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Gaza war hits neighboring Arab economies, could cut GDP 2.3% – UN study

Amman (Reuters) – The economic cost of the Israel-Hamas war in Gaza on Arab neighbours Lebanon, Egypt and Jordan could rise to at least $10 billion this year and push more than 230,000 people into poverty, according to a U.N. study.

The war has come as the three Arab countries face a struggle with fiscal pressures, slow growth and steep unemployment, and it has deterred much-needed investment as well as hitting consumption and trade. Lebanon is in a deep economic crisis.

The study, commissioned by the United Nations Development Programme, said the cost of the conflict for the three states in terms of loss of GDP may amount to $10.3 billion or 2.3%, and could double if it lasts another six months.

“This is a massive impact,” Abdallah Al Dardari, U.N. assistant secretary-general and UNDP’s Director of the Regional Bureau for Arab States (RBAS) who lead the study told Reuters.

“The crisis was a bomb in an already fragile regional situation… It soured sentiment with fear of what could happen and where things are going,” he said.

Israel launched its campaign to annihilate the Hamas militant group that controls Gaza after fighters stormed across the border on Oct. 7, killing 1,200 Israelis, mostly civilians, and seizing 240 hostages, according to Israel.

Since then, Israeli forces have besieged the enclave and laid much of it to waste, with more than 18,000 people confirmed killed, according to Palestinian health authorities, and many thousands feared lost in the rubble or beyond the reach of ambulances.

Dardari said the scale of destruction in Gaza within such a brief time was unprecedented since World War Two.

“To lose 45-50% of all housing in one month of fighting … We have never seen anything like this … the relationship between destruction level and time, it’s unique,” Al Dardari said.

The mass displacement of almost 80% of Gaza’s population within such a short period eclipsed the more than decade-old Syrian conflict, which sparked the world’s biggest refugee crisis.

“It took Syria five years of fighting to reach the same level of destruction that Gaza reached in one month,” said Dardari, a former minister for economic affairs in the Syrian government.

Dardari, an expert on reconstruction in conflict zones, said his team was already reaching out to development funds and multilateral financial institutions on post-war reconstruction scenarios for Gaza.

“We are not waiting until the battles end… this effort has begun,” Dardari said, without elaborating.

Cyprus calls for EU rethink on Syria migration as refugee numbers rise

Nicosia (Reuters) – As record numbers of Syrian refugees reach the shores of Cyprus, the Nicosia government wants the European Union to consider declaring parts of their war-torn homeland safe to repatriate them to, the Cypriot interior minister said.

“Starting a discussion to re-evaluate the issue of Syria is crucial for us,” Minister Constantinos Ioannou told Reuters in an interview.

The foreign ministry was preparing to raise the matter formally with Brussels, he added.

Amid growing conflict in the Middle East, the Mediterranean island is bracing for a further influx of refugees and asylum-seekers, further straining resources, he said.

“We have five times more migrants than any other frontline member state,” Ioannou said. Data shows most are from Syria.

Cyprus has said it is expanding its capacity to host refugees but it wants its EU partners to revaluate its policies.

Ioannou said this included starting a discussion on the status of Syria and whether it is safe for refugees to return there, as well as better support for Lebanon, which hosts hundreds of thousands of refugees.

He cited a report by the European Union Agency for Asylum (EUAA) in February this year which said two Syrian governates – Damascus and Tartous – were assessed to have “no real risk for a civilian to be personally affected by indiscriminate violence”.

More than 5 million people are estimated to have fled Syria during more than a decade of civil war, with most going to Lebanon and Turkey. Although the conflict has now settled into a stalemate, with President Bashar al-Assad’s forces in control of most of the country, refugees keep leaving.

Cyprus became a migrant hotspot after the Turkish springboard to the Greek islands closed in a 2016 EU deal with Ankara.

Asylum applications in Cyprus peaked at around 21,565 in 2022, the highest since records began in 2002. Cyprus saw 1,043 Syrians arrive by boat in October, a three-fold increase on last year. In November, it recorded 795 arrivals, almost triple that of Nov. 2022.

