Iranian threat to ‘flatten Tel Aviv’ from Lebanon draws ire in Beirut


Sunniva Rose
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Top officials in Beirut reacted with outrage on Tuesday after comments by an adviser to Iran's Islamic Revolutionary Guard Corps,  threatening to attack Israel from Lebanese territory.

"If Israel makes a mistake, even the smallest one, against Iran, we will flatten Tel Aviv into dirt from Lebanon," Morteza Ghorbani, a senior adviser to the IRGC  Commander Hossein Salami, told Iranian media agency Mizan on Monday evening, Lebanese media said.

Mr Ghorbani appeared to be referring to Israel's arch enemy and Tehran's main proxy in the Levant, Hezbollah. The powerful Iran-backed Shiite Lebanese party fought a bloody guerrilla campaign against Israel in south Lebanon, forcing their hasty retreat in 2000, and has since fought a devastating 34-day war in 2006 as well as a number of smaller skirmishes. The group possesses an estimated 120,000 rockets, according to a 2017 report published by the Council on Foreign Relations, a US think-tank.

The 2006 war killed more than 1,000 Lebanese, mostly civilians, and 121 Israelis soldiers as well as 46 civilians.

An Israeli soldier stands near a wall at the Israel Lebanon border in northern Israel. AP, File
An Israeli soldier stands near a wall at the Israel Lebanon border in northern Israel. AP, File

Caretaker Lebanese Defence Minister Elias Bou Saab, a member of the Hezbollah-allied Christian majority Free Patriotic Movement, tweeted that Mr Ghorbani’s comments were “unfortunate and unacceptable and infringed on the sovereignty of Lebanon”.

He said that Iran, which has a “friendly relationship” with Lebanon, should not “compromise the independence of Lebanese decisions in any way”.

Caretaker Information Minister, Jamal Jarrah, a member of the prime minister’s Sunni Future Movement — traditionally an opponent of Hezbollah — tweeted that “Iran can defend however it wants, but Lebanon is not a mailbox for the Iranian Revolutionary Guards and is not an arena for foreign use by any country. The words of the Iranian official are completely rejected.”

Political parties in Lebanon are historically supported by foreign countries, with Shiite groups generally receiving support from Iran and Syria, Sunni parties from the Gulf and Christians from the West.

The Lebanese are "not human shields for any project in the region,"  said former interior minister Nohad Machnouk, also a member of the Future Movement. "The Iranian official must know that Lebanon has changed and will not be affected by his words."

Nadim Gemayel, leader of the Christian Kataeb party, which is staunchly anti-Hezbollah and is not represented in government, tweeted that he demanded an “explicit position” from Hezbollah leader Hassan Nasrallah, President Michel Aoun and caretaker Prime Minister Saad Hariri.

As yet, none of them have commented.

Hezbollah, which built its identity on fighting Israel, is popular among some segments of society in Lebanon where it paints itself as a defender of the country.

Like its Iranian and Syrian allies, the group has criticised the massive anti-government protests that started in Beirut on October 17.

It accuses the participants of being manipulated by foreign countries, a claim which they reject.

But the party has been lumped together with all the major political blocs being criticised by protesters who are demanding major reforms, a new type of governance and an economic and infrastructural overhaul.

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.”

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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Tuesday
Sevilla v Maribor
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Napoli v Feyenoord
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Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
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Wednesday
Basel v Benfica
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Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
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