A Palestinian father carries his daughter next to a destroyed house following an Israeli air strike on Al Maghazi refugee camp, in central Gaza, on Friday. EPA
A Palestinian father carries his daughter next to a destroyed house following an Israeli air strike on Al Maghazi refugee camp, in central Gaza, on Friday. EPA
A Palestinian father carries his daughter next to a destroyed house following an Israeli air strike on Al Maghazi refugee camp, in central Gaza, on Friday. EPA
A Palestinian father carries his daughter next to a destroyed house following an Israeli air strike on Al Maghazi refugee camp, in central Gaza, on Friday. EPA

Talks on Gaza ceasefire make significant progress as Israel steps up assault on enclave


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Negotiations on a Gaza ceasefire and the release of hostages held by Hamas have made significant progress, after both Israel and the militant Palestinian group softened their positions, sources familiar with the talks told The National on Friday.

They said Hamas has agreed to a temporary ceasefire lasting up to 40 days and dropped its demand for a written guarantee from mediators that Israel will continue talks until a permanent ceasefire is reached.

The truce will see a “limited” release of hostages, including female Israeli soldiers, in exchange for Palestinians held in Israeli jails, they said. Israel has also agreed to withdraw from a strip of land that runs the length of Egypt’s border with Gaza on the Palestinian side, which includes Rafah, the only crossing out of the coastal enclave that is not controlled by Israel, the sources added.

Meanwhile, Hamas confirmed in a statement that “indirect negotiations resumed in Doha", and it is ready “to reach an agreement”. It added that it will focus on a deal “that leads to a complete ceasefire and the enemy's withdrawal from Gaza”.

The White House said on Friday that brokering a ceasefire and hostage release deal “is both urgent and possible”.

“I don't have any breakthroughs to speak of today or announcements to make about participation physically,” US National Security Council spokesman John Kirby said. But he called Israel sending another negotiating team to Doha an “encouraging step”.

“We're going to be doing everything we can to see if we can broker a new ceasefire deal that will get the hostages home,” he told reporters on a call.

The resumption of stalled talks on a ceasefire represents a last-ditch attempt by the administration of US President Joe Biden to reach a deal before his departure from office on January 20.

But it comes as Israel intensifies assaults on the Palestinian enclave, with the Israeli army saying it struck about 40 sites linked to Hamas on Thursday and Friday. Nearly 90 Palestinians were killed and scores more wounded, Gaza's Government Media Office said in a statement.

“The Israeli army carried out 34 air strikes within 24 hours, targeting unarmed civilians across all governorates of the Gaza Strip,” the media office said.

Gaza city, in the north of the territory, has been particularly hit hard, with more than 15 Israeli attacks killing 50 people and wounding 120, according to Mahmoud Basal, spokesman for the enclave's civil defence authorities.

“What is happening in Gaza city is madness,” Mr Basal told The National. “It reflects the Israeli army's brutality and insatiable thirst for committing crimes against civilians without regard for international laws or treaties.”

He said civil defence teams were overwhelmed by distress calls. “We are no longer able to respond to all the calls for help amid the relentless bombardment. We urgently call for resources and equipment to enable the Civil Defence Directorate to fulfil its role in rescuing citizens.”

Mourners gather around the bodies of Palestinians killed in Israeli strikes at Al Aqsa Martyrs Hospital in Deir Al Balah, Gaza, on Friday. Reuters
Mourners gather around the bodies of Palestinians killed in Israeli strikes at Al Aqsa Martyrs Hospital in Deir Al Balah, Gaza, on Friday. Reuters

Mohammed Al Shobaki, 32, from Gaza city, said he was with his six-year-old son shopping for essentials when an air strike hit nearby. “They struck close to us, targeting a cart being pulled by a donkey,” he told The National. “Several people were martyred, and my son and I sustained moderate injuries.”

He said there had been constant shelling for two days, with people dying or being wounded every hour. “Every time there’s talk of a truce, the killing and brutality intensify,” he said. “The occupation tries to maximise its gains before any potential agreement. Gaza city is a prime target because of its dense population. Each strike seems to feed their appetite for death and destruction.”

Securing a ceasefire is a priority for the Biden administration, White House officials have said, but talks led by Washington have repeatedly stalled during 15 months of war.

One source close to the negotiations on Friday told The National: "The Israeli delegation that arrived in Doha today is continuing technical meetings that have been ongoing for some time in Qatar, aimed at bridging gaps between Hamas and Israel."

There are now concerns the Israelis could be preparing to intensify ground operations in Gaza city. Israeli media have quoted unnamed military sources in recent days saying army chief of staff Herzi Halevi has issued instructions to boost troop numbers in the area.

Mohammed Al Zayan, 27, from the city's Al Daraj neighbourhood, said escalating aerial bombings followed by a ground assault was a familiar strategy from the Israelis.

“We’ve grown used to the pattern,” he told The National. “Any military operation in Gaza city would be catastrophic, as the area is packed with displaced people. Tens of thousands of citizens are living in tents or on the streets, unable to find shelter or protect themselves from the cold – let alone from shelling and shrapnel.”

Hassan Al Asmar, 35, a father of three in Gaza city's Al Nasr neighbourhood, said every step outside his home was carefully calculated to mitigate the risks.

“Not an hour passes without hearing shelling or explosions,” he said. “Since the escalation began, I only leave the house for the most urgent necessities. The fear isn't just of death but of the lack of medical care if I or a family member were injured. I used to let my children play near our home, but now I’ve completely forbidden it.”

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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: January 04, 2025, 3:50 AM