Lebanese Parliament Speaker Nabih Berri, left, Lebanese outgoing defence minister Zeina Akar, centre, and Unifil head Maj Gen Stefano Del Col announced an agreement on a framework of indirect talks between Lebanon and Israel over the longstanding disputed maritime border between the two countries. AP Photo
Lebanese Parliament Speaker Nabih Berri, left, Lebanese outgoing defence minister Zeina Akar, centre, and Unifil head Maj Gen Stefano Del Col announced an agreement on a framework of indirect talks between Lebanon and Israel over the longstanding disputed maritime border between the two countries. AP Photo
Lebanese Parliament Speaker Nabih Berri, left, Lebanese outgoing defence minister Zeina Akar, centre, and Unifil head Maj Gen Stefano Del Col announced an agreement on a framework of indirect talks between Lebanon and Israel over the longstanding disputed maritime border between the two countries. AP Photo
Lebanese Parliament Speaker Nabih Berri, left, Lebanese outgoing defence minister Zeina Akar, centre, and Unifil head Maj Gen Stefano Del Col announced an agreement on a framework of indirect talks be

Lebanon-Israel talks will mark another win for Donald Trump


  • English
  • Arabic

Whatever be the outcome of the US presidential election in November, credit must be given where credit is due. And it would be fair to say that, for the Middle East, the current incumbent Donald Trump has been consequential as an American leader. In fact, it would not be inaccurate to suggest that he has managed to bring about a radical change in the political landscape of the region – with one of the biggest beneficiaries of Mr Trump’s diplomatic efforts being Israel.

The ink is not yet dry on the Abraham accords, recently signed by the UAE and Bahrain with Israel, but progress is already being made in Israel-Lebanon relations. The surprise announcement of the start of the first civilian negotiations regarding the demarcation of land and maritime borders – brokered by the US and overseen by the United Nations – may only be receiving fleeting coverage from American media outlets. But it is a major achievement for the Trump administration.

The President will, no doubt, focus on what Israel stands to gain from having positive relations with its neighbours, in order to please the Jewish and pro-Israeli sections of America’s electorate. But the positive outcome of talks with Israel is just as important for Lebanon’s future, because it gives Beirut the option of hedging its relations with Iran. The influence of Tehran, lest we forget, is deeply entrenched in Lebanese politics – not least because its proxy Hezbollah doubles up as a powerful political party and militia inside the tiny Arab country.

Unifil vehicles patrol the area of Naqura, south of the Lebanese city of Tyre, on the border with Israel, this week. AFP
Unifil vehicles patrol the area of Naqura, south of the Lebanese city of Tyre, on the border with Israel, this week. AFP

The real threat of sanctions, which the Trump administration often effectively wields, has played a key role in Lebanon’s decision to talk to Israel, which is both a neighbour and an adversary.

The so-called “Shiite Duo” of Lebanese politics – Hezbollah and the Amal Movement – had long refused to demarcate the country’s borders with Israel. The reason for this being that they had sought to avoid doing the same with their other neighbour, Syria, with a view to remain coupled with the powers that be in Damascus. Iran and Hezbollah have been determined to keep the Lebanese-Syrian border wide open to allow for the flow of weapons, fighters, narcotics and cash unhindered, and to maintain the subjugation of Lebanon and its people.

Sanctions, however, have shaken the ground beneath the feet of those Lebanese leaders allied to Hezbollah and Amal.

Parliament Speaker Nabih Berri, who leads Amal, agreed to hold talks with Israel only after the Trump administration slapped sanctions on one of his closest associates, former finance minister Ali Hassan Khalil. Likewise, the tone of Gebran Bassil, leader of the Free Patriotic Movement and son-in-law of President Michel Aoun, changed drastically after Youssef Fenianos, the former transport minister, was similarly sanctioned by Washington. Even Saad Hariri, the former prime minister, and his Future Movement party may avoid striking a deal with Hezbollah in the future, for fear of such retribution.

The threat of US sanctions loom large not just for Lebanese politicians, however. Many Syrian and Iranian leaders are nervous as well, and possibly counting down to US Election Day. But they must realise that whether it is Republicans or Democrats who will run Washington over the next four years, there is a consensus in American politics over how best to deal with Tehran and its proxies, be it Hezbollah in Lebanon or the Assad regime in Syria.

