Israeli proposal 'on the table' for Gaza ceasefire, Biden says


Jihan Abdalla
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US President Joe Biden said on Friday that Israel has offered a comprehensive ceasefire proposal that would lead to an end to the war in Gaza and the start of reconstruction of the enclave.

Mr Biden said the offer, which has been presented to Hamas by Qatari mediators, would comprise three phases, beginning with an immediate end to fighting.

“Israel has offered a comprehensive new proposal,” Mr Biden said from the White House. “It's a road map to an enduring ceasefire and the release of all hostages.”

The first phase involves a six-week “full and complete” ceasefire, Mr Biden said, and would include the withdrawal of Israeli forces from populated areas in Gaza and the release of a number of hostages in exchange for the release of hundreds of Palestinians held in Israeli prisons.

During that initial phase, Palestinians would be able to return to their homes and humanitarian assistance would be delivered.

The second phase would see the release of the remaining living hostages and the withdrawal of Israeli troops from Gaza.

“Finally, in phase three, a major reconstruction plan for Gaza would commence and any final remains of hostages who've been killed will be returned to their families,” he said.

Palestinians walk through Jebaliya, northern Gaza Strip. AP
Palestinians walk through Jebaliya, northern Gaza Strip. AP

“That's the offer that's now on the table.”

Hamas, which Mr Biden said received the proposal from Qatar, reacted positively.

Hamas said it was ready to engage “in a constructive manner” with any proposal based on a permanent ceasefire, withdrawal of Israeli forces, the reconstruction of Gaza, a return of those displaced, and a “genuine” prisoner swap deal if Israel “clearly announces commitment to such deal”.

Israeli Prime Minister Benjamin Netanyahu's office said he had authorised his negotiating team to present the deal, “while insisting that the war will not end until all of its goals are achieved, including the return of all our hostages and the destruction of Hamas' military and government capabilities”.

Mr Biden urged Hamas to accept the deal, saying it was time for this war to end.

“At this point, Hamas no longer is capable carrying out another October 7,” he said. “It is one of the Israelis' main objectives in this war, and, quite frankly, a righteous one.”

He added that he expected resistance from some in Israel to the new ceasefire proposal.

“I’ve urged the leadership of Israel to stand behind this deal, despite whatever pressure comes,” Mr Biden said, an apparent reference to the hardliners in Prime Minister Benjamin Netanyahu’s war cabinet.

“To the people of Israel … I ask you to take a step back and think what will happen if this moment is lost. You can’t lose this moment.”

Signalling a US effort to build support for the proposal, the State Department said Secretary of State Antony Blinken spoke with his Jordanian, Saudi and Turkish counterparts.

Speaking to the Turkish foreign minister, “he emphasised that Hamas should accept the deal and that every country with a relationship with Hamas should press it to do so without delay,' the State Department said.

Gaps remain

A senior US administration official said the agreement is four and a half pages long and that it has been negotiated “in painstaking detail”. The official added that gaps still remain, but that they are being negotiated.

“What is on the table now is extremely close in almost every respect to the deal that Hamas presented not too long ago,” the official said.

“The President made clear there are details to work out, this is not going to be done tomorrow, but is kind of the road map.”

The Biden administration has been under tremendous domestic and international pressure to push for an end to the conflict.

On Sunday, Israel bombed a camp of displaced Palestinians sheltering in a “safe area” in Rafah, killing about 45 people.

Mr Biden had earlier said if Israel moved forward with its long-threatened invasion of Rafah, it would be a “red line” and would prompt Washington to reconsider continued military support for the country.

The White House this week called Sunday's strike “devastating” and “heartbreaking” but said it did not amount to a full-scale invasion.

The Rafah operation drew global condemnation and widespread calls for Israel to cease its attacks.

Last week, the International Court of Justice, the UN's highest court ordered Israel to halt the offensive on the city, citing the “immense risk” to civilians.

Israel launched an assault on Gaza after a Hamas-led militants attacked Israeli communities on October 7, killing about 1,200 people and abducting 240, according to Israeli authorities.

Almost 36,300 Palestinians have been killed and more than 82,000 injured in Israeli strikes and ground attacks, the majority of them women and children, according to Gaza authorities.

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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, 2024, 3:43 PM