Secretary general of the Palestine Liberation Organisation executive committee, Hussein Al Sheikh. AP
Secretary general of the Palestine Liberation Organisation executive committee, Hussein Al Sheikh. AP
Secretary general of the Palestine Liberation Organisation executive committee, Hussein Al Sheikh. AP
Secretary general of the Palestine Liberation Organisation executive committee, Hussein Al Sheikh. AP

Palestinian official in Jordan as US seeks to widen Arab ties with Israel


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The heir apparent to Palestinian President Mahmoud Abbas made a rare solo official visit to Jordan at the weekend, amid a US drive for the normalisation of ties between Israel and Saudi Arabia.

The official Jordanian news agency Petra said that Hussein Al Sheikh, whom Mr Abbas made his de facto number two last year, met on Sunday with Foreign Minister Ayman Al Safadi.

Discussion centred on “stopping the deterioration being witnessed in the occupied Palestinian territories” and restarting peace talks with Israel, which have been frozen for most of the past decade.

The road between the Jewish settlement of Givat Zeev and Palestinian villages near the Israeli-occupied West Bank city of Ramallah. AFP
The road between the Jewish settlement of Givat Zeev and Palestinian villages near the Israeli-occupied West Bank city of Ramallah. AFP

A large proportion of Jordan's population are of Palestinian origin. The kingdom, which has the longest land border with Israel, has close links with 87-year-old Mr Abbas and is keen to have a smooth transition after his eventual death.

Jordan, which signed a peace treaty with Israel in 1996, has repeatedly condemned Israel for its treatment of the Palestinians, saying it could lead to another wave of refugees that could upset the kingdom's social balance and pose a threat to its stability.

Jordanian political commentator Hazem Ayyad said that Mr Al Sheikh's meeting in Amman heralds a possible drive by Jordan to raise his profile, with Mr Abbas increasingly seen as “unbalanced” politically.

Mr Ayyad pointed to recent remarks by Mr Abbas about the Holocaust that drew condemnation from his western backers.

“Jordan is keen to give Sheikh a push,” said Mr Ayyad. He added that he is also favoured by Washington, Jordan's most powerful ally, as an eventual replacement for Mr Abbas.

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In mid-2022, Mr Abbas made Mr Al Sheikh the secretary general of the Palestine Liberation Organisation's executive committee, one of the most powerful positions in the Palestinian system of rule.

Omar Shaaban, head of PalThink for Strategic Studies think tank, said that despite Jordanian support for Mr Al Sheikh, the kingdom wants him to embark on reforms in the Palestinian system, which has been vastly undermined by allegations of corruption and non-adherence to election procedures.

He expected Mr Al Sheikh to consolidate his position as Mr Abbas's successor at a congress for Fatah, the PLO's largest faction, in December.

“Jordan is very interested in following and pushing for more reforms,” Mr Shabaan said.

He said Jordanian officials also wanted to hear first-hand from Mr Al Sheikh about political developments in the region over the past several months.

Mr Al Sheikh was one of three senior Palestinian officials who met Saudi officials in Riyadh last week.

The meeting reportedly focused on a possible US-brokered normalisation agreement between Saudi Arabia and Israel, similar to the 2020 Abraham Accords signed by Israel, Bahrain and the UAE. Morocco and Sudan have also since joined.

Details of any Israeli-Saudi deal have not been made officially public, and there has been no comment from Riyadh.

Despite press reports hinting at a breakthrough, western diplomats in Amman say the deal might take a long time to be finalised because of provisions for a military pact between Riyadh and Washington, and possible Saudi demands for empowerment for the Palestinians.

In Riyadh, Mr Al Sheikh also met a visiting US delegation following a call between US Secretary of State Antony Blinken and Mr Abbas.

Jordan had supported Mr Abbas in his rejection of a Middle East peace deal proposed during the Donald Trump administration, which was seen as diluting Palestinian rights.

Neither Jordan nor Palestinian officials have commented on the current US moves for the Saudi-Israeli deal.

If realised, it would affect all other Arab dealings with Israel, with Saudi Arabia being the largest Arab economy and the birthplace of Islam.

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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.”

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Updated: October 10, 2023, 10:34 AM