Part of the surge is down to the anomaly on Cyprus itself. From 2019 to 2022, the island became the frontline of a new migrant route from Africa, when thousands entered the unrecognised Turkish Cypriot north on student visas, and were then smuggled through a ceasefire line to the internationally-recognised Greek Cypriot south.

That backdoor has been virtually sealed by tightened security along a 180-km “green line”, bringing overall arrivals down by two-thirds this year. But authorities worry that with one door shut, another might open.

Authorities say arrivals of Syrian refugees is gathering pace. In calm seas, it can take a small fishing boat 18-20 hours to get from Lebanon to Cyprus.

“In the last two years there has been a dramatic increase, with its peak since August this year,” said Superintendent B’ Ioannis Artemiou, head of the port and marine police unit of Famagusta.

Migrants frequently come ashore at the jutting outcrop of Cape Greco in the east of Cyprus, traversing the 100 mile (185 km) distance from Syria or Lebanon.

Ioannou said Cyprus was in close contact with Lebanon, which had intercepted “a lot” of vessels. Cyprus has offered Lebanon technical assistance and joint patrols and believes the EU should offer its neighbour more direct assistance, he said.

He also floated the idea of “safe zones” outside the EU where asylum requests could be examined. Italy, he said, has already announced a plan to build centres in Albania.

The European Commission did not reply to a request for comment.

In Geneva on Wednesday, the United Nations refugee chief told an international forum on refugees that the Israel-Hamas conflict in Gaza could spur more displacement in the wider region.

Iraq has reservations over an item in COP28’s final deal – statement

Dubai (Reuters) – Iraq has reservations over an item in the final COP28 deal that restricts its capabilities to work “to implement its commitments to the Iraqi people and national interests”, according to a government statement on Thursday.

The government praised the efforts of the Iraqi negotiators who it said were able to preserve the role of fossil fuels as a tool for development and prevented the adoption of texts sought by some developed countries which are “harmful to the interests of our peoples”.

UK bans entry for those responsible for settler violence against Palestinians

London (Reuters) – British Foreign Secretary David Cameron said on Thursday that those responsible for settler violence against Palestinians would be banned from entering Britain, following a similar plan by the European Union.

U.N. figures show daily settler attacks in the Israeli-occupied West Bank have more than doubled since the Palestinian militant group Hamas’s deadly Oct. 7 attack on Israel from Gaza.

“Extremist settlers, by targeting and killing Palestinian civilians, are undermining security and stability for both Israelis and Palestinians,” Cameron said on social media site X, formerly known as Twitter.

“Israel must take stronger action to stop settler violence and hold the perpetrators accountable. We are banning those responsible for settler violence from entering the UK to make sure our country cannot be a home for people who commit these intimidating acts.”

On Monday, foreign office minister Andrew Mitchell told parliament that Cameron had discussed the issue of travel bans with his U.S. counterpart last week.

While much international attention has focused on the cross-border assault and Israel’s subsequent war against Hamas in Gaza, European officials have also expressed increasing concern about rising violence against Palestinians in the West Bank.

Earlier this week European Union foreign policy chief Josep Borrell said he would propose sanctions against Jewish settlers responsible for violence against Palestinians in the Israeli-occupied West Bank.

Borrell did not say what the sanctions would entail but EU officials have said they would involve bans on travel to the EU.

The settlements are one of the most contentious issues of the decades-long Israel-Palestinian conflict. They are built on land captured by Israel in the 1967 Middle East War but which the Palestinians seek for a future independent state. They are deemed illegal by most countries but have consistently expanded over the years.

Turkey says Somalia leader’s son to participate in fatal car accident trial

Ankara (Reuters) – Turkish Justice Minister Yilmaz Tunc said on Thursday he expected the son of Somalia’s president to return to Turkey in coming days to participate in a court case over a fatal car accident involving his use of a diplomatic car.

Mohamed Hassan Sheikh Mahmoud was driving a Somali consulate car on Nov. 30 when he hit a motorcycle courier in central Istanbul, seriously injuring him. He left the country on Dec. 2, following police interrogation. An arrest warrant was issued for him after the courier died in hospital on Dec. 6.

