Spanish Prime Minister Pedro Sanchez speaks with his Norway counterpart Jonas Gahr Store in Oslo. EPA
Spanish Prime Minister Pedro Sanchez speaks with his Norway counterpart Jonas Gahr Store in Oslo. EPA
Spanish Prime Minister Pedro Sanchez speaks with his Norway counterpart Jonas Gahr Store in Oslo. EPA
Spanish Prime Minister Pedro Sanchez speaks with his Norway counterpart Jonas Gahr Store in Oslo. EPA

Spanish and Irish leaders to discuss push for Palestinian statehood


Sunniva Rose
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Spain and Ireland are intensifying efforts across Europe for countries to recognise Palestinian statehood with a view to establishing a “coalition” that would increase political pressure on Israel to accept a two-state solution.

Spanish Prime Minister Pedro Sanchez landed in Oslo on Friday before travelling onwards to Dublin as part of a week-long tour to gather support for his plan to recognise a Palestine as a state.

"It is time to move from words to deeds," said Mr Sanchez, standing beside his Norwegian counterpart Jonas Gahr Store.

"The recognition of the state of Palestine and mutual recognition between Israel and Palestine are key elements for the implementation of a two state solution. The gravity of the situation demands bold actions from the international community," added Mr Sanchez.

The Spanish Prime Minister is scheduled to travel next week to Slovenia and Belgium, which have also said they would consider such a move.

Mr Sanchez's efforts to set up what has been described as “coalition” of western countries has triggered criticism from Israel but is viewed by his supporters as a condition for the peace process to succeed.

It was discussed on Thursday at Irish Taoiseach Simon Harris's first meeting since his appointment with EU Commission President Ursula von der Leyen.

“It’s up to every country to decide whether they wish to be part of a potential coalition of European member states that would recognise the |Palestinian] state, but I believe it’s highly likely it’ll be more than just Ireland and Spain,” Mr Harris told reporters.

Nine out of 27 European Union countries recognise the state of Palestine but only Sweden has done so recently, in 2014.

A number of Eastern European countries that recognised Palestine in 1988, including the Czech Republic and Hungary, are today among Israel's closest allies and have slowed down EU sanctions on violent Israeli settlers in the occupied West Bank in the past weeks after the US, the UK and France led the way.

  • Humanitarian aid being dropped from a Jordan military aircraft over the Gaza Strip amid battles between Israel and Hamas. AFP
    Humanitarian aid being dropped from a Jordan military aircraft over the Gaza Strip amid battles between Israel and Hamas. AFP
  • British military personnel during the international aid air drop into Gaza. PA
    British military personnel during the international aid air drop into Gaza. PA
  • Humanitarian aid before being dropped from a military aircraft. AFP
    Humanitarian aid before being dropped from a military aircraft. AFP
  • Hundreds of tonnes of resources were delivered into the enclave. The UAE, US, Germany, France, Indonesia, the Netherlands and Egypt also took part. PA
    Hundreds of tonnes of resources were delivered into the enclave. The UAE, US, Germany, France, Indonesia, the Netherlands and Egypt also took part. PA
  • British military personnel took part in the international aid drop into Gaza. PA
    British military personnel took part in the international aid drop into Gaza. PA
  • The operation was led by the Jordanian Armed Forces and coincided with Eid Al Fitr. PA
    The operation was led by the Jordanian Armed Forces and coincided with Eid Al Fitr. PA
  • Led by the Jordanian Armed Forces, the delivery coincided with the end of Ramadan. PA
    Led by the Jordanian Armed Forces, the delivery coincided with the end of Ramadan. PA

Last month, Israel told Spain, Ireland, Slovenia and Malta that a joint call to recognise Palestinian statehood would amount to a “prize for terrorism” that would reduce the chances of a negotiated resolution to the decades-old conflict.

Mr Sanchez has argued that recognising the state of Palestine must be done at an international peace conference.

“This momentum has to be different to the others we witnessed over the past seven decades,” Mr Sanchez said last week. Spanish Foreign Affairs Minister Jose Manuel Albares said his country was ready to do so by July.

The recognition of the state of Palestine is an important political signal but probably not enough to significantly impact Israeli and US diplomacy, warned Martin Konecny, director of Brussels-based think tank the European Middle East Project.

“It will symbolically reinforce the idea of a Palestinian state as something the Palestinians have a legitimate right to. This is important in the face of Israeli and US Republican denial of that right,” Mr Konecny told The National.

“But it's insufficient as it doesn't reverse the expansion of Israeli settlements that is making the Palestinian state increasingly impossible on the ground.”

Some observers are calling for sanctioning the Israeli state, not settlers living illegally on land that was supposed to constitute a future Palestinian state, because they benefit from the support of the Israeli state and army.

About 700,000 settlers live in the occupied West Bank, where violence against Palestinians is increasing.

While Slovenia and Norway – which is not an EU member – are to join Ireland and Spain in recognising Palestinian statehood, all eyes are now on diplomatic heavyweights such as the UK, the US, and France.

French President Emmanuel Macron said recently that the topic was “no longer taboo” but Foreign Affairs Minister Stephane Sejourne said this week that he did “not believe that it is useful to do it alone without a peace process”.

What impact the recognition of Palestinian statehood would have on postwar discussions remains hard to measure. “It will give a bit of a boost to the Palestinian Authority, but it is not clear whether it will have impact on those discussions,” said Mr Konecny.

Israel has reacted with fury to the Spanish and Irish-led initiative. The Israeli government does not support the idea of a Palestinian state, a position that further hardened after the Hamas-led October 7 attacks against Israel.

In an op-ed published in the Irish Times, Israel's ambassador to Ireland, Dana Erlich, wrote on Thursday that “a unilateral recognition of a Palestinian state at this point sends a dangerous signal to Hamas and its supporters, since it will be viewed as rewarding terrorism”.

“Any future workable agreement or resolution to the wider conflict is one that must be arrived at by the parties to it, and should be addressed separately from the current war,” added Ms Erlich.

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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