President Joe Biden, when he was a senator, with King Abdullah and Queen Rania in Washington, on May 8, 2002. PETRA/AFP
President Joe Biden, when he was a senator, with King Abdullah and Queen Rania in Washington, on May 8, 2002. PETRA/AFP
President Joe Biden, when he was a senator, with King Abdullah and Queen Rania in Washington, on May 8, 2002. PETRA/AFP
President Joe Biden, when he was a senator, with King Abdullah and Queen Rania in Washington, on May 8, 2002. PETRA/AFP

King Abdullah to meet President Biden in Washington as Gaza war expands


Khaled Yacoub Oweis
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Jordan’s King Abdullah will meet President Joe Biden at the White House on Monday amid regional escalation linked to the Gaza war and worries in the kingdom about the fate of the West Bank.

It will be the first meeting between the two leaders since a drone attack Washington blamed pro-Iranian militia for killed three US soldiers in Jordan on January 28. The soldiers were stationed a few hundred metres from the border with Syria.

The attack has raised the temperature of the US's confrontation with Iran, which has intensified since the war in Gaza began on October 7, triggered by an attack on southern Israel by the Tehran-backed Hamas.

The killing of the three US soldiers in Jordan has prompted US air strikes on targets linked to the Iran Revolutionary Guard Corps and pro-Iranian militias in Iraq and Syria. The US followed with an attack in Baghdad that killed two senior figures in an Iraqi militia supported by Iran.

In a statement the White House said Mr Biden will discuss a post-war vision with the king "for a durable peace to include a two-state solution with Israel's security guaranteed."

It will be the fourth meeting between the two at the White House since Mr Biden came to office in January 2021 and rebuilt ties with Jordan.

Two Western diplomats in Amman briefed on the king's visit to Washington said he will be asking Mr Biden to continue applying pressure on Israel to contain its incursions in the occupied West Bank, as well as attacks by settlers on Palestinians.

The West Bank is situated west of the Jordan River.

“Any deterioration in the West Bank will hit home in Jordan,” said one of the diplomats, speaking on condition of anonymity.

“The reason the situation is remaining somewhat contained there and the settlers are not running completely amok is the US pressure on Israel.”

Several hundred Palestinians have been killed by Israelis in the West Bank since October 7, some of them shot dead by settlers. T|here are almost half a million Israeli settlers in the West Bank, and 3 million Palestinians.

In a rare move, Mr Biden this month issued an executive order sanctioning four Israeli settlers. The order said the violence they are instigating is producing increased instability.

Mr Biden said that “high levels of extremist settler violence, forced displacement of people and villages, and property destruction, has reached intolerable levels.”

People embrace at the funeral of three Palestinians killed during an Israeli raid on a hospital in Jenin in the West Bank. Reuters
People embrace at the funeral of three Palestinians killed during an Israeli raid on a hospital in Jenin in the West Bank. Reuters

King Abdullah warned early in the war of possible spillover effects. He blamed what he described as Israeli intransigence for any regional war that could ensue. Jordan has a 1994 peace treaty with Israel.

In 1999, the authorities in Amman expelled Hamas's leadership form Jordan to Israel, deeming them a national security threat. The group, which is supported by Iran, is linked to the Muslim Brotherhood, which unlike in most other Arab countries, is allowed in Jordan, albeit with limits.

The king has repeatedly opposed any Israeli action that could lead to another wave of Palestinian refugees arriving in Jordan. Although the king has kept diplomatic ties with Israel, he signalled the kingdom's unease about expanding its integration in the region, such as including the latter in commercial and infrastructure projects.

A regional normalisation process started with the US-supervised Abraham Accords in 2020, although a US drive for Israel-Saudi normalisation has hit major obstacles ahead of the US elections in November.

The Jordanian position received a boost last week when US Secretary of State Antony Blinken met with Saudi Crown Prince Mohamed Bin Salman, during a visit to the kingdom.

[the king] will make it clear to Biden that however electorally tempting, there is too much anger in the Arab street, and this is no time to pursue more normalisation.
Diplomatic source

Mr Blinken said the crown prince told him that Saudi Arabia still has "strong interest in normalisation" but not before "an end to the conflict in Gaza and a clear, credible, time-bound path to the establishment of a Palestinian state."

The Gaza war has revived US interest in a two-state solution, a goal that became more distant with the halting of peace talks almost a decade ago.

Another diplomat said the king "will make it clear to Biden that however electorally tempting it is, there is too much anger in the Arab street, and this is no time to pursue more normalisation."

But Mr Blinken has been discussing post-war scenarios for Gaza with Jordanian and other Arab officials. The proposals are based on a strong role for the Palestinian Authority and on the expectation of a diminished Hamas, although it is not clear what kind of response they have garnered.

A large proportion of Jordan’s 10 million population are of Palestinian origin. They are mostly descendants of waves of refugees caused by the Palestinian-Israeli conflict in 1948 and 1967.

Since the latest war, many in Jordan have been boycotting US and European goods in response to perceived Western support for the Israeli invasion of Gaza.

The invasion has killed more than 28,000 people in Gaza, according to Palestinian health officials.

Authorities in Jordan have also allowed some anti-Israeli demonstrations, but not too close to the kingdom's 480km border with Israel.

On Friday, security forces blocked roads leading to the northern crossing with Israel to prevent people assembling near the bridge for a planned demonstration organised mainly by the Muslim Brotherhood, which Hamas has links to.

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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.”

Updated: February 11, 2024, 6:41 PM