Tunc told reporters in Ankara that he discussed the incident with his Somali counterpart, and that Somali authorities were approaching the matter “with good intentions”.

“We held meetings with the Somali judicial authorities. In the coming days, the defendant will come to Turkey and the trial process will take place,” Tunc said, adding he hoped the trial would begin soon.

A Turkish official told Reuters this week that Ankara, which has good ties with Somalia, had sought information from Somali authorities on the issue and the use of a diplomatic car.

Somali officials have not commented on the issue.

Iran warns against proposed U.S.-backed Red Sea force – ISNA

Dubai (Reuters) – Iran’s Defence Minister Mohammad Reza Ashtiani warned that a proposed U.S.-backed multinational task force to protect shipping in the Red Sea would face “extraordinary problems”, official Iranian media reported on Thursday.

Ashtiani’s comments came after the United States said last week it was in talks with other countries to set up a task force following a spate of attacks by the Iran-backed Houthis in Yemen on ships in the Red Sea.

“If they make such an irrational move, they will be faced with extraordinary problems,” Ashtiani told the official Iranian Student News Agency (ISNA) in comments it published on Thursday.

“Nobody can make a move in a region where we have predominance,” he said, referring to the Red Sea.

Ashtiani did not specify what measures Iran was prepared to take in response to the setting up of a U.S.-backed Red Sea task force.

U.S. National Security Advisor Jake Sullivan told reporters last week that Washington was in talks with “other countries” over forming a “maritime task force … to ensure safe passage of ships in the Red Sea,” but did not give further details.

Yemen’s Houthis, which are aligned with Iran, have waded into the Israel-Hamas conflict by attacking vessels in vital shipping lanes and firing drones and missiles at Israel more than 1,000 miles from their seat of power in the Yemeni capital of Sanaa.

American and French navies have strengthened their presence in the Red Sea to protect vessels from the risk of seizure or attack by the Houthis.

Gaza faces ‘perfect storm’ of deadly diseases

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Reuters

Without clean water to mix with infant formula, doctors and aid workers said, babies were going hungry too.

For the besieged residents of Gaza who have so far survived Israel’s bombs and bullets, a silent, invisible killer is now stalking them: disease.

A lack of food, clean water and shelter have worn down hundreds of thousands of traumatised people and, with a health system on its knees, it’s inevitable epidemics will rip through the enclave, 10 doctors and aid workers told Reuters.

“The perfect storm for disease has begun. Now it’s about, ‘How bad will it get?'” James Elder, chief spokesperson for the U.N. children’s fund (UNICEF), said in an interview on Tuesday.

From Nov. 29 to Dec. 10, cases of diarrhoea in children under five jumped 66% to 59,895 cases, and climbed 55% for the rest of the population in the same period, according to data from the World Health Organization (WHO). The U.N. agency said the numbers were inevitably incomplete due to the meltdown of all systems and services in Gaza because of the war.

The head of the paediatric ward at Nasser Hospital in Khan Younis in southern Gaza, Dr. Ahmed Al-Farra, told Reuters on Tuesday his ward was overrun with children suffering extreme dehydration, causing kidney failure in some cases, while severe diarrhoea was four times higher than normal.

He said he was aware of 15 to 30 cases of Hepatitis A in Khan Younis in the past two weeks: “The incubation period of the virus is three weeks to a month, so after a month there will be an explosion in the number of cases of Hepatitis A.”

Since the truce between Israel and Hamas collapsed on Dec. 1, hundreds of thousands of people have moved to makeshift shelters – abandoned buildings, schools and tents. Many others are sleeping in the open with little access to toilets or water to bathe, aid workers said.

At the same time, 21 of the Gaza Strip’s 36 hospitals are closed, 11 are partially functional and four are minimally functional, according to WHO figures from Dec. 10.

Marie-Aure Perreaut, emergency medical coordinator for MSF’s operations in Gaza, said the medical charity had left a health centre in Khan Younis 10 days ago – because the area was within Israel’s evacuation orders – where it had been treating respiratory tract infections, diarrhoea and skin infections,

She said two things were now inevitable.

