Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
October 29, 2023
The Biden administration has a unique opportunity to help bring about a paradigm shift in the Middle East conflict, in concert with its partners in the region.
The first thing it must do – and it appears to be doing it – is dissuade Israel from slipping into a regional war with Hezbollah, and possibly even Iran.
While Israel does not want to fight this war alone, there might be some within the country who view it as an opportunity to eliminate the threats emanating from Hezbollah’s missiles on its northern border with Lebanon and the Iran nuclear programme.
Second, Washington must continue to send firm messages to Tehran to deter it from committing the folly of provocation or blackmail. As expected, the Biden administration has chosen Syria as the arena for conducting military operations through which to convey its warnings to the Iranian regime.
Third, continued political investment in the Palestinian Authority, led by Mahmoud Abbas, is necessary.
Fourth, some Arab countries seem ready – even in the aftermath of the Hamas attack on October 7 – to challenge Israel to make peace and normalise relations with them. This requires the Biden administration to provide the necessary political support to enable these countries to implement their peace strategy.
It requires Washington to show the courage to address Palestinian rights in the American arena in a practical, resolute, fair and firm language, in the face of the short-sighted rush to adopt the Israeli narrative that eliminating Hamas would solve the Palestinian issue.
This is the time for courage to persuade Israel to present a plan at the level of the Arab Peace Initiative. Saudi Arabia may be ready to revive this initiative, even in a new format if necessary.
The US – more than China, Russia and the EU – can seize the opportunity for a fundamental change in the Middle East.
A girl is rescued from the rubble of a building destroyed by Israeli air strikes in Jabalia refugee camp, in the northern Gaza Strip. AP Photo
An Apache helicopter fires flares, seen from Sderot in southern Israel, close to the border with Gaza. Reuters
Palestinians plug their phones into portable charging stations on a street in Khan Younis, Gaza. Bloomberg
Residents search survivors among the rubble following Israeli strikes on Jabalia, northern Gaza. EPA
Palestinians search for survivors and bodies following Israeli airstrikes at the Jabalia, the largest refugee camp in Gaza. AP
Palestinians look for survivors among the rubble of destroyed buildings following Israeli strikes on Jabalia refugee camp in northern Gaza. AP
Palestinians look for survivors among the rubble of destroyed buildings following Israeli strikes on Jabalia refugee camp in northern Gaza. AP
A fire burns in western Gaza after an Israeli air strike. Reuters
Missiles are fired from Israel towards the Gaza Strip. Getty Images
Smoke rises from an explosion in Gaza. Getty Images
A group of men survey the destruction following air strikes on Al Shatee camp in Gaza city, as Israeli forces entered the northern area of the Gaza Strip. AFP
A man drives a damaged car following air strikes on Gaza city. AFP
A man pushes a bicycle past the remains of buildings destroyed in Israeli strikes on Al Shatee camp in Gaza city. AFP
A woman and children walk past a house destroyed in Israeli strikes on Al Shatee camp in Gaza city. AFP
People dig through the rubble of a destroyed building following Israeli strikes on Al Shatee camp in Gaza city. AFP
A man drives a damaged car past a building destroyed in Israeli strikes on Al Shatee camp in Gaza city. AFP
People gather amid the destruction following Israeli strikes on Al Shatee camp in Gaza city. AFP
Wrecked vehicles and rubble on the streets following Israeli strikes on Al Shatee camp in Gaza city. AFP
Smoke rises from the northern Gaza Strip as Israeli air and ground forces amplified their military activities against Hamas. EPA
An Israeli Apache attack helicopter flies close to the border with the Gaza Strip, near Israel's southern city of Ashkelon. AFP
Israeli soldiers in an armoured personnel carrier on patrol near Israel's border with Gaza. EPA
The crew of an Israeli tank prepare for ground operations near the border with Gaza. EPA
Israeli soldiers prepare for ground manoeuvres at an undisclosed location in Israel near the border with Gaza. EPA
The ruins of northern Gaza seen from Sderot in southern Israel. EPA
Smoke and explosions caused by Israeli bombardment over northern Gaza. AP Photo
An explosion on the Israel-Gaza border. Reuters
A video grab shows fireballs and smoke rising above Gaza city following an Israeli attack. AFP
An explosion in Gaza seen from Sderot in southern Israel. Reuters
A video grab shows rockets fired from Gaza city. AFP
Israeli air strikes in the northern Gaza Strip. AP Photo
A video grab shows a salvo of rockets fired from Gaza city. AFP
A flare trail fired by the Israeli army east of Khan Younis on the southern Gaza Strip. AFP
Smoke from the bombing of the Gaza Strip over the Israeli border city of Ashkelon. AFP
Flares over Gaza as seen from Sderot in southern Israel. Reuters
Certain key Arab countries continue to provide a back channel between the US and Iran to contain tensions and prevent escalatio
America can leverage China’s invitation to an international conference to let Beijing know that it welcomes its willingness to participate in bridging the gap between influential countries in the Middle East, along the lines of its sponsorship of the consequential agreement between Saudi Arabia and Iran.
