Nazih Musharbash felt hurt when Germany’s president told people with Arab roots to distance themselves from Hamas.
Such a demand makes an “assumption that you are close to this group”, said Mr Musharbash, who has lived in Germany for 58 years after growing up in Bethlehem. “That is not OK.”
What is more, he told The National, “if the president demands that of me, why shouldn’t an employer, a colleague at work, or even a teacher from their schoolchildren?”
In another world these could be happier times for Germany’s Arab and Muslim communities, but the backdrop to our meeting is a revival of fears of 1930s-style purges of those deemed non-German. The spark was a recent meeting of pan representatives of the far-right, including the country's second most popular party, Alternative for Deutschland (AfD).
I can and must be able to criticise anyone’s politics, without being accused of being anti-Israel
Nazih Musharbash
Since the start of the year, mass rallies against the far right have taken place after the secret hotel meeting in Potsdam, near Berlin, was compared with the 1942 Wannsee Conference where the Nazis planned the Final Solution. The meeting’s rhetoric was too much even for French nationalist Marine Le Pen, who hinted at cutting ties with the AfD.
Efforts to ensure integration of new German residents have in fact being working well. After fleeing their homeland in 2015, so many Syrians are now thriving in Germany that it can take two years to get an appointment at a red-brick electric substation converted to a passport office in Berlin.
The office has six departments. One is kept busy by “Syria, surnames A to E” plus Iran. Another covers four whole continents.
The queue is about to get longer. A new citizenship law means people can become German after five years living there, instead of eight, making even more people eligible for citizenship. Model students in language classes can do it in three. Many Syrians qualify for the fast-track route. Turks also stand to benefit.
New routes are being thrown open to Moroccans, with Berlin so keen to recruit skilled workers such as electricians that it is offering “pre-integration” classes where people can start tackling German grammar at an EU-funded centre in Rabat.
Yet migrants in Germany are in the eye of political storms that are clouding this push for integration.
An unpopular government facing protests from all corners is under pressure to curb asylum claims, clamp down on anti-Israel dissent and win voters back from the far right.
There is also concern that the new migration law is not as good as it sounds – especially for those with pro-Palestinian views.
Legal advice to campaigners seen by The National states that “if you are not a German citizen, your pro-Palestinian activism can cause problems". Special advice is being drawn up for people working in culture and the arts as dissident voices come under scrutiny.
For those seeking citizenship, the new law says racist or anti-Semitic views are incompatible with Germany’s values and its historic debt to Jewish people, a measure meant to screen out anti-Israel extremists.
Anti-Semitic incidents quadrupled after Hamas’s October 7 attack on Israel and have penetrated “all parts of our society”, Josef Schuster, the president of Germany’s main Jewish council, said on Thursday.
However, the new law leaves it unclear what amounts to anