Britain's recently appointed Foreign Secretary David Lammy, pictured at a meeting in Beirut, Lebanon in January this year. Reuters
Britain's recently appointed Foreign Secretary David Lammy, pictured at a meeting in Beirut, Lebanon in January this year. Reuters
Britain's recently appointed Foreign Secretary David Lammy, pictured at a meeting in Beirut, Lebanon in January this year. Reuters
Britain's recently appointed Foreign Secretary David Lammy, pictured at a meeting in Beirut, Lebanon in January this year. Reuters

UK Foreign Minister David Lammy calls for immediate ceasefire in Middle East trip


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British Foreign Secretary David Lammy called for an immediate ceasefire in Gaza during a visit to Israel and the Palestinian territories on Sunday, his second international trip since Labour's resounding victory in elections this month.

Mr Lammy said the war in Gaza is “intolerable” and stressed in meetings with Israeli and Palestinian leadership that the UK government wants to assist with diplomatic efforts “securing a ceasefire deal and creating the space for a credible and irreversible pathway towards a two-state solution”.

Mr Lammy will meet Israeli Prime Minister Benjamin Netanyahu in Jerusalem and with Palestinian President Mahmoud Abbas in the West Bank city of Ramallah. He will meet Israeli President Isaac Herzog on Monday.

During his visit, Mr Lammy will also meet families of hostages held in Gaza who have ties to the UK. He called for the release of all hostages and a dramatic increase in the amount of humanitarian aid entering Gaza. About 680 tonnes of British aid that is waiting to enter Gaza, the Foreign Office said.

Mr Lammy demanded that Israel halt settlement expansion in the Israeli-occupied West Bank and East Jerusalem, and said that the Palestinian Authority needs to be “reformed and empowered”.

Both Mr Lammy’s Labour Party and the previous Conservative government initially avoided calling for an immediate ceasefire in the war, using phrases like “humanitarian pause.”

But the language has become stronger. Prime Minister Keir Starmer told Mr Netanyahu last week there was a “clear and urgent need for a ceasefire”.

Labour’s stance on the Gaza war cost it votes in this month’s UK election. Although the party won in a landslide, pro-Palestine independent candidates defeated Labour in several seats with large Muslim populations.

Mr Lammy's comments came the day after Israel said it had killed a Hamas military commander in a strike on Saturday in the crowded southern Gaza Strip that killed at least 90 people, according to local health officials.

Palestinians salvage items from the site of Israeli bombardment at the al-Mawasi camp. AFP
Palestinians salvage items from the site of Israeli bombardment at the al-Mawasi camp. AFP

Senior Hamas officials said on Sunday that the negotiations for a possible ceasefire deal had not been halted because of the attack. Hamas also denied that military chief Mohammed Deif, the target of the strike, was killed and said Israel’s “false claims are merely a cover-up for the scale of the horrific massacre.”

Mr Deif and Hamas' senior official in Gaza, Yahya Sinwar, are believed by Israel to be the chief architects of the October 7 attack that killed some 1,200 people in southern Israel and kidnapped 250, triggering the Israel-Gaza war.

Since then, Israeli ground offensives and bombardments have killed more than 38,400 people in Gaza and wounded more than 88,000, according to the territory's Health Ministry. The ministry does not distinguish between combatants and civilians in its count.

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: July 15, 2024, 8:32 AM