Israeli Prime Minister Benjamin Netanyahu said that the decision on when forces would go into the blockaded Palestinian enclave would be made by the government's special war cabinet. Reuters
Israeli Prime Minister Benjamin Netanyahu said that the decision on when forces would go into the blockaded Palestinian enclave would be made by the government's special war cabinet. Reuters
Israeli Prime Minister Benjamin Netanyahu said that the decision on when forces would go into the blockaded Palestinian enclave would be made by the government's special war cabinet. Reuters
Israeli Prime Minister Benjamin Netanyahu said that the decision on when forces would go into the blockaded Palestinian enclave would be made by the government's special war cabinet. Reuters

Israel preparing for ground invasion of Gaza, Netanyahu says


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Israel is preparing for a ground invasion of Gaza, Prime Minister Benjamin Netanyahu said in a televised statement on Wednesday, without providing further details.

The Israeli military has, over the past two weeks, amassed thousands of troops and tanks along the Gaza border in anticipation of such an operation after the Hamas attack on October 7.

Mr Netanyahu said that the decision on when forces would go into the blockaded Palestinian enclave would be made by the government's special war cabinet.

He also acknowledged for the first time that he would have to give “answers” for security lapses that allowed for the deadly attacks by Hamas fighters.

At least 1,400 people in Israel were killed as part of the surprise attack by militants, and Hamas members took an estimated 200 hostage, most of whom remain in captivity in Gaza.

“The fault will be examined and everyone will have to give answers, including me. But all this will happen later,” Mr Netanyahu said in response to criticism and calls for accountability.

“As Prime Minister, I am responsible for securing the future of the country.”

Israel has conducted retaliatory strikes on Gaza since the Hamas attacks that have resulted in more than 6,500 Palestinian deaths.

It is not clear why Israel has held off on an invasion; some hostages have been freed and allies have been in talks with Mr Netanyahu and other leaders.

Some regional countries have warned that such an incursion into Gaza could lead to a wider war.

The Wall Street Journal earlier reported that the Pentagon had persuaded Israel to delay an invasion of Gaza until the US can deploy about a dozen air-defence systems to the Middle East to protect US troops.

The missiles may be in place later this week, and would protect US forces in Iraq, Syria, Kuwait, Jordan, Saudi Arabia and the UAE, the newspaper said.

US troops in Syria and Iraq have been attacked several times in the past week by drones and rockets, with Washington blaming Iran-backed militias.

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 26, 2023, 8:02 AM