Thousands of Israelis have protested against their current government's policies in Tel Aviv amid the ongoing war between Israel and the Palestinian Hamas militant group. AFP
Thousands of Israelis have protested against their current government's policies in Tel Aviv amid the ongoing war between Israel and the Palestinian Hamas militant group. AFP
Thousands of Israelis have protested against their current government's policies in Tel Aviv amid the ongoing war between Israel and the Palestinian Hamas militant group. AFP
Thousands of Israelis have protested against their current government's policies in Tel Aviv amid the ongoing war between Israel and the Palestinian Hamas militant group. AFP


How Israel's opposition sees the Gaza war ending and the future of the Middle East


  • English
  • Arabic

November 25, 2024

More than a year since the beginning of the October 7 War, Israel’s security forces have had a series of impressive operational successes. But military successes should not be confused with victory. There is no victory without a diplomatic element. Israel can and should initiate a new regional order.

What does a diplomatic initiative look like? What would be a strategic victory for Israel?

The elements of victory will be the return of the hostages to their families; building a civilian government in Gaza in place of Hamas; removing Hezbollah from the northern border and returning the residents to their homes with a sense of trust and security; building a regional coalition against Iran and stopping the Iranian nuclear programme; the rehabilitation of communities in the north and south; and strengthening Israel’s military.

The time for a diplomatic initiative is now. The election of Donald Trump in the US is an opportunity for Israel. His is an administration that is not afraid of bold initiatives, and that is exactly what we need: to work with them from day one on changing the face of the Middle East. In an unusual moment, there is a single organising principle that deals with all the arenas in which Israel is involved.

This organising principle is a so-called "normalisation agreement" with Saudi Arabia. This is a misleading name because it is much bigger than one agreement with one country. It's the construction of an entire regional coalition. Alongside Saudi Arabia, the UAE – the leading player in the Abraham Accords – must be a central player in any future coalition. With proper management, it will be possible to add other countries to the agreements as well.

This coalition would be the administrative basis of an alternative government in Gaza. It would assist with the rebuilding of the Lebanese Army so that the latter could stand between Israel and Hezbollah. It would be a military and economic alliance that deals with the series of threats that Iran poses, from its nuclear programme to the activity of Iranian proxies from Yemen to Iraq.

This diplomatic process must start with a comprehensive hostage agreement in Gaza, which would include a ceasefire for a six-month "transitional period" in Gaza and a permanent arrangement in Lebanon. Israel would announce that it has no intention of settling Gaza or staying for years in southern Lebanon, but that it reserves the right to defend itself by force beyond its border. During this transitional period, an international force would be stationed in Gaza that could include the UAE, Egypt, Morocco and a civilian arm of the Palestinian Authority. This force would deal with the distribution of aid and the reconstruction of Gaza.

An international force would be stationed in Gaza

Within a month at most, a regional conference will be convened in Riyadh, in which Israel, the US, Saudi Arabia, the countries of the Abraham Accords, the Lebanese government and the Palestinian Authority would participate. The conference would lead to an agreement with five main components.

The first is an arrangement in Lebanon. Hezbollah would withdraw to a range of 9-10km from the Israeli border, and units of the Lebanese army would enter in its place. As the first step, this could consist of Lebanese army units that are currently stationed on the Syrian border (there is a force of 34,000 soldiers trained by the British), backed by American and French forces.

In the next step, an army unit would be built specifically for southern Lebanon. It would be part of the Lebanese Army, but its soldiers and officers would receive higher salaries than is customary in the Lebanese army today – $500 a month for a soldier, $1,000 for an officer – and they will be trained by British and French forces, who will remain with them in the area for a period of 24 months. The construction of this military force would also be the first step in restoring governance to Lebanon and halting Hezbollah's takeover of the country.

The second component is an arrangement in Gaza. An administrative body would be established for the reconstruction of Gaza, the restoration of governance and the return of residents to their homes. This body would be headed by a delegation that includes Saudi Arabia, Egypt, the countries of the Abraham Accords, the US, the EU and a symbolic civilian arm of the Palestinian Authority that would only deal with civilian matters. A "Chinese Wall" would be placed between this arm of the PA and Ramallah, and the PA would not have access to the bank accounts of this reconstruction administration or the ability to influence the appointments of senior officials.

The third component concerns Iran. The regional coalition would work together to halt the progress of the Iranian nuclear programme by diplomatic or military means, and to stop Iran's attempts to achieve hegemony in the Middle East through proxy forces. The coalition would co-operate against the Houthis in Yemen as well as pro-Iranian militias in Syria and Iraq.

The fourth component concerns normalisation. The conference would discuss the deepening of economic and diplomatic ties between the Abraham Accords countries as well as Saudi Arabia. It would do so according to the model we already built at the Negev Summit: professional committees on issues like water technology, food security and transportation that would spearhead investments and joint development.

Finally, the conference would publish a statement according to which all parties will work to create the conditions for a future separation between Israelis and the Palestinians, according to the two-state principle, subject to a significant reform of the Palestinian Authority and the preservation of Israel's security interests. Israel would commit not to annex the West Bank. The Palestinians would commit to fighting terrorism and incitement, and to a deep change in their education system.

This arrangement, in several versions not very different from one another, appears to be acceptable to all the relevant players. There have been discussions about it both with the countries of the region – including Saudi Arabia – and with the US. I was involved in some of them. There is consensus that an arrangement like this is not only possible, but also offers unprecedented strategic advantages to Israel.

The only reason it is not happening is that the current Israeli government is not ready to accept that the PA will be part of any agreement. The problem is that, without this, no one will come. Not Saudi Arabia. Not Arab states that have relations with Israel. Not even the incoming Trump administration.

It is worth remembering that Israel's current government is still collaborating closely with the PA today. Both sides have an interest in trying to hide it but there is security and administrative co-operation between them.

Opposition to the PA's involvement in the Saudi normalisation process stems mainly from domestic political considerations. This is an enormous mistake. Israel is denying itself a strategic victory that would benefit its security and its economy and improve its international standing.

A new Israeli government, together with the Trump administration and its partners in the Abraham Accords and Negev Forum, needs to set out on a new path which brings with it the promise of peace and prosperity to the region and offers a clear alternative to extremism and fundamentalism.

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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

Syria squad

Goalkeepers: Ibrahim Alma, Mahmoud Al Youssef, Ahmad Madania.
Defenders: Ahmad Al Salih, Moayad Ajan, Jehad Al Baour, Omar Midani, Amro Jenyat, Hussein Jwayed, Nadim Sabagh, Abdul Malek Anezan.
Midfielders: Mahmoud Al Mawas, Mohammed Osman, Osama Omari, Tamer Haj Mohamad, Ahmad Ashkar, Youssef Kalfa, Zaher Midani, Khaled Al Mobayed, Fahd Youssef.
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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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- Abdullah Ishnaneh, Partner, BSA Law 

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