Arab Summit Faces Regional Crises... Can it Offer Permanent or Temporary Solutions?

Family photo of Arab leaders during the Tunisia 2019 Arab Summit. (Egyptian Presidency)
Family photo of Arab leaders during the Tunisia 2019 Arab Summit. (Egyptian Presidency)
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Arab Summit Faces Regional Crises... Can it Offer Permanent or Temporary Solutions?

Family photo of Arab leaders during the Tunisia 2019 Arab Summit. (Egyptian Presidency)
Family photo of Arab leaders during the Tunisia 2019 Arab Summit. (Egyptian Presidency)

The current crises in the Arab region have raised questions whether the upcoming Arab summit in Algeria will be able to reach solutions, even if temporary, to them.

Arab officials have stressed that their countries are facing “major challenges” and that the “reunion” summit is being held in “difficult circumstances”.

Algeria is still sending out invitations to the 31st regular Arab League summit set for November 1 and 2.

Algerian newspaper Echorouk said President Abdelmadjid Tebboune has so far sent invitations to 16 Arab leaders, including Saudi Arabia, Oman, Jordan, Kuwait, the United Arab Emirates, Bahrain, Qatar, Tunisia, Egypt, Palestine, Mauritania, Iraq, Djibouti, Sudan, Lebanon, and Libya.

The Algerian newspaper, L'Expression, confirmed in its editorial Tuesday that doubts about holding the summit on time have dissipated.

The daily indicated that the summit would witness significant representation, as the majority of the leaders have confirmed their attendance, noting that the first day of the conference coincides with the anniversary of the Algerian Revolution.

Over the past weeks, the Arab summit has been the subject of debate, with many issues seen as obstacles to convening the meeting on time.

Arab League Secretary-General, Ahmed Aboul Gheit set the debate to rest by declaring to the press that it was finally agreed to hold the summit in Algeria, underscoring its importance, especially after three years of suspension due to the COVID-19 pandemic.

He denied claims that the summit will be postponed or held in another country, revealing that Syria has chosen to skip this year's conference.

The reinstatement of Syria’s membership in the Arab League was one of the points of contention ahead of the summit. Algeria had insisted on restoring it to the organization, but its calls have been met with a tepid reception.

The summit has already been postponed before.

The last time the League held a regular in person summit was in Tunisia in 2019.

In past remarks, Aboul Gheit highlighted the challenges facing the Arab world. He remarked that the war in Syria is unlikely to be resolved any time soon, Iraq is still without a government despite having held elections months ago, and the Libyan capital Tripoli has witnessed renewed clashes between rival militias.

Algeria wants the Palestinian-Israeli conflict to be at the heart of discussions at the summit. Palestinian Ambassador to Algeria Fayez Abu Aita described the event as "exceptional" because it seeks to bring serious outcomes that restore balance to the Arab region.

The ambassador said in statements carried by the Algerian news agency that Palestinians are looking forward to the summit and highly commend Algerian diplomacy and its support to the Palestinian cause.

Expert at the al-Ahram Center for Political and Strategic Studies, Said Okasha believes results of previous Arab summits make it difficult to expect any permanent or temporary solutions to the region's problems during this year's conference.

Okasha told Asharq Al-Awsat that many Arab nations have changed their view on national security, basing it on the safety of each state separately, with the possibility of interacting with other countries with common interests in mind.

He indicated that Arab countries are facing different sources of threat, such as terrorism, internal crises, economic challenges, and others, which they view as a priority over joint Arab action.

Algerian journalist and political analyst Nouredine Khettal noted it was difficult for the summit to succeed in resolving Arab issues for two possible reasons.

The first is the extent of the problems across the region, stretching from Iraq to Morocco. The second is the growing strength of the enemies of Arabism in several Arab countries. Such movements work on impeding all intra-Arab efforts, he remarked.

Khettal told Asharq Al-Awsat that the Arab summit is an opportunity to clear the air, adding that bridging the gap and resolving intra-Arab disputes is difficult, but possible.

He recalled the successful efforts to resolve the dispute between Saudi Arabia, the UAE, Bahrain, Egypt, and Qatar, citing the recent visit of Egyptian President Abdel Fattah al-Sisi to Doha after years of differences.



Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
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Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)

Several of Europe's biggest financial firms have cut back their links to Israeli companies or those with ties to the country, a Reuters analysis of filings shows, as pressure mounts from activists and governments to end the war in Gaza.

While banks and insurers are often vocal about their environmental and governance aims, they are less forthcoming about disclosing their potential exposure to war.

