The Dangerous Flaw in the New Israeli Government
June 20, 2021, 12:46 pm

The Dangerous Flaw in the New Israeli Government

Dalia Ziada

The new government in Israel, known as “the government of change,” will hold its first cabinet meeting, on June 20th. However, it has already started working with full capacity and utmost pace since it was sworn in, before the Knesset, on June 13th. There is a lot of optimism inside Israel for finally being able to change Netanyahu after record 12 years in power, enhanced by the failure of four elections, within only two years, to install a new government. However, there are a lot of uncertainties, on regional and international levels, on whether this new government, with its coalition of odds, can appropriately handle the many domestic and regional challenges facing Israel. Israeli Government

According to the legally-binding coalition agreement upon which the government is formed, the government will be ruled by two prime ministers on rotational basis. For the first two years, Naftali Bennett, from Yamina Party, will keep the Prime Minister’s office, until August 2023. Then, Yair Lapid, from Yesh Atid Party, will take over the Prime Minister position until November 2025. Right now, Lapid serves as the Foreign Minister under Bennett. Meanwhile, the coalition forming parties shall contribute to decision-making.

The coalition forming the government is composed by a relatively large number of political parties that fall at extreme opposites of the political spectrum. From the right wing: Yamina, and Yisrael Beiteinu. From the left wing: Meretz, and HaAvoda (the Israeli Labor Party). Liberals from the center: Yesh Atid, Blue and White, and the New Hope. Hanging at a weird spot somewhere on the spectrum is the United Arab List (Raam), which is led by the Islamic Movement, a political Islamist group operating inside Israel, since 1970s.

This is the first time ever for the Israeli Arabs to participate in forming an Israeli government. Arab Israelis represent nearly 23% of the Israeli population. Most of them are young. According to Colonel Wagdi Sarhan, Chief of the Minorities Unit at the Israeli Defense Forces (IDF), dozens of the young Israeli Arab Muslims challenged the norm and volunteered to join IDF, in the past few years. In that sense, it may not seem strange for the Israeli Arabs to be part of the coalition forming the new government.

However, the furious reaction by the Israeli Arabs against their Israeli Jewish neighbors, during the latest episode of war between Hamas and Israel, in May, should raise an alarm. In the heat of the conflict, they clashed with the Jews, inside Israel, and put the country on the brink of a civil war. Now, as the Arabs, who are also Islamists, have become an integral part of the Israeli government, how they are expected to react, should a new round of violence erupt between Hamas and Israel.

Nevertheless, the existence of the Israeli Arabs is not the only indigenous flaw threatening the cohesion of the vision of the new government. In fact, the structure of the coalition, which gives decision-making and veto powers to the many included parties, shall make it very difficult for the government to operate, especially on issues related to internal economic policies and handling the Israeli-Palestinian conflict. In that regard, we may see in Israel a scenario similar to the decision-making impasse, that the three-presidencies government of Tunisia has fallen into, in the past two years, and caused a lot of sufferings to the Tunisian people.

However, on the foreign policy level, the odd structure of the coalition government is expected to benefit Israel. Apparently, all of the political parties forming the government agree on the main outlines of the foreign policy that they should apply. Unlike the Netanyahu government, which mostly depended on a fait accompli policy, the diversity of the new government may force new compromises and diplomatic priorities, especially with neighbor Arab countries and the United States.

On one hand, the government-forming political parties, collectively, desire to normalize relations with more Arab Gulf countries, while strengthening old relations with Egypt and Jordan. On June 18th, the new Foreign Minister of Israel, Yair Lapid, made his first phone call with the Egyptian Foreign Minister, Sameh Shoukry. They discussed Egypt’s role in Gaza and the ceasefire deal and agreed to meet in person in the near future. Since 2015, the security and economic cooperation between Egypt and Israel have reached unprecedented horizons, and is expected to strengthen further in the next years.

On the other hand, all of the parties forming the government have a clear unified position against Iran and its proxies. About one week after the election of the Israeli government, a new president in Iran got elected. On June 19th, Ebrahim Raisi, the senior Imam, and Chief Judge, who with cold blood had sentenced tens of peaceful political activists to death, has been elected as the new President of Iran. Israeli Government

Looking at the bigger picture of the Middle East region, in light of these developments, one can hardly be optimistic that this new Israeli government may be able to manage its many domestic and regional challenges with this coalition of odds, that includes an Arab Islamist party. This is the biggest flaw that may eventually lead to an early collapse of the coalition or an early collapse of the entire government. levant

BY: Dalia Ziada levant

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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.