What The UAE-Israel Deal Really Means For The Middle

New Post Public Reply Private Reply Replies (1) Message Board
SaltyMutt
173
What The UAE-Israel Deal Really Means For The Middle East

By Simon Watkins - Aug 31, 2020

2020-08-31_8gr0ccibfa.jpg

The announcement on 13 August that Israel and the United Arab Emirates (UAE) will normalise relations, around the same as Israel’s Prime Minister Benjamin Netanyahu announced that he was suspending plans to annex more areas of the West Bank that it seized during the 1967 ‘Six Day War’, has naturally raised the adjunct question about what this deal means for the two powerhouses of the Middle East: Saudi Arabia and Iran? As with so many queries relating to the Middle East, the answer is not as straightforward as many might imagine, but it is outlined below. To begin with, the Israel-UAE deal is a lot more multi-layered than the simple announcement implies, which means that the response of Saudi and Iran to it is equally multi-faceted. “More than any other outcomes from this deal, the UAE wanted to put itself firmly in the U.S.’s most-favoured allies for receiving future business and financing deals, as it suffered a big hit from the Saudi-led oil price war that just ended, and to be included in the U.S.-Israel intelligence and security network to protect itself from Iran,” a senior source who works closely with the European Union (EU) on energy security told OilPrice.com last week. “This formal deal, though, just officially clarifies what has been happening for some time between Israel and the UAE in the field of intelligence co-operation to counteract Iran’s growing power in the region that has become more militaristic, given the increasing dominance of the IRGC [Islamic Revolutionary Guards Corps] in Tehran,” he said.

A key part of this joint intelligence initiative between the UAE and Israel (and, by extension, the U.S.) has been the dramatic increase in the past two years of the purchase of commercial and adjunct residential properties in Iran’s southern Khuzestan province – a key sector for its oil and gas reserves – by UAE-registered businesses, particularly those based in Abu Dhabi and Dubai, said the source. “Around 500,000 Iranians left Iran around the time of the [1979 Islamic] Revolution and settled in Dubai, in the first instance, and then Abu Dhabi, and they have never been in favour of the IRGC having the key role in Iran, so some of them have been used to front businesses or commercial property developments in Khuzestan that are being funded from business registered in those two states of the UAE,” he added.

Related: The U.S. Energy Storage Boom Is About To Begin
“However, these apparently Abu Dhabi and Dubai businesses are actually being funded from a major Israeli property company that in turn is funded from a Israel-U.S. operation specifically set up for this project, with a budget of US$2.19 billion,” he told OilPrice.com. “These businesses, and the additional property acquisitions for the individuals working for these business in Khuzestan, mean that not only is the native Iranian population being diluted by non-Iranian Arabs [although broadly Persian in demographic terms, indigenous Arabs make up around two per cent of Iran’s population] but also the opportunity for on-the-ground intelligence gathering has been dramatically enhanced,” he underlined. “Basically, Israel is doing through the UAE presence in southern Iran exactly what Iran has been doing to Israel through its presence in Lebanon and Syria.”

Given the obvious opportunities for increased intelligence-gathering and economic and political disruption within Iran’s borders stemming from the new Israel-UAE deal, Iran has been unsurprisingly hostile to it. Iranian Parliament Speaker’s Special Aide for International Affairs, Amir-Abdollahian, made a very public show shortly after the announcement, of meeting with Palestine’s Ambassador to Tehran, Salah Zavavi, and stated that: “The UAE’s act to normalise relations with the Zionist regime is a strategic mistake, and the UAE government must accept responsibility for all its consequences.” He added that Iran remains firmly behind the Palestinian people. Palestine’s Zavavi asked the speakers of all parliaments of Islamic countries to condemn the action of the UAE and to support the ‘inalienable rights of the Palestinian people’.

More indicative of future actions over and above just words was the subsequent high-level meeting of Iran’s Defence Minister, Brigadier General Amir Hatami, and his Russian counterpart, Sergey Shoygu. Even publically, Hatami alluded to the new military deals reached with China and Russia – revealed exclusively by OilPrice.com – referring to the joint strategic, regional and international goals and interests between Tehran and Moscow, underlining the “developing mutual defence co-operation” between the two sides. Hatami then castigated the U.S.’s recent attempts to invoke a ‘snapback’ of full international sanctions against Iran through the United Nations Security Council: “In recent years, Iran and Russia have launched a joint and purposeful effort to counter the unilateralism and bullying policies of the U.S. and the Trump administration in the region,” he noted. “The realistic response of the UN Security Council [UNSC] and the rejection of the recent U.S. anti-Iran resolution on extension of arms embargoes against Iran, once again, brought a major defeat for the U.S. and its regional allies and proved the global opposition to unilateralism,” he underlined.