US Secretary of State Mike Pompeo, left, and Defence Secretary Mark Esper attend a news conference to announce the Trump administration's restoration of sanctions on Iran last month. AP Photo
US Secretary of State Mike Pompeo, left, and Defence Secretary Mark Esper attend a news conference to announce the Trump administration's restoration of sanctions on Iran last month. AP Photo

I got a sense of this consensus during a recent conversation with Joel Rayburn, the US Deputy Assistant Secretary for Levant Affairs, and James Jeffrey, the US Special Representative for Syria Engagement.

“Whether it's in Syria, whether it's in Lebanon, or elsewhere, we have a charge from the leaders of the administration, and we have a charge from Congress to implement our sanctions authorities – and we're on a path to do that,” Mr Rayburn told me. He added that it was a strategy that also had the backing of the international community at large. Indeed, the West has grown tired of extremists and the adverse impact they are having across Europe and North America.

This is precisely why the Caesar Syria Civilian Protection Act has been such an effective tool in punishing those wrongdoers who have the backing of the Assad regime and have profited from the ongoing civil war in that country – regardless of nationality. According to Mr Jeffrey, the Trump administration has “full authority and every intention” to implement the act.

“If you, wherever you are in the world, are supporting this criminal regime, we're coming after you,” he added. “There is such a rich target list of Syrian officials who have done so much to deserve sanctions, that we're still working our way through them. But people need to be patient, we're going to take them down sooner or later.”

Mr Jeffrey also claimed that the relative calm in Syria at the moment is the result of the sanctions. “[Bashar Al] Assad's not taking any more territory, [and] he's going to have to deal sooner or later.”

However, it is clear that Iran continues its attempts to push back against American presence in the region, notably in Iraq, where its proxies are constantly attacking the US embassy and personnel in Baghdad. Even as Iran struggles under the grip of a sanctions regime, its strategy in the Middle East is to depend even more on its proxies to create unrest and instability.

As Election Day nears, there is the potential for escalation, as both sides refuse to concede an inch to the other.

Raghida Dergham is the founder and executive chairwoman of the Beirut Institute

The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

The biog

Favourite book: Men are from Mars Women are from Venus

Favourite travel destination: Ooty, a hill station in South India

Hobbies: Cooking. Biryani, pepper crab are her signature dishes

Favourite place in UAE: Marjan Island

Infobox

Western Region Asia Cup Qualifier, Al Amerat, Oman

The two finalists advance to the next stage of qualifying, in Malaysia in August

Results

UAE beat Iran by 10 wickets

Kuwait beat Saudi Arabia by eight wickets

Oman beat Bahrain by nine wickets

Qatar beat Maldives by 106 runs

Monday fixtures

UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain

Mrs%20Chatterjee%20Vs%20Norway
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Ashima%20Chibber%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Rani%20Mukerji%2C%20Anirban%20Bhattacharya%20and%20Jim%20Sarbh%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

UAE currency: the story behind the money in your pockets
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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.”

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
UAE v Ireland

1st ODI, UAE win by 6 wickets

2nd ODI, January 12

3rd ODI, January 14

4th ODI, January 16

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ESupy%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EDani%20El-Zein%2C%20Yazeed%20bin%20Busayyis%2C%20Ibrahim%20Bou%20Ncoula%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%20%3C%2Fstrong%3EFood%20and%20beverage%2C%20tech%2C%20hospitality%20software%2C%20Saas%0D%3Cbr%3E%3Cstrong%3EFunding%20size%3A%20%3C%2Fstrong%3EBootstrapped%20for%20six%20months%3B%20pre-seed%20round%20of%20%241.5%20million%3B%20seed%20round%20of%20%248%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EBeco%20Capital%2C%20Cotu%20Ventures%2C%20Valia%20Ventures%20and%20Global%20Ventures%3C%2Fp%3E%0A
Company%20profile%20
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EYodawy%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Egypt%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EKarim%20Khashaba%2C%20Sherief%20El-Feky%20and%20Yasser%20AbdelGawad%3Cstrong%3E%3Cbr%3ESector%3A%20%3C%2Fstrong%3EHealthTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%2424.5%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EAlgebra%20Ventures%2C%20Global%20Ventures%2C%20MEVP%20and%20Delivery%20Hero%20Ventures%2C%20among%20others%3Cstrong%3E%3Cbr%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20500%3Cbr%3E%3C%2Fp%3E%0A
UAE and Russia in numbers

UAE-Russia ties stretch back 48 years

Trade between the UAE and Russia reached Dh12.5 bn in 2018

More than 3,000 Russian companies are registered in the UAE

Around 40,000 Russians live in the UAE

The number of Russian tourists travelling to the UAE will increase to 12 percent to reach 1.6 million in 2023