“The first is an epidemic of something like dysentery will spread across Gaza, if we continue at this pace of cases, and the other certainty is that neither the ministry of health nor the humanitarian organisations will be able to support the response to those epidemics,” she said.

‘Pracrtice Of Medicine Is Under Attack’

Academic researchers at the London School of Hygiene & Tropical Medicine warned in a Nov. 6 report – a month after the Hamas attack on Israel triggered the Gaza war – of how the indirect health effects of the conflict would worsen over time.

They said that two months into the war there would be an increased burden of infant malnutrition due to disrupted feeding and care, and the nutrition of mothers would worsen. “With time, increasing chance of introduction of epidemic-prone pathogens. Risk factors: overcrowding, inadequate (water and sanitation).”

Aid workers say what the experts in London predicted is exactly what’s playing out now. Three experts said diseases such as dysentery and watery diarrhoea could end up killing as many children as Israeli bombardments have done so far.

The U.N. aid agency for Palestinian refugees (UNRWA) said two months of brutal war combined with a “very tight siege” have forced 1.3 million Gazans out of a population of 2.3 million to seek safety at its sites in the strip of land by the Mediterranean Sea.

“Many of the shelters are overwhelmed with people seeking safety, with four or five times their capacity,” said Juliette Touma, UNRWA’s director of communications. “Most of the shelters are not equipped with toilets or showers or clean water.”

Since the war started, 135 staff of UNRWA have been killed and 70% of staff have fled their homes, two of the reasons why UNRWA is now operating only nine of the 28 primary health clinics it had prior to the war, Touma said.

All told, at least 364 attacks on healthcare services have been recorded in Gaza since Oct. 7, U.N. special rapporteur on the right to health, Tlaleng Mofokeng, said in Dec. 7 statement.

“The practice of medicine is under attack,” she said.

More than 300 Gazan health ministry staff and medics have been killed since Oct. 7, the ministry said on Wednesday.

‘Epidemic Potential’

Salim Namour, a Syrian surgeon who treated the sick and wounded in eastern Ghouta outside Damascus during a years-long siege imposed by the Syrian government, said the images from Gaza reminded him of the scenes he experienced first-hand.

He said hepatitis and tuberculosis spread in Ghouta as its sewage system was destroyed and water contaminated. Malnutrition weakened people’s immunity and – setting aside wounds caused by shelling – shortages of antibiotics and vaccines for children encouraged the spread of disease.

“Siege … is a way to cause society to collapse. It means hunger, it means shortages of medical supplies, no electricity, no refrigeration, no way to preserve medicines or food, no heating,” said Namour, who left Ghouta in 2018 and lives in Germany.

Gaza’s health ministry said on Wednesday its supplies of childhood vaccines had run out. Overnight on Wednesday, strong winds and heavy rain ripped the flimsy tents at a camp in Rafah and flooded the ground, forcing people to spend the night huddled in the cold on wet sand.

The United Nations is tracking the incidence of 14 diseases with “epidemic potential” and is most concerned about soaring rates of dysentery, watery diarrhoea, and acute respiratory infections, according to a list the U.N. is currently using for Gaza seen by Reuters on Tuesday.

Dr. Paul Spiegel, director of the Center for Humanitarian Health at the John Hopkins Bloomberg School of Public Health, who is in Cairo working on the U.N. response, said a diarrhoea outbreak could happen as soon as tomorrow, unless many more aid trucks were let in and clean water was provided.

He also said the U.N. plans to start documenting the levels of acute malnutrition among children in Gaza soon by measuring their mid-upper arm circumference, known as a MUAC test.

“When you have acute malnutrition, which is called wasting, people, they die from that, but then they are also so much more vulnerable to other diseases,” said Spiegel.

The U.N.’s World Food Programme said on Monday that 83% of the people who have moved to southern Gaza were not eating enough food.

‘Unfit For Human Consumption’

To avoid epidemics, aid workers said hospitals and health centres would need to be able to treat large numbers of people for such diseases, instead of only the trauma wounds they’re already overwhelmed with.

