Two days after Hamas’s offensive against Israel, many people are wondering whether the conflict between the organisation and Israel can be contained in and around Gaza. Heavy Israeli reinforcements have been deployed to the northern border with Lebanon in the past 24 hours, suggesting that Israel is preparing for a potential conflict with Hezbollah, which would represent a major escalation.
On Sunday, The Wall Street Journal reported that Iran and Hezbollah had co-operated closely with Hamas in organising the attacks of October 7. If that is true, then it suggests a level of planning and co-ordination that makes it highly likely that the parties agreed to what would constitute “red lines” on Israeli retribution, beyond which Hezbollah would enter the battle.
This was more or less confirmed in an article in the pro-Hezbollah Al-Akhbar daily in Beirut on October 9. The newspaper noted that “the forces of the Axis of Resistance established a certain ceiling for what it called the red lines, which the enemy knows, and which, if transgressed under any conditions, will ignite the fronts, perhaps all at once.”
The newspaper did not specify what these red lines were, but its reference, to possible simultaneous responses on various fronts, pointed indirectly to what Hezbollah has called the “unification of the fronts”. This is almost certainly an Iranian-sponsored effort to form a broad front against Israel – from Gaza, Lebanon, perhaps Syria, to possibly the West Bank – and surround the country with a wall of rockets.
This escalation in the confrontation with Israel seems to be serving several purposes: derailing a peace settlement between Saudi Arabia and Israel; showing Israel that Iran has many options to counter Israel’s systematic bombing of Iranian and Hezbollah positions in Syria; and, most importantly, placing Hamas in a position in which it can seize control of the Palestinian cause, to the detriment of the main Fatah movement, and perhaps become the major representative of the Palestinian people that can lead a new armed struggle.
It’s in this broader framework that one must assess what might happen in Lebanon. By highlighting the “unification of the fronts” strategy, Hezbollah cannot stand idly by if Israel threatens Hamas existentially. Nor could it remain inactive if Israeli forces enter Gaza and begin killing many civilians.
But this is where the uncertainty begins. If Israel does enter Gaza and hunts down the Hamas leadership, Hezbollah’s priority would be to open a second (and maybe a third and fourth) front against Israel to halt the Israelis’ momentum. In doing so, it would bring in armed militias from Iraq and perhaps Yemen to bolster its forces, which could widen the scope of operations.
If Israel does enter Gaza and hunts down the Hamas leadership, Hezbollah’s priority would be to open a second (and maybe a third and fourth) front against Israel to halt the Israelis’ momentum
Once that happens, it would mean a radical intensification of the conflict and the very real prospect that it mutates into a regional war. Under those circumstances, Israel’s military actions may come to encompass Iran, which could draw in the US, leading to an extremely dangerous situation globally.
However, all the parties are aware of this, and even more so that the outcome of such a conflagration would be highly unpredictable. Therefore, it is more likely than not that the Axis of Resistance parties have considered off-ramps to avoid such a result. Having scored a harsh blow against Israel, it makes more sense for them to pause and exploit their success politically, than to enter into a war whose ultimate consequences may actually weaken the Axis of Resistance.
Where would these off-ramps lie? First, in Hezbollah’s trigger to enter the fray once Israeli forces enter Gaza. By not defining clear Israeli red lines yet, Hezbollah may be trying to avoid locking itself into a situation in which it has to escalate. Second, the nature of its retaliation may vary. If Hamas is being bludgeoned by Israel but is otherwise holding its own in the Gaza battle, Hezbollah might determine that it has no need to open a new front, beyond relatively limited attacks against Israel.
Ironically, Israeli thinking might be closer to Hezbollah’s than we know. Israel, too, may not relish a regional war. Therefore, it too could accept an unwritten understanding with Hezbollah that grants the party a degree of latitude to strike Israeli targets, beyond which Israel would hit Lebanon very hard.
Would this be unheard of? Not really. During its occupation of Lebanon, Israel and, indirectly, Hezbollah agreed to the 1996 April Understanding, aimed at avoiding civilian casualties and Hezbollah’s bombing of Israel. However, the agreement’s implicit dimension was that if Israel failed to live up to its end of the bargain and killed or injured civilians, it would consider Hezbollah’s retaliation against Israeli territory as being within the acceptable rules of the game.
All sides have an interest in averting a regional explosion, but it’s important to note that if the conflict in Gaza spreads to Lebanon, this would be much more probable. Moreover, Israel's major concern is the fate of the dozens of Israelis the Palestinians have abducted, whose numbers Al-Akhbar has placed, reliably or not, at 130 people.
Hezbollah, in turn, would have to explain a devastating war to a Lebanese public that in its majority strongly opposes what Hezbollah is doing today. This comes at a time when Lebanon’s economy has collapsed and the Lebanese are disgusted.
All this is not to say a generalised war may not happen, but that all the parties probably do not regard it as the most desirable option if they can save face by engaging in lesser actions that preserve their deterrence capability. What we may conceivably see in the coming period is an effort by the sides to tiptoe between raindrops to avoid a major war. But how easy is it to tiptoe between raindrops?
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.”
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
The language of diplomacy in 1853
Treaty of Peace in Perpetuity Agreed Upon by the Chiefs of the Arabian Coast on Behalf of Themselves, Their Heirs and Successors Under the Mediation of the Resident of the Persian Gulf, 1853
(This treaty gave the region the name “Trucial States”.)
We, whose seals are hereunto affixed, Sheikh Sultan bin Suggar, Chief of Rassool-Kheimah, Sheikh Saeed bin Tahnoon, Chief of Aboo Dhebbee, Sheikh Saeed bin Buyte, Chief of Debay, Sheikh Hamid bin Rashed, Chief of Ejman, Sheikh Abdoola bin Rashed, Chief of Umm-ool-Keiweyn, having experienced for a series of years the benefits and advantages resulting from a maritime truce contracted amongst ourselves under the mediation of the Resident in the Persian Gulf and renewed from time to time up to the present period, and being fully impressed, therefore, with a sense of evil consequence formerly arising, from the prosecution of our feuds at sea, whereby our subjects and dependants were prevented from carrying on the pearl fishery in security, and were exposed to interruption and molestation when passing on their lawful occasions, accordingly, we, as aforesaid have determined, for ourselves, our heirs and successors, to conclude together a lasting and inviolable peace from this time forth in perpetuity.
Taken from Britain and Saudi Arabia, 1925-1939: the Imperial Oasis, by Clive Leatherdale
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
UAE currency: the story behind the money in your pockets
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
Our Time Has Come
Alyssa Ayres, Oxford University Press
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5