Tension in the West Bank has been running high in recent months. EPA
Tension in the West Bank has been running high in recent months. EPA
Tension in the West Bank has been running high in recent months. EPA
Tension in the West Bank has been running high in recent months. EPA

Israel advances 1,000 new settlement homes after four killed


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Israeli Prime Minister Benjamin Netanyahu on Wednesday afternoon announced that his government will quickly advance the planning of 1,000 new homes in the West Bank settlement of Eli, according to a statement from his office.

The announcement comes a day after Palestinian gunmen killed four settlers at a petrol station just outside the settlement. The attack was praised by Gaza-based militant group Hamas, although they did not directly claim the attack.

In a press release announcing the move, Mr Netanyahu said “our answer to terrorism is to strike at it forcefully and build up our country”.

Mr Netanyahu’s coalition, widely viewed to be the most right-wing government in Israel’s history, contains several ardently pro-settlement politicians.

On Monday, UN Secretary General Antonio Guterres reiterated his opposition to Israeli settlements in the occupied West Bank and East Jerusalem, a day after the country's conservative government approved legislation to speed up their construction.

Mourners at the funeral of Nachman Shmuel Mordoff, 17, who with three others was killed in a Palestinian shooting attack near the Jewish settlement of Eli on Tuesday. Reuters
Mourners at the funeral of Nachman Shmuel Mordoff, 17, who with three others was killed in a Palestinian shooting attack near the Jewish settlement of Eli on Tuesday. Reuters

The announcement of the expansion came despite Washington, Israel’s most important ally, urging the country’s government recently to delay plans to expand a deeply controversial project just east of the contested city of Jerusalem.

On Wednesday, Washington reiterated its opposition to settlement expansion.

"We've been very clear about this that unilateral actions such as this one such as settlement advancement, will only incite tensions and undermine the prospect of a two state solution," said US State Department spokesman Vedant Patel.

On Tuesday evening, a group of settlers set up camp at the illegal West Bank outpost of Evyatar, which for years has been a source of tension between settlers and the Israeli military, who frequently repel attempts to resettle the area.

Settler attacks injured at least 34 people overnight on Tuesday after Palestinian properties were attacked, apparently in revenge for the attack that killed the four Israelis. Settlers later targeted the town of Turmus Aya, north of Ramallah, where one person was shot dead as settlers set cars and homes alight.

The attack prompted a strong rebuke from Washington.

"We are appalled at ongoing settler attacks in Turmus Aya and other villages resulting in a civilian death, injuries and property damage," said the US Office of Palestinian Affairs.

”We call for Israeli authorities to immediately stop the violence, protect US and Palestinian civilians, and prosecute those responsible."

The events drew parallels with a settler rampage in Hawara in February, which came in the aftermath of a gun attack in which two Israelis were killed.

UN anger

UN officials have called for international protection for Palestinians in light of the settler attacks.

“Palestinians under Israeli occupation do need protection,” said Francesca Albanese, UN special rapporteur on the situation of human rights in the occupied territories.

“Brutality, coming either from Israeli settlers or from the army, will not stop simply because the system is not designed to protect the Palestinians. Rather the contrary.”

Settlement expansion is intensifying under the new government and threatens to plunge the West Bank into even deeper violence.

Analysts have told The National that this week's move to accelerate settlement construction – which cuts the need for political approval out of the planning process – disrupts the long-standing system that has been in place since the Oslo Accords.

The new process reduces the “red tape” required to approve settlement construction, which under the current system has to be approved by the defence minister.

Smoke rises from the Palestinian town Turmus Aya, next to the Israeli settlement of Eli in the West Bank. EPA
Smoke rises from the Palestinian town Turmus Aya, next to the Israeli settlement of Eli in the West Bank. EPA

“[Mr] Smotrich has basically taken away authorities that were always, or at least since the Oslo process, in the hands of the defence ministry,” said Mairav Zonzsein, senior analyst on Israel-Palestine for the International Crisis Group.

Currently acting as Finance Minister, Mr Smotrich was handed sweeping powers over the West Bank by Defence Minister Yoav Gallant in February and was named as a minister within the defence ministry, with authority over civilian affairs in Area C of the West Bank.

The announcement came ahead of a meeting of Israel's Supreme Planning Council next week, which is set to discuss approving 4,560 housing units in various areas of the West Bank, although only 1,332 are up for final approval.

“Smotrich and others on the far right came into this government with a very clear platform of consolidating and even formalising Israeli control of Area C of the West Bank and at the same time dispossessing and displacing Palestinians. This is part of that agenda and part of that process,” Ms Zonzsein added.

“We're going to see not only expansion of settlements but mechanisms with which to legalise and make permanent those settlements.”

She also cited a recent repeal of a ban on returning to West Bank settlements evacuated in 2005.

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.”

Trump v Khan

2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US

2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks

2019: Trump calls Khan a “stone cold loser” before first state visit

2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”

2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.

Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

Retail gloom

Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.

It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

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Updated: June 21, 2023, 9:05 PM