Displaced Palestinians flee the Shejaiya district as Israel escalated operations against Hamas, east of Gaza City. Ahmad Salem / Bloomberg
Displaced Palestinians flee the Shejaiya district as Israel escalated operations against Hamas, east of Gaza City. Ahmad Salem / Bloomberg
Displaced Palestinians flee the Shejaiya district as Israel escalated operations against Hamas, east of Gaza City. Ahmad Salem / Bloomberg
Displaced Palestinians flee the Shejaiya district as Israel escalated operations against Hamas, east of Gaza City. Ahmad Salem / Bloomberg

Israel's new plan for a 40-day truce 'rejected by Hamas'


Hamza Hendawi
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After rejecting the latest Gaza ceasefire proposals by Egyptian mediators, Israel has presented its own plan, sources briefed on the matter told The National.

Hamas found the latest Israeli proposals so unacceptable that it has refused to respond, even when the terms were conveyed through mediators. Previously, the Egyptians were proposing a 50-day humanitarian truce, with Hamas releasing at least five hostages, including a dual US-Israel national, before the end of the first seven days. Hamas agreed to that proposal.

One new demand made by Israel is for Hamas to show its goodwill by releasing a dual US-Israel soldier it is holding captive before a deal is reached, said the sources.

Israel is also proposing that Hamas release 10 Israeli soldiers on the first day of a 40-day truce, they added. In return, Israel will free from its prisons 120 Palestinians serving life sentences along with 1,111 others, according to the proposals. Israel is also demanding that Hamas hand over the remains of 16 deceased hostages in exchange for the remains of 160 Palestinians.

While Israel set the duration of the truce at 40 days, it said negotiations based on "new principles" should begin on the second day, the sources stated. This, they explained, reflected Israel's refusal to negotiate the second stage of an agreement brokered in January by US, Egyptian, Qatari and Egyptian mediators, and which included a seven-week ceasefire.

On Saturday, the sources said talks were under way between mediators and Israeli and Hamas negotiators on a set of modifications introduced by Cairo to its earlier blueprint. They said the discussions were taking place in Qatar and Egypt.

A Hamas delegation was expected in Cairo later on Saturday, they added.

"They are not new proposals. They are changes in the earlier proposals that touch on the number of hostages to be freed by Hamas and that of the Palestinians to be released in return," said one source.

Displaced 12-year-old Rewaa Mukhemer takes cover from the sun as she sells metal barrels to be used as toilets at the Muwasi camp for displaced Palestinians in Khan Younis, southern Gaza Strip. AP
Displaced 12-year-old Rewaa Mukhemer takes cover from the sun as she sells metal barrels to be used as toilets at the Muwasi camp for displaced Palestinians in Khan Younis, southern Gaza Strip. AP

The Gaza truce expired on March 1, but Gaza remained relatively quiet until March 18, when Israel resumed air strikes and later ground operations. The second-stage negotiations, according to the agreement, should have started in early February and produced a deal on releasing the remaining hostages – about 58, of whom only 24 are alive – as well as an end to the war and Israeli withdrawal from Gaza.

Moreover, Israel continues to demand that Hamas disarms and its leaders leave Gaza and go into exile, conditions already rejected by Hamas.

"Israel has told the Egyptian and Qatari mediators that it has new plans on the ground in Gaza which it will not give up, something that has led to the freezing of negotiations," said one of the sources. "It has also angered Egypt by designating a new corridor in Gaza that separates Rafah and Khan Younis" in the southern part of Gaza.

Palestinians attend a protest against the war and Hamas in Beit Lahiya, northern Gaza Strip. AP
Palestinians attend a protest against the war and Hamas in Beit Lahiya, northern Gaza Strip. AP

The sources said Egyptian mediators also had reason to believe that Israel is currently fuelling divisions among Gaza's 2.3 million Palestinians, including encouragement of anti-Hamas protest there.

Hundreds of people were seen chanting slogans across the territory in recent weeks, calling for the end of the war and for Hamas's rule to end. Placards hoisted by demonstrators read “Stop the war”, “We refuse to die”, and “The blood of our children is not cheap”.

Social media campaigners and tribal leaders had urged residents to join the protests, which have divided Gaza’s population. While some support the demonstrations as a call to end the war, others oppose them, arguing that they could fuel internal discord.

Hamas officials characterised the widespread protests in Gaza, calling for an end to the war and the group's removal from power as an Israeli attempt to put pressure on it to disarm. However, demonstrators told The National they were protesting against the continuation of the war, which has devastated their lives.

Hamas, which led a deadly attack on southern Israel on October 7, 2023, that sparked the war, has controlled the enclave since 2006, and held no elections since then, partially due to a falling out with Fatah, the party that leads the West Bank-based Palestinian Authority. Israel's war on Gaza has killed more than 50,000 people and left most of the enclave's buildings destroyed.

Earlier this week, Prime Minister Benjamin Netanyahu announced that Israel will create another corridor across Gaza's south as it laid out plans to seize more of the enclave's territory.

The Israeli leader said the military operation in Gaza had “shifted gears” and is now “seizing territory”, including a new route he called the Morag corridor, thought to be named after a Jewish settlement that once stood between Rafah and Khan Younis in the south. Israel unilaterally withdrew from Gaza in 2005.

Displaced Palestinians flee the Shejaiya district east of Gaza City as Israel escalated operations against Hamas. Bloomberg
Displaced Palestinians flee the Shejaiya district east of Gaza City as Israel escalated operations against Hamas. Bloomberg

The sources said US special envoy Steve Witkoff was expected in the region next week, visiting Egypt, Saudi Arabia and the United Arab Emirates. They did not give a precise date for his arrival.

The latest Egyptian modifications, according to the sources, envisage that the first seven to 10 days of the 50-day truce see the initial release of three living hostages as part of a timeline in which a total of 10 hostages could be freed. Negotiations on an Israeli withdrawal and an end to the war should begin during the first week of the truce, they added.

Separately, negotiations are taking place between Egypt and Israel on the withdrawal of the latter's military from the narrow strip that runs the length of the Egyptian-Gaza border on the Palestinian side. Israel captured the area, called the Philadelphi Corridor, in May last year.

Israel's action was strongly condemned by Egypt, which saw it as a breach of their 1979 peace treaty and subsequent accords. However, Israel insists it needs to have its forces there to deny Hamas the opportunity to rebuild its military capabilities with arms smuggled through underground tunnels from Egypt. Cairo insists that it has destroyed the tunnels nearly a decade ago.

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: April 06, 2025, 2:55 AM