As Israel persists in its assault on the Gaza Strip, breaching the agreement with relentless bombings across the region — leading to the deaths of several resistance leaders, such as Abu Hamza, the military spokesperson for Al-Quds Brigades, and Abu Ubaida Al-Jamas, a member of Hamas’ political bureau — and as Gaza’s residents endure immense hardship, Gulf states have been accused of backing Israeli settlement projects, despite their repeated claims of supporting the Palestinian cause and standing in solidarity with Gaza’s people.
This ongoing Israeli offensive against Gaza extends beyond military actions, coinciding with a significant surge in settlement construction across the occupied Palestinian territories. As Palestinian homes in Gaza are being destroyed, new settlements are rising in the West Bank, reportedly funded by Gulf investments. These developments cast serious doubt on the sincerity of Arab governments’ long-standing pro-Palestinian stances.
Is Gulf funding now being used to strengthen the occupation rather than oppose it?
The British outlet “Middle East Eye” uncovered in an investigative report that an investment firm led by Jared Kushner, son-in-law of former U.S. President Donald Trump, has been implicated in supporting Israeli settlements in the West Bank, with direct funding from three Gulf nations.
The investigation revealed that Saudi Arabia, the UAE, and Qatar contributed significant financial support to “Affinity Partners,” Kushner’s firm, despite the United Nations designating several companies linked to this entity as operating within illegal settlements in the occupied Palestinian territories.
Since its launch in 2021, Affinity Partners has received billions of dollars in investments from sovereign wealth funds in these Gulf nations. In January, after securing further financing from the Qatar Investment Authority and an Abu Dhabi-based investment firm, the company acquired close to a 10% stake in the Israeli financial firm “Phoenix.” This move expanded its footprint in Israel’s financial market and bolstered support for Israeli institutions associated with the settlements.
“Phoenix” is an Israeli financial services group specializing in insurance and asset management. It directly invests in 11 public companies and one private company, all of which are included in the United Nations Commission’s database of businesses engaged in settlement activities in the West Bank, occupied Jerusalem, and the Golan Heights.
These companies cover essential sectors like banking, telecommunications, transportation, energy, engineering, construction, trade, textiles, and apparel, underscoring the considerable role Gulf investments play in supporting Israeli economic activities within the settlements.
Affinity Partners’ connection to the Israeli and Gulf economies
In a statement from “Affinity Partners,” the company expressed its pride in being the largest shareholder in “Phoenix,” calling it one of the most successful and respected financial institutions in Israel. After the announcement of its 2024 profits, Phoenix’s shares increased by over 4%, which the CEO referred to as a “vote of confidence in the Israeli economy.” These developments have sparked significant debate regarding the commitment of some Gulf states to their official position in support of the Palestinian cause, particularly in light of the ongoing Israeli aggression against Palestinians.
Jared Kushner, a close ally of Saudi Crown Prince Mohammed bin Salman, played a pivotal role in the creation of the “Abraham Accords” during Trump’s first term, which led to the normalization of diplomatic ties between Israel and several Arab nations, including the UAE. Kushner has repeatedly expressed his support for Israel and his interest in investing there, noting that his company, “Affinity,” remains optimistic about the future of the Israeli economy and is hopeful for a normalization agreement between Israel and Saudi Arabia.
In July, “Affinity” made a deal to acquire 4.95% of “Phoenix” shares for approximately $130 million, with the option to later increase its stake. The deal was finalized on January 20, generating paper profits estimated at $191 million, according to Tel Aviv Stock Exchange data. Kushner remarked that the transaction reflects his confidence in the robustness of the Israeli economy, highlighting that “Affinity” partners are among the most seasoned investors in the region. This comes amid escalating military actions in the West Bank, which have led to the displacement of tens of thousands of people.
Meanwhile, the International Court of Justice declared Israel’s presence in the West Bank to be illegal and called for its immediate end. Nevertheless, Israel has continued its large-scale military operations in Jenin and Tulkarm, displacing approximately 40,000 individuals in recent weeks, with the United Nations raising concerns about the potential for the de facto annexation of the West Bank.
Gulf backing for Affinity Company
These Gulf investments raise concerns about their inconsistency with the official positions of these countries on the Palestinian issue. Human rights groups have highlighted that investments by major companies like “Phoenix” in entities accused of supporting settlements are not unexpected, but the involvement of Gulf capital, particularly from countries that have not signed normalization agreements, marks a new development.
