In a historic first, Indian president Pranab Mukherjee has travelled to Israel and Palestine for the first ever visit to these territories by an Indian head of state. Tomohiro Ohsumi / Bloomberg
In a historic first, Indian president Pranab Mukherjee has travelled to Israel and Palestine for the first ever visit to these territories by an Indian head of state. Tomohiro Ohsumi / Bloomberg

India telegraphs its intentions with state visit to Israel



In a historic first, Indian president Pranab Mukherjee has travelled to Israel and Palestine for the first ever visit to these territories by an Indian head of state. Despite India sharing 23 years of diplomatic ties with Israel and working closely on defence, counter- terrorism, agriculture and energy related issues, no Indian prime minister or president has ever previously visited it.

Later this year, Narendra Modi is also likely to become the first prime minister of India to visit Israel. Mr Modi had visited Israel as the chief minister of Gujarat in 2006. And as Indian prime minister, he met Benjamin Netanyahu on the sidelines of the UN General Assembly last year.

A hallmark of Mr Modi’s foreign policy has been a self-confident assertion of Indian interests. This is reflected in his government’s moves in relation to Israel, marking a distinct break from the diffidence of the past.

There has been a steady strengthening of India’s relationship with Israel ever since the two established full diplomatic relations in 1992.

In contrast to the back-channel security ties that existed before the normalisation of bilateral relations, India has been more willing to carve out a mutually beneficial relationship with Israel, including strengthening military ties and countering the threat terrorism poses to the two societies.

Over the years, the Indian government has also toned down its reactions to Israel’s treatment of Palestinians.

India has also begun denouncing violent acts in Israel, something that was seen earlier as rather justified in light of the Israeli policies against Palestinians. India is no longer initiating anti-Israel resolutions at the UN. This re-evaluation has been based on the belief that India’s largely pro-Arab stance in the Middle East has not been always adequately rewarded.

India has received little backing over the issue of Kashmir. Generally, the Arab world has stood by Pakistan, using the Organisation of Islamic Conference to build support for Islamabad in Kashmir. If some Arab countries, such as Jordan, have been able to keep their traditional ties with the Palestinians intact while building a new relationship with Israel, there is no reason for India not to take a similar route is the argument that holds sway in New Delhi.

Keeping India’s wider strategic interests in perspective, successive Indian governments since the early 1990s have walked a line between expressing genuine concern for the Palestinian cause and expanding its commercial and defence ties with Israel. India is the world’s largest buyer of Israeli weaponry and was Israel’s third largest trading partner in Asia in 2013 after China and Hong Kong.

On several occasions, Israel was willing to step up its arms sales to India after other major states curbed their technological exports following India’s May 1998 nuclear tests. When India was planning to undertake a limited military strike against Pakistan in June 2002 as part of Operation Parakram, Israel supplied hardware through special planes. Previous Indian governments had been reticent in acknowledging Israel’s partnership.

In diplomacy, public affirmation of friendships at the highest levels is often as important as drawing redlines for adversaries. After a major outreach to the UAE, the Modi government is also taking a step forward in its ties with Tel Aviv in the belief that an open relationship with Israel serves India well.

Harsh V Pant is a reader in international studies at King’s College London

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MATCH INFO

Karnatake Tuskers 114-1 (10 ovs)

Charles 57, Amla 47

Bangla Tigers 117-5 (8.5 ovs)

Fletcher 40, Moores 28 no, Lamichhane 2-9

Bangla Tiger win by five wickets

COMPANY PROFILE

Name: Kinetic 7
Started: 2018
Founder: Rick Parish
Based: Abu Dhabi, UAE
Industry: Clean cooking
Funding: $10 million
Investors: Self-funded

Other ways to buy used products in the UAE

UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.

Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.

Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.

For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.

Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.

At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.

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

Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside

Brief scores:

Everton 2

Walcott 21', Sigurdsson 51'

Tottenham 6

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Man of the Match: Son Heung-min (Tottenham Hotspur)

COMPANY PROFILE

Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

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An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.

There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.

The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.

There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.

While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash. 

Company Profile

Company: Astra Tech
Started: March 2022
Based: Dubai
Founder: Abdallah Abu Sheikh
Industry: technology investment and development
Funding size: $500m

The pillars of the Dubai Metaverse Strategy

Encourage innovation in the metaverse field and boost economic contribution

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