Drinking and bathing water would need to be available at minimum required levels according to emergency humanitarian standards while greater amounts of food and medicine would need to come into the Gaza Strip and safe passage provided for humanitarian convoys to deliver it, the aid workers said.

During the recent truce, about 200 aid trucks a day entered Gaza but that has since dwindled to 100 and fierce fighting has mostly prevented any distribution beyond Rafah.

Doctors at Abu Yousef al-Najjar Hospital in Rafah told Reuters on Tuesday they were overwhelmed with hundreds of patients needing treatment for infections and communicable diseases given the squalid conditions in overcrowded shelters.

“There will be outbreaks of all contagious diseases across Rafah,” said Dr. Jamal Al-Hams.

Nasser Hospital’s paediatric head Al-Farra said ongoing hostilities had made it impossible for many families to bring their ill children for care in time, which in any case he could not provide adequately due to shortage of medicines.

“Children are (drinking) water that is unfit for human consumption,” he said. “There’s no fruit, no vegetables, so children have a deficiency in vitamins, in addition to … anaemia from malnutrition.”

Without clean water to mix with infant formula, doctors and aid workers said, babies were going hungry too. Even relatively well-off Gazans working for international agencies or media companies said their children were now ill and did not have enough food or water.

Standing among a sea of tents near Nasser Hospital, Mahmoud Abu Sharkh, who fled northern Gaza early in the war with his three children who are all under three, pointed to the squalid conditions around him in the dusty camp.

“The children get better for two days, and on the third day they are sick again.”

Turkish MP dies after suffering heart attack in parliament

Ankara (Reuters) – An opposition Turkish lawmaker died on Thursday, two days after suffering a heart attack and collapsing in front of parliament as he finished a speech criticising the government’s policy toward Israel.

Hasan Bitmez, 54, a member of parliament from the opposition Felicity (Saadet) Party, died in Ankara City Hospital, Health Minister Fahrettin Koca told reporters in televised remarks.

A graduate of Cairo’s Al Azhar University, Bitmez was the chairman of the Centre for Islamic Union Research and had previously worked for Islamic non-governmental organisations, his parliament biography shows.

He was married and a father of one.

Parliament’s official broadcast showed Bitmez collapsing to the floor after having been standing at the podium before the general assembly on Tuesday.

He had been criticising President Tayyip Erdogan’s ruling AK Party (AKP) over Turkey’s ongoing trade with Israel despite the war in Gaza, and despite the government’s sharp rhetorical criticism of Israel’s military bombardment.

“You allow ships to go to Israel and you shamelessly call it trade… You are Israel’s accomplice,” Bitmez said in his speech after placing a banner on the podium reading: “Murderer Israel; collaborator AKP”.

“You have the blood of Palestinians on your hands, you are collaborators. You contribute to every bomb Israel drops on Gaza,” he told lawmakers during debate over the foreign ministry’s 2024 budget.

After finishing the speech, Bitmez suddenly fell backward on the floor, with other MPs rushing from their seats to help.

Koca said afterward that an angiography revealed that the two main veins in his heart were completely blocked.

“His heart stopped beating, then he was resuscitated in parliament and transferred within 20 minutes to hospital” where medical machinery kept him alive, Koca had said on Tuesday.

The small Islamist Saadet Party joined the main opposition bloc backing challenger Kemal Kilicdaroglu in May presidential elections against Erdogan, who prevailed.

The alliance’s agreement allowed for Saadet deputies like Bitmez to win seats in parliament by being named on the main opposition party CHP lists.

Modi seeks to revive hinterland finance hub with new sweeteners

Gandhinagar (Reuters) – Indian Prime Minister Narendra Modi is looking to revive a decade-old project to build a new financial hub in his home state of Gujarat, with new breaks aimed at drawing in foreign brokers and companies.

The GIFT City project was launched on the outskirts of Ahmedabad in 2011 when Modi was chief minister of Gujarat, outmaneuvering Mumbai as the choice of venue for a new tax-neutral financial centre for banks, exchanges and investment funds.

While more than 400 entities, mostly banks, have since then set up shop in the modern office blocks across the small city, employing about 20,000, the hub has struggled to develop into a thriving financial ecosystem with robust market turnover.

