There has been a recent push in the US to utilise the Palestinian Authority (PA) as a “go-between” to ensure that aid to Gaza reaches civilians and is not pocketed by Hamas, the terrorist group currently controlling the Palestinian territory. But what this push signifies – and what its long-term ambitions might be – deserves further examination.
The reliance on the PA to be the broker of stability in the Arab-Israeli conflict is ill-considered, because partnering with a group itself implicated in terrorist activities in order to stop terrorism represents a failure of logic. It is easy to forget that the US Congress, in the 1987 Anti-Terror Act, determined the Palestinian Liberation Organisation and its related entities to be sponsors of terrorism and a threat to US interests. The PA fits squarely within this law.
Although the conditions attached to the law were waived by every administration prior to Donald Trump’s, the law itself remains on the books. In fact, the law was augmented with the passage of the Taylor Force Act in 2018, which cuts US funding to the PA until it stops what has been described as a “pay for slay” programme. The programme issues stipends to the families of Palestinians killed or imprisoned for crimes committed against Israel, and has, in effect, subsidised terrorist activity. The latest round of violence between Israelis and Palestinians was further fuelled by the PA’s endorsement of a “day of rage” against Israel.
The illogic of moving towards peace by partnering with the PA for Gaza’s recovery underscores that Palestinian populations in both Gaza and the West Bank are in genuine need of a new organisation to promote Palestinian welfare – one that won’t be subject to the corrupt machinations of both Hamas and the PA.
The UN previously has accused Hamas of siphoning off humanitarian aid, and Hamas’s impressively ridiculous system of tariffs on imports, absorbed by the Gazan consumer, speaks to its willingness to exploit its own citizens. But corruption is not limited to Hamas.
The PA is guilty of such manoeuvres as well. It perpetually complains of having insufficient funds to serve the population. But that did not stop President Mahmoud Abbas from purchasing a home for $32 million and a private jet for $50m. As a candidate in the upcoming PA presidential election, Muhammad Aref Massad, who spent time in prison for terrorist activities, even wrote earlier this year: “The Palestinian leaders do not want freedom and do not want peace because they profit from the war and destruction in which we are engulfed… Any money that you send [to the Palestinian Authority] increases the power of the dictator, the terrorists and the robbers who starve my Palestinian people."
Yet, despite the moral bankruptcy of the PA, a senior official at the US State Department earlier this week repeated that Washington would be “working in partnership with the UN and the PA to channel aid there in a manner that does its best to go to the people of Gaza”.
If foreign governments are serious about assisting the Palestinian people, the objective should be establishing an honest destination for such aid – one that does not rely on groups who have remained only tenuously off the State Department’s list of Foreign Terror Organisations.
A reasonable answer to the lack of such a destination would be to establish one. A new NGO – funded by Arab countries, the US and interested European powers – would help to create an alternative power base focused primarily on the welfare of Palestinian society.
While there are certainly hurdles to creating such an organisation, including determining its staff, its immediate efficacy in Gaza would be two-fold. It would provide a destination to ensure that aid to the Palestinians reaches the civilian population, and it would remove the danger of trusting a third-party conduit. Indeed, some Arab countries curtailed PA financial assistance in part due to its general incompetence. The groundbreaking Abraham Accords are yet another affirmation of that exasperation.
In the long term, establishing a new organisation of this nature has the potential to create an alternative power base for the Palestinian people. If the ultimate goal is to rid Gaza of terrorists, surely that goal is not reached by empowering an organisation with links to terrorism, albeit one that is opposed to Hamas.
Finally, setting up such a structure would allow the US to assist the Palestinian people without violating its own Taylor Force Act. Given that the PA spends roughly seven per cent of its budget on the “pay for slay” programme, removing the PA from the aid equation would ensure a cleaner transfer of funds. Indeed, anything less could result in laundering US taxpayer dollars for terrorism.
Those committed to helping Palestinians must realise that the current institutions tasked with doing so are corrupt, insufficient and self-interested. Tackling this perennial problem begins with removing the PA from the aid equation.
As chairman of the PLO since 2004 and president of the PA since 2005, Mr Abbas has done little to change the fact that both organisations are sponsors of terrorism. It is time to introduce new slogans for those currently demonstrating for peace in the Middle East: “Replace the PLO with an NGO” and “Replace the corrupt PA. End pay for slay”.
Mike Pompeo is a former US secretary of state. Sander Gerber is the chief executive of Hudson Bay Capital Management, a distinguished fellow at the Jewish Institute for National Security of America and a fellow at the Jerusalem Centre for Public Affairs
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PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Everton%20Fixtures
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UAE currency: the story behind the money in your pockets
US tops drug cost charts
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
COMPANY%20PROFILE
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The five pillars of Islam
UAE squad
Men's draw: Victor Scvortov and Khalifa Al Hosani, (both 73 kilograms), Sergiu Toma and Mihail Marchitan (90kg), Ivan Remarenco (100kg), Ahmed Al Naqbi (60kg), Musabah Al Shamsi and Ahmed Al Hosani (66kg)
Women’s draw: Maitha Al Neyadi (57kg)
FIXTURES (all times UAE)
Sunday
Brescia v Lazio (3.30pm)
SPAL v Verona (6pm)
Genoa v Sassuolo (9pm)
AS Roma v Torino (11.45pm)
Monday
Bologna v Fiorentina (3.30pm)
AC Milan v Sampdoria (6pm)
Juventus v Cagliari (6pm)
Atalanta v Parma (6pm)
Lecce v Udinese (9pm)
Napoli v Inter Milan (11.45pm)
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
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.”
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
HIV on the rise in the region
A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.
New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.
Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.
Access to HIV testing, treatment and care in the region is well below the global average.
Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.
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