Hamas leaders Ismail Haniyeh, left, and Yahya Sinwar attend a memorial service for one of the group's fighters in Gaza city in March 2017. Reuters
Hamas leaders Ismail Haniyeh, left, and Yahya Sinwar attend a memorial service for one of the group's fighters in Gaza city in March 2017. Reuters
Hamas leaders Ismail Haniyeh, left, and Yahya Sinwar attend a memorial service for one of the group's fighters in Gaza city in March 2017. Reuters
Hamas leaders Ismail Haniyeh, left, and Yahya Sinwar attend a memorial service for one of the group's fighters in Gaza city in March 2017. Reuters

US warns governments not to deal with Hamas after claims its leaders may move from Qatar


Sinan Mahmoud
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The US has warned governments in the region against dealing with Hamas, with the group looking to relocate its political leadership from Qatar to other countries, including Iraq.

On Monday, sources told The National that the Palestinian group was looking to move its leaders to Iraq as Washington and Doha build pressure to secure a ceasefire in the Gaza war, with negotiations deadlocked.

Critics of the US and Israeli position on the talks say a ceasefire agreement has little chance if Israel insists on the destruction of Hamas.

Baghdad has welcomed the idea of Hamas maintaining a high-profile presence in Iraq, the sources said. But the group has not yet said when the move will happen.

We have made clear to every government in the region that there should be no more business as usual with Hamas
Matthew Miller,
US State Department spokesman

“We have made clear to every government in the region that there should be no more business as usual with Hamas after the horrific attacks of October 7. And that applies to everyone,” US State Department spokesman Matthew Miller said, responding to a question during a briefing on Monday about Hamas's plans to move to Iraq.

A view of Baghdad's skyline in 2020. Reuters
A view of Baghdad's skyline in 2020. Reuters

Hamas security and logistics teams have travelled to Baghdad to oversee preparations for the move, the sources said, adding that the group plans to retain some form of representation in Doha to oversee relations with Qatar.

Hamas this month opened a representative office in Baghdad led by senior official Mohammed Al Hafy, the sources said. Since then, Mr Al Hafy has attended events organised by Iran-linked political factions and has held meetings with some politicians.

Hamas discussed its plans to leave Qatar with Tehran in March, when the group's political leader Ismail Haniyeh met Iran's supreme leader Ayatollah Ali Khamenei, sources told The National on Tuesday.

Hamas's leaders in Qatar, where they have lived since 2012, considered an offer to relocate to Turkey, before deciding on Iraq, the sources said.

"Iraq was preferred over Turkey for two reasons – it's an Arab country and it enjoys close relations with Iran," one of the sources said.

The Hamas-led October 7 attack killed about 1,200 people and more than 37,500 have been killed in Israel's retaliatory bombardment of Gaza. Fears of a wider regional war continue to grow, with more than 400 killed in Lebanon as Israel and Hezbollah exchange cross-border fire.

Late on Monday, senior Hamas official Izzat El Reshiq denied the group planned to move to Iraq, saying in a brief statement that the reports are “allegations”. He did not elaborate.

A Hamas representative in Lebanon also dismissed reports the group planned to leave Qatar. “We consider this part of the media pressure campaign on the movement to make concessions in the negotiations,” he told The National in Beirut.

The Iraqi government did not respond to requests for comment.

Failed talks

If finalised, the move will deepen differences between Baghdad and Washington. The US has accused Iraq of failing to do enough to rein in Iran-backed militias in the country that are openly supportive of Hamas.

Acting within the Axis of Resistance – a coalition of Iran-allied groups across the Middle East – these groups have orchestrated attacks against Israel since the Gaza war began. The groups initially focused their attacks on US troops in Iraq and Syria before an “unannounced truce” was reached.

Senior US officials have blamed Hamas for the lack of progress towards a ceasefire, after US President Joe Biden outlined a proposal to end the war.

There has been no significant contact between mediators, Hamas and Israel since talks broke down this month.

Hamas has rejected proposals for the release of hostages – about 115 of whom remain in Gaza – in exchange for the release of Palestinian detainees in Israel.

It has repeated its demands that any agreement must provide for a permanent ceasefire in the enclave, the full withdrawal of Israeli forces, the reconstruction of Gaza and the unconditional return of Palestinians displaced by the conflict.

Hamas officials were told they could face expulsion from Qatar and punitive measures, including the freezing of assets outside Gaza, if the group did not show flexibility in negotiations, sources added.

If the militant group's political leaders move to Iraq, it would create further challenges to ceasefire negotiations because Qatar would potentially have less influence on Hamas, which has controlled Gaza since 2007.

Doha, a close ally of Washington and home to the largest US military base in the Middle East, has for years been the main financial backer of the Hamas-led government in Gaza. Iran, which maintains warm relations with Qatar, is also a key supporter of Hamas.

Nada Homsi in Beirut and Hamza Hendawi in Cairo contributed to this report

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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