Supporters and families of Israeli hostages during a protest outside the Kirya military headquarters in Tel Aviv. EPA
Supporters and families of Israeli hostages during a protest outside the Kirya military headquarters in Tel Aviv. EPA
Supporters and families of Israeli hostages during a protest outside the Kirya military headquarters in Tel Aviv. EPA
Supporters and families of Israeli hostages during a protest outside the Kirya military headquarters in Tel Aviv. EPA

Hostage families pile pressure on Netanyahu after bodies discovered


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The recovery of the bodies of six Israeli hostages killed in Gaza has intensified pressure on defiant Prime Minister Benjamin Netanyahu to ease his hardline demands that are stalling a ceasefire deal with Hamas.

On Wednesday, US Secretary of State Antony Blinken concluded his visit to the Middle East without securing any major breakthrough for stopping the war. He was on his ninth trip to the region since October 7 when Hamas launched an attack in Israel that killed about 1,200 people. More than 40,100 Palestinians have been killed in Gaza since the war started, with at least 92,743 injured and thousands more missing under rubble, Ministry of Health figures indicate.

Hours before his departure, and as the talks in Doha were entering a crucial phase, Israeli forces entered Hamas tunnels in Khan Younis in the south of the Palestinian strip to recover the bodies of hostages Yagev Buchshtab, Alexander Dancyg, Avraham Munder, Yoram Metzger, Nadav Popplewell and Haim Perry, Israel's Defence Minister Yoav Gallant said on X. At least 109 hostages are believed to remain in Gaza after Hamas captured 251 people from Israel on October 7.

“If the (Israeli army) assessment is correct that they were alive in March … it points up the fraught condition of these hostages,” Aaron David Miller, a former longtime Middle East analyst at the State Department, told The National.

Israeli politicians and families of the hostages have long accused the Prime Minister of prioritising his political career over reaching a ceasefire deal, arguing that ending the war would signal a failure by the army to eradicate Hamas. In this context, he insists that any agreement must allow Israel the freedom to resume military action at any time and maintain a presence in parts of the strip.

On Tuesday evening, protesters blocked traffic in Tel Aviv and held protests in Haifa after the announcement of the bodies' return was made, demanding a ceasefire.

Matty Dancyg, the son of Alex Dancyg, a Holocaust scholar who was taken from Kibbutz Nir Oz, will bury his father on Sunday.

"It’s kind of a relief that we know the body is in Israel, and we’ll have a grave. But I’m more interested in life. When I knew he wasn’t alive anymore, my thoughts were mostly about the people that are still there. They should be saved and brought back alive - not in a plastic bag," he told The National.

His father, who was taken when he was 75, was declared dead in July, several months after Hamas claimed he and six others had been killed. A cousin, Itshak Elgarat, remains in Gaza. Mr Dancyg says Prime Minister Netanyahu is sacrificing civilians for his own political career to avoid taking responsibility for security failures that led to the October 7 attack.

"It’s not moral. It’s not human. I feel like I’m kidnapped in my country by this government."

While Hamas is responsible for the attack, Mr Dancyg now thinks of the missed opportunities to free his father. He said "Hamas is the main one responsible for October 7, but since then, the government of Israel has made every mistake they could... They’ve left people to die there."

People mourn Israeli soldier Lieutenant Shahar Ben Nun, who was killed amid the ongoing conflict in Gaza between Israel and Hamas, during his funeral in Tel Aviv, Israel, August 20, 2024. REUTERS
People mourn Israeli soldier Lieutenant Shahar Ben Nun, who was killed amid the ongoing conflict in Gaza between Israel and Hamas, during his funeral in Tel Aviv, Israel, August 20, 2024. REUTERS

A statement by The Hostages Families and Missing Forum welcomed the extraction of the bodies but it also urged the government to “do everything in its power” to finalise the long-delayed agreement to secure the release of the remaining hostages held in Gaza, saying that a negotiated deal was the only way to get them home.

“Israel has a moral and ethical obligation to return all the murdered for dignified burial and to bring all living hostages home for rehabilitation. The immediate return of the remaining 109 hostages can only be achieved through a negotiated deal. The Israeli government, with the assistance of mediators, must do everything in its power to finalise the deal currently on the table.”

The urgency of rescuing the remaining hostages while finalising a deal is increasing pressure on Mr Netanyahu, especially after Hamas rejected new proposals that incorporate some of the Prime Minister's demands into a previously agreed-upon deal.

“The US is attempting to delay negotiations in order to pressure the mediators into accepting Mr Netanyahu's new conditions as necessary,” a senior Hamas official told The National, adding the group “won't accept that”.

“The international community must put pressure on Mr Netanyahu, who took advantage of Hamas’s flexibility to make amendments to the agreement and change the conditions,” stressed the source.

For Mr Miller, and despite the pressure on Mr Netanyahu, it was unlikely that it would force him to sign a deal with Hamas. He said that the “hostage families cannot change the numbers in the Knesset”.

US President Joe Biden is also in a predicament in handling his last remaining days in office while putting pressure on Mr Netanyahu.

“The Biden administration, in my judgement, is locked into a true political dilemma now, because in the next 80 days, I cannot imagine how Biden would want to get into a major fight with Netanyahu,” said Mr Miller.

Mr Netanyahu's government has also come under fire for its handling of plans to commemorate the first anniversary of the Hamas attack, with the hostages forum and several kibbutz communities saying they will not attend government-organised memorials.

Kibbutz Yad Morderchai was the latest to announce its boycott, saying on Wednesday it “refused to take part in any political production”. The community will hold its memorial, which will be opened to other communities in southern Israel.

Former Defence Minister Benny Gantz, who resigned from the war cabinet in June, has called on the government to "just listen" and let affected communities lead plans for any memorial.

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: August 21, 2024, 3:03 PM