President Barack Obama insisted on Sunday that his track record in the White House has proved beyond doubt "that when the chips are down, I have Israel's back". And then he proved the point, not only through the litany of examples he offered in that speech to the Israel lobby, but by the position he took on Iran.
Mr Obama vowed to use military action, if necessary, to prevent Iran obtaining a nuclear weapon, yet made clear that the situation was nowhere near that point. And in doing so, he may have pulled Prime Minister Benjamin Netanyahu's chestnuts out of the fire at the same time as reducing the risk of war.
Hype notwithstanding, Mr Netanyahu came to Washington on Sunday having painted himself into a corner on Iran. Israeli officials spinning the media ahead of his arrival portrayed a confident and determined Israeli leader coming to demand - with the support of the watching Israel lobby, while jeering Republicans tried to use the Iran issue to weaken Mr Obama's reelection prospects - that the American president either man up to Iran or step aside and let Israel do it.
Mr Netanyahu had for years used apocalyptic language and sabre rattling to press the US and other western powers to harden their stance on Iran, always telling them that each new round of sanctions wouldn't be sufficient and that Israel would launch a military attack if western powers failed to bring Tehran to heel.
But the more Israel has amped up its threat of war, the more diplomatically isolated it has become. None of the western powers most active in pressing sanctions back Israel starting a war over Iran's nuclear work, and as the sabre-rattling has grown more shrill in recent months they have devoted increasing diplomatic attention to restraining Mr Netanyahu from doing something stupid.
Opinion polls show only one in five Israelis supports attacking Iran without US backing, while Israel's top military and intelligence leaders believe it would be a mistake to go to war under present circumstances. But Mr Netanyahu can't easily dial back his belligerence without, in his own mind, showing Iran that Israel is not serious about military action - and without endangering his domestic political position.
Having recklessly inflated the threat of Iran's nuclear programme to Israelis with wild talk of a new Holocaust, he has created pressure on himself to take action. Yet Mr Netanyahu is a risk-averse leader, who has never started a war and is unlikely to roll the dice on military action involving such deep risk, and such limited gain, against the advice of his military chiefs, who are well aware of the limits of Israeli air power against Iran's nuclear facilities.
Mr Netanyahu would prefer the US to do the job, but the Obama administration has made clear there's no chance of that happening on the basis of Israel's timeframe and red lines. Mr Obama, in his Aipac speech, vowed to take military action if necessary to keep nuclear weapons out of Iran's hands, but at the same time he pointed out that Tehran - by common US-Israeli assessment - hasn't yet decided to build nuclear weapons. Israel's best interests, he argued, were better served by a strategy of pressure and engagement than by launching a potentially disastrous strike that could slow Iran but make it more likely to launch a covert weapons programme.
"Already, there is too much loose talk of war," Mr Obama warned in an unmistakable rebuke to Mr Netanyahu, pointing out that it was driving up oil prices and benefiting Iran. "For the sake of Israel's security, America's security, and the peace and security of the world, now is not the time for bluster."
Mr Netanyahu, in his own speech, mocked the Obama administration's reasoning, and offered plenty of blood-and-fire bluster. But that may simply be an effort to keep domestic pressure on the US president, whose focus in the months ahead will be on sanctions and diplomacy. "The only way to truly solve this problem," Mr Obama said, "is for the Iranian government to make a decision to forsake nuclear weapons".
Mr Netanyahu demanded that Mr Obama state his red line; Mr Obama said he'd use military force to prevent Iran obtaining a nuclear weapon, not before.
Israel's red line is different; it has insisted that Iran can't be allowed to possess even the civilian nuclear infrastructure that would enable it to build a bomb - infrastructure Iran already has. Denying Iran infrastructure to which it is entitled under the Nuclear Non-Proliferation Treaty once it has satisfied concerns (over its intent and met safeguard requirements against weaponisation) is an implausible diplomatic outcome.
Mr Netanyahu didn't get what he wanted. But he may have walked away with what he needed: Political cover for refraining from starting a war that he has good reason to want to avoid.
He left his White House meeting with Mr Obama expressing satisfaction that he'd managed to "put the Iran issue on the international order of priorities". He also made much of the idea that it's up to him to decide, that Israel won't seek permission from the US to strike Iran.
At the same time, Mr Netanyahu stressed, Israel hasn't decided to do so, and says simply - once again - that time is running out. But of course, Mr Netanyahu doesn't want to act alone against Iran, right now at least, as much as to keep alive the idea that he might do so for the pressure that puts on all the key players.
And in a quiet moment the Israeli leader might permit himself a little chuckle of contentment, recalling the old days when the key topics of discussion on his visits to the Obama White House were settlements, 1967 borders and the Palestinians. Back then, Mr Netanyahu insisted Iran should top their agenda. Now, they're not talking about much else.
Tony Karon is an analyst based in New York
Follow on Twitter: @TonyKaron
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
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THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
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.”
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The National's picks
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A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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