Palestinian children carrying food cooked by a charity kitchen, during Ramadan in southern Gaza's Khan Younis. Reuters
Palestinian children carrying food cooked by a charity kitchen, during Ramadan in southern Gaza's Khan Younis. Reuters
Palestinian children carrying food cooked by a charity kitchen, during Ramadan in southern Gaza's Khan Younis. Reuters
Palestinian children carrying food cooked by a charity kitchen, during Ramadan in southern Gaza's Khan Younis. Reuters

Palestinians fear for future as UN scales back staff in Gaza


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The UN's decision to temporarily remove a third of its international staff from Gaza is increasing the hopelessness of Gazans who have lost so much already, Palestinians told The National on Tuesday.

Stéphane Dujarric, spokesman for the UN Secretary General, said on Monday that the move was due to increased danger to UN workers after Israel relaunched its military campaign last week with bombardment that has killed more than 700 Palestinians. The world body said an Israeli tank was probably responsible for an attack on a UN guesthouse in central Gaza last week, a charge the Israeli military denied.

The UN staffing removal comes as essential aid, including medical supplies, food and water, remains barred from entering the strip. A brief period of calm brought by ceasefire between January 19 and March 1 was not enough time to repair shattered infrastructure.

Mohammed Al Attar, 39, from Beit Lahia in Gaza's north says he is being forced to live among “garbage and sewage” as sanitation pipelines remain destroyed. Israel has also prevented UN staff from cleaning up tonnes of solid waste, leading to massive landfills which Gazans such as Mr Al Attar now call home.

“Life here is unbearable. The stench, the insects, and the open sewage surrounding us make it a breeding ground for disease. I never imagined that my wife, my children, and I, eight people in total – would end up living like this,” he said.

Since his displacement from the north and Israel's blockade of aid on March 2, Mr Al Attar says he has barely received any assistance. International NGOs have previously told The National that during the ceasefire, the need was so high that any aid coming in would be distributed immediately, leaving no capacity for stockpiling in case hostilities resumed.

Last week, the UN said it had no contingency plan for an escalation in violence and has been operating in a state of contingency for the past 16 months, since October 2023.

“They were barely providing us with anything – now things will only get worse,” Mr Al Attar said.

Other sources of aid are also on the brink. On Monday, Israel admitted to hitting a building that belongs to the International Committee for the Red Cross (ICRC) in Rafah. In a statement, the Israeli military said it fired at a building “after identifying suspects and sensing a threat to the force”, adding that the structure's ownership was “unknown”.

However, the ICRC has disputed these claims. Speaking to The National from Gaza, spokesman Hisham Mhanna said the building's location was known to Israel, and had an ICRC flag flying on top of it. Mr Mhanna said ICRC staff have not returned to the building because the situation remains “unpredictable”.

“There is concern by ICRC members and the entire humanitarian community – given the incident that led to the death and injury of UN staff members in Deir Al Balah – that this is a warning sign that even humanitarians aren't protected and are facing grave security incidents by being directly impacted and targeted with or without an excuse,” Mr Mhanna said.

The Israeli bombardment of Gaza has also affected communications. ICRC staff lost contact with Palestinian Red Crescent crew three days ago in Rafah. Their whereabouts are still unknown. The most recent attacks on humanitarian and emergency personnel will complicate the environment for aid distribution even further.

Mr Mhanna said security concerns are not even the main challenge.

“Restrictions on aid and the closure of the crossings, lack of fuel and food items in the market all mean that hot meals are not delivered for civilians who rely on them for sustenance,” he said.

Although the UN announced its operation would be scaled back, it said it would not leave Gaza. The ICRC maintained the same position, adding that its operations save lives and they are not intending to leave.

But Fadl Al Atal, a father of four, voiced deep concern about the worsening humanitarian crisis.

“UNRWA's aid and services have already been scarce for weeks, ever since the occupation shut down the border crossings at the beginning of Ramadan. Any further reduction in staff or assistance will undoubtedly have disastrous consequences for the people.

“We’ve been trapped in this grinding cycle for 18 months, not knowing what to do. Every new setback only deepens people's suffering and further limits the essential services they rely on,” Mr Al Atal told The National.

“We understand UNRWA’s concern for its employees, especially since the occupation has repeatedly targeted them. But at the same time, UNRWA and all international organisations must push back against the occupation, hold it accountable, and prevent these crimes from happening – not simply surrender to its decisions and dictates.

“The pressure and decisions should be directed against the occupiers, not against the innocent people who have already been crushed by war and are in desperate need of humanitarian relief.”

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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: March 25, 2025, 3:40 PM