Israel resumes bombing Lebanon with attack on Hezbollah 'explosives factories'


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Israel launched new strikes on Lebanon on Thursday on what it said were Hezbollah explosives factories, in the latest breach of a ceasefire.

Defence Minister Israel Katz said the targets included Hezbollah's "biggest precision missile manufacturing site". The army said it had hit weapons production and storage sites in southern Lebanon and the Bekaa Valley.

Lebanon's National News Agency said Israeli warplanes were flying low over the town of Hermel. It said the strikes also hit the areas of Mahmoudiyeh, Al Khardali and Jarmaq.

Israel's air force also attacked an eastern mountain range between the towns of Khreibeh and Brital, the agency said. Israel said Hezbollah had "tried to rehabilitate the sites and capabilities, actions that constitute a violation of the understandings between Israel and Lebanon".

"Among the targets struck were explosive manufacturing sites, which were used to develop Hezbollah's weaponry, as well as an underground site for the production and storage of strategic weapons," the Israeli military said.

Israel launched new strikes on what it said were Hezbollah explosives factories. AFP
Israel launched new strikes on what it said were Hezbollah explosives factories. AFP

Under the terms of a ceasefire deal agreed with Israel last November, Hezbollah was supposed to dismantle its infrastructure and withdraw its fighters in the border region in southern Lebanon.

Israel was obliged to withdraw from the five points of Lebanese territory it occupied but has failed to do so and continues to bomb the south regularly. Lebanon has accused Israel of breaching the deal thousands of times.

Lebanon's government is under pressure from the US to move ahead with disarming Hezbollah. Speaking on Thursday, President Joseph Aoun said there was a "historic opportunity" to "affirm the exclusivity of arms in the hands of the army and security forces".

He added that the country would seek $1 billion annually for 10 years to support the army and security forces. Lebanon’s army has often had to rely on international donors such as the US, Qatar and the UK for equipment and salary support.

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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.”

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German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

Updated: August 01, 2025, 3:46 AM