Israeli Prime Minister-designate Benjamin Netanyahu will have until December 21 to form a new government after receiving an extension of about 10 days on Friday.
Mr Netanyahu was asked to try to form the next Israeli government after his centre-right nationalist party won the largest share of seats in the country’s elections on November 1.
While he has already got the backing of other parties in parliament in order to reach the threshold to govern, he has yet to finalise his coalition.
Israeli election — in pictures
Sunday was the original deadline to form the government or another candidate may have been asked to try to form a coalition. Failing that, Israelis would have been sent back to the polls yet again to break the deadlock.
While Mr Netanyahu sought the maximum two-week extension allowed by law, President Isaac Herzog, whose job as head of state is largely ceremonial, gave him an extra 10 days.
Coalition talks have dragged on longer than expected since Mr Netanyahu from the outset had support from right-wing and religious parties that control 64 of the Knesset's 120 seats.
A major sticking point has been who gets which ministerial post and the distribution of power between them, Israeli media has reported.
The centrist opposition had urged Mr Herzog not to grant an extension, accusing Mr Netanyahu of buying time to pass divisive legislation.
One such bill would enable a senior partner of Mr Netanyahu to serve in the cabinet despite a criminal record.
On Thursday, Mr Netanyahu reached a coalition deal with the ultra-Orthodox Shas party led by longtime Likud ally Aryeh Deri, who was convicted of tax offences as part of a plea deal and placed on probation.
Under the latest deal, the Shas party will hold senior posts in ministries for religious services, social affairs, education and interior affairs.
Deri will serve half a term as the minister of health and interior affairs, before becoming finance minister. He will also hold the post of deputy prime minister.
The legal manoeuvre has drawn criticism that it undermines Israel’s democratic institutions. It “makes a mockery of this criminal procedure,” said Amir Fuchs, senior researcher at the Israeli Democracy Institute, a Jerusalem think tank.
A prolonged political stalemate has led to five elections in less than four years. An outgoing caretaker government remains in office.
“These are complex days for Israeli society when disputes over fundamental issues threaten to tear apart and ignite violence and hatred,” Mr Herzog said in a letter to Mr Netanyahu that his office made public.
He called for the formation of a government that represents the entire country and for a coalition that maintains a respectful dialogue between the branches of government.
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At a glance
Fixtures All matches start at 9.30am, at ICC Academy, Dubai. Admission is free
Thursday UAE v Ireland; Saturday UAE v Ireland; Jan 21 UAE v Scotland; Jan 23 UAE v Scotland
UAE squad Rohan Mustafa (c), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan
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.”