Israeli Prime Minister Benjamin Netanyahu. Matthew Cavanaugh / EPA
Israeli Prime Minister Benjamin Netanyahu. Matthew Cavanaugh / EPA
Israeli Prime Minister Benjamin Netanyahu. Matthew Cavanaugh / EPA
Israeli Prime Minister Benjamin Netanyahu. Matthew Cavanaugh / EPA

How Netanyahu’s dirty tricks squad targets boycotts


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Israeli prime minister Benjamin Netanyahu addressed cohorts of Israel loyalists in the United States by video link last week at the annual conference of Aipac, the American-Israel Public Affairs Committee. They should, he said, follow his government’s example and defend Israel on the “moral battlefield” against the growing threat of the international boycott divestment and sanctions (BDS) movement. In Mr Netanyahu’s simple-minded language, support for Palestinian rights, and opposition to the settlements, is equivalent to “delegitimisation” of Israel.

The current obsession with BDS reflects a changing political environment for Israel.

According to an investigation by the Haaretz newspaper last month, Israeli agents subverted the human rights community in the 1970s and 1980s. Their job was to launder Israel's image abroad. Yoram Dinstein, a professor at Hebrew University in Jerusalem, led the local chapter of Amnesty International, the world's most influential rights organisation of the time, running it effectively as a wing of Israel's foreign ministry.

Mr Dinstein’s interference allowed Israel to falsely characterise the occupation as benevolent while presenting the Palestinians’ liberation struggle as terrorism. The reality of Israel’s oppression of Palestinians rarely reached outsiders.

Israel’s task is harder five decades on. The human rights community is more independent, while social media and mobile phone cameras have allowed Palestinians and their supporters to bypass the gatekeepers.

In the past few days, videos have shown an Israeli policeman savagely beating a Palestinian lorry driver, and soldiers taking hostage a terrified eight-year-old after he crossed their path while searching for a toy.

If concealment at source is no longer so easy, the battle must be taken to those who disseminate this damning information. The urgency has grown as artists refuse to visit, universities sever ties, churches pull their investments and companies back out of deals.

Israel is already sealing itself off from outside scrutiny as best it can. Last month it passed a law denying entry into Israel or the occupied territories to those who support BDS or “delegitimise” Israel.

But domestic critics have proved trickier. The Israel government has chipped away at the human rights community’s financial base. Media regulation has intensified. And the culture ministry is cracking down on film productions that criticise the occupation or government policy.

But the local boycott movement is feeling the brunt of the assault. Activists already risk punitive damages if they call for a boycott of the settlements. Transport minister Yisrael Katz threatened BDS leaders last year with “civil targeted assassination”. What did he mean?

Omar Barghouti, the movement’s Palestinian figurehead, was arrested last month, accused of tax evasion. He is already under a travel ban, preventing him from receiving an international peace award this month. And Israeli officials want to strip him of his not-so “permanent” residency.

At the same time, a leading Israeli rights activist, Jeff Halper, founder of the Israeli Committee Against House Demolitions, was detained by police on suspicion of promoting BDS while leading activists on a tour of an illegal settlement.

These are the first signs of the repression to come. The police minister, Gilad Erdan, has announced plans for a database of Israelis who support BDS, to mirror existing spying operations on BDS activists overseas. The information will help a “dirty tricks” unit whose job is to tarnish their reputations. Mr Erdan also wants a blacklist of companies and organisations that support boycotts. A law passed in February already shames the few companies prepared to deny services to the settlements, forcing them publicly to “out” themselves.

Why is Israel so fearful? Officials say the immediate danger is Europe’s labelling of settlement products, the first step on a slippery slope they fear could lead to Israel being called an apartheid state. That would shift the debate from popular boycotts and divestment by civil society groups to pressure for action by governments – or sanctions.

The inexorable trend was illustrated last month when a United Nations commission found Israel guilty of breaching the international convention on the crime of apartheid. Washington forced the UN secretary-general to repudiate the report, but the comparison is not going away.

Israel supporters in the United States have taken Mr Netanyahu’s message to heart. Last week they unveiled an online “boycotters map”, identifying academics who support BDS – both to prevent them entering Israel and presumably to damage their careers.

For the moment, the Israeli-engineered backlash is working. Western governments are characterising support for a boycott, even of the settlements, as anti-Semitic – driven by hatred of Jews rather than opposition to Israel’s oppression of Palestinians. ­Anti-BDS legislation has passed in France, Britain, Switzerland, Canada and the US.

This is precisely how Mr Netanyahu wants to shape the “moral battlefield”. A reign of terror against free speech and political activism abroad and at home, leaving Israel free to crush the Palestinians.

On paper, it may sound workable. But Israel will soon have to accept that the apartheid genie is out of the bottle – and it cannot be put back.

Jonathan Cook is an independent journalist in Nazareth

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

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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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