Key developments in maritime dispute
2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.
Israel has officially expressed openness to US-mediated talks under UN supervision on a disputed maritime border with Lebanon in a bid to end a long-running Mediterranean dispute that has come to a head over oil and gas exploration.
Israeli Energy Minister Yuval Steinitz's office said in a statement after he met US envoy David Satterfield on Monday that talks to agree on a border could be "for the good of both countries' interests in developing natural gas reserves and oil".
Lebanese MP Yassine Jaber told The National that Mr Satterfield had informed Lebanese officials a few weeks ago that Israel agreed to Lebanon's request that the negotiations be conducted under UN supervision. Israel had not commented at the time.
In the past, Israel had rejected the UN's involvement although it was open to US mediation.
The focus of the issue is on a triangular 860 square kilometre wedge of the Mediterranean that both sides claim and is rich in subsea oil and gas.
Technically at war since Israel’s founding in 1948, the two neighbours have no diplomatic relations and the issue of the demarcation has lingered.
Mr Satterfield, who has been attempting to mediate a solution, is due in Beirut on Tuesday to follow up on his talks in Israel.
Lebanese politicians have welcomed his efforts.
MP Alain Aoun, who is affiliated to the president’s Free Patriotic Movement, said that it was “positive” that Israel was now open to UN involvement.
"Lebanon presented its position to the US, who mediated with Israel, and the answer was positive. One can say that it represents a step forward," he told The National.
“We cannot say that we have reached an agreement yet, but we have at least decided on the procedure."
The Lebanese believe that the UN’s involvement in the talks ensures fairness, argues Moustapha Allouche, a member of the prime minister’s Future Movement political bureau. “We don’t want the border negotiations to be subject to Israeli speculation. We want them to be grounded in international law."
Mr Jaber also described Mr Satterfield's mediation between the two countries as “positive”.
“Oil and gas need stability and tranquility in the area," he said.
According to Mr Jaber, the Israeli-Lebanese negotiations would be organised in the Lebanese border town of Naqoura, where monthly meetings between the two countries have taken place for the past 23 years under the supervision of the United Nations Interim Force in Lebanon (Unifil), which monitors the cessation of hostilities between the two countries.
This has allowed them to slowly agree on their land border, although it is still disputed in some areas.
When they begin, the maritime border talks would also include a US mediator, and the UN would act as a host, said Mr Jaber.
Israel’s long-time enemy, Iran-backed Hezbollah, has also green-lighted the negotiations, meaning that all Lebanese parties have adopted a unified position on how to deal with the maritime border dispute.
Quoted by Lebanese TV Al Manar, Hezbollah leader Hassan Nasrallah said in a speech on Saturday that his party trusts that the government will defend Lebanon’s rights during the negotiations.
The maritime border dispute dates back to when Lebanon and Cyprus agreed their boundaries in 2007 in order to zone special economic areas for oil and gas exploration. Israel then used the points agreed by Lebanon and Cyprus to define its maritime border with Cyprus.
In 2011, Lebanon sent a letter to the UN to clarify its demarcation but between the proposed boundary and the one submitted by Israel lay the wedge of now disputed sea.
Lebanon has previously suggested the UN could mediate between the sides, but Israel has refused and said it can only be done bilaterally.
Unifil did not respond to The National by the time this article went to print but a spokesperson had previously said that "the issue of maritime demarcation is outside Unifil's mandate under Security Council resolution 1701".
That means that should Unifil be involved in maritime border negotiations, its mandate would have to be amended, probably when it is extended next August.
Lebanon is eager to cash in on revenue from offshore oil and gas as its economy struggles with sluggish growth rate and an alarming deficit.
Last year, Lebanon awarded its first contracts for oil and gas exploration to a consortium of France’s Total, Italy’s Eni and Russia’s Novatek. One of the areas awarded for exploration was Block 9 that falls partly in that disputed area – although the firms say they will only drill away from the disputed part.
In recent months, Mr Satterfield has been attempting to mediate between the sides to find a solution. He has strong connections in Lebanon, having served as US ambassador to Beirut between 1998 and 2001.
Although Lebanese officials expressed an interest in seeing the demarcation completed and were open to US mediation, they also joined their Israeli counterparts in a game of brinkmanship over the issue. Both sides have made bellicose statements warning the other and playing on nationalistic sentiment.
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Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
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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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The biog
Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha
Favourite book: One Hundred Years of Solitude
Holiday destination: Sri Lanka
First car: VW Golf
Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters
Driverless cars or drones: Driverless Cars
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
Results
Ashraf Ghani 50.64 per cent
Abdullah Abdullah 39.52 per cent
Gulbuddin Hekmatyar 3.85 per cent
Rahmatullah Nabil 1.8 per cent
UAE currency: the story behind the money in your pockets
How Islam's view of posthumous transplant surgery changed
Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.
Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.
The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.
One school of thought viewed the removal of organs after death as equally impermissible.
That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Key developments in maritime dispute
2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.