Thomas Coex / AFP
Thomas Coex / AFP

Rabbi who was on the side of Palestinians



Rabbi Moshe Hirsch, who has died aged 86, was the leader of an ultra-Orthodox Jewish sect that opposed the existence of the Israeli state, and a long-time adviser to Yasser Arafat. Related through marriage to Rabbi Aharon Katzenelbogen, founder of the anti-Zionist sect Neturei Karta, an extreme group that is hostile not only towards the state of Israel but also towards any ultra-Orthodox communities that benefit from the state's budget, Hirsch subscribed wholeheartedly to the group's conviction that "the true Jews are against dispossessing the Arabs of their land and homes".

He became a confidant of Arafat in the 1980s while the PLO leader was in exile in Tunis. Following a spate of Palestinian attacks that claimed victims in the Orthodox community, the sect appealed to Arafat to spare a neighbourhood that had openly dissociated itself from the Zionist project. Arafat promised to do so and the friendship was sealed. Appointed "adviser on Jewish affairs" on Arafat's return to Jericho in 1994 and the establishment of the Palestinian Authority, Hirsch was considered extreme even by the anti-Zionist Eda Haredit and Satmar sects, which routinely denounced him. Responsible for "external affairs" at Neturei Karta, he saw support for the movement wane during the past decades, while the majority of Israelis viewed his decision to befriend Arafat as the ultimate betrayal of his religious beliefs.

The more extreme elements of Neturei Karta reached out to those perceived by Jews as bitter enemies, including Iranian fundamentalists, to share their own opposition to Zionism. In 2006, the sect's leaders travelled to Tehran and posed for photographs with Mahmoud Ahmadinejad. Whether Hirsch was in their number was unconfirmed. Inevitably, he suffered for his loyalty to Arafat. Habitually dressed in the traditional black garb and wide-brimmed hat, Hirsch had one good blue eye, and one glass blue eye. While in his 60s, leaving morning prayers, he was victim to an attacker wielding acid. The man was never identified or prosecuted, but the rabbi continued attending synagogue regardless. He became used to irate Israelis spitting in his path whenever he ventured outside the Mea Shearim district of Jerusalem where he lived.

Born in New York in 1923, he received his rabbinical training at a yeshiva in New Jersey before migrating to Israel, a place he always referred to as "occupied Palestinian territory". Though he settled in Jerusalem and died there on May 2, Hirsch never became an Israeli citizen. He is survived by his three children. * The National

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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.”