A series of pager explosions across Lebanon, and secondary attacks on walkie-talkies the following day, have killed and maimed a number of Hezbollah operatives, as well as many civilians, including children. The attacks have also injured thousands, including Iran’s ambassador to Beirut.
Israel normally does not claim responsibility for attacks on foreign soil – and it did not do so in this case either – but Defence Minister Yoav Gallant gave strong indications in a speech on Wednesday of Mossad’s role in the sabotage.
Mr Gallant also said that Israel, which has been battling Hamas in Gaza for almost a year, was opening a new phase in the war. “The centre of gravity is shifting northward, meaning that we are increasingly diverting forces, resources and energy towards the north,” he added.
The Lebanon attacks demonstrate Israel’s ability to strike from a distance, establishing a form of deterrence, while claiming plausible deniability, and avoiding a US rebuke at a time when Washington is pressuring Prime Minister Benjamin Netanyahu not to strike Hezbollah. Nevertheless, the Lebanese group does have the ability to use the digital world as a weapon, raising the possibility of violent non-state actors retaliating against their adversaries and taking warfare into the realm of AI across the Middle East.
Notwithstanding the vague allusions to the attacks over the past couple of days, historical precedent does demonstrate that weaponising communications is a modus operandi of the Israeli state.
In 1972, in retaliation for the killing of 11 Israeli athletes at the Munich Olympics, Mossad operatives detonated an explosive in the phone of the Palestinian official Mahmoud Hamshari in his Paris apartment. While that telephone was an analogue device, the digital revolution made long-distance assassinations easier for Israel. Another telephone was weaponised in 1996, when Shin Bet, Israel’s internal security agency, targeted the Hamas bombmaker Yahya Ayyash’s Motorola Alpha mobile phone. Working with a Palestinian collaborator, Shin Bet placed 50 grams of explosives in the device, enough to kill him when he held the phone to his ear.
The recent deaths in Lebanon are the epitome of the postmodern, a product of the digital culture of the easy-edit, a time when science and technology allow us to change and manipulate information easily through code, making distances relatively obsolete.
Gallant gave strong indications in a speech on Wednesday of Mossad’s role in the sabotage
The book Countdown to Zero Day: Stuxnet and the Launch of the World’s First Digital Weaponrefers to Israel’s ability to destroy parts of Iran’s Natanz nuclear facility in 2010 with a malicious digital code known as Stuxnet. This code, sneaked into a USB drive, caused nuclear centrifuges to accelerate to the point that they destroyed themselves.
In 1981, by contrast, Israeli F-15 and F-16 aircraft had to fly long distances, refuel in mid-air and drop bombs on Iraq’s Osirak nuclear facility to destroy it, with some even missing their target. Israeli pilots risked being shot down or even crashing, which almost happened when the planes narrowly missed telephone wires on the way to their target outside Baghdad.
Stuxnet did not put any Israeli operatives at risk when they sought to attack Iran’s nuclear facility. The code, unlike a conventional bomb, could be easily edited, put on to a USB drive, travel a far distance, achieve its objective, and give Israeli deniability.
Notwithstanding the technological sophistication and difficulty to tamper with thousands of communications devices, Israel over the past two days was able to strike targets all over Lebanon, even in neighbouring Syria, with relative ease, in that none of its operatives had to be present to target individuals. It was assassination by remote control.
Establishing deterrence is based on signalling and demonstrating the ability to inflict hurt on an adversary. While the death toll is relatively low, Israel has been able to warn Hezbollah that its members are not safe anywhere in their country, without having to violate the sovereignty of Lebanon.
Tragically, it has also had another effect, in that it has disrupted the civilians’ ontological security, meaning the mental state derived from a sense of order and continuity, even banality of everyday life. Even medical workers in the country use pagers due to power cuts, and every citizen is bound to be left wondering if their mobile phone has been weaponised.
Deterrence cannot be measured, however, and instead of Israel having deterred Hezbollah, the group will be under pressure to save face by striking back. Israel should have learnt a lesson from when it introduced drone technology to the region in the 1970s, which only led to its proliferation among its adversaries, including the Houthis, who struck Israel directly with a long-distance drone in July.
Israel was the first to use drones in the Middle East in 1973 and had a monopoly on them in the region. But as Rami Khouri, the American University of Beirut professor, once told Peter W Singer, the world’s foremost expert on drones: “The response to drones is to get your own drones. They are just tools of war. Every tool generates a counterreaction.” Indeed, by 2024, Hezbollah released videos of its drones having violated Israel’s sovereignty, having reached the city of Haifa.
While it is uncertain if AI-enabled drones have ever been used, Israel did use an AI programme named Gospel to generate targets for its military campaign in Gaza.
With the digital domain having been weaponised, Hezbollah will feel the need to retaliate. The retaliation, however, is unlikely to be a brute rocket or missile strike that Israel can intercept. The group might play the long game of scoring its own digital victory, perhaps pursuing its own weaponisation of AI to achieve this goal.
SUE%20GRAY'S%20FINDINGS
%3Cp%3E%22Whatever%20the%20initial%20intent%2C%20what%20took%20place%20at%20many%20of%20these%20gatherings%20and%20the%3Cbr%3Eway%20in%20which%20they%20developed%20was%20not%20in%20line%20with%20Covid%20guidance%20at%20the%20time.%3C%2Fp%3E%0A%3Cp%3E%22Many%20of%20these%20events%20should%20not%20have%20been%20allowed%20to%20happen.%20It%20is%20also%20the%20case%20that%20some%20of%20the%3Cbr%3Emore%20junior%20civil%20servants%20believed%20that%20their%20involvement%20in%20some%20of%20these%20events%20was%20permitted%20given%20the%20attendance%20of%20senior%20leaders.%C2%A0%3C%2Fp%3E%0A%3Cp%3E%22The%20senior%20leadership%20at%20the%20centre%2C%20both%20political%20and%20official%2C%20must%20bear%20responsibility%20for%20this%20culture.%C2%A0%3C%2Fp%3E%0A%3Cp%3E%22I%20found%20that%20some%20staff%20had%20witnessed%20or%20been%20subjected%20to%20behaviours%20at%20work%20which%20they%20had%20felt%20concerned%20about%20but%20at%20times%20felt%20unable%20to%20raise%20properly.%3C%2Fp%3E%0A%3Cp%3E%22I%20was%20made%20aware%20of%20multiple%20examples%20of%20a%20lack%20of%20respect%20and%20poor%20treatment%20of%20security%20and%20cleaning%20staff.%20This%20was%20unacceptable.%22%C2%A0%3C%2Fp%3E%0A
'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
MATCH INFO
English Premiership semi-finals
Saracens 57
Wasps 33
Exeter Chiefs 36
Newcastle Falcons 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.”
FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENomad%20Homes%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2020%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EHelen%20Chen%2C%20Damien%20Drap%2C%20and%20Dan%20Piehler%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20and%20Europe%3Cbr%3E%3Cstrong%3EIndustry%3C%2Fstrong%3E%3A%20PropTech%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2444m%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Acrew%20Capital%2C%2001%20Advisors%2C%20HighSage%20Ventures%2C%20Abstract%20Ventures%2C%20Partech%2C%20Precursor%20Ventures%2C%20Potluck%20Ventures%2C%20Knollwood%20and%20several%20undisclosed%20hedge%20funds%3C%2Fp%3E%0A
Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
JOKE'S%20ON%20YOU
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French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.