The Israeli government and opposition parties ended a "positive" first meeting on Tuesday evening over controversial judiciary reforms that sparked a general strike and mass protests, causing the country's most severe domestic crisis in years.
Negotiations were surrounded in scepticism as ministers discussed the judicial overhaul that would curtail the authority of the Supreme Court and give politicians greater powers over the selection of judges.
"After about an hour and a half, the meeting, which took place in a positive spirit, came to an end," President Isaac Herzog's office said late on Tuesday.
"Tomorrow, President Isaac Herzog will continue the series of meetings."
His office earlier described talks between working teams representing the ruling coalition, Yesh Atid and the National Unity Party — two centrist parties — as "a first-dialogue meeting".
"We thank the President for opening his house to the negotiation process for the benefit of the citizens of Israel," Yesh Atid tweeted.
After three months of increasing tension that split the nation and raised concerns among the US and other allies, Prime Minister Benjamin Netanyahu bowed to pressure amid a nationwide strike on Monday.
It hit airports, hospitals and more, while tens of thousands of reform opponents rallied outside Parliament in Jerusalem.
"Out of a will to prevent a rupture among our people, I have decided to pause the second and third readings of the bill" to allow time for dialogue, Mr Netanyahu said in a broadcast.
The decision to halt the legislative process marked a dramatic U-turn for the premier, who just a day earlier announced he was sacking his defence minister after he called for a pause.
The move was greeted with suspicion in Israel, with the president of the Israel Democracy Institute think tank saying it did not amount to a peace deal.
"Rather, it's a ceasefire perhaps for regrouping, reorganising, reorienting and then potentially charging ahead," Yohanan Plesner said.
Opposition leader Yair Lapid reacted warily, saying on Monday that he wanted to be sure "there is no ruse or bluff".
A joint statement Tuesday from Mr Lapid's party and that of Benny Gantz, a former defence minister, said such talks would stop immediately "if the law is put on the Knesset's [parliament's] agenda".
The opposition had previously refused to negotiate about the reforms until the legislative process was stopped.
"The goal is to reach an agreement," Mr Netanyahu said on Tuesday.
US President Joe Biden on Tuesday warned Israel it "cannot continue" pressing for deeply controversial judicial reforms.
"Like many strong supporters of Israel I'm very concerned," Mr Biden told reporters. "They cannot continue down this road, and I've sort of made that clear.
"Hopefully the Prime Minister will act in a way that he will try to work out some genuine compromise, but that remains to be seen."
He was not considering inviting the Israeli leader to the White House "in the near term".
Israel protests - in pictures
Mr Netanyahu said that although he appreciated Mr Biden's commitment to Israel, the government "does not make decisions based on pressures from abroad".
Activists vowed to continue their rallies, which have run for weeks, sometimes drawing tens of thousands of protesters.
"We will not stop the protest until the judicial coup is completely stopped," the Umbrella Movement of demonstrators said.
The crisis has revealed deep rifts in Mr Netanyahu's fledgling coalition, an alliance with far-right and ultra-Orthodox parties.
Finance Minister Bezalel Smotrich, in a tweet Monday, asserted "there will be no turning back" on the judicial overhaul.
Fellow far-right cabinet member, National Security Minister Itamar Ben-Gvir, had pressed his supporters to rally in favour of the reforms.
Mr Ben-Gvir's Jewish Power party revealed on Monday that the decision to delay the legislation involved an agreement to expand the minister's portfolio after he threatened to quit if the overhaul was put on hold.
Writing in the left-wing daily Haaretz, political correspondent Yossi Verter said the pause was "a victory for the protesters, but the one who really bent Netanyahu and trampled on him is Itamar Ben-Gvir".
The affair has hit the coalition's standing among the Israeli public, three months after it took office.
Mr Netanyahu's Likud party has dipped seven points, according to a poll by Israel's Channel 12, which predicted the government would lose its majority in the 120-seat parliament if elections were held.
The fate of sacked defence minister Yoav Gallant was unknown on Tuesday, with speculation in Israeli media that he could be reinstated.
Mr Gallant, who had warned the crisis threatened national security, on Monday welcomed "the decision to stop the legislative process in order to conduct dialogue", his team said.
Community Shield info
Where, when and at what time Wembley Stadium in London on Sunday at 5pm (UAE time)
Arsenal line up (3-4-2-1) Petr Cech; Rob Holding, Per Mertesacker, Nacho Monreal; Hector Bellerin, Mohamed Elneny, Granit Xhaka, Alex Oxlade-Chamberlain; Alex Iwobi, Danny Welbeck; Alexandre Lacazette
Arsenal manager Arsene Wenger
Chelsea line up (3-4-2-1) Thibaut Courtois; Cesar Azpilicueta, David Luiz, Gary Cahill; Victor Moses, Cesc Fabregas, N'Golo Kante, Marcos Alonso; Willian, Pedro; Michy Batshuayi
Chelsea manager Antonio Conte
Referee Bobby Madley
You Were Never Really Here
Director: Lynne Ramsay
Starring: Joaquim Phoenix, Ekaterina Samsonov
Four stars
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
NBA FINALS SO FAR
(Toronto lead 3-2 in best-of-seven series)
Game 1 Raptors 118 Warriors 109
Game 2 Raptors 104 Warriors 109
Game 3 Warriors 109 Raptors 123
Game 4 Warriors 92 Raptors 105
Game 5 Raptors 105 Warriors 106
Game 6 Thursday, at Oakland
Game 7 Sunday, at Toronto (if needed)
Take Me Apart
Kelela
(Warp)
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.”
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
2018 ICC World Twenty20 Asian Western Regional Qualifier
Saturday results
Qatar beat Kuwait by 26 runs
Bahrain beat Maldives by six wickets
UAE beat Saudi Arabia by seven wickets
Monday fixtures
Maldives v Qatar
Saudi Arabia v Kuwait
Bahrain v UAE
* The top three teams progress to the Asia Qualifier