Lebanon and Israel, two countries technically still at war, have been holding indirect talks since 2020 to agree on their shared maritime border, though the US-mediated efforts repeatedly stalled in the past years.
The fact that there is no clear border is an issue that has lingered for decades. It is still used today by Hezbollah to justify its armed confrontation against Israel that it says occupies Lebanese lands despite retreating amid a bloody insurgency in 2000.
Yet the talks are focused not on the land frontier, where over 10,000 UN peacekeepers try to maintain calm, but over the maritime border.
The reason these two long-time adversaries have finally sat down? Potential oil and gas.
What is the maritime border dispute about?
The area of the Eastern Mediterranean off the coast of Israel and Lebanon covers about 860 square kilometres and appears to contain vast reserves of oil and gas.
Known as the Levantine Basin, the area overlaps with the territorial waters of Lebanon, Israel, Syria, and Cyprus. While both Israel and Cyprus already have rigs drilling and extracting from the basin, there are — as yet — no proven reserves in Lebanon, but they are starting to look.
Because Lebanon does not recognise Israel and both sides are technically still at war, rival claims for oil and gas exploration have created a fraught political atmosphere.
In 2010, the US Geological Survey released a report on the energy reserves in the area, which estimated the Levantine Basin might hold oil reserves totalling 1.7 billion barrels of oil, in addition to 122 trillion cubic feet of gas.
Are we supposed to stay in a state of war? I don't have doctrinal differences with anyone, I have political differences
This is a huge reserve of energy — Iraq, for example, is thought to have 112 trillion cubic feet of gas.
This is now the contested prize, an asset former Lebanese Energy Minister Gibran Bassil claimed back in 2013 could supply the country with electricity “for the next 99 years” through thermal power.
Such claims are viewed as wild exaggerations by Lebanese oil and gas experts, who caution against believing politicians eager to find quick-fix solutions to Lebanon's long-standing electricity issues.
More recently, Israel’s Energy Ministry claimed that the annual value of gas for Lebanon would be in the region of $6bn, a potentially game-changing sum of money for the country — if it is spent effectively.
The US has been pressing for talks since 2012, and the two sides sat down together for the first time on October 14 2020. They met again on October 29 at a UN base under US mediation in Lebanon’s border town of Naqoura.
Mediators are necessary because it is illegal for Israeli and Lebanese officials to speak directly. The two countries have no diplomatic ties and their borders are closed.
Since then, Mr Hochstein met with Israeli Energy Minister Karine El Harrar to discuss the dispute once again before Lebanon’s parliamentary elections scheduled for May 15.
Mr Hochstein has privileged a shuttle diplomacy approach by travelling to Beirut and Jerusalem, where he meets top officials from both sides.
What are the claims of each side?
In 2010, Lebanon outlined its proposed Exclusive Economic Zone (EEZ), and submitted the proposal to the United Nations, setting the boundary 131km into the Mediterranean, equidistant between neighbouring countries.
The following year, Israel submitted its own proposed EEZ, but placed its suggested border 16km inside the proposed Lebanese zone.
This created an 860 square kilometre patch of disputed ocean.
Since then, the dispute has become a highly contested political issue within Lebanon. In the most recent talks, the Lebanese delegation has increased its territorial claim by an additional 1,430 square kilometres.
The powerful Iran-linked Hezbollah party, which is part of the Lebanese government and also has a large armed group, has long complicated talks by preventing direct negotiations with Israel.
The organisation has acquiesced to mediation since Lebanon’s economy went into free fall last year, leaving the government scrambling for funds amid one of the sharpest economic declines in modern history.
Why now?
So the US has been pushing since 2012 to resolve the issue over the border, but two things have pushed the Lebanese — and Israelis — to agree to meet now.
First off, Lebanon is broke. It has the world's third-highest debt-to-GDP ratio and without an unseen miraculous level of economic growth over years, it has little chance of paying this off alone.
So the potential for tapping into oil and gas is very attractive.
Secondly, after years of talks and planning, Lebanon finally awarded its first oil and gas exploration rights in 2018.
A consortium of France's Total, Italy' Eni and Russia's Novatek bought the rights to search for reserves in two maritime blocs off the Lebanese coast. While 'bloc 4' is off the coast north of Beirut, 'bloc 9' falls partially within the contested maritime zone.
While the consortium has said this should not be an issue to the exploration — they are not searching within the contested zone — it could become a problem if reserves are found.
Israel and Lebanon — and the consortium — want clarity on this matter urgently. This is especially true as Israel’s Karish gasfield lies not far from the disputed zone giving more hope that bloc 9 could yield results.
Israel in June also licensed their own “bloc 72” that lies next to the disputed zone.
Lebanese officials condemned this as an infringement of their country’s rights and there have long been unsubstantiated claims in Beirut that Israel’s far more advanced oil industry will seek to extract any and all reserves in the area before Lebanon can get a look in.
Lebanon relaunched a second offshore oil and gas licensing round for eight remaining blocs on Friday, with the deadline for submission of bids set for June 15, 2022.
So far, no viable reserves have been found in Lebanon.
Could the talks mean normalisation of ties between Lebanon and Israel?
For now, this is unlikely. Speaking on Israeli public TV, Israeli Energy Minister Yuval Steinitz remarked: “This isn’t a negotiation for peace and normalisation.”
Mr Steinitz added that any durable agreement would, however, be “for the benefit of both peoples.”
With strong political pressure in Lebanon against expanding the negotiations to cover other issues, we should not expect further talks to make headway soon.
Other points of contention remain unresolved, including a long-running land border dispute following the Israeli occupation of southern Lebanon in the early 1980s.
For Beirut, there is also the right of return for the tens of thousands of Palestinian refugees displaced by the creation of Israel who still live in Lebanon. Resolving that requires a settlement to the wider Arab-Israeli conflict.
The daughter of Lebanese President Michel Aoun caused controversy in October 2020 when she told local television that personally, she would not be against further talks.
“Are we supposed to stay in a state of war? I don't have doctrinal differences with anyone, I have political differences,” she said.
Going forward, we can expect the US and UN will not be giving up on bringing the two sides together once again.
Protests over Lebanon's economic crisis — in pictures
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
Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
TCL INFO
Teams:
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
When December 14-17
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
ENGLAND SQUAD
Joe Root (captain), Dom Sibley, Rory Burns, Dan Lawrence, Ben Stokes, Ollie Pope, Ben Foakes (wicketkeeper), Moeen Ali, Olly Stone, Chris Woakes, Jack Leach, Stuart Broad
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
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.”
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