In this context, Qatari Emir Sheikh Tamim bin Hamad remarked last October that Israel is taking advantage of the international community’s inaction to expand its settlement activities, while Saudi Arabia and the UAE condemned Israel’s military escalation in the West Bank, warning that it could jeopardize peace efforts.
Despite these public statements, reports have shown that Gulf investment funds, such as the Qatar Investment Authority and various UAE and Saudi funds, have made substantial investments in Kushner’s Affinity company. In July, Affinity told the U.S. Senate Finance Committee that Saudi Arabia’s Public Investment Fund pledged $2 billion to the company between 2021 and 2026, while Qatari and Emirati funds promised an additional $1 billion. The company also raised another $1.5 billion from the “Qatar Investment Authority” and the “Lunit” fund, managed by UAE National Security Adviser Tahnoun bin Zayed.
These investments have drawn attention from U.S. Senate members, who raised concerns that the substantial payments received by “Affinity” might be an attempt to purchase political influence, particularly with the upcoming U.S. elections and the possibility of Trump returning to the White House. Experts also pointed out that investing in Affinity could offer Gulf states a legal way to channel money into the wider Trump family network, at a time when U.S. foreign and security policies appeared to be for sale to the highest bidder, as noted by Andreas Krieg, a defense studies professor at King’s College London.
However, Affinity Partners refuted any allegations of conflicts of interest, emphasizing that it is a registered investment firm with the U.S. Securities and Exchange Commission and operates within the bounds of the law. The company also stated that its decisions are purely based on economic factors, without political influence. No official comment was given by the Saudi Public Investment Fund, the Qatar Investment Authority, or the Lunit Fund.
List of companies supporting settlement expansion
The organization “Al-Haq” has pointed out that the United Nations High Commissioner for Human Rights database, which lists companies involved in supporting settlements, only reflects a small fraction of those truly engaged in war crimes and human rights violations. The database lacks detailed information about the companies, instead categorizing them based on their activities.
In this regard, “Taqasee” reviewed a list of 112 companies, discovering that “Phoenix” is a major shareholder in “Discount Bank,” “Leumi Bank,” and “Hapoalim Bank,” according to data from the Tel Aviv Stock Exchange. “Who Profits,” a center collecting information on companies operating in occupied territories, revealed that these three banks have backed construction companies involved in settlement activities. Both “Discount Bank” and “Hapoalim” provided direct support to settlement councils, with “Hapoalim Bank” even organizing tours to the West Bank, East Jerusalem, and the Golan Heights in partnership with settler groups.
This disclosure highlights concerns over the lack of transparency in updating the list and its exclusion from the Human Rights Council’s current agenda, raising doubts about the international community’s commitment to holding companies accountable for supporting settlements. This is especially alarming considering the ongoing violations of Palestinian rights and the growth of economic activities within settlements.
Further investigation revealed that Phoenix holds significant stakes in “Cellcom” and “Partner Communications,” companies that install mobile towers in settlements and are licensed by the Israeli Ministry of Communications to provide services there. Phoenix also owns shares in “Elbit Systems,” Israel’s largest arms manufacturer. Although “Elbit” is not listed in the UN database, it remains a significant contributor to Israel’s actions in Gaza and the West Bank.
With the ongoing aggression in Gaza, the breach of the agreement, and the growing expansion of settlements in the West Bank, there is an urgent need for a thorough reassessment of these policies, especially by nations that profess to support the Palestinian cause while simultaneously benefiting economically from the suffering and rights violations of the Palestinian people.
MEE: ثلاث دول خليجية تدعم شركة متورطة ببناء المستوطنات.. يرأسها كوشنر
كوشنر وأموال الخليج: كيف تتدفق الاستثمارات إلى المستوطنات الإسرائيلية؟
الأمم المتحدة تحدث قائمة الشركات المتعاملة مع المستوطنات الإسرائيلية
Kushner’s private equity firm said to receive hundreds of millions from UAE, Qatar
Kushner’s firm was backed by investments from the Emirates and Qatar
Kushner’s
Gulf states linked to Israeli businesses on UN settlements blacklist
