Israeli Finance Minister Bezalel Smotrich is one of the key figures in Israel's far right. Reuters
Israeli Finance Minister Bezalel Smotrich is one of the key figures in Israel's far right. Reuters
Israeli Finance Minister Bezalel Smotrich is one of the key figures in Israel's far right. Reuters
Israeli Finance Minister Bezalel Smotrich is one of the key figures in Israel's far right. Reuters

Israeli far-right Minister Bezalel Smotrich described Hamas as 'asset' in unearthed tweet


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Far-right Israeli Finance Minister Bezalel Smotrich once described Hamas as an “asset” for Israel, in a tweet that was unearthed on Tuesday.

Mr Smotrich, long one of the main players in Israel’s growing far-right, said in the same post on Twitter from 2015 that the Palestinian Authority was a “burden”.

The discovery adds to swirling allegations that Israeli policymakers have over the years been taking decisions that empower Hamas in a bid to weaken the rival PA, which has long been the international community’s preferred governing body in the Occupied Palestinian Territories.

The PA is supposed to be interim governing body for Palestinians until the creation of an independent Palestinian state.

It lost control of the Gaza Strip in 2006, after Hamas won a shock electoral victory in the enclave. Clashes broke out after the election between Hamas and Fatah, the main faction in the PA, which resulted in Hamas governing Gaza and the PA governing the occupied West Bank.

Despite Hamas’s virulently anti-Israel and Islamist ideology, Israel has been accused of allowing the group to flourish at the expense of the PA in order to decrease the likelihood of the Palestinians ever having an independent state.

EU Foreign Minister Josep Borrell said on Friday that Israel financed the creation of Hamas, despite strong denials from Israeli Prime Minister Benjamin Netanyahu.

“Hamas was financed by the government of Israel in an attempt to weaken the Palestinian Authority led by Fatah," Mr Borrell said in a speech.

“Mr Borrell is wrong. Far from seeking to strengthen Hamas, as the EU foreign policy chief alleged, Prime Minister Benjamin Netanyahu hit Hamas hard in three large-scale military operations; in 2012, 2014, and 2021,” said Ophir Falk, an adviser to the Israeli Prime Minister, in a statement quoted by Politico.

Israeli leaders have repeatedly vowed to destroy Hamas in the ongoing Gaza war, which began when the group led an attack on southern Israel on October 7 that killed about 1,200 people. About 240 others were kidnapped and taken to Gaza.

More than 25,490 Palestinians have since been killed in the war in Gaza.

Fighters with the Ezzedine Al Qassam Brigades, the armed wing of Hamas. AFP
Fighters with the Ezzedine Al Qassam Brigades, the armed wing of Hamas. AFP

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: January 23, 2024, 5:29 PM