People turn their backs in protest at the Israeli judicial reform at an air force pilot graduation ceremony this week. EPA
People turn their backs in protest at the Israeli judicial reform at an air force pilot graduation ceremony this week. EPA
People turn their backs in protest at the Israeli judicial reform at an air force pilot graduation ceremony this week. EPA
People turn their backs in protest at the Israeli judicial reform at an air force pilot graduation ceremony this week. EPA

Israeli government criticises judicial overhaul protests


Thomas Helm
  • English
  • Arabic

Israel's government hit out at protesters demonstrating against the administration's proposed legal overhaul, after a crowd blocked traffic to the country's main airport earlier in the week and targeted the homes of ministers.

The country's attorney general in particular drew strong ire, with ministers complaining that authorities were not doing enough to stop disruptions caused by protesters.

In leaked comments that were widely reported in Israeli media, Prime Minister Benjamin Netanyahu was reported to have asked in a closed-door meeting on Thursday: “In what country in the world do people block off an airport and not get prosecuted?”

Signs of the government's exasperation come as the judicial reform protest movement again ramps up the pressure, which at the beginning of the year led to weekly demonstrations across the country that drew hundreds of thousands of Israelis into the streets.

Israeli Prime Minister Benjamin Netanyahu at an air force event on Thursday. AP
Israeli Prime Minister Benjamin Netanyahu at an air force event on Thursday. AP

The divisions were stark enough for President Isaac Herzog to say that Israel could descend into "civil war".

Mr Netanyahu suspended attempts to enact the judicial reform bill in March while Mr Herzog oversaw negotiations between government and opposition politicians to find a compromise on the overhaul, which the administration says is needed to curb an overly powerful judiciary.

On Thursday, Mr Herzog warned graduating military reservist pilots that their threat to not turn up for duty would undermine the country's security.

His call came after more than 100 air force reservists issued an open letter in which they said would not turn up for duty if the judicial reform moved ahead.

Their warning is reminiscent of action taken earlier in the year by some elite units in the country's armed forces, including the air force, special forces and cyber community.

The judicial reform has also deepened rifts within the government, after Mr Netanyahu told The Wall Street Journal that he was cancelling a particularly controversial aspect of the package nown as the "override clause".

Protesters demonstrate against Benjamin Netanyahu and his nationalist coalition government's judicial overhaul in June. Reuters
Protesters demonstrate against Benjamin Netanyahu and his nationalist coalition government's judicial overhaul in June. Reuters

The provision would have effectively allowed parliament to pass laws that are immune from judicial review, a measure that critics say would render Israel's legal system pointless.

Far-right National Security Minister Itamar Ben-Gvir accused Mr Netanyahu of surrendering and breaking his promises.

The clause is particularly important to ultra-Orthodox parties in the coalition, who view it as a way of ensuring that men in the community continue to be exempt from military service, a policy many Israelis object to.

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.”

Cultural fiesta

What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421,  Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day. 

Updated: June 30, 2023, 11:21 AM