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What will be the impact of the UAE-Israel peace deal?

Every so often something happens which marks a shift in traditional approaches to long-standing conflicts. Anwar Sadat’s visit to Israel in November 1977 was one of those events - leading to the Camp David Accords the following year and the Egyptian-Israeli peace treaty in 1979, which is still being respected over four decades later.
On August 13, the dramatic announcement by President Donald Trump of a US-brokered agreement on the establishment of diplomatic relations between the United Arab Emirates and Israel was another of those landmarks –with the potential to be followed by other Arab states.
The “Abraham Accord” between Crown Prince Muhammed bin Zayyed Al Nahyan and Israeli prime minister Binyamin Netanyahu brings together two of the most advanced and powerful countries in the Middle East – despite their small size. Both leaders are eager to maintain good relations with Washington – whether or not Trump wins a second term in the White House.
The agreement serves the interests of both parties but the Emirati side had a motive it could use to justify the move to critics: preventing unilateral Israeli annexation of parts of the occupied West Bank that the Likud leader had promised to implement after July 1st.
It is no secret that the two countries had already forged increasingly close and visible links in recent years. Security, technological and economic cooperation has reached unprecedented levels, driven in large part by shared hostility to Iran’s regional ambitions. Other Gulf states, including Saudi Arabia, are more discreet. But the trend is clear.
The UAE’s influential ambassador to the US, Yousef Al-Otaiba, wrote an article in a mass-circulation Hebrew newspaper in mid-June warning that annexation would prevent further normalization – providing an early clue to what happened just a few weeks later.
Interpretations of what exactly has been agreed nevertheless differ. Trump stated flatly that annexation, approved in principle in his own “deal of the century,” was now off the table. UAE official statements and media coverage emphasized that point. Netanyahu insisted, however, that the domestically divisive and diplomatically damaging Israeli move had simply been postponed.
Israelis were delighted at the news of their acceptance into the Middle East for the first time since 1994, when Jordan became the second Arab country to sign a peace treaty with the Jewish state. Criticism focused on their prime minister’s own motives: he is increasingly unpopular because of his handling of the Covid pandemic. He is also facing trial on corruption charges and is accused of manoeuvring for a fourth general election after three inconclusive ones over the past 18 months.
Questions were also asked about whether the accord was intended to pave the way for the US sale of advanced F35 Stealth warplanes and drones to the UAE, over which Israel and its Congressional allies had hitherto exercised the right of veto. The issue there is that would undermine the hallowed principle of maintaining Israel’s “qualitative military edge.” (Israel got its own first F35s in late 2016).
Palestinians were angry and dismayed, portraying normalization as a betrayal of their cause. The Palestinian Authority recalled its ambassador to Abu Dhabi. The key to their negative response was the sense of being abandoned by an influential Arab state, plus the implications for the Arab Peace Initiative of 2002 (API), which conditioned recognition of Israel on its agreement to a viable and sovereign Palestinian state and a “just solution” of the refugee issue.
In the view of some observers, however, the Emirati move may have a positive impact in making Palestinians more realistic about their future. Mahmoud Abbas, the president of the Palestinian Authority, has long been discredited as a “subcontractor” of Israel’s 53-year occupation. People in the West Bank and Gaza Strip – especially the younger generation - are keen to see a change of strategy, including embracing the idea of one state with equal rights for the Jews and Arabs who inhabit the land “between the river and the sea.”
Iran, along with its Lebanese proxy Hizbullah, was characteristically furious about the agreement, threatening retaliation against Abu Dhabi. Turkey – which enjoys the benefits of full diplomatic and economic relations with Israel – issued condemnatory statements that it was hard to see as anything other than hypocritical.
Saudi Arabia made clear that it would stand by the API. But a significant taboo has still been broken and an important precedent set. Bahrain, Oman, Sudan and Morocco are all thought likely to follow the Emirati lead.
Anwar Gargash, the impressively articulate UAE minister of state for foreign affairs, struck an optimistic tone when he expressed the hope that his country, which has never been to war with Israel, would achieve a “warm peace” with the Jewish state – compared to what is often characterized as “cold peace” with Egypt and Jordan.
But whether Israel will give up on annexation permanently or become genuinely committed to a viable two-state solution is another matter. Even if other Arab or Gulf states were to follow the Emirati example, Israelis and Palestinians would still need to fulfil the difficult task of coming to terms with each other. And that remains extremely challenging.
IAN BLACK
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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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