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Lebanon on the Brink of New Escalation: Renewed Conflict between Israel and Hezbollah

Developments continue in the Lebanese arena despite the conclusion of the last round of fighting between Israel and Hezbollah. As Israeli forces continue their strikes against Hezbollah positions in southern Lebanon, Hezbollah is reconstructing its military strength, raising questions about the future of the conflict and whether the region is on the verge of a new escalation.
In recent weeks, Israel has intensified its military operations targeting Hezbollah elements and facilities. The Israeli military announced that it targeted "a Hezbollah member involved in restoring the party's infrastructure." These attacks are among the most severe since the ceasefire agreement, reflecting an interesting Israeli escalation, especially with statements from Israeli Finance Minister Bezalel Smotrich warning that "Lebanese infrastructure will pay a heavy price if Hezbollah continues its movements."
In an interview with Sky News Arabia, international relations researcher Ali Shakir points out that Hezbollah is adopting two main strategies in this crisis. The first pertains to changes in the military equation, particularly the evolution of Israeli capabilities in military and intelligence technology that enhance the precision of targeting Hezbollah leaders. The second relates to the internal political dimension, where the party aims to give the Lebanese political authority and the international community an opportunity to take a stance regarding Israeli aggressions, in line with agreements preceding Resolution 1701 and the ceasefire.
Shakir explains that there is an unspoken agreement stipulating that the Lebanese political authority should confront diplomacy, in exchange for Hezbollah's commitment to de-escalation. However, he warns that continued Israeli escalation could lead to the collapse of this understanding, potentially compelling the party to respond militarily.
Amid ongoing Israeli bombardment and security tensions, Lebanon faces severe economic challenges, particularly regarding reconstruction efforts. After the 2006 war, losses were estimated at around $7.6 billion, with most costs borne by Arab countries. Now, the World Bank estimates that any new escalation could cost Lebanon about $11 billion more, raising questions about the willingness of any international or regional party to support reconstruction efforts in the event of a new war.
According to Shakir, the current phase represents a "test" of the capability of Lebanese political parties and the international community to deter Israel. However, he warns that if the situation continues without effective intervention, it may force Hezbollah to respond militarily, potentially leading the region into a comprehensive confrontation.
He also notes that Israeli aggressions have not been limited to air violations and bombardments; they have extended to over a thousand Israelis entering Lebanese border areas under the pretext of religious visits, posing an additional challenge to the Lebanese state.
In this context, it appears that Hezbollah is carefully balancing between the option of temporary de-escalation and escalation if Israeli attacks persist. As Israel continues its military operations, it believes that regional and international conditions allow it to carry out preemptive strikes without significant repercussions. The pressing question remains: Will we soon witness a new military escalation, or do political understandings still have the capacity to regulate the pace of confrontation?
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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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