Palestinians inspect the rubble of a home after it was destroyed in an Israeli strike in Gaza city on Wednesday. AFP
Palestinians inspect the rubble of a home after it was destroyed in an Israeli strike in Gaza city on Wednesday. AFP
Palestinians inspect the rubble of a home after it was destroyed in an Israeli strike in Gaza city on Wednesday. AFP
Palestinians inspect the rubble of a home after it was destroyed in an Israeli strike in Gaza city on Wednesday. AFP

Egypt presents proposals to restore Gaza's ceasefire after Israel kills hundreds


Hamza Hendawi
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Egypt has put forward new proposals to reinstate the ceasefire in Gaza, aiming to secure the release of up to six hostages and the remains of an unspecified number held by Hamas, sources briefed on the proposal told The National on Wednesday.

In exchange, the plan calls for negotiations on ending the war, according to the sources, who said it also includes the resumption of sending humanitarian assistance into the territory. Israel has blocked aid deliveries since earlier this month and also cut off the supply of electricity.

Hamas has agreed to the plan in principle but demanded guarantees that negotiating an end to the war and an Israeli withdrawal will commence when it releases the hostages as part of the Egyptian proposals.

The plan comes after Israel resumed the bombardment of Gaza early on Tuesday, killing hundreds of Palestinians.

“The main objective of the new proposals is to stop the hostilities and allow humanitarian aid to flow into Gaza again,” one of the sources said. “The Americans are aware of the existence of the new proposals but are yet to respond.”

The sources said the plan was not final and could be modified to get the approval of both sides.

Smoke billows after an Israeli bombardment of northern Gaza on Wednesday. AFP
Smoke billows after an Israeli bombardment of northern Gaza on Wednesday. AFP

News of the Egyptian proposals came after Israel carried out further air strikes on Gaza on Wednesday, killing 13 people, according to the territory's civil defence agency. The latest strikes came after Israeli Prime Minister Benjamin Netanyahu said Tuesday's raids, which killed more than 400 Palestinians, were “only the beginning”.

There was no direct comment immediately available from Hamas on the new proposals, but a senior official said on Wednesday it remained open to negotiations.

The second phase of the previous ceasefire deal provided for negotiations for Israel's withdrawal from Gaza and an end to the war. Instead, Israel wanted to extend the first phase, embracing a proposal by US envoy Steve Witkoff for a truce until mid-April and the release of 11 hostages held by Hamas along with the remains of half the deceased hostages.

Hamas has rejected the plan, a move that prompted Israel and the US to portray it as a refusal to release more Israeli hostages in exchange for Palestinian prisoners.

Palestinians fleeing their homes after the Israeli army issued eviction orders in the northern Gaza Strip on Wednesday. Reuters
Palestinians fleeing their homes after the Israeli army issued eviction orders in the northern Gaza Strip on Wednesday. Reuters

The sources said the Egyptian plan's provision for the release of six hostages rather than the 11 mentioned in Mr Witkoff's proposal is designed to make it acceptable to Hamas since the group, significantly weakened by more than a year of Israeli strikes, views them as its most powerful bargaining chips.

In contrast to Israel's declared wish, the plan also does not provide for the expulsion from Gaza and exile of Hamas's political and military leaders.

Mediators from Egypt, the US and Qatar brokered the January ceasefire deal after more than a year of on-off negotiations. Of the three mediators, Egypt is most impacted by the war in Gaza, with which it shares a border.

The Gaza war, sparked by a deadly Hamas-led attack on southern Israel in October 2023 in which 1,200 were killed, has slashed by half Egypt's vital revenue from the Suez Canal because of attacks on Red Sea shipping by Yemen's Iran-backed Houthis.

The war has killed more than 49,500 Palestinians and wounded more than twice that number, according to Gaza's Health Ministry. It has also displaced most of the enclave's 2.3 million residents and laid to waste large segments of built-up areas.

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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.”

Updated: March 19, 2025, 5:49 PM