By re-electing Benjamin Netanyahu as prime minister of Israel and endorsing his racist project – bolstered by his alliance with US President Donald Trump – the Israelis have voted for confrontation and instability. A segment of Israelis may have seen his arrogance as an asset for the historical reassertion of a Greater Israel, while others might have decided to begrudgingly accept the betrayal of Israeli promises and commitments under the pretext of living in a "tough neighbourhood".
Either way, the Israelis are set to lose their chance to coexist peacefully with their neighbours and any opportunity for mutual respect, by blessing Mr Netanyahu’s project to swallow what is left of Palestinian land and end the two-state solution. Meanwhile, the peace deal being peddled by Mr Trump and his son-in-law Jared Kushner will not secure peace between the Palestinians and Israelis, or Arabs and Israelis, as long as it focuses on property rather than the foundations of lasting peace.
Regionally, the Israeli-Iranian dynamic, while shifting from traditional truce to calculated confrontation in Syria, will not escalate to the point of direct war. Yet proxy war in Lebanon is now a stronger possibility – either as a result of miscalculation or conscious decision. This is another source of instability for the Israelis, even if Lebanon were to pay the biggest price for any conflict between Israel, and Iran and Hezbollah.
So what are the short and long-term implications of Mr Netanyahu’s victory? How will the enduring far right in Israel affect Jewish Americans and the Democratic party in the US? How will Gulf countries deal with Mr Netanyahu’s re-election and his regional projects? How will Russian-Israeli relations evolve? And finally, what will be the repercussions of the demise of the peace process?
In the US, the far right in Israel will bolster its ties with the American right, putting further pressure on Mr Trump to endorse Israel's promised annexation of large settlements in the West Bank, just as he endorsed the annexation of the Golan Heights. Removing the label of occupation from Arab lands seized by Israel is now proceeding as a systematic, de facto, US-Israeli strategy, with the complicity of various establishments, including US media and think-tanks. But doing this in the West Bank eliminates the notion of a Jewish democratic state. Mr Netanyahu's priority is the "Jewishness" of Israel and not any democratic pretences.
In the coming phase, we will see a split in the ranks of Jewish Americans because of this tension. There will be a ripple effect inside the Democratic party, with which most American Jews associate. However, this might not ultimately impact the Trump-Netanyahu strategy that seeks to impose a Greater Israel in the rest of Palestine and the majority in Israel and among Jewish Americans will not object, especially if the pretext is Israeli security.
The peace process and the two-state solution came to an end some time ago. Practically, the peace process has been dead for five years along with the two-state solution, which Mr Netanyahu never really believed in. The Oslo promise was a ruse to lure Palestinians, who believed in the dream. The Palestinian intifada was contained with the help of the US and the peace process was part of that plan.
Israel and the US believe altering the facts on the ground succeeds and that Israel will come out victorious and safer, no matter how much it expands and disregards international law. They are also betting that Mr Netanyahu will overcome corruption charges against him, even if indicted.
One concern here is that Mr Netanyahu might need a war to distract attention away from his legal troubles, possibly in Lebanon. And this could intersect with an Iranian interest in war for other reasons: Iran’s Revolutionary Guard Corps (IRGC), spearheaded by Quds Force commander Qassem Soleimani, need a war to reassert their role in Iranian domestic politics after crippling US sanctions. For this reason, Mr Soleimani might decide that inviting an Israeli war against Hezbollah in Lebanon would rescue his cause. Mr Netanyahu might decide that a war seeking to destroy Hezbollah’s Iranian-made rocket arsenal in Lebanon would rescue him from trial. In such a scenario, Washington will not intervene to protect Lebanon, given that the objective will be Iranian rockets and Hezbollah.
Some believe that Mr Netanyahu will be more cautious about Lebanon, because he does not want a new front, particularly as Israel focuses on countering Iran in Syria with US support and offers itself as a backer of the US strategy against the Iran. Some believe that Tehran, in turn, does not really want a direct confrontation with Israel in Lebanon, because it is not ready to use its most precious card: Hezbollah.
In the meantime, Washington is tightening the noose around both Iran and Hezbollah through economic sanctions, targeting them and those who provide them with political, economic, and security cover. Iran continues to protest but hopes to avoid any direct response.
Iran might benefit from Mr Netanyahu’s re-election, because his expansionist policies and provocations help the hardliners in Tehran justify their own policies. And the terrorists in ISIS, Al Qaeda and other groups are reassured by Mr Netanyahu, because his policies help them recruit, mobilise and justify their cause.
Those who stand to lose from his re-election include the ones who have been defending relations with Israel in Arab forums, led by Oman’s Foreign Minister Yusuf bin Alawi. Last week, Mr Alawi caused uproar during the World Economic Forum summit in the Dead Sea in Jordan, when he called on Arabs to “ease Israel’s fears for its future” in an Arab surrounding.
Mr Netanyahu has craftily spun exceptional relations with both the US and Russia, guaranteeing consideration of Israel among the two major international players shaping the Middle East. His strong relationship with Russia's Vladimir Putin continues to boost his policies in Syria with regards to Iran's presence there. And his relations with Mr Trump will encourage him to go to extreme measures in Palestine without fear of recrimination. In short, Mr Netanyahu has made himself the spoiled child of both Moscow and Washington, albeit in varying degrees.
But if Mr Trump and Mr Putin do not establish boundaries for Mr Netanyahu, they will find themselves bound by ambitions that undermine their other allies, invite a response and fuel the kind of extremism that both men claim to have defeated.
Mr Netanyahu is a danger to his country, neighbours and Israelis, as long as he continues to get what he wants and escape accountability. But none of this would have been possible without the encouragement and endorsement of Mr Trump and Mr Putin.
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
Klopp at the Kop
Matches 68; Wins 35; Draws 19; Losses 14; Goals For 133; Goals Against 82
- Eighth place in Premier League in 2015/16
- Runners-up in Europa League in 2016
- Runners-up in League Cup in 2016
- Fourth place in Premier League in 2016/17
The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre
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Leap of Faith
Michael J Mazarr
Public Affairs
Dh67
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
TEST SQUADS
Bangladesh: Mushfiqur Rahim (captain), Tamim Iqbal, Soumya Sarkar, Imrul Kayes, Liton Das, Shakib Al Hasan, Mominul Haque, Nasir Hossain, Sabbir Rahman, Mehedi Hasan, Shafiul Islam, Taijul Islam, Mustafizur Rahman and Taskin Ahmed.
Australia: Steve Smith (captain), David Warner, Ashton Agar, Hilton Cartwright, Pat Cummins, Peter Handscomb, Matthew Wade, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Glenn Maxwell, Matt Renshaw, Mitchell Swepson and Jackson Bird.
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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Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
Fire and Fury
By Michael Wolff,
Henry Holt
MATCH INFO
Uefa Champions League last 16, second leg
Liverpool (0) v Atletico Madrid (1)
Venue: Anfield
Kick-off: Thursday, March 12, midnight
Live: On beIN Sports HD
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More from our Neighbourhood series:
UAE currency: the story behind the money in your pockets
If you go
The flights
Emirates (www.emirates.com) and Etihad (www.etihad.com) both fly direct to Bengaluru, with return fares from Dh 1240. From Bengaluru airport, Coorg is a five-hour drive by car.
The hotels
The Tamara (www.thetamara.com) is located inside a working coffee plantation and offers individual villas with sprawling views of the hills (tariff from Dh1,300, including taxes and breakfast).
When to go
Coorg is an all-year destination, with the peak season for travel extending from the cooler months between October and March.
Killing of Qassem Suleimani
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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.