Wednesday morning, Israeli drones flew over Beirut and its suburbs, with residents hearing loud buzzing overhead.
Israel has also continued to sporadically bomb areas in the country, claiming it is targeting Hezbollah for violations of the ceasefire. Air strikes have mainly targeted southern and eastern Lebanon.
There are fears there could be an “indefinite” Israeli war against Hezbollah. Senior Lebanese politicians have previously told The National that if the goal is to “eradicate” the group, it would take time to achieve.
Israeli troops remain stationed at five key points in south Lebanon, despite their scheduled withdrawal on February 18. Lebanon has been calling for international intervention to enforce a full Israeli pullout.
Hezbollah held an elaborate funeral for its former leader Hassan Nasrallah in Beirut on Sunday, nearly five months after he was killed in an Israeli air strike. The group is now grappling with a decapitated leadership, a weakened fighting force and a heavily infiltrated security apparatus.
Its political bloc has backed Lebanese Prime Minister Nawaf Salam’s government, which, in a ministerial statement ahead of a confidence vote, pledged to establish a state monopoly on arms and uphold the country's neutrality.
Israeli warplanes have also carried out air strikes on military targets outside Damascus and in southern Syria this week, as Israeli officials warned the Syrian forces not to move south of the capital city.
Israeli Defence Minister Israel Katz said that Israel “will not allow southern Syria to become southern Lebanon”. This came after Mr Netanyahu demanded the complete demilitarisation of southern Syria.
Shortly after the fall of Mr Al Assad, Israel pushed through a buffer zone between the occupied Golan Heights and southern Syria, establishing military positions inside a UN-monitored demilitarised zone. Israeli forces have remained there since, despite protests by Syria’s new government and the UN.
“Israel sees an opportunity to expand its influence in Syria, strengthen its leverage over the emerging post-Assad order and shape the country’s internal dynamics,” Ibrahim Al Assil, senior fellow at the Washington-based Middle East Institute think tank, told The National. “There have been no signs of aggression from the new authority in Damascus towards Israel; on the contrary, Syria’s interim President Ahmad Al Shara has emphasised the country’s commitment to peaceful foreign relations and the prioritisation of national reconstruction, with a military focused on internal security and territorial integrity.”
Mr Al Assil believes Syria’s new leadership is neither willing nor capable of responding militarily to Israel. “Al Shara may, instead, seek diplomatic backing from Arab nations at the upcoming emergency Arab League summit in Egypt in a few days. Aligning Syria’s position with a broader Arab consensus would enhance its legitimacy and reinforce Al Shara’s credibility within the region,” he said.
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.”
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
UAE currency: the story behind the money in your pockets
THE SPECS
Engine: 2.0-litre 4-cylinder turbo
Power: 275hp at 6,600rpm
Torque: 353Nm from 1,450-4,700rpm
Transmission: 8-speed dual-clutch auto
Top speed: 250kph
Fuel consumption: 6.8L/100km
On sale: Now
Price: Dh146,999
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Company%20profile
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The specs
Engine: 1.6-litre 4-cyl turbo
Power: 217hp at 5,750rpm
Torque: 300Nm at 1,900rpm
Transmission: eight-speed auto
Price: from Dh130,000
On sale: now
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
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SPEC%20SHEET%3A%20SAMSUNG%20GALAXY%20Z%20FLIP%204
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The specs
Engine: 3.5-litre twin-turbo V6
Power: 380hp at 5,800rpm
Torque: 530Nm at 1,300-4,500rpm
Transmission: Eight-speed auto
Price: From Dh299,000 ($81,415)
On sale: Now
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Mohammed bin Zayed Majlis
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
THE SPECS
Range Rover Sport Autobiography Dynamic
Engine: 5.0-litre supercharged V8
Transmission: six-speed manual
Power: 518bhp
Torque: 625Nm
Speed: 0-100kmh 5.3 seconds
Price: Dh633,435
On sale: now
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
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