UniCredit put Israel on a "forbidden" list as the conflict escalated in October last year, said a source familiar with the matter, confirming a study by Dutch NGO PAX.

While in line with the Italian bank's defense-sector policy of not directly financing arms exports to any country involved in conflict, it goes beyond Italy's guidelines on arms exports to Israel.

UniCredit declined to comment on its move and the Israeli finance ministry also declined to comment.

Meanwhile, Norwegian asset manager Storebrand and French insurer AXA have sold shares of some Israeli firms, including banks.

Although corporate filings offer only a glimpse into such exposures, they show companies have been readjusting.

"We don't know whether this represents the beginning of a shift in the industry, one that recognizes the power banks have in choosing where to allocate capital, and where not," said Martin Rohner, executive director at the Global Alliance for Banking on Values, which focuses on sustainable financing.

"Investing in the production and trade of weapons is fundamentally opposed to the principles of sustainable development," Rohner added.

Israeli Finance Minister Bezalel Smotrich told a press briefing last week that although there are challenges to Israel's economy, firms are still raising money. "I sit with foreign investors and they believe in our economy," he said.

Reuters has reported that Israel's investor base has narrowed since it entered Gaza last year in response to attacks by Hamas, and it is feeling the effects of rising borrowing costs.

The potential wider effects can be seen in the approach taken by Storebrand, which a filing showed divested a holding worth about $24 million in Palantir, citing the risk of violations of international humanitarian law and human rights.

US group Palantir, which provides technology to Israel's military, did not respond to a request for comment.

Storebrand's annual investment review said that, as of the end of 2023, it had excluded 24 firms, including Israeli companies, across its portfolios in relation to the occupation of Palestinian territories.

The International Court of Justice, the United Nations' highest court, ruled in January of plausible risk of irreparable harm to Palestinian rights to be protected from genocide.

The same court said in July that Israel's occupation of Palestinian territories including the settlements is illegal.

Israel has rejected the rulings, which combined with growing pressure from activists and governments, are nevertheless having an impact on investment decisions.

AXA, one of Europe's largest insurers, British bank Barclays and German insurer Allianz have increasingly been targeted by campaigners.

"Increasing demand for greater transparency and scrutiny can only mean that financial institutions will intensify and broaden their self-assessment of their commercial associations with arms-related businesses or states," said David Kinley, professor and chair of human rights law at the Sydney law school.

The Ireland Strategic Investment Fund (ISIF) has exited six Israeli companies, selling holdings which amounted to about 3 million euros ($3.26 million), including some of Israel's largest banks, a spokesperson told Reuters.

Earlier this year, the 15-billion-euro Irish fund said that the risk profile of such investments were no longer within its investment parameters.

And Norway's $1.8 trillion wealth fund, the world's biggest, may divest shares of companies that aid Israel's operations in the occupied Palestinian territories which violate its ethics standards for businesses.

WAR EXPOSURE

Investments in Israeli banks are also under scrutiny.

The UN included them in 2020 in a list of companies with ties to settlements in the occupied Palestinian territories as part of its mission to review the implications on Palestinian rights.

A study by research firm Profundo, commissioned by corporate watchdog Ekō, shows that AXA sold almost all of its holdings in Israeli banks stocks earlier this year, retaining only a marginal stake in Bank Leumi.

Reuters verified the data with LSEG. A representative for Bank Leumi did not respond to a request for comment.

A spokesperson for AXA declined to comment on whether AXA had cut its holdings, adding that it is not invested in the banks targeted by activists. The UN list is among the criteria AXA takes into account for investment decisions, they added.

'A CLEAR LINE'

Foreign direct investment into Israel fell by 29% in 2023 to its lowest since 2016, UN Trade and Development data shows.

While UNCTAD 2024 figures are not available, credit ratings agencies have flagged the war's unpredictable impact on investment in Israel as a concern.

Although the US remains Israel's biggest military and financial backer, Spain, Ireland and Norway have recognized a Palestinian state, French President Emmanuel Macron has called for an arms export halt and Britain has suspended some licenses.

When it comes to international politics, "it should be down to the governments to take a clear line," said Richard Portes, professor of economics at London Business School, adding: "To put the burden on the private firms, where does this end?"

In an example of how activists are targeting companies directly, Barclays came under pressure from a campaign in Britain, prompting it to withdraw sponsorship from summer music festivals, while the Financial Times reported in August that it considered pulling out of an Israeli government bond sale.

Barclays said in a statement that it remained "fully committed" to its role as a primary dealer and that such activities fluctuated each quarter. The bank fell out of the top five dealers of Israeli bonds in the second and third quarters, after ranking third in 2023.