Obama has showed that US can't broker peace on its own


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If there were a theme song to the US president Barack Obama's Middle East peace effort right now, it would be The Temptations' "Ain't Too Proud to Beg". Even Washington hands sympathetic to the administration have expressed alarm at Mr Obama's willingness to offer major concessions to Israel in exchange for nothing more than a non-renewable, 60-day extension of a partial moratorium on settlement construction.

With the Palestinians insisting that direct talks cannot continue while Israel builds on occupied land, the administration hopes to induce the Israeli prime minister Benjamin Netanyahu to extend the moratorium in exchange for a raft of security undertakings and new weapons systems, and, importantly, to give US backing to Israel's demand (opposed by the Palestinians) that Israeli troops be allowed to retain control of the Jordan Valley even after that territory becomes part of a Palestinian state.

Mr Obama's assumption appears to be that 60 days of talks will be enough for the two sides to agree on borders, leaving Israel free to continue building only in settlements it would keep when a two-state solution is implemented. That assumption is wishful thinking: Palestinian negotiators say the Israeli side has thus far shown no willingness to engage on substantial issues other than on their own security, and believe that the stand-off vindicates their belief that Mr Netanyahu has no intention of offering a credible deal. Indeed, as Daniel Levy, a former Israeli negotiator at Camp David, suggested, the main purpose of the 60-day extension may be to take the standoff past the November midterm election - putting any pressure on Israel before that is out of the question for a vulnerable American president. The problem of course is that Mr Obama may not be much less politically vulnerable after the election. It's hard not to conclude that the Obama administration is making this up as it goes along.

The former US ambassador to Israel Martin Indyk has described Mr Obama's approach as "playing strategic cards in exchange for tactical breathing room". Mr Netanyahu is laughing all the way to the bank where Israel deposits concessions from US presidents. Despite photo ops and chit-chat, Israel stopped negotiating seriously with the Palestinians when Ariel Sharon was elected prime minister in February of 2001. Since then, Israel's substantial negotiations over its relations with the Palestinians are conducted only with the United States. Mr Sharon's 2005 withdrawal from Gaza, for example, was never negotiated or even coordinated with the Palestinian Authority. But it was extensively discussed with the Bush administration, which by way of quid pro quo gave discreet support for Mr Sharon expanding West Bank settlements - and expressed in writing US support for Israel keeping its major settlement blocs in the West Blank.

George W Bush may have argued that this would be the outcome of a negotiating process, but the then US president effectively made it the starting point, allowing the Israelis to start the discussion at that point rather than having to offer the Palestinians concessions in order to get there. Mr Netanyahu and his aides have made no secret of the fact that they believe Mr Abbas lacks the political authority to sell his own people any agreement that might be reached at the table. "Peace talks," in fact, is something of a misnomer for the current process, since Mr Abbas is not at war with the Israelis - nor does he bring any leverage to the table beyond his ability to walk away and create a legitimacy problem for an administration desperate to show progress on an issue defined as a US national security priority.

Such desperation has prompted Mr Obama to move the US position even closer to the Israelis' (and further undermine the already threadbare claim to being an honest broker) - now it's not only that the Israelis will keep the major settlement blocs in the West Bank, but will also effectively keep the Jordan Valley as its own security zone. But, of course, it's not only that the Israelis do their real negotiating with the Americans but the Palestinians believe that Mr Netanyahu has no intention of offering a credible two-state solution, and are reluctantly engaged in the current process, only to demonstrate that no progress is impossible without US pressure on Israel. But the administration is severely limited by Israel's powerful bipartisan influence in the US Congress, and the Obama administration has proved no more willing than its predecessor was to press Israel to take steps it's not willing to take.

Mr Netanyahu's success in pushing back Mr Obama's original settlement freeze last year underscores the reality that Israel retains an effective veto over US positions it rejects. Palestinian demands and bottom lines - not to mention international law, which deems as illegal any Israeli settlement on occupied territory - are routinely ignored by Washington. But the choices available to the Palestinians may not be limited to Mr Obama's effort that simply mimics the rituals of previous negotiations to sustain the illusion of progress in a process that died a decade ago, or the bloody and futile path of armed struggle. Palestinian civil society may well have already moved beyond both options, and be seeking new avenues through which to press for their rights. And for those seeking a negotiated political solution, the Obama administration debacle underlines a hard truth: the United States is incapable of resolving the conflict, alone, because domestic politics put it in Israel's corner rather than in the role of neutral referee. Washington, at best, can be the friend and ally that helps nudge Israel to take risks, but the process needs other mediators less beholden to one side.

Shutting the Israelis and Palestinians in a room with US diplomats has outlived any useful purpose; the two sides are clearly unable to agree on the parameters of a two-state solution, and the US is incapable of forcing Israel to go beyond where it's government will willingly tread. A political solution to the conflict now depends on the readiness of other mediators, less beholden to either side, to step into the arena - and also to create a downside for the Israelis to maintaining the status quo.

Tony Karon is a New York-based analyst who blogs at rootlesscosmopolitian.com

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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.”

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Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

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A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

Stage result

1. Jasper Philipsen (Bel) Alpecin-Fenix 4:42:34

2. Sam Bennett (Irl) Bora-Hansgrohe

3. Elia Viviani (Ita) Ineos Grenadiers

4. Dylan Groenewegen (Ned) BikeExchange-Jayco

5. Emils Liepins (Lat) Trek-Segafredo

6. Arnaud Demare (Fra) Groupama-FDJ

7. Max Kanter (Ger) Movistar Team

8. Olav Kooij (Ned) Jumbo-Visma

9. Tom Devriendt (Bel) Intermarché-Wanty-Gobert Matériaux

10. Pascal Ackermann (Ger) UAE Team Emirate

The bio

Favourite book: The Alchemist by Paulo Coelho

Favourite travel destination: Maldives and south of France

Favourite pastime: Family and friends, meditation, discovering new cuisines

Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.

Favourite Author: My father for sure

Favourite Artist: Damien Hurst

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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Profile of Hala Insurance

Date Started: September 2018

Founders: Walid and Karim Dib

Based: Abu Dhabi

Employees: Nine

Amount raised: $1.2 million

Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers

 

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The biog

Name: James Mullan

Nationality: Irish

Family: Wife, Pom; and daughters Kate, 18, and Ciara, 13, who attend Jumeirah English Speaking School (JESS)

Favourite book or author: “That’s a really difficult question. I’m a big fan of Donna Tartt, The Secret History. I’d recommend that, go and have a read of that.”

Dream: “It would be to continue to have fun and to work with really interesting people, which I have been very fortunate to do for a lot of my life. I just enjoy working with very smart, fun people.”

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Company Profile

Name: JustClean

Based: Kuwait with offices in other GCC countries

Launch year: 2016

Number of employees: 130

Sector: online laundry service

Funding: $12.9m from Kuwait-based Faith Capital Holding

The Vile

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Director: Majid Al Ansari

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match info

Southampton 0

Arsenal 2 (Nketiah 20', Willock 87')

Red card: Jack Stephens (Southampton)

Man of the match: Rob Holding (Arsenal)

Which honey takes your fancy?

Al Ghaf Honey

The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year

Sidr Honey

The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments