An Israeli air force F-15 fighter jet. The sale of 25 F-15s from Boeing to Israel has been under review since the US received the formal request in January 2023. Reuters
An Israeli air force F-15 fighter jet. The sale of 25 F-15s from Boeing to Israel has been under review since the US received the formal request in January 2023. Reuters
An Israeli air force F-15 fighter jet. The sale of 25 F-15s from Boeing to Israel has been under review since the US received the formal request in January 2023. Reuters
An Israeli air force F-15 fighter jet. The sale of 25 F-15s from Boeing to Israel has been under review since the US received the formal request in January 2023. Reuters

Biden administration considers $18 billion in arms transfers to Israel


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US President Joe Biden's administration is considering whether to go ahead with an $18 billion arms transfer package to Israel that would include dozens of F-15 aircraft, five sources familiar with the matter said on Monday.

The sale of 25 F-15s from Boeing to Israel has been under review since the US received the formal request in January 2023, one of the sources said, long before Israel's six-month-old military campaign in Gaza. This sale would boost that number to as many as 50 F-15s.

Speeding delivery of the aircraft was among the top asks by Israeli Defence Minister Yoav Gallant, who visited Washington last week and held talks with US officials including National Security Adviser Jake Sullivan and Secretary of Defence Lloyd Austin, a second source said.

Mr Biden faces pressure from foreign partners, human rights groups and some of his fellow Democrats in Congress to impose conditions on arms transfers to rein in Israel’s offensive in Hamas-ruled Gaza where health officials say more than 32,000 Palestinians have been killed, many of them civilians.

One US official said the earliest the aircraft would be delivered is 2029, and that is if the formal notification is sent to Congress on Tuesday and is finalised immediately.

Israel is seeking to beef up its already formidable fleet of warplanes not just for its continuing fight against Hamas but to ward off any further threat from the Tehran-backed Lebanese armed group Hezbollah on its northern border as well as from Iran, its regional arch-foe.

House of Representatives Foreign Affairs Committee chairman Michael McCaul gave the green light for the F-15 sale on January 30, a committee aide said, when the relevant congressional offices responsible for approving major arms transfers were notified.

“Administration-Congressional deliberations on the F-15 case have already occurred,” the second source familiar with the matter said, but added that some of the four offices required to sign off on any arms transfers had yet to do so.

US law requires Congress to be notified of major foreign military sales agreements, and allows it to block such sales by passing a resolution of disapproval over human rights breaches or other concerns, although no such resolution has ever passed and survived a presidential veto.

An informal review process allows the Democratic and Republican leaders of foreign affairs committees to vet such agreements before a formal notification to Congress.

The Israel package includes 50 F-15 aircraft, and support services, training, maintenance, sustainment and many years of contractor support during the jets' life cycle, which could typically go for up to two decades, sources said.

One source said the Biden administration had expressed support to Israel for its F-15 request.

Washington has publicly expressed concern about Israel's anticipated military offensive in Rafah, the southernmost city of the Gaza Strip where many Palestinians have taken shelter after being displaced due to Israel's Gaza assault.

Israel launched an offensive in Gaza after Palestinian Hamas militants attacked southern Israeli communities on October 7, killing about 1,200 people and abducting 253 hostages, according to Israeli tallies.

Washington gives $3.8 billion in annual military assistance to its longtime ally Israel.

This sale is separate from the $14 billion in aid for Israel that Mr Biden has asked Congress to approve as part of a sweeping $95 billion national security supplemental spending package that also includes aid for Ukraine and Taiwan.

Mr Gallant discussed Israel's weapons needs during a visit to Washington last week. He told reporters he had stressed with senior US officials the importance of maintaining Israel’s qualitative military edge in the region, including its air capabilities.

Politico and CNN reported earlier on Monday that the administration was considering the sale.

'Nightmare Alley'

Director:Guillermo del Toro

Stars:Bradley Cooper, Cate Blanchett, Rooney Mara

Rating: 3/5

Venom

Director: Ruben Fleischer

Cast: Tom Hardy, Michelle Williams, Riz Ahmed

Rating: 1.5/5

Infobox

Western Region Asia Cup Qualifier, Al Amerat, Oman

The two finalists advance to the next stage of qualifying, in Malaysia in August

Results

UAE beat Iran by 10 wickets

Kuwait beat Saudi Arabia by eight wickets

Oman beat Bahrain by nine wickets

Qatar beat Maldives by 106 runs

Monday fixtures

UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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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England v South Africa Test series:

First Test: at Lord's, England won by 211 runs

Second Test: at Trent Bridge, South Africa won by 340 runs

Third Test: at The Oval, July 27-31

Fourth Test: at Old Trafford, August 4-8

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Profile of Hala Insurance

Date Started: September 2018

Founders: Walid and Karim Dib

Based: Abu Dhabi

Employees: Nine

Amount raised: $1.2 million

Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers

 

Updated: April 02, 2024, 4:21 AM