Israeli Prime Minister Benjamin Netanyahu addresses a joint meeting of Congress at the US Capitol in Washington. Getty Images
Israeli Prime Minister Benjamin Netanyahu addresses a joint meeting of Congress at the US Capitol in Washington. Getty Images
Israeli Prime Minister Benjamin Netanyahu addresses a joint meeting of Congress at the US Capitol in Washington. Getty Images
Israeli Prime Minister Benjamin Netanyahu addresses a joint meeting of Congress at the US Capitol in Washington. Getty Images


Netanyahu's speech in the US Congress points to a divided electorate


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July 29, 2024

Benjamin Netanyahu’s recent visit to the US to address a joint session of Congress on July 24 provided observers with a lot to digest. It was the Israeli Prime Minister's fourth such invitation – more than any other world leader in history (surpassing the UK’s Winston Churchill who made the trans-Atlantic trek to address Congress on three occasions).

As was the case on the three earlier visits, Mr Netanyahu and the Republican Speaker of the House who had extended the invitation, each used the other to serve their own purposes. This time, Speaker Mike Johnson sought to exploit Mr Netanyahu’s address both to embarrass US President Joe Biden and to further Republican efforts to make support for Israel a “wedge issue” in the upcoming election.

Mr Netanyahu was only too willing to play along with Mr Johnson’s game as he has long viewed sections of the Republican Party as a more reliable partner for Israel than the more liberal-leaning Jewish-American community.

This is why for the past several decades he has courted Republican leaders and accepted three other Republican invitations to challenge Democratic presidents – Bill Clinton (over the Oslo Process) in 1995 and Barack Obama in 2011 (over the prevailing Israel borders before the 1967 Arab-Israeli war) and in 2015 (over the Iran nuclear deal).

Another factor in Mr Netanyahu’s eagerness to speak to Congress could have been to demonstrate his mastery over US politics to an Israeli public that has turned against his governance.

Mr Johnson may have scored a point towards his goal, but it may prove to be a Pyrrhic victory. The Republicans came out in force and gave the Israeli PM scores of standing ovations during his one-hour speech. But it was boycotted by more than a quarter of Democrats, with many of those in attendance sitting silently, refusing to stand or applaud.

Mr Netanyahu’s speech itself was a startling mix of colonialism and neoconservative Manichaeism. Echoing the racist rhetoric of Theodor Herzl, the founder of political Zionism, Mr Netanyahu opened his remarks calling the conflict “a clash between barbarism and civilisation”, and “between those who glorify death and those who sanctify life”. And, like Herzl, he described Israel as both the West’s agent defending its interests in the Middle East and the civilising agent that would transform the region from being a “backwater of oppression, poverty, and war into a thriving oasis of dignity, prosperity and peace”.

Workers attempt to remove graffiti at Union Station on July 25 in Washington. Getty Images via AFP
Workers attempt to remove graffiti at Union Station on July 25 in Washington. Getty Images via AFP

The neoconservative thread in Mr Netanyahu’s remarks were also striking. That political ideology which came to power during Ronald's Reagan administration is a secularised version of a peculiar version of Christian evangelical thought. Both share characteristics of Manichaeism: there are forces of absolute good and absolute evil in the world; not only is there no possibility of compromise between them, in fact, conflict is inevitable and necessary; and if fought with total commitment, good will always triumph, with evil ultimately eradicated.

It’s not a matter of Israel being rejected; rather it is the idea of unquestioning support for Israel, no matter what they do, that has been rejected

During the Reagan era, the evil was defined as the Soviet Union and its allies. In Mr Netanyahu’s view, the source of all evil is Iran and its allies. No compromise is possible, and diplomacy is seen as weakness. And so his appeal to his allies in the West and the Arab world is to join him in this cosmic battle against evil – with the assurance that with determination, victory can be won and evil eradicated.

Mr Netanyahu felt he had an ally in the US President as from his earliest days in the Senate, Mr Biden had been mentored by one of the architects of American neoconservativism.

Benjamin Netanyahu and US Vice President Kamala Harris meet in the Vice President's Ceremonial Office in Washington, on July 25. The New York Times / Bloomberg
Benjamin Netanyahu and US Vice President Kamala Harris meet in the Vice President's Ceremonial Office in Washington, on July 25. The New York Times / Bloomberg

But with Mr Biden stepping aside as the Democrat’s nominee for president in favour of Vice President Kamala Harris, Mr Netanyahu’s visit to Washington was to end on a sour note. In place of the warm embrace he was used to receiving from Mr Biden, Ms Harris’s reception was more restrained.

After their meeting, instead of a joint appearance, Ms Harris addressed the press alone. While affirming Israel’s right to defend itself, she added that it was how Israel went about defending itself that mattered. She then went to great lengths to describe the horrible cost to human life and suffering resulting from the war in Gaza. She made it clear that the conflict had to end, and Palestinians needed a future that ensured them freedom and self-determination.

With this Ms Harris implicitly rejected Mr Netanyahu’s call for “total victory”, while also directly indicating that she was not afraid of the Republican challenge to make support for Mr Netanyahu’s Israel a “wedge issue” in this election.

The visit exposed the reality that the American electorate is deeply divided over this issue. It’s not a matter of Israel being rejected; rather it is the idea of unquestioning support for Israel, no matter what it does, that has been rejected.

As Ms Harris put it in her post-meeting remarks, it’s no longer correct to see this conflict as a “binary choice”. There are needs on both sides that must be met and they can best be met through peace and diplomacy.

With that, Mr Netanyahu left Washington and made a pilgrimage to Mar-a-Lago to meet the one presidential candidate who shares his belief in “total victory”, Donald Trump.

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Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

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5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

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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.

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“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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Director: Todd Phillips 

Rating: 2/5

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Updated: July 30, 2024, 9:18 AM