EU top diplomat Josep Borrell failed to push through a proposal for the bloc to suspend dialogue with Israel. AFP
EU top diplomat Josep Borrell failed to push through a proposal for the bloc to suspend dialogue with Israel. AFP
EU top diplomat Josep Borrell failed to push through a proposal for the bloc to suspend dialogue with Israel. AFP
EU top diplomat Josep Borrell failed to push through a proposal for the bloc to suspend dialogue with Israel. AFP


Does the EU have any ability to restrain Israel?


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November 20, 2024

The war in Ukraine, for all its perils, has been a watershed moment for pan-European foreign policy. The EU, a supranational grouping of 27 countries, spanning Ireland in the West to Cyprus in the East, has rarely been so united, even though a couple of members remain sceptical of support for Ukraine. In its 32 years, the bloc has advanced its cause of “ever closer union” in governance, law, regulation and trade. Apart perhaps from the creation of a European defence force, a unified foreign policy is viewed by many eurocrats as the final frontier in manifesting a “geopolitical Europe” that could rival the likes of China or America on the world stage.

Israel’s wars in the Middle East, which began after Hamas’s attack on October 7 last year, have tested the EU’s ability to get there. Josep Borrell, the bloc’s departing foreign affairs chief, appeared exasperated on Monday after most of its foreign ministers rejected his proposal to suspend political dialogue with Israel. Mr Borrell has called for such measures in response to numerous allegations of war crimes and human rights violations by Israel in Gaza and Lebanon. “I have no more words,” he said after the vote.

EU member states are staunchly divided on the war. Some, like Germany and the Netherlands, have largely defended Israel’s actions. This is explained, in part, by historical factors: in Berlin, enduring guilt over the Holocaust has made criticism of Israel a red line in German politics.

But the rise of right-wing politics and euroscepticism in some member states has played a role, too. Some European foreign ministers feel that EU institutions are overstepping by speaking on the continent’s behalf in a complex conflict outside the region. And some, such as Dutch Foreign Minister Caspar Veldkamp, argue it is more constructive to maintain dialogue with Israel.

EU states are staunchly divided on the war

They are at odds with the EU itself, whose leadership has called repeatedly for an immediate ceasefire in Gaza. Other member states, like Spain and Ireland, have gone further by mooting unilateral arms embargos and trade boycotts.

Some EU officials have quietly suggested Mr Borrell’s proposal was never expected to succeed but was rather intended to force European capitals to make their positions on Israel clearer. In France, for instance, President Emmanuel Macron’s government has been accused of oscillating between support for and criticism of Israel. While the EU is an international actor in its own right, its heavy reliance on unanimity means it can easily be hamstrung by a lack of clarity among its members.

The stakes for Europe go beyond bloc unity. Israeli air strikes on northern Lebanese villages in the past fortnight occurred less than 200km from EU territory, and the displacement of more than a million people in Lebanon has raised fears in European frontier states of yet another refugee crisis.

Europe’s reputation as a force for global diplomacy is on the line, too. Alongside the UN, the US and Russia, the EU is a member of the Quartet, a diplomatic group formed in Madrid in 2002 to mediate the Palestine-Israel peace process. The group’s last meeting was in 2021, after which its progress stalled. Since the war in Ukraine and October 7, its irrelevance has been cemented, although last month Russian President Vladimir Putin suggested it should be revived.

Without a clear and coherent voice on Israel among European capitals, it is difficult to see how that could happen. In the meantime, Mr Borrell may be right: there is very little left to say.

Fixtures

Wednesday

4.15pm: Japan v Spain (Group A)

5.30pm: UAE v Italy (Group A)

6.45pm: Russia v Mexico (Group B)

8pm: Iran v Egypt (Group B)

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”

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PSL FINAL

Multan Sultans v Peshawar Zalmi
8pm, Thursday
Zayed Cricket Stadium, Abu Dhabi

The specs: 2019 Cadillac XT4

Price, base: Dh145,000

Engine: 2.0-litre turbocharged in-line four-cylinder engine

Transmission: Nine-speed automatic

Power: 237hp @ 5,000rpm

Torque: 350Nm @ 1,500rpm

Fuel economy, combined: 8.7L / 100km

The Freedom Artist

By Ben Okri (Head of Zeus)

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Results:

Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.

Country-size land deals

US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:

Louisiana Purchase

If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.

Florida Purchase Treaty

The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty. 

Alaska purchase

America's spending spree continued in 1867 when it acquired 1,518,800 km2 of  Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".

The Philippines

At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million. 

US Virgin Islands

It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.

Gwadar

The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees. 

Afcon 2019

SEMI-FINALS

Senegal v Tunisia, 8pm

Algeria v Nigeria, 11pm

Matches are live on BeIN Sports

Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.

The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000

The Vile

Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah

Director: Majid Al Ansari

Rating: 4/5

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The specs

Engine: 1.4-litre 4-cylinder turbo

Power: 180hp at 5,500rpm

Torque: 250Nm at 3,00rpm

Transmission: 5-speed sequential auto

Price: From Dh139,995

On sale: now

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Profile Idealz

Company: Idealz

Founded: January 2018

Based: Dubai

Sector: E-commerce

Size: (employees): 22

Investors: Co-founders and Venture Partners (9 per cent)

RACECARD
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MATCH INFO

Manchester United v Brighton, Sunday, 6pm UAE

Updated: November 20, 2024, 7:05 AM