Smoke rises into the sky from the site that was targeted by Israeli airstrikes in Al Najjarieh village, south Lebanon, on May 17. EPA
Smoke rises into the sky from the site that was targeted by Israeli airstrikes in Al Najjarieh village, south Lebanon, on May 17. EPA
Smoke rises into the sky from the site that was targeted by Israeli airstrikes in Al Najjarieh village, south Lebanon, on May 17. EPA
Smoke rises into the sky from the site that was targeted by Israeli airstrikes in Al Najjarieh village, south Lebanon, on May 17. EPA


The Gaza war has repercussions – a war in Lebanon is not one of them at the moment


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May 22, 2024

Lebanon remains a forgotten front in the ongoing war in Gaza, despite the fact that more than 1,300 Lebanese, both civilians and combatants, have been killed or wounded since October 8, over 93,000 people have been displaced, and many southern border villages have faced major destruction. Yet some observers believe this may only be the beginning once the Israeli military operation in Gaza comes to an end.

Their rationale is that after Israel imposes its will in Gaza, it will have an impetus to do the same in Lebanon, if only to allow for a return of tens of thousands of inhabitants from the north who were evacuated after October 7. Certainly, some kind of agreement will have to be reached, as the Israelis are unlikely to accept a return to the status quo ante on the Lebanese-Israeli border.

Yet several factors may derail this prediction. The first and most obvious one is that the Gaza fighting is not over, and indeed doesn’t appear to be near a conclusion. More importantly, this has led to rifts inside Israel’s government, and between the government and military, over what should come next. Prime Minister Benjamin Netanyahu refuses to hand over to a Palestinian administration in Gaza, which has left his army fighting without a clear political endgame.

Israeli Prime Minister Benjamin Netanyahu attends a wreath-laying ceremony marking Holocaust Remembrance Day, in Jerusalem on May 6. Many Israelis believe Netanyahu is prolonging the fighting to remain in office. Reuters
Israeli Prime Minister Benjamin Netanyahu attends a wreath-laying ceremony marking Holocaust Remembrance Day, in Jerusalem on May 6. Many Israelis believe Netanyahu is prolonging the fighting to remain in office. Reuters

In light of this, it seems less probable that we are on the eve of a Lebanese war. Moreover, the regional implications of such a war would be severe, at a time when the US on the one side and Iran and Hezbollah on the other, have sought to avoid any escalation that could lead to a regional conflagration. The recent exchange of fire between Iran and Israel, which seemed choreographed to avert the worst, reaffirmed the reluctance by all sides to engage in a catastrophic escalation.

That may well be the outcome, however, if Israel were to do in Lebanon what it has done in Gaza. In the event Hezbollah were seriously threatened, Iran would not stand by and allow this to happen. It didn’t when Syrian President Bashar Al Assad was in danger a decade ago, and it certainly won’t do so if its Lebanese ally is.

But there are also broader issues at play. The nearly eight-month conflict in Gaza has had major divisive repercussions around the world, especially in western countries. It seems improbable that Israel would have the latitude to embark on a major war in Lebanon so soon after Gaza, one that could be more devastating and longer.

Nothing prevents Israel from invading, and Washington is unlikely to leave it in the lurch. However, given the anger in the Joe Biden administration over Mr Netanyahu’s refusal to offer a realistic political plan for Gaza, it is fair to assume that the Americans would think long and hard before sustaining a major Israeli operation in Lebanon when the outcome remains so uncertain and the risks so high.

The repercussions of the Gaza war, especially Israel’s wanton killing of upwards of 35,000 Palestinians, mainly civilians, according to local health authorities, have wreaked havoc in western capitals, not least in universities. It is possible that this could cost Mr Biden his re-election, with Arab Americans and many younger voters denying the President their vote in protest against his Gaza policies. This could lose him key swing states.

Even in Israel, there must be considerable fatigue with the Gaza war, one of the longest Israel has ever conducted. To immediately follow this with an even more complicated campaign in Lebanon could provoke a negative reaction from Israelis. While polls show that many voters would support a war, a large number of them also believe Mr Netanyahu is prolonging the fighting to remain in office.

Yet even if the Americans may not go along with a widening of the war, that does not mean they would oppose a limited escalation along the border that seeks to make Hezbollah more pliable in talks over new security arrangements with Israel. In fact, such a scenario may be inevitable, in part because Hezbollah helped make it so.

When the US envoy Amos Hochstein visited Beirut several months ago, he was told that Hezbollah would not discuss anything until the Gaza war was over. Mr Hochstein went along with the condition, aware that once it was met, it would allow Israel to transfer forces to the Lebanon border and increase US and Israeli leverage in defining a new reality in the area.

Yet if that’s the Americans’ thinking, it suggests they and the Israelis ultimately favour talks over a full-scale war. Their aim, reflecting US and French proposals, would be a withdrawal of elite Hezbollah units from the border, albeit not necessarily to the Litani River as outlined in UN Security Council resolution 1701, which ended the 2006 Lebanon war; deployment of the Lebanese army in the border zone; greater freedom for the UN force in southern Lebanon; an end to Israeli overflights; and demarcation of contested segments of the Lebanese-Israeli border.

Hezbollah would publicly reject a number of these conditions. However, it would also probably calculate that several can be manipulated to its advantage. For example, the Lebanese army will never prevent young Shia men from entering border villages from where they originate. That means the party, in exchange for cosmetic concessions that lead to calm along the border (calm the party desires), would yet retain a way to surreptitiously redeploy its members to border areas.

It would be a mistake to over-confidently assert that a Lebanon war won’t happen, as anything can go wrong in the Middle East these days. Yet the elements working against a full-scale conflict are at least as potent as those working to the advantage of one. Time will tell which outcome prevails.

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

What is tokenisation?

Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets. 

The Details

Kabir Singh

Produced by: Cinestaan Studios, T-Series

Directed by: Sandeep Reddy Vanga

Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa

Rating: 2.5/5 

UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.4-litre%204-cylinder%20turbo%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20366hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E550Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESix-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh360%2C000%0D%3Cbr%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%0D%3C%2Fp%3E%0A

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.”

In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

Updated: May 22, 2024, 2:00 PM