Modi last weekend addressed an investment conference in the city to breathe life back into the site, calling for it to become a “new age financial services and technology nerve center”.

New rules that will likely take effect in April next year will allow direct equity listing of Indian firms at GIFT City – those that aren’t already listed at exchanges in India – K Rajaraman, chairperson, International Financial Services Regulatory Authority (IFSCA), which regulates financial services in GIFT City, told Reuters.

Meanwhile, exchanges are in talks with half a dozen technology companies to kick-off direct listings at GIFT, four exchange and regulatory officials said.

“This will offer Indian Companies the option to raise funds in dollars without listing on more expensive foreign bourses,” said V. Balasubramanian, chief of NSE’s International Exchange, based out of GIFT City.

Foreign brokers will also be allowed to trade on GIFT City exchanges without having a physical presence there.

So far, the only equity product actively traded in the jurisdiction is the GIFT Nifty, which began trading in July.

Tax Breaks

Banks currently account for the largest businesses in GIFT City, which use branches to book foreign borrowings of Indian companies.

Such borrowings attract a withholding tax of 20% in India but are given a 10-year tax relief if routed via GIFT City branches.

Total banking assets have grown to $52 billion, more than 90% of which are loans, regulatory data shows.

Close to 80 funds with commitments of $24 billion have also set up in GIFT City, including Indian funds investing in overseas assets and offshore hedge funds investing in India, according to data from the regulatory authority.

A tax exemption on business income and tax-free transfer of overseas investments, along with more liberal limits for Indian funds investing in overseas assets, have drawn interest.

“Why go to Mauritius when you have all the advantages of an offshore jurisdiction at GIFT and the benefit of being in close proximity to India?” said Richard Prattle, chief executive of True Beacon, a hedge fund based in GIFT City.

Despite some of those breaks, the city is still struggling to create the lifestyle buzz that draws money and professionals into financial hubs like Singapore or Dubai.

“It feels like the early days of Canary Wharf,” said Mathias B. Pontoppidan, who works at Denmark-based ESG advisory firm Pontoka and was visiting to explore business opportunities.

New glass fronted buildings sit on barren parcels of land, public transport is limited and there are no restaurants and bars in a state that prohibits alcohol for Indian citizens.

Hasmukh Adhia, chairman of GIFT City, acknowledged social infrastructure was lacking.

“We are addressing in it phases,” he said.

Many new residential buildings in the area remain unoccupied, with people choosing to live in areas that have more amenities such as department stores.

“Why is it being compared to Hong Kong, Singapore when we can’t reach here without the aid of private transport?” said Anil Shah, who works at GIFT City as a director of the Association of National Exchange Members.

India police file terrorism charges against four over parliament security breach

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New Delhi (Reuters) – Indian police have filed terrorism charges against four people in connection with a security breach in parliament in which a man jumped into the chamber, shouted slogans and set off a smoke canister, a police officer said on Thursday.

The major security breach occurred on Wednesday, the 22nd anniversary of an attack on the parliament complex when more than a dozen people, including five gunmen, were killed.

On Thursday, opposition lawmakers shouted slogans demanding the interior minister address the incident.

“All precautions possible will be taken in future,” Defence Minister Rajnath Singh told parliament, which was adjourned for a few hours on Thursday amid opposition uproar.

A parliament spokesperson said eight security personnel have been suspended in connection with the breach. India’s interior ministry has launched an inquiry following a request from the parliament.

All units that manage parliament security have been called to a meeting on Thursday, a security official said on condition of anonymity.

Members of parliament told local media the man who jumped into the lower house chamber and an associate who tried to follow him had chanted slogans, including “dictatorship won’t be accepted”. Families of some of the four suspects told media they had expressed annoyance at not being able to find jobs for a long time.

They were charged under sections of India’s anti-terror UAPA law that involve punishment for terrorist acts and conspiracies, the police officer said on condition of anonymity because they were not authorised to speak on the matter.

Om Birla, speaker of the lower house, said he would discuss with members further enhancement of security.