Norwegian Foreign Minister Espen Barth Eide and Saudi Arabia's Foreign Minister Prince Faisal bin Farhan at a meeting in Riyadh. Reuters
Norwegian Foreign Minister Espen Barth Eide and Saudi Arabia's Foreign Minister Prince Faisal bin Farhan at a meeting in Riyadh. Reuters
Norwegian Foreign Minister Espen Barth Eide and Saudi Arabia's Foreign Minister Prince Faisal bin Farhan at a meeting in Riyadh. Reuters
Norwegian Foreign Minister Espen Barth Eide and Saudi Arabia's Foreign Minister Prince Faisal bin Farhan at a meeting in Riyadh. Reuters

Arab and European ministers call for ‘irreversible’ two-state solution for Palestine


Ismaeel Naar
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Arab and European foreign ministers met in Saudi Arabia's capital, Riyadh, on Monday to discuss how to join forces on advancing a two-state solution to the Israeli-Palestinian conflict.

Saudi Arabia emphasised the need for an “irreversible track” to implement such a solution, one that would deliver the rights of the Palestinian people and also ensure the security of Israel.

“Concrete steps towards the realisation of a Palestinian state in the context of the two-state solution were discussed,” the Saudi Foreign Ministry said in a statement.

“An increased urgency to take such steps and the importance of co-ordinating positions were emphasised.

“The meeting also discussed the question of recognition of a Palestinian state by countries who have not yet done so, and the timing and context of such recognition.”

Israel is not ready to negotiate, nor is the US prepared to take the necessary leadership in the matter, Norwegian Foreign Minister Espen Barth Eide, one of the meeting's organisers, said afterwards.

“If we want to move this two-state solution forward it will not happen from the parties,” he said. “So, an Arab-European leadership is the best we can hope for.”

The meeting took place on the sidelines of a two-day World Economic Forum special meeting in Riyadh.

The conference was devoted largely to the war in the Gaza Strip, which was triggered by Hamas's unprecedented October 7 attack on southern Israel.

US Secretary of State Antony Blinken meeting Saudi Crown Prince Mohammed bin Salman in Riyadh on Monday. AFP
US Secretary of State Antony Blinken meeting Saudi Crown Prince Mohammed bin Salman in Riyadh on Monday. AFP

Tangible and irreversible steps towards establishing a Palestinian state would be an essential component of any deal for a durable ceasefire, Saudi Foreign Minister Prince Faisal bin Farhan said.

“The continued rejection of the two-state solution will inevitably undermine the security and stability of the region,” Prince Faisal said at the Arab-European meeting, which was also attended by Turkish Foreign Minister Hakan Fidan.

The meeting emphasised the need to adopt a holistic approach to a two-state solution “in accordance with international law and agreed parameters, including the United Nations Security Council resolutions and the Arab Peace Initiative”, the foreign ministry statement said.

“The main question is what really happens on the Palestinian issue,” Aziz Alghashian, who researches Saudi Arabia's foreign policy on Israel, told The National. “A credible peace process, irreversible steps – this is the kind of language that has been consistently coming out of the foreign ministry in Saudi Arabia.

“But what are these steps? How can we define these steps? These are yet to be defined. This illustrates that while there is momentum going forward on any deal, there is still some way to go on the fleshing out of the details,” Mr Alghashian said.

Normalise relations

On Monday, US Secretary of State Antony Blinken said his country was almost ready with a security package to offer Saudi Arabia if it normalises relations with Israel, as he sought incentives for Israel to support a Palestinian state.

Mr Blinken was visiting Riyadh on his seventh trip to the region since the October 7 Hamas attack on Israel, which has responded with a relentless offensive in Gaza that has drawn global criticism.

Prince Faisal, who met Mr Blinken in Riyadh, also said US-Saudi agreements were “very, very close” and “most of the work has already been done”.

But the Saudi foreign minister repeated his government's insistence that a pathway to a Palestinian state was “the only way it's going to work”.

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Started: 2019
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Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
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PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

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Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

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Kamindu Mendis bio

Full name: Pasqual Handi Kamindu Dilanka Mendis

Born: September 30, 1998

Age: 20 years and 26 days

Nationality: Sri Lankan

Major teams Sri Lanka's Under 19 team

Batting style: Left-hander

Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)

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: April 30, 2024, 3:53 PM