Related: India Stops Oil Purchases From China

“The guarantee of China and Russia’s support as two of just five Permanent Members on the UNSC was one of the absolutely key reasons why Iran agreed to the military elements of the 25-year deal it had made earlier with China,” said the EU source. Indeed, with this new Israel-UAE deal now formally announced, the IRGC (with the rubber-stamped blessing of Supreme Leader, Ali Khamenei) is fully set to allow the presence of Chinese and Russia naval assets in and around Iran’s key ports at Chabahar, Bandar-e-Bushehr, and Bandar Abbas, in line with the military element of the agreement, as from 9 November, a senior source who works closely with Iran’s Petroleum Ministry told OilPrice.com last week.

These deployments will be accompanied by the roll-out of Chinese and Russian electronic warfare (EW) capabilities that will encompass each of the three key EW areas - electronic support (including early warning of enemy weapons use) plus electronic attack (including jamming systems) plus electronic protection (including of enemy jamming). Based originally around neutralising NATO’s C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, part of the new roll-out of software and hardware from China and Russia in Iran will be the Russian S-400 anti-missile air defence system (“to counter U.S. and/or Israeli attacks”) and the Krasukha-2 and -4 systems (“as they proved their effectiveness in Syria in countering the radars of attack, reconnaissance and unmanned aircraft”).

So, what will Saudi Arabia’s position be in the wake of the Israel-UAE deal? “Saudi Arabia, in particular, may be quietly supportive but is unlikely to normalise relations,” Jon Alterman, director of the Middle East Program at the Center for Strategic and International Studies in Washington told OilPrice.com last week. “The clerical establishment has had a privileged role in the Kingdom since the eighteenth century, the king is the custodian of the two holy mosques, and Saudi Arabia is the founder of the Organization of the Islamic Conference,” he added. ‘Quietly’ is the operative word here as, according to the Iran source, currently 62 per cent of the aforementioned US$2.19 billion Israel-UAE property fund for new settlements of UAE citizens into Iran’s Khuzestan comes from “Saudi Arabian-connected organisations.”

This fits in with the widely held view among dedicated-Saudi analysts that Crown Prince Mohammed bin Salman (MbS) is far more sympathetic to the agreement – and to the ultimate strategic aim of the U.S. and Israel of undermining the IRGC’s grip on the country – than his father, King Salman. King Salman told the Organisation of Islamic Cooperation just last year that the Palestinian cause remained a core issue and that the kingdom “refuses any measures that touch the historical and legal position of East Jerusalem.” On the other hand, he is 84 years old and in poor health and even Saudi’s Foreign Minister, Prince Faisal bin Farhan, cautiously welcomed the Israel-UAE agreement, saying: “It could be viewed as positive.” It is also apposite to note that back in 2002 – not that long ago in global geopolitical terms - it was the Saudis who launched the ‘Crown Prince Abdullah Peace Plan’ at the Beirut Arab summit, offering Israel full recognition in exchange for a return to its pre-1967 borders.

By Simon Watkins for Oilprice.com

https://oilprice.com/Geopolitics/Middle-East/...-East.html
Scroll down for more posts ▼

Top 10 Most Recent News Articles

Taiwan's Bold Bid: From Tech Hub to Capital Magnet

Updated Category News Views 100

Ambitious Plans Unveiled at Taiwan Weeks 2026 Forget the usual humdrum; Taiwan’s pulling no punches in its bid to become a capital powerhouse in Asia. If you'd told me years ago that Taiwan was eyeing dominance in asset management, I might've laughed. But at the 2026 Taiwan Weeks, they showed they're dead serious about it. Over 400 bigwigs and market shakers gathered,...

Continue Reading
Telix Boosts Theranostic Reach with Thera4Care Move

Updated Category News Views 74

Telix's Strategic Move into Theranostics Investing in cancer treatment isn't all about playing defense. Sometimes it's about taking a swing at the next big thing in theranostics. Telix Pharmaceuticals (ASX: TLX, NASDAQ: TLX) has hitched its wagon to the Thera4Care initiative, pushing for a serious expansion of their presence in the European medical field. It's all about...

Continue Reading
GomSpace Targets SEK 1.6 Billion Revenue by 2030

Updated Category News Views 113

GomSpace's Bold Ambition for 2030 The small satellite sector just got a wake-up call from GomSpace. This company has its eyes locked on a jaw-dropping SEK 1.6 billion in revenue by 2030. That's not just some pie-in-the-sky dream. GomSpace is gunning for a calculated annual growth of 30%, riding high on revamped operations and a mighty push into big, juicy contract...

Continue Reading
Citius Unveils Promising LYMPHIR Data at EORTC Conference

Updated Category News Views 84

A Closer Look at LYMPHIR's Impact on CTCL Patients Well, here's a whiff of genuine hope for folks grappling with relapsed or refractory cutaneous T-cell lymphoma (CTCL). Coming out of New Jersey, Citius Oncology has dished out some pretty promising news, fresh from the European Organisation for Research and Treatment of Cancer Cutaneous Lymphoma Tumour Group's annual...