China will likely not be prepared to sponsor a peace conference in the Middle East because it recognises the limits of its influence in the region, and because this is not among its foremost priorities. Nevertheless, the Biden administration should reassure Beijing that its reconciliation efforts are welcome.
Meanwhile, it is worth analysing what Hamas is up to.
The group’s goal remains to highlight the “heroism” of its movement in Palestine (with support from Iran’s Islamic Revolutionary Guard Corps); to expose – in its view – the “political cowardice” of the Palestinian Authority and Fatah; and to capitalise on the global sympathy for Gaza’s plight, even if it means exploiting this catastrophe.
During a Hamas delegation’s visit to Moscow earlier this week, it requested the Russian leadership to dissuade Israel from expanding its ground invasion of Gaza. I am given to understand that the delegation said, if Israel doesn’t go all-out with its invasion and speaks of a future Palestinian state, either directly or through the US, Hamas would demonstrate readiness to take steps towards a cessation of hostilities.
I am also given to understand that the delegation told the Russians that Hamas does not need extensive intervention by Hezbollah at this time.
Iran seeks the preservation of Hamas as an organisation and as a movement – and it supposedly wants Russia to prevent its crushing at the hands of Israel. For its part, Moscow wants to work towards finding a new situation that allows for a less radical Hamas ready for moderate solutions.
Certain key Arab countries continue to provide a back channel between the US and Iran to contain tensions and prevent escalation. Saudi Arabia, meanwhile, is holding on to its agreement with Iran, which provides the latter with one of the most important means of ending its international isolation, even though it has not achieved any regional breakthroughs, including in Yemen.
The current atmosphere suggests a joint Iranian-Russian desire to highlight their strategic relationship, as was evident during visits by diplomats to each other’s countries.
Russia is seeking a balance between supporting Iranian interests in the region and opposing Tehran’s involvement in a broader war. It doesn’t want to lose its influence over Iran, Hezbollah and Hamas. Therefore, it is working to strengthen its “historical” relations with these groups while officially claiming to seek only to “end the conflict”.
Russian Foreign Minister Sergey Lavrov, left, and Iranian President Ebrahim Raisi meet in Tehran last week. AP
In fact, Moscow has openly supported Hamas because it sees in it an opportunity to regain a role against the West.
The common ground between the Russian and American positions includes their opposition to Israel’s large-scale ground invasion, their resistance to the opening of the Lebanese-Israeli front and opposition to Iran’s involvement in a broader war.
This is significant.
However, Moscow’s role remains limited compared to that of Washington. While it looks for a role by offering transitional solutions, America alone has the bandwidth to offer long-term solutions that can reshape the region’s geopolitics.
The Arab states have a crucial role in this restructuring process.
Saudi Arabia, in particular, can play a pivotal role in coming up with an eventual resolution, because it currently has leverage to influence Israel, prompting it to adjust its policies and embrace the internationally endorsed two-state solution. If Israel desires to normalise relations with Saudi Arabia, it must read between the lines and stop evading its responsibilities towards the Palestinians.
The world must also understand that showing empathy for the people of Gaza, and Palestine as a whole – while very important – should not warrant the punishment of Israel by some western universities and intellectual institutions, as is currently happening.
This is not only a short-sighted position that disregards clear Arab positions against Hamas committing massacres against civilians, but it also contributes to a dangerous escalation that blinds many to the necessity of encouraging leaders to make bold decisions in order to prevent sliding into uncontrollable wars.
Supporters on both sides of the Palestine-Israel divide should demonstrate wisdom and avoid engaging in emotional and political extremism. For this is a very delicate moment in Middle Eastern history, and therefore requires the courage to demand wise leadership and the formulation of equitable policies.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Results
5pm: Maiden (PA) Dh80,000 (Turf) 2,200m; Winner: Gurm, Antonio Fresu (jockey), Eric Lemartinel (trainer)
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m; Winner: Al Nafece, Al Muatasm Al Balushi, Mohammed Ramadan
6pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,200m; Winner: Ashton Tourettes, Adrie de Vries, Ibrahim Aseel
6.30pm: Arabian Triple Crown – Group 3 (PA) Dh300,000 (T) 2,200m; Winner: Ottoman, Adrie de Vries, Abdallah Al Hammadi
7pm: Liwa Oasis – Group 2 (PA) 300,000 (T) 1,400m; Winner: Hakeemat Muscat, Szczepan Mazur, Ibrahim Al Hadhrami
7.30pm: Handicap (TB) Dh80,000 (T) 1,600m; Winner: Ganbaru, Antonio Fresu, Musabah Al Muhairi
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
The Case For Trump
By Victor Davis Hanson
UAE currency: the story behind the money in your pockets
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.
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
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
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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