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Deciphering the Israel-Morocco Normalization Deal

After the UAE, Bahrein and Sudan, U.S. President Donald Trump in his usual fashion announced on Twitter on the 10th of December another peace breakthrough: Israel and Morocco have agreed to normalize their relation. While the Moroccan Foreign Minister Nasser Bourita has underlined that the relations between the two countries were “already normal”, to establish official diplomatic relations, direct air links and foster trade is massive. The positives of this move should not obscure the risks and consequences of this deal.
Firstly, Morocco always had a very close relationship with Israel because of its large influential Jewish community that represented over 10% of the total population of Morocco in the late 40’s. Today about one million Israelis have Moroccan roots.
The Sultan Mohamed V, the current king’s grandfather, protected the large Jewish population during World War II when the country was occupied by the pro-Nazi French Vichy government. He famously said: “There are no Jews in Morocco; There are only Moroccan subjects.”
His son, King Hassan ll, also had several key Jewish advisors and an excellent relation with Israel. It is believed that the Moroccan king possibly helped Israel win the 1967 Six-Day war by providing secret recordings of Arab leadership discussions in the run-up to the war.
Fast forward to today: King Mohamed VI obtaining the official U.S. recognition of Morocco's control over the Western Sahara is the clincher that made the Israel-Morocco normalization deal possible. That should not be a surprise since back in February, Israel was lobbying the U.S. to ink this exact same deal.
The tipping point was the very recent fallout between President Trump and Senator Jim Inhofe, the chairman of the Senate Armed Services Committee and the most avid supporter of the Western Sahara independence Party, the Polisario Front. The conflict over that disputed area that was under Spanish control, began in 1975 when Morocco took over from Spain. The Polisario Front resting on the unwavering support of Algeria next door battled against Morocco until a ceasefire was reached in1991. Over the years, the Polisario has gotten close to jihadist groups first to al-Qaeda and recently to Islamic State, with over 100 of its fighters joining ISIS in Syria. The current leader of the very powerful Islamic State in the Greater Sahara (ISGS) is a former Polisario fighter, Abu Walid al-Sahrawi. ISGS is in particular responsible for the bloody attack that left four U.S. soldiers dead in Niger in 2017. But that’s not all, the Polisario has also extremely close links to both Hezbollah and Iran. Moroccan Foreign Minister confirmed that top Hezbollah officials, including Haidar Sobhi Habib, the chief of external operations, Ali Moussa Dakdouk, the military adviser and Haj Abou Wael Zalzali, the head of military training visited Polisario camps starting in March 2017 to coordinate training. Importantly, Hezbollah allegedly shipped SAM-9 & SAM-11 missiles to the Polisario. The operation was coordinated from the Iranian embassy in Algiers with the alleged active help of Algeria. Upon discovering this, the Moroccan Foreign Minister flew to Tehran to show Iran FM Zarif the proof of Hezbollah's nefarious involvement with the Polisario. Quite tellingly, Zarif didn’t deny the facts and because of the seriousness of Tehran’s actions, Rabat cut diplomatic relations with Iran. On all these issues linked to terrorism and Hezbollah/Iran, Israel could obviously bring valuable help.
After a relative calm over the past thirty years, tension was re-ignited last month in the Western Sahara when the Polisario blocked a U.N.-patrolled buffer strip at the Guerguerat zone and launched attacks against Moroccan soldiers. The big question is what Algeria will do. Will Algeria lead from behind and provide its usual support for independence or will it be more hands on? The peace deal and the American recognition of Morocco’s sovereignty over the Western Sahara is sparking fears in Algeria that Israeli forces would be allowed to operate along its frontier. In any case, a possible Algerian-Moroccan protracted conflict is not out of the question. That’s definitely one of the risks resulting from the U.S. move.
King Mohamed VI, is also taking risks by inking this deal because the Moroccan street is by and large pro-Palestinian; according to the Arab Index poll, 88% of Moroccans are opposed to peace with Israel. The government is led by the Muslim Brotherhood’s Party, the PJD, that is still the most popular party in the country and has an extremely close relationship to its sister organization in Gaza, Hamas. In opposition to King Mohamed VI’s deal with Israel, the PJD confirmed its unwavering position against "the Zionist occupation and the crimes it perpetrates against the Palestinian people, in terms of murders..." Interestingly, the Muslim Brotherhood Moroccan Prime Minister El-Othmani retro-pedaled when he had to recognize on al-Jazeera that pragmatism is sometimes the answer and that states have to make difficult decisions, talking about the normalization with Israel.
Nonetheless, the base of the Muslim Brotherhood is extremely angered by the deal and while the King is solidly in power, he is sick and a rebellion could be in the offing. Could he be unseated? A small possibility, but the king is a descendant of the Prophet and is the Commander of the Faithful so he has a legitimacy that few leaders have in the Arab world.
To sum up the elements of this tripartite deal between the U.S., Israel and Morocco, Moroccan foreign minister Bourita told the MPs of the Muslim Brotherhood Party that Palestine is not the first priority of the kingdom but rather the Sahara is. He added: "Don't be more Palestinian than the Palestinian themselves!". King Mohamed VI’s religious stature also gives an important seal of approval to the peace deal with Israel. Finally, in a very positive sign, Jewish history and culture in Morocco will soon be part of the school curriculum, a first in the Arab world.
Olivier Guitta is the Managing Director of GlobalStrat, a security and geopolitical risk consulting company for companies and governments. Olivier tweets @OlivierGuitta
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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