Israeli prime minister Benjamin Netanyahu. In another first, Israel is co-sponsoring a Saudi-drafted UN resolution on Syria. Reuters
Israeli prime minister Benjamin Netanyahu. In another first, Israel is co-sponsoring a Saudi-drafted UN resolution on Syria. Reuters

Israel's claims of an alliance with Arab countries to deal with Iran are overblown



Israel has been noticeably stepping up its courtship of Saudi Arabia in recent days, playing up the possibility of (and need for) strategic co-operation against Iran, extreme Islamist groups, and other mutual threats. There is definitely the potential for building on shared threat perceptions between Israel and Gulf Arab countries to try to develop greater dialogue, enhanced co-operation and even, ultimately, a new strategic environment in the region. But there are considerable reasons to doubt the willingness or ability of prime minister Benjamin Netanyahu's cabinet to make the kind of serious moves on the Palestinian issue that would be required to facilitate a meaningful strategic and diplomatic breakthrough.

In perhaps the most dramatic instance, general Gadi Eizenkot, chief-of-staff of the Israeli Defence Forces, was interviewed by a prominent Saudi website. He spoke effusively about common threat perceptions, particularly regarding Iran, and offered to share intelligence with "moderate Arab countries". In another first, Israel is co-sponsoring a Saudi-drafted UN resolution on Syria. And statements that are highly critical of Hamas by Saudi grand mufti Abdulaziz Al Asheikh were effusively applauded by Israel's communications minister, who, no doubt in vain, invited him to visit Israel.

Gen Eizenkot must have struck many nerves in the Gulf when he described Iran's efforts to dominate the Middle East via two "Shiite crescents running from Lebanon to Iran and from the Gulf to the Red Sea" and especially by insisting that "we must prevent this from happening". And his assertion that Israel will insist on Hizbollah and Iranian forces leaving Syria underscores the breadth of commonality on some key issues. So far, so good.

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But when its military chief says Israel might be willing to share intelligence with Arab countries, this strongly implies that doesn't really happen much under current circumstances. Or he could mean that covert contacts on intelligence matters do exist but are extremely limited. Clearly, he was offering greatly enhanced potential co-operation in return for some unspecified reciprocal Arab gestures.

All these potential readings lead to the same conclusion: more overt and deeper ties will require significant progress on Palestinian issues. Otherwise, there would be no reason not to have a strong and open alliance against a common threat.

There are three very good reasons for this requirement. First, not only Arab populations, but also Arab governments, genuinely sympathise with the Palestinian cause. Second, such moves would be politically impossible for Gulf Arab countries, despite the clear strategic imperative, without progress on Palestine. And third, the Palestinian cause remains highly destabilising and is cynically exploited by Iran, the Houthis and Hizbollah, as well as Al Qaeda and ISIL. A stable and secure Middle East requires resolving this incendiary issue, which is available to any demagogue who wants to outbid everybody on Arab or Muslim credentials, and without doing anything about it.

While the Arab side has been notably discreet, Israel has been trumpeting and almost certainly exaggerating any such interactions. Israel is attempting to create a fait accompli or self-fulfilling prophecy by regularly referring to "our Sunni Arab allies", an extreme exaggeration, and get people on both sides, particularly in the Arab world, used to thinking in these terms. As ever, the truth probably lies somewhere in the middle.

Israel's calculation is straightforward: it wants to pay the lowest possible price on Palestinian issues for improved relations with Arab countries. Therefore, from a simple marketing standpoint, it makes sense for Israelis to speak as if this were already accomplished, when, in fact, it isn’t.

Many Israeli politicians relish such rhetoric. Some even apparently anonymously promoted the highly unconvincing and implausible rumour that Saudi crown prince Mohammed bin Salman visited Israel earlier this year. These rumours, although flatly denied, were, as always, then widely disseminated by pro-Iranian, pro-Qatar and anti-Saudi media.

While the Israelis are energetically promoting the fantasy of a fait accompli rapprochement with Arab countries (and Riyadh's enemies try to embarrass the kingdom with similar overblown claims), actual progress has been excruciatingly slow. It will remain very difficult, if not impossible, absent real progress on Palestine. But Mr Netanyahu's governing coalition may be incapable of significant concessions towards the Palestinians or peace without collapsing, given the strength of the extreme and annexationist right.

All the more reason for Israel to aggressively court the Gulf Arab countries, while claiming to have already secured a strong alliance with them, to counter Iran. And all the more reason to take these claims with large doses of salt.

Yet such an opening really would offer the best prospects for realising two crucial goals: rolling back Iran's growing regional hegemony and generating momentum on Israeli-Palestinian peace. It would certainly yield a more stable and secure region. One shouldn't underestimate the difficulties. But the potential benefits, including to the Palestinians, of such a dramatic realignment must also be frankly acknowledged.

However, Israel will have to pay a real price for a new strategic relationship, just as Arabs and Palestinians would have to adjust their own expectations. But all of them stand to benefit enormously if they can pull this off. If not, the biggest winners, again, will be in Tehran.

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Saturday's results

Brighton 1-1 Leicester City
Everton 1-0 Cardiff City
Manchester United 0-0 Crystal Palace
Watford 0-3 Liverpool
West Ham United 0-4 Manchester City

The specs: 2018 Mercedes-AMG C63 S Cabriolet

Price, base: Dh429,090

Engine 4.0-litre twin-turbo V8

Transmission Seven-speed automatic

Power 510hp @ 5,500rpm

Torque 700Nm @ 1,750rpm

Fuel economy, combined 9.2L / 100km

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

Our House, Louise Candlish,
Simon & Schuster

Warlight,
Michael Ondaatje, Knopf 

Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

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.”

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Price: From Dh801,800
Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
How to invest in gold

Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.

A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).

Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.

Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”

Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”

Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”

By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.

You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.

You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Day 2, Dubai Test: At a glance

Moment of the day Pakistan’s effort in the field had hints of shambles about it. The wheels were officially off when Wahab Riaz lost his run up and aborted the delivery four times in a row. He re-measured his run, jogged in for two practice goes. Then, when he was finally ready to go, he bailed out again. It was a total cringefest.

Stat of the day – 139.5 Yasir Shah has bowled 139.5 overs in three innings so far in this Test series. Judged by his returns, the workload has not withered him. He has 14 wickets so far, and became history’s first spinner to take five-wickets in an innings in five consecutive Tests. Not bad for someone whose fitness was in question before the series.

The verdict Stranger things have happened, but it is going to take something extraordinary for Pakistan to keep their undefeated record in Test series in the UAE in tact from this position. At least Shan Masood and Sami Aslam have made a positive start to the salvage effort.

Abandon
Sangeeta Bandyopadhyay
Translated by Arunava Sinha
Tilted Axis Press 

UAE currency: the story behind the money in your pockets

A Cat, A Man, and Two Women
Junichiro
Tamizaki
Translated by Paul McCarthy
Daunt Books 

The Dark Blue Winter Overcoat & Other Stories From the North
Edited and Introduced by Sjón and Ted Hodgkinson
Pushkin Press 

BMW M5 specs

Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor

Power: 727hp

Torque: 1,000Nm

Transmission: 8-speed auto

Fuel consumption: 10.6L/100km

On sale: Now

Price: From Dh650,000