An Israeli soldier at the Rosh Hanikra border crossing between Lebanon and Israel. AFP
An Israeli soldier at the Rosh Hanikra border crossing between Lebanon and Israel. AFP
An Israeli soldier at the Rosh Hanikra border crossing between Lebanon and Israel. AFP
An Israeli soldier at the Rosh Hanikra border crossing between Lebanon and Israel. AFP


The Middle East needs a Lebanon-Israel maritime agreement


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October 12, 2022

It can be easy to forget the Lebanon and Israel are still officially in a state of war. Thankfully, the days of the most terrible military violence are largely behind them. Today, it is mostly rhetoric between the two sides and a series of stalemates that serve as reminders of the conflict.

However, an important and symbolic one might soon be solved. On Tuesday, Israeli Prime Minister Yair Lapid said his country had reached a “historic deal” with Lebanon regarding a longstanding maritime boundary dispute. In a slightly less definite manner, Lebanon's President Michel Aoun said he hoped to announce a final agreement “as soon as possible”, but Elias Bou Saab, Lebanon's lead negotiator in the recent talks, which were moderated by the US, said that a “solution that satisfies both parties” had been reached.

A deal would lead to two main practical resolutions. The first would be finally agreeing on the course of a disputed 5-kilometre maritime border, which has not been set since Israel was established in 1948. The second would be to solidify the terms of Israel's share of future profits from the disputed Karish gas field, which could flow very quickly after a deal.

A picture showing Lebanon's Hezbollah leader Hassan Nasrallah. Reuters
A picture showing Lebanon's Hezbollah leader Hassan Nasrallah. Reuters

It is not just the practical results of a deal that would be significant. Getting one would serve as an important precedent of both countries coming together diplomatically after bitter decades stretching back well into the 20th century. Lebanon has been and still is home to plenty of political actors more than happy to refer to Israel in the most aggressive and violent of terms. Hassan Nasrallah, the head of militant Lebanese group Hezbollah has for example said that his group has enough missiles to send Israel "back to the Stone Age".

Former Israeli prime minister Benjamin Netanyahu has criticised the deal heavily, saying it is effectively Israel signing its strategic resources over to an enemy. He is one of Israel's most pivotal politicians, if not the most.

As inevitable turbulence hits, both sides must keep faith in a deal. If they are able to put aside differences, tangible commercial benefits will very quickly ensue. Lebanese caretaker Energy Minister Walid Fayyad said on Tuesday that French company TotalEnergies would begin the process of exploring for gas in Lebanese waters as soon as an agreement happens. That is crucial for Lebanon, whose rapid economic and social decline continues apace.

There is still the possibility of the process being derailed. Mr Aoun's term of office ends on October 31 and the following day Israel heads to the polls for the fifth time in less than four years. It is very hard to predict the makeup of its new government, but many on the ascendant right will not be happy about an agreement. There are also legal questions over whether a transitional government can sign deals of such magnitude in an election period. More generally, on the Lebanese side, Mr Aoun appears keen to stress that that a deal would not signify a “partnership” with Israel, which Lebanon still does not recognise as a country.

However, strong words like these can be viewed both ways. That such differences can be put aside is a sign that Lebanon wants, perhaps most of all needs, a deal. Lebanese people want more pragmatism in their politics and the region needs more co-operation, particularly between Israel and neighbouring Arab states. An important side note is that the US was heavily involved in talks, a welcome example of American leadership during a period in which Washington has faced criticism for distraction when it comes to the Middle East.

Many more points of agreement will need to be found before Lebanon and Israel find peace. But the first step is often the hardest, and that is why the next few days could hold one of the most positive stories to have come from the region this year.

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.”

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
'Top Gun: Maverick'

Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
The language of diplomacy in 1853

Treaty of Peace in Perpetuity Agreed Upon by the Chiefs of the Arabian Coast on Behalf of Themselves, Their Heirs and Successors Under the Mediation of the Resident of the Persian Gulf, 1853
(This treaty gave the region the name “Trucial States”.)


We, whose seals are hereunto affixed, Sheikh Sultan bin Suggar, Chief of Rassool-Kheimah, Sheikh Saeed bin Tahnoon, Chief of Aboo Dhebbee, Sheikh Saeed bin Buyte, Chief of Debay, Sheikh Hamid bin Rashed, Chief of Ejman, Sheikh Abdoola bin Rashed, Chief of Umm-ool-Keiweyn, having experienced for a series of years the benefits and advantages resulting from a maritime truce contracted amongst ourselves under the mediation of the Resident in the Persian Gulf and renewed from time to time up to the present period, and being fully impressed, therefore, with a sense of evil consequence formerly arising, from the prosecution of our feuds at sea, whereby our subjects and dependants were prevented from carrying on the pearl fishery in security, and were exposed to interruption and molestation when passing on their lawful occasions, accordingly, we, as aforesaid have determined, for ourselves, our heirs and successors, to conclude together a lasting and inviolable peace from this time forth in perpetuity.

Taken from Britain and Saudi Arabia, 1925-1939: the Imperial Oasis, by Clive Leatherdale

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

UAE currency: the story behind the money in your pockets
Tips on buying property during a pandemic

Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.

While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.

While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar. 

Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.

Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.

Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities. 

Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong. 

Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.

Our Time Has Come
Alyssa Ayres, Oxford University Press

Company profile

Name:​ One Good Thing ​

Founders:​ Bridgett Lau and Micheal Cooke​

Based in:​ Dubai​​ 

Sector:​ e-commerce​

Size: 5​ employees

Stage: ​Looking for seed funding

Investors:​ ​Self-funded and seeking external investors

In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000
Silent Hill f

Publisher: Konami

Platforms: PlayStation 5, Xbox Series X/S, PC

Rating: 4.5/5

Updated: October 12, 2022, 3:42 AM