A displaced Palestinian woman bakes bread before an iftar meal, in the southern Gaza Strip. AFP
A displaced Palestinian woman bakes bread before an iftar meal, in the southern Gaza Strip. AFP
A displaced Palestinian woman bakes bread before an iftar meal, in the southern Gaza Strip. AFP
A displaced Palestinian woman bakes bread before an iftar meal, in the southern Gaza Strip. AFP


Hamas's dilemma is that it lacked a political objective in October and it lacks one now


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March 12, 2024

The great Prussian military thinker Carl von Clausewitz coined one of the most identifiable concepts on warfare when he wrote that war was a continuation of politics by other means.

When Hamas launched its attacks against Israel on October 7 last year, some people speculated that the move was aimed at strengthening the Palestinians’ hand in any eventual negotiations with Israel – in other words, it fulfilled a national political objective. The only problem with that explanation was that Hamas has not identified any political objectives with regard to Israel since then.

On the contrary, the conditions that Hamas’s leader in Gaza, Yahya Sinwar, reportedly insisted upon in negotiations last week in Cairo were that Israel accept a permanent ceasefire in Gaza, a complete withdrawal of Israeli forces from the territory, and a return of the displaced, without conditions. In other words, Mr Sinwar merely sought a return to the status quo before October 7.

Fatah and the Palestinian Authority do at least want a settlement with Israel and the creation of a viable Palestinian state in the Occupied Territories

If there were political aims, we can only guess at what they are. To an extent Mr Sinwar perhaps aimed at imposing Hamas as the primary representative of the Palestinians, while marginalising Fatah. But that didn’t justify such a terrible cost in terms of lives and destruction, nor really answer what the Hamas endgame is. Fatah and the Palestinian Authority, in turn, at least do want a settlement with Israel and the creation of a viable Palestinian state in the Occupied Territories.

A displaced Palestinian man prays before breaking the fast on the first day of Ramadan, in Rafah, in the southern Gaza Strip. AFP
A displaced Palestinian man prays before breaking the fast on the first day of Ramadan, in Rafah, in the southern Gaza Strip. AFP

If Hamas sought to derail the Saudi-Israeli rapprochement, and in that way reaffirm the centrality of the Palestinian cause in the region, then surely it should have better gauged that the Israeli response to its killing of Israelis would be horrific. Indeed, so horrific, and comprehensive, that once Israel finished wreaking vengeance, Hamas’s ability to block any new Saudi-Israeli initiative down the road could be neutralised.

More probably, October 7 was primarily tied to internal calculations within Hamas, specifically a power play by Mr Sinwar to impose himself as the effective leader of the organisation, against the leadership in exile. If so, the attacks did have a political objective, but one that was ruinously parochial, devastated Gaza, and has now created a dilemma for Hamas and its allies, above all Hezbollah.

For the past five months, there has been a genuine war in south Lebanon, with major damage in border towns and a significant loss of life among Lebanese civilians. Hezbollah’s secretary general, Hassan Nasrallah, has described his party’s actions as providing a “support front” for Gaza. But did opening a front on behalf of a Hamas that has no discernible national political objectives merit what has happened to large parts of southern Lebanon, not to mention to numerous party cadres?

Hezbollah did so primarily because it had to keep up the facade of a united front of “axis of resistance” groups that Iran has promoted. As a result, Iran has benefited, but its Arab allies have paid (and continue to pay) a heavy price.

The site of an Israeli airstrike in the southern Lebanese village of Odaisseh, near the border with Israel, on March 5. AFP
The site of an Israeli airstrike in the southern Lebanese village of Odaisseh, near the border with Israel, on March 5. AFP

The core concerns of Hamas and Hezbollah have been kicked out of joint because of Iran’s priorities. The “unity of the arenas” strategy formulated last year may have allowed Mr Sinwar to think that he could strengthen his hand within Hamas. Since Gaza was central in the strategy, he, the principal Hamas figure in Gaza, could use this to muscle his way into leading the organisation.

Hezbollah showed more common sense. From the start, Mr Nasrallah was forced to take Lebanese realities into consideration. The party, because of its experience in governing and familiarity with Lebanon’s sectarian makeup, understood the risks of the “unity of the arenas” approach, therefore grasped its limitations.

More profoundly, Hezbollah also probably sensed that a major problem was the absence of an overriding political aim in the “unity of the arenas” strategy, other than to reaffirm that Iran was in control of a wide network of friendly military forces spread across the Middle East, therefore could not be circumvented.

With Hamas and Hezbollah both prisoners of a conflict in which they’ve embarked, their only path out of their dilemma is to return to the situation prevailing before October. There are obvious costs with such an attitude, since it will lead their followers to seriously question whether their sacrifice was necessary.

But both in Gaza and Lebanon, a return to the status quo ante may be difficult. Gaza is certainly not going back to where it was on October 6. Lebanon may be different, but only if Hezbollah makes some concessions, albeit cosmetic ones. However, this might also reopen the door to an uncomfortable debate about the party’s weapons and its right to carry Lebanon into a war on its own.

The war has not been a continuation of national policy by other means in Gaza and Lebanon. Rather, it is mainly a continuation of personal ambition by other means, in Mr Sinwar’s case, and of Iranian interests in Hezbollah’s. Palestinians and Lebanese have suffered from a war fought in their name in which they had no say. Once the conflict ends, Iran and its allies will have to reassess their situation.

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Engine: 3.7-litre V6
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'My Son'

Director: Christian Carion

Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis

Rating: 2/5

Opening Rugby Championship fixtures:Games can be watched on OSN Sports
Saturday: Australia v New Zealand, Sydney, 1pm (UAE)
Sunday: South Africa v Argentina, Port Elizabeth, 11pm (UAE)

Global Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil

Results:

5pm: Abu Dhabi Fillies Classic (PA) Prestige Dh 110,000 1.400m | Winner: AF Mouthirah, Tadhg O’Shea (jockey), Ernst Oertel (trainer)

5.30pm: Abu Dhabi Colts Classic (PA) Prestige Dh 110,000 1,400m | Winner: AF Saab, Antonio Fresu, Ernst Oertel

6pm: Maiden (PA) Dh 80,000 1,600m | Winner: Majd Al Gharbia, Saif Al Balushi, Ridha ben Attia

6.30pm: Abu Dhabi Championship (PA) Listed Dh 180,000 1,600m | Winner: RB Money To Burn, Pat Cosgrave, Eric Lemartinel

7pm: Wathba Stallions Cup (PA) Handicap Dh 70,000 2,200m | Winner: AF Kafu, Tadhg O’Shea, Ernst Oertel

7.30pm: Handicap (PA) Dh 100,000 2,400m | Winner: Brass Ring, Fabrice Veron, Ismail Mohammed

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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First Person
Richard Flanagan
Chatto & Windus 

Three trading apps to try

Sharad Nair recommends three investment apps for UAE residents:

  • For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
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  • Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”

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Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
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Updated: March 12, 2024, 2:30 PM