Arab neighbourhoods in Israel's mixed cities have been neglected by successive governments. Alamy
Arab neighbourhoods in Israel's mixed cities have been neglected by successive governments. Alamy
Arab neighbourhoods in Israel's mixed cities have been neglected by successive governments. Alamy
Arab neighbourhoods in Israel's mixed cities have been neglected by successive governments. Alamy


Are Arab Israelis about to see a big dividend from their share in government?


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October 28, 2021

The last thing most Israelis want right now is another election; they have been through four in just three years. For the past month, however, fears have grown across Israel that a fifth election is on the horizon, if the country’s broad coalition government fails to secure enough backing within the Knesset – Israel’s parliament – for a new state budget by a November 14 deadline. If the budget vote fails, the government will fall.

The coalition led by Prime Minister Naftali Bennett comprises left-wing, centrist and right-wing parties – a big-tent political alliance unprecedented in Israeli history. And it has resulted in a chain of other unprecedented events, one of the most striking of which is the inclusion of an independent Arab party, Raam, in the administration.

Getting such a diverse team to agree on major policies has proved difficult; at the start of October, the coalition members reportedly agreed not to submit any controversial bills that could divide the government until after the budget is passed.

Within a week, however, Raam’s party leader Mansour Abbas issued a letter to Mr Bennet, in which he outlined a list of demands to alleviate some of the vast inequalities between Jewish and Arab citizens. They included changes to construction and planning laws that discriminate against Arabs; the legalisation of Bedouin villages housing 90,000 people in the Negev Desert (Israel considers the villages informal settlements); a path to citizenship for families formed by marriages between Israelis and West Bank Palestinians; and a financial package to upgrade infrastructure in Arab communities.

In the Cabinet’s fraught negotiations – which have been complicated by further disagreements, including one over the defence ministry’s decision to designate six Palestinian NGOs as terrorist organisations – only the last of Mr Abbas’s demands has been agreed so far. But the scale on which it is to be implemented is significant. This week, the Cabinet approved a package of nearly $10 billion to be included in its budget proposal, allocated to an array of development projects for Israel’s Arab community over five years.

Similar initiatives have been promised before, but never fully implemented, and of nowhere near the size proposed now. If passed, the plan will invest in urban infrastructure upgrades, improved access to health care (particularly for women) and employment (including in Israel’s burgeoning technology sector), among other things.

Similar initiatives have been promised before

The justification for such a plan is clear. It would go some way in correcting the extreme economic inequality that has been allowed to fester between Jewish and Arab Israelis, and which has only undermined peaceful co-existence. More than half of Arab Israeli citizens live in poverty. Arabs are denied access to many public benefits, and their cities and neighbourhoods have suffered neglect, leading to heightened social tensions.

Even so, Mr Abbas’s critics from other Arab parties have accused Raam of ignoring larger issues, such as the preponderance of illegal settlements on Palestinian land and persistent abuses towards Palestinians in the West Bank and Gaza, for the sake of winning what they feel will ultimately become empty promises.

They have a point. A plan to invest $4bn in Arab communities was announced in 2016, but much of it never reached its intended recipients – instead getting held up by bureaucracy, or misappropriated. And the reality is that while a path to prosperity for Arab Israelis could rectify several historical injustices, it will not reverse entirely the structural problems that prevent long-term co-existence – the most serious of which is continued conflict with Palestinians.

Nonetheless, the new plan would be a step in the right direction. And it demonstrates to Israelis – Jews and Arabs alike – that when Arabs are given a voice in government, Israel has a greater chance of raising prospects for all of its citizens.

UAE tour of Zimbabwe

All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I

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.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Reading List

Practitioners of mindful eating recommend the following books to get you started:

Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung

How to Eat by Thich Nhat Hanh

The Mindful Diet by Dr Ruth Wolever

Mindful Eating by Dr Jan Bays

How to Raise a Mindful Eaterby Maryann Jacobsen

UAE currency: the story behind the money in your pockets
The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

Why are asylum seekers being housed in hotels?

The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.

A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.

The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.

When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.

Scoreline

Arsenal 3
Aubameyang (28'), Welbeck (38', 81')
Red cards: El Neny (90' 3)

Southampton 2
Long (17'), Austin (73')
Red cards: Stephens (90' 2)

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

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

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FIXTURES

All games 6pm UAE on Sunday: 
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Burnley v Brighton
Chelsea v Wolves
Crystal Palace v Tottenham
Everton v Bournemouth
Leicester v Man United
Man City v Norwich
Newcastle v Liverpool
Southampton v Sheffield United
West Ham v Aston Villa

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Updated: October 28, 2021, 3:00 AM