A Palestinian man inspects the rubble following Israeli strikes on the Al Qattaa family home in Al Tuffah neighbourhood in Gaza city on Saturday. AFP
A Palestinian man inspects the rubble following Israeli strikes on the Al Qattaa family home in Al Tuffah neighbourhood in Gaza city on Saturday. AFP
A Palestinian man inspects the rubble following Israeli strikes on the Al Qattaa family home in Al Tuffah neighbourhood in Gaza city on Saturday. AFP
A Palestinian man inspects the rubble following Israeli strikes on the Al Qattaa family home in Al Tuffah neighbourhood in Gaza city on Saturday. AFP

'Totally unacceptable': US rejects Hamas response to Gaza truce plan


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President Donald Trump's special envoy Steve Witkoff on Saturday said Hamas's response to a US-backed ceasefire plan for Gaza was “totally unacceptable.”

Hamas had given a conditional agreement to the Gaza truce plan presented by Mr Witkoff, with the group's reservations focused on assurances it seeks on Israel's withdrawal from the Palestinian territory and the distribution of aid, sources told The National on Saturday.

But Mr Witkoff appeared to pour cold water on any sense that an agreement with Hamas was imminent.

He said the militant group's response “only takes us backwards” and called on them to accept the proposal that the US had presented.

“That is the only way we can close a 60-day ceasefire deal in the coming days,” he wrote on X, adding that such a deal would lead to good-faith negotiations to try to reach a permanent ceasefire.

Hamas's response to the US plan had been handed earlier to Qatar and Egypt, whose mediators in turn fine-tuned it in co-operation with Hamas's leaders.

Hamas's response, reached after consultations with its allies in Gaza, sought firm assurances that negotiations with Israel during the proposed 60-day truce will bring about an Israeli withdrawal and an end to the war, according to sources.

Israel has long maintained it would not end the war until all hostages are released and Hamas's governing and military capabilities are dismantled.

It also seems improbable that Israel would at this point agree to a full withdrawal from Gaza under any immediate scenario.

Hamas is also seeking clarifications on the quantity, nature and distribution of the humanitarian aid that will enter Gaza if a deal is reached. It also wants to stagger the release of 10 living hostages mentioned by the plan over the course of the 60-day truce, not in batches as before.

“Hamas believes that releasing the 10 hostages one-by-one or two-by-two throughout the truce will help ensure Israel's continuous commitment to the deal,” said one of the sources.

Hamas is believed to be holding about 58 hostages, of whom about 20 are alive, according to the military in Israel, which has already accepted the plan, which also requires Hamas to hand over the remains of 18 hostages.

Hamas members stand guard during the handover of three Israeli hostages to Red Cross representatives in Al Nuseirat refugee camp in central Gaza. EPA
Hamas members stand guard during the handover of three Israeli hostages to Red Cross representatives in Al Nuseirat refugee camp in central Gaza. EPA

In a vaguely-phrased statement, Hamas had said on Saturday its response to the plan included a demand for an end to the war.

“This proposal aims to achieve a permanent ceasefire, a comprehensive withdrawal from the Gaza Strip, and ensure the flow of aid to our people and our families in the Gaza Strip.”

Israeli Defence Minister Israel Katz said Hamas must agree to the ceasefire proposal or be destroyed.

“The Hamas murderers will now be forced to choose: accept the terms of the 'Witkoff Deal' for the release of the hostages – or be annihilated,” he said.

The latest proposal to pause the war in Gaza comes after repeated attempts by mediators failed to achieve a breakthrough, with Israel resuming military operations on March 18 after the end of a two-month truce brokered by mediators from the US, Egypt and Qatar.

Sources told The National on Friday that Hamas was dissatisfied with the plan's lack of “genuine guarantees” that the proposed negotiations with Israel would lead to an end to the war and Israeli withdrawal from Gaza.

They said Hamas believed the plan left the prospect of an Israeli withdrawal and a long-term truce dependent on the progress of the negotiations, rather than the fruition of the process, the sources said.

Hamas also believes the plan ignores its suggestions on the timeline and dynamics of the handover of hostages and fails to treat the delivery of aid into Gaza as a human right, leaving the process closely linked to the proposed plan and, subsequently, subject to Israel's use of food as a weapon.

A Palestinian man walks through the rubble following Israeli strikes on the Al Qattaa family home in Al Tuffah district in Gaza city on May 31. AFP
A Palestinian man walks through the rubble following Israeli strikes on the Al Qattaa family home in Al Tuffah district in Gaza city on May 31. AFP

Under the plan, the resumption of humanitarian aid would involve 1,000 lorries a day to quickly address the widespread hunger and acute shortages of medicine and other essentials among Gaza's 2.3 million population, the sources said.

A distribution plan drafted by UN experts for its personnel and members of affiliated agencies has been handed to Israeli authorities, the sources said.

Besides a long-term ceasefire and Israeli withdrawal from Gaza, the proposed negotiations during the truce will, according to the plan, tackle sensitive issues, including the governing of postwar Gaza, the fate of Hamas's weapons and the exile of its senior officials, the sources said.

Hamas has already suggested it would keep away from governing Gaza and any reconstruction effort and said it is open to laying down and storing its weapons under international supervision, but not surrendering them.

It has also indicated that it will agree to some of its senior officials, as well as some from allied groups such as Palestinian Islamic Jihad, leaving Gaza to live in exile – provided they are not attacked later by Israel.

The Gaza war was caused by a Hamas-led attack on southern Israel that killed 1,200 people. Hamas fighters also took about 250 hostage.

Israel responded with a relentless military campaign that has killed more than 54,000 Palestinians and injured more than twice that number, Gaza's Health Ministry said. The war also laid to waste most of the enclave's 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: June 02, 2025, 3:36 AM