An Israeli Merkava tank heads to the buffer zone between Israel and Syria near the village of Majdal Shams in the Israeli-annexed Golan Heights on May 8, 2025. EPA
An Israeli Merkava tank heads to the buffer zone between Israel and Syria near the village of Majdal Shams in the Israeli-annexed Golan Heights on May 8, 2025. EPA
An Israeli Merkava tank heads to the buffer zone between Israel and Syria near the village of Majdal Shams in the Israeli-annexed Golan Heights on May 8, 2025. EPA
An Israeli Merkava tank heads to the buffer zone between Israel and Syria near the village of Majdal Shams in the Israeli-annexed Golan Heights on May 8, 2025. EPA

Syria-Israel talks are focused on reducing military presence near the Golan, source says


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Talks between Syria and Israel have focused on the sides cutting back their military presence near the Golan Heights, a Syrian political source said.

The source, who does not hold a government position, told The National that “no political issues have been discussed”.

Syria is demanding that Israel withdraws its troops to a 1974 armistice line on the Golan Heights, the source said. Israel sent its forces across the line into Syrian territory after rebel forces toppled former president Bashar Al Assad in December.

The Israelis want the Syrian government to commit to an expanded demilitarised zone, free from heavy weapons, that runs from the Golan Heights to the outskirts of Damascus, the source said.

Security teams from the sides have been discussing the details in an area of the Golan Heights patrolled by United Nations Disengagement Observer Force, the source said, without naming the participants.

Syrian President Ahmad Al Shara said this month that Syria is engaged in “indirect talks through mediators” with Israel “to calm down the situation so that it does not get out of control”.

Quoting sources, Reuters reported on Tuesday that a Syrian team led by Ahmad Al Dalati, a colonel in the security forces, held direct talks with Israel in the region of Quneitra, the heart of the 1974 demilitarised zone.

Mr Al Dalati told Syrian state television that he “categorically denies participating in any direct talks with the Israeli side”.

“Such claims lake accuracy and credibility,” said Mr Al Dalati, who was appointed this month as governor of the mostly Druze province of Suweida in southern Syria.

Syria and Israel have been technically at war since 1967. Israel seized the Golan Heights that year and annexed it in 1981. Syria launched an unsuccessful war to regain the area in 1973, leading to the creation of the UN demilitarised zone the following year.

The regime of Mr Al Assad, and his father Hafez held peace talks with Israel several times without reaching an agreement.

On May 14, President Donald Trump met Mr Al Shara in Riyadh after being urged to do so by Ankara and Saudi Arabia and he asked Syria to join the Abraham Accords that established diplomatic relations between Israel and a number of Arab states.

Although Mr Al Shara's Hayat Tahrir Al Sham group is a former ally of Al Qaeda, many see him and his government as a bulwark against more extreme elements. Israel bombed Syria since he was named leader by fellow rebels in late January, but the raids have subsided in recent weeks.

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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: May 28, 2025, 5:07 PM