The Hizbollah deputy leader Sheikh Naim Qassem gives an interview at his office in Beirut’s suburbs on February 28, 2012. Sharif Karim  / Reuters
The Hizbollah deputy leader Sheikh Naim Qassem gives an interview at his office in Beirut’s suburbs on February 28, 2012. Sharif Karim / Reuters

Hizbollah expansion opens door to infiltrators



BEIRUT // The revelation that Hizbollah uncovered an Israeli spy in its top echelons is a warning to the group’s leadership of the challenges that come with its growing influence in the region.

Experts on the Lebanese Shiite party and militia said the infiltration is not a surprise given Hizbollah’s evolution into one of the most sophisticated non-state actors in the world.

Hizbollah now has an arsenal more powerful than many nation-states and is primed for battle on two fronts. The militia is heavily involved in fighting in Syria to prop up Bashar Al Assad while on alert for any renewed confrontation with Israel.

At the same time, the party’s bureaucracy and operations within Lebanon have continued to expand, leaving it increasingly vulnerable to espionage on various levels.

“Any organisation that expands and has a large presence becomes easier to infiltrate,” said Qassem Qassir, an expert on Hizbollah. “This is a sign and alarm bell that Hizbollah needs to reassess its policies and actions.”

Hizbollah’s second-in-command, Sheikh Naim Qassem, acknowledged over the weekend that the party has been battling espionage within its ranks.

The militia’s growth had made it subject to infiltrations, he said on Hizbollah’s Al Nour radio station.

“There is no party in the world with numbers this huge and with this level of expansion that has been able to remain as steadfast as Hizbollah,” Mr Qassem said. “They had major infiltrations whereas Hizbollah has worked greatly to battle espionage within it and its surroundings and there were some cases that came to light and they are limited.”

Mr Qassem’s comments did not name any culprits but it appeared to be a confirmation of recent reports that Hizbollah had apprehended a senior operative accused of spying for Israel.

Local media identified the alleged spy as Mohammad Shawraba, who was described by Lebanese newspaper The Daily Star as the head of the party's External Operations Unit.

The newspaper said Mr Shawraba was suspected of tipping off Israel to retaliatory operations aimed at avenging the death of Imad Mughniyeh, the party’s elusive top military commander who was killed in a car bomb in Damascus in 2008. The attack was widely believed to have been carried out by Israel.

Mr Qassem’s statement was the first acknowledgement that Hizbollah had been infiltrated by spies since a 2011 speech by Hassan Nasrallah, the group’s leader, in which he said the CIA had recruited agents within the party’s ranks.

"It's certainly damaging from a reputational viewpoint because Hizbollah has traditionally enjoyed a reputation of being hard to penetrate by Israeli intelligence agencies," said Nicholas Blanford, the author of Warriors of God, a book on the military evolution of the party. "Twenty years ago, the notion of a senior Hizbollah member being caught spying for Israel was unthinkable, but 20 years ago, Hizbollah was a smaller, more tightly controlled and disciplined organisation."

Hizbollah has rarely admitted the infiltration of its ranks by Israeli intelligence agents. In fact, the party has often boasted of its success in occasionally penetrating Israel’s formidable intelligence apparatus.

For a group that prides itself on its discipline and the religious piety of its cadres, the revelation is a blow to Hizbollah’s reputation and record.

But the group’s rapid expansion has included both its institutions and presence in civil society, as it sought to grow its support base in areas of Lebanon shattered by Israeli aggression.

With the end of the 2006 Israeli war on Lebanon, direct military confrontations between Hizbollah and Israel have been replaced by more clandestine operations and espionage.

The group also has a large military force in Syria, where it controls much of the Qalamoun region straddling the Lebanese border, which it says offers a defence against extremist rebel groups entering into Lebanon.

The rapid expansion requires Hizbollah to reassess its weaknesses and existing command structure to be able to face Israel in this phase of the conflict, Mr Qassir said.

Still, the fact that it was able to identify Mr Shawraba at all is an indication of the depth of the group’s abilities.

“Today, Hizbollah is a large sprawling bureaucracy with looser internal control mechanisms which has made it easier for Israel to penetrate,” Mr Blanford said. “On the other hand, the fact that Hizbollah is able to unearth these Israeli agents is testament to the efficiency of its counter-intelligence apparatus.”

“The real problem for Hizbollah is not the spies they have caught in their ranks but the ones they have not yet found,” he added.

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THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

The years Ramadan fell in May

1987

1954

1921

1888

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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Western Clubs Champions League:

  • Friday, Sep 8 - Abu Dhabi Harlequins v Bahrain
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UPI facts

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Babumoshai Bandookbaaz

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Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami

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Two stars

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What is THAAD?

It is considered to be the US's most superior missile defence system.

Production:

It was created in 2008.

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To protect high-value strategic sites, such as airfields or population centres.

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Creators:

Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.

UAE and THAAD:

In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then stationed them in 2016, becoming the first Gulf country to do so.

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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.”

Anti-semitic attacks
The annual report by the Community Security Trust, which advises the Jewish community on security , warned on Thursday that anti-Semitic incidents in Britain had reached a record high.

It found there had been 2,255 anti-Semitic incidents reported in 2021, a rise of 34 per cent from the previous year.

The report detailed the convictions of a number of people for anti-Semitic crimes, including one man who was jailed for setting up a neo-Nazi group which had encouraged “the eradication of Jewish people” and another who had posted anti-Semitic homemade videos on social media. 

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