Ankara and Tel Aviv “normalize”
August 22, 2022, 1:14 pm

Ian Black

In these strange and uncertain times – prompted by Russia’s invasion of Ukraine and the global energy and cost-of-living crisis that it has triggered – some positive things happen: last Wednesday Turkey and Israel announced a full restoration of diplomatic ties after years of troubled relations.

Why now? The answer is long and quite complicated. It is about mutual and overlapping national interests created by changing strategic and economic issues across the Middle East and the wider world.

Ankara and Tel Aviv have been criticised in the West for their placid and underwhelming responses to Vladimir Putin’s unprovoked aggression against Ukraine – and rightly so. Turkey is the only member of Nato that has mediated a diplomatic effort with Russia, supported by the UN, to allow the worldwide shipment of grain from Ukraine via the Black Sea. And Israel, despite American pressure, has ruled out supplying Kyiv with any offensive weapons.

The announcement ends a four-year diplomatic crisis that led to downgraded relations between the two non-Arab regional powers. Israel’s Prime Minister Yair Lapid and Turkish President Recep Tayyip Erdogan spoke and agreed on reinstating their respective ambassadors and consul-generals. Lapid said in a statement that "restoring ties with Turkey is an important asset to the stability of the region and bears great economic significance to Israel's citizens.” President Isaac Herzog also welcomed the renewal of diplomatic ties with Turkey, calling it an "important development.”

Next year, there will be a presidential election in Turkey. But with inflation at over 70% Ankara wants to attract investment from regional countries. There are security challenges, too, in Syria and the eastern Mediterranean basin. Turkey sees Israel as a strong player, and for Israel, Turkey is seen as a balancing power in a region threatened by Iran. The move, which comes as Israel has sought to improve ties with regional powers, was agreed two years after the Abraham Accords, which saw relations normalised between Israel, Bahrain, the United Arab Emirates (UAE).

Relations between Ankara and Tel Aviv have been rocky since 2011, when Turkey expelled Israel's ambassador after a UN report into Israel's attack on the Mavi Marmara aid ship to Gaza in 2010, which killed nine Turkish nationals. The rift was healed in 2016 when full relations were restored and both countries sent their ambassadors back. But tensions were renewed in 2018 when Israeli forces killed scores of Palestinians taking part in the Great March of Return protests in Gaza.

Turkey launched a charm offensive in 2020 to repair ties with estranged rivals, making overtures to Egypt, the UAE, Israel and Saudi Arabia. Efforts with Cairo have so far yielded little progress, but normalisation work with Riyadh and Abu Dhabi is going well.

Yet despite the lack of high-level diplomatic relations, Israel has retained several back-channel communication methods with Turkey.

In March, Presidents Herzog and Erdogan met in Ankara, marking the first visit by an Israeli statesman in 14 years, issued a joint statement at the end of Herzog's trip. Erdogan said that the meeting was "historic and will serve as a turning point in the relations between the two countries.” In June eight Iranians were detained on suspicion of planning a terrorist attack on Israeli tourists.

But Israeli politicians admit they are concerned that more flip-flopping on the part of the Turkish leader, especially concerning the Palestinian question, might lead to another breakdown. One of Israel’s main demands ahead of advancing ties is that Ankara work harder to stop the Gaza-based Islamist movement Hamas’s activities in Turkey, and that it take a hard line against Hamas actions against Israelis. The fact that Hamas stayed out of the latest flare-up in Gaza may provide a clue about future cooperation.

At the same time, Israel and Turkey both want to strengthen coordination with each other when it comes to their attacks in Syria. Both see the Iranian presence in Syria as a threat to their stability, each is active in the air over Syria and each is dealing with the Russian military presence there. It is impossible for Israel to contain both Iran and Turkey, which have really considerable military and intelligence capabilities.

Another factor is the chaotic American withdrawal from Afghanistan which emphasised for regional actors the wish of the US to reduce its presence in the region, and that they have to work together to maintain the regional order.

Both countries hold an interest in improving dialogue on this issue to prevent Turkish harm to Israeli aircraft and vice versa. They have also recently been discussing the possibility of cooperation in what has been defined as “regional architecture,” in an attempt to restrict terror by Iranians who are working to gain a foothold in Syria.

Turkish and Israeli officials have both said that the prospect of bringing Israeli gas to Turkey through a pipeline in the eastern Mediterranean was a chief incentive to repair their relationship. With events in Ukraine focusing a sense of urgency on natural gas, combined with Turkey's recent rapprochement efforts with Israel and other Middle Eastern countries.

In an increasingly unpredictable world, nobody should be surprised that Turkey and Israel are prioritising their own national interests.

BY: IAN BLACK

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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.