Jews living in the Emirates have created a formal alliance to unite people of the faith in all six GCC states.
The Association of Gulf Jewish Communities brings together residents of the UAE, Bahrain, Kuwait, Oman, Qatar and Saudi Arabia.
Its headquarters will be in the UAE, where it hopes to establish the first Beth Din, or Jewish court of law, to adjudicate on personal disputes.
It's in the DNA of the Emiratis to be tolerant, to live next to different cultures, different religions
One of the association’s senior figures, Rabbi Dr Elie Abadie, said there was historical precedence for Jewish rule of law in Arab countries.
“Since the Treaty of Umar 1,400 years ago, Islamic countries have recognised the autonomy of religious communities, and therefore given those faith-based communities autonomy in their internal affairs,” he said.
If permitted by the UAE, the Jewish court could issue certificates of marriage and divorce.
“Also, individual members could be adjudicated if they have any business issue or family dispute,” Rabbi Abadie said.
“However, criminal issues will continue to be dealt with by the courts of the land in the [Gulf] countries.”
Members of the community welcomed the move to formalise Jewish collaboration.
Alex Peterfreund is the board member of the new association in the UAE, where he has lived since 2014.
“We feel grateful that we have been able to build a nice little Jewish community here in the UAE, and we would like to assist Jewish people that are living in the Gulf, in order for them to have the same services that we have.
“It seems a shame that somebody in Bahrain who wants to get married should have a rabbi flying over from London or from Canada, if we have someone in the same region.”
The board of the association will include one representative from each of the six Gulf states.
UAE and Israel sign landmark agreement:
High on their agenda is the creation of an Arabian Kosher Certification Agency to ensure the same set of standards is met when food products are categorised as suitable for Jewish consumption.
“Kosher food is of paramount importance for Jewish people, it’s biblical in origin. It’s not just tradition, but Jewish law that we should eat kosher food,” said Rabbi Abadie.
“Now, the beauty of it is that Islam also has similar food restrictions, which is the halal food. Kosher and halal differ in a very minor way.”
Jewish people are not allowed to mix meat and milk together, and they only eat fish that has fins and scales, so crustacea like prawns or lobster are not allowed.
Like halal, kosher food requires the animal to be slaughtered in a painless, quick way so the beast does not suffer.
But kosher food requires the salting of the meat after the animal was slaughtered, and the removal of all the blood.
The UAE normalised its relations with Israel on August 13, 2020, when both countries signed the Abraham Accords, along with the US.
Since then Israeli and Emirati politicians and business leaders have met and made multiple deals. Defence, technology and energy have been particularly popular sectors.
In September, Israel’s Intelligence Minister Eli Cohen said: “Within 3 to 5 years trade between Israel and the United Arab Emirates will reach $4 billion.”
On Sunday, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, oversaw the swearing-in of the UAE's ambassador to Israel, Mohammed Al Khaja, at Al Watan Palace in Abu Dhabi.
Many Israelis also travelled to Dubai for holidays in November and December, in particular during the week of Hanukkah, the Jewish festival of lights.
Rabbi Abadie said he saw this tourism trend accelerating, in particular once the pandemic is over.
“We need to build up the infrastructure to serve the local Jewish community, and also all the Jewish tourists who will be coming [to the GCC] from all over the world,” he said.
His optimism for the continuance and expansion of the Accords is boundless.
“This region will embody the idea of living in tolerance and the peaceful co-existence of all the people, and all the nations, in all communities of faith.
“Having that in mind, the Jewish community will increase in number in this entire region.
“So as leaders in the community, we have to look to the future and to make sure that all the infrastructure will be in place, once that growth starts.”
Mr Peterfreund said he has always felt safe and welcome in the Emirates.
“We are getting to a point where as a Jew you feel more comfortable in the UAE than in Paris and in Brussels,” he said.
“It's in the DNA of the Emiratis to be tolerant, to live next to different cultures, different religions.
“Everybody’s living next to each other, and it’s something beautiful.”
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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.”