Israeli prime minister-elect Benjamin Netanyahu spoke to Turkish President Recep Tayyip Erdogan on Thursday, their first conversation since 2013. Photo: Likud
Israeli prime minister-elect Benjamin Netanyahu spoke to Turkish President Recep Tayyip Erdogan on Thursday, their first conversation since 2013. Photo: Likud
Israeli prime minister-elect Benjamin Netanyahu spoke to Turkish President Recep Tayyip Erdogan on Thursday, their first conversation since 2013. Photo: Likud
Israeli prime minister-elect Benjamin Netanyahu spoke to Turkish President Recep Tayyip Erdogan on Thursday, their first conversation since 2013. Photo: Likud

Benjamin Netanyahu and Turkey's Erdogan pledge 'new era' in first call since 2013


Holly Johnston
  • English
  • Arabic

Incoming Israeli prime minister Benjamin Netanyahu and Turkish President Recep Tayyip Erdogan on Thursday spoke for the first time in nine years as the former foes rekindle ties.

Israel's PM-elect and Mr Erdogan held a 12-minute phone call and pledged a "new era" for bilateral relations, said a spokesperson for Mr Netanyahu's Likud party. Mr Netanyahu also expressed condolences over the deadly Istanbul bombing, which killed six people last week.

Mr Erdogan told Mr Netanyahu relations must be maintained on "mutual understanding", the Turkish presidency said.

Turkey and Israel have taken numerous steps to repair relations in recent months following years of estrangement. Defence Minister Benny Gantz visited Ankara in October to restore security ties, while President Isaac Herzog met Mr Erdogan in March during the first Israeli state visit to Turkey in 14 years.

Turkish Foreign Minister Mevlut Cavusoglu travelled to Israel in May, where he said ties would be boosted after "frank" talks over Jerusalem. Outgoing Israeli Prime Minister Yair Lapid visited Ankara the following month.

On Friday, Ankara appointed an ambassador to Israel after a four-year vacancy. Irit Lillian was announced as Israel's envoy to Turkey in September.

Ties between the two countries broke down over Mr Erdogan's staunch support for the Palestinian cause, and hit rock bottom when 10 Turkish citizens were killed in a 2010 Israeli raid on an aid ship heading to Gaza. Israel has also voiced concern over Turkey's hosting of senior Hamas operatives.

Diplomatic relations were restored in 2016, but two years later Turkey recalled its diplomats from Israel and expelled Israeli envoys when Israeli forces killed several Palestinians protesting in the blockaded enclave.

Turkey helped to thwart an Iranian plot to target Israeli tourists visiting the country in June, and Mr Netanyahu offered Ankara more security assistance during Thursday's call with Mr Erdogan.

The Turkish President is said to have offered condolences to Mr Netanyahu over the death of three Israelis in a Palestinian attack on the West Bank settlement of Ariel on Tuesday.

Mr Erdogan congratulated Mr Netanyahu last week after his victory in Israel's fifth election in less than four years put him on course for a sixth term as prime minister. The Turkish President said he hoped for co-operation "that will bring peace and stability to our region".

He had said previously that Turkey wished to maintain ties with Israel regardless of the election outcome.

"Whatever the election result, we want to maintain relations with Israel on a sustainable basis, based on mutual respect for sensitivities and common interests," Mr Erdogan told Turkish broadcaster ATV after the election, which set the stage for Israel to welcome its most right-wing government in history.

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Trump v Khan

2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US

2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks

2019: Trump calls Khan a “stone cold loser” before first state visit

2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”

2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.

Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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Profile of Whizkey

Date founded: 04 November 2017

Founders: Abdulaziz AlBlooshi and Harsh Hirani

Based: Dubai, UAE

Number of employees: 10

Sector: AI, software

Cashflow: Dh2.5 Million  

Funding stage: Series A

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Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

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Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: November 17, 2022, 2:14 PM