Continue Reading
Unum Group Faces Investigation Amid $419.7M Net Loss

Updated Category News Views 61

Troubling Times for Unum Group Investors Alright, folks, let’s get down to brass tacks: Unum Group (NYSE: UNM) is swimming upstream, and not in any leisurely, salmon-like sense. Their third-quarter report revealed a whopping $419.7 million net loss—something that can unsettle even the steadiest ship in the murky waters of the market. Pair that with an SEC...

Continue Reading
BD Appoints Bagnato as Peripheral Intervention Head

Updated Category News Views 86

A New Captain for BD's Peripheral Ship Time to pay attention, folks. Franklin Lakes just sent an interesting ripple through their workforce headlines, announcing Bridget Bagnato taking the reins as Worldwide President of BD's Peripheral Intervention division. Come November 16, this medical tech veteran, who's clocked over 27 years with BD, is set to start steering their...

Continue Reading
Brightstar's iCAP Ready Badge: A Gamble on Responsibility

Updated Category News Views 334

Another Feather in Brightstar's Cap You might not toss 'responsible gaming standards' around in casual talk, but in the gaming biz, it's a badge of honor. Brightstar Lottery PLC (NYSE: BRSL) ain't just spinning wheels here—they've got themselves re-accredited with iCAP Ready from the National Council on Problem Gambling (NCPG). It's the stamp of approval that shows...

Continue Reading
Adient Boosts Buyback, Shields Valuable Tax Assets

Updated Category News Views 47

Adient's Aggressive Buyback and Tax Strategy Well, it looks like Adient's not just sitting on its hands. They've not only opened up the cash taps with a $400 million increase in their share repurchase authorization but also shored up their defenses with a Tax Benefits Preservation Plan. You know, when a company dishes out that kind of cash, it tells you they see some...

Continue Reading
Dircks Expands with Major Phoenix Lease Deal

Updated Category News Views 67

Another Big Win in Phoenix's Industrial Space Who'd have thought? Dircks Moving & Logistics just bagged themselves a hefty 337,897-square-foot lease in Phoenix. This isn’t just any warehouse deal in the Southwest Valley—it’s a mark of where the industrial real estate world’s trending these days. For those who watch these things, they’ve pushed their local space...

Continue Reading
Youdao's Upcoming Q3 2026 Results: What's at Stake?

Updated Category News Views 47

Anticipation Builds Ahead of Youdao's Financial Announcement Okay, folks, if there's one thing investors gotta mark on their calendars, it's Youdao’s upcoming financial results set to drop like a bombshell on November 19, 2026. This ain't just another quarterly report—it's a litmus test for anyone eyeballing the digital learning sector with wallets ready. Youdao: A...

Continue Reading

Top 5 Most Recently Viewed Articles

Dow Inc. Shares Faces Shareholder Class Action Opportunity

Updated Category News Views 291

Investors Affected by Dow Inc.'s Stock Performance Recently, Dow Inc. has encountered significant challenges affecting its stock performance, raising concerns among investors. Those who acquired shares of Dow Inc. (NYSE: DOW) are now presented with an opportunity to lead a shareholder class action lawsuit. This legal action concerns claims against Dow and its executives...

Continue Reading
Northwest Bank's Recognition Illuminates Strategic Strengths

Updated Category News Views 17

A Meaningful Milestone in Northwest Bank's Journey Not every day you hear about a regional player like Northwest Bank cutting through the noise to land on TIME's list of America’s Best Companies. Clocking in at #394 out of 1,000, they seem to be doing something right among the jackals of Wall Street. Folks, they didn't just get there on blind luck—Northwest clawed its...

Continue Reading
Ameren Corporation Launches New Stock Offering Initiative

Updated Category News Views 308

Ameren Corporation Unveils New Stock Offering In a strategic move to bolster its financial position, Ameren Corporation (NYSE: AEE) has announced the pricing of a significant underwritten offering of common stock. The company is set to offer 5,550,416 shares at an attractive public price of $94.00 each. This offering is aimed at facilitating various corporate financial...

Continue Reading
Insights into Nike's Recent Market Movements and Trends

Updated Category News Views 262

Current Market Sentiment on Nike Nike (NKE) has recently seen an increase in its short interest, with a reported 23.96% rise since the last assessment. Currently, there are 44.81 million shares sold short, constituting 4.76% of the company’s total available shares for trading. In the context of trading volume, it is estimated that it would take approximately 1.55 days...

Continue Reading
Investigation Launched into OSI Systems, Inc. Security Practices

Updated Category News Views 165

Investigation into OSI Systems, Inc. by Pomerantz LLP Pomerantz LLP has launched a thorough investigation into the practices of OSI Systems, Inc. (NASDAQ: OSIS) following concerning claims made by investors. The firm is dedicated to uncovering the truth about potential securities violations that may have impacted the company's stakeholders. Allegations of Fraud and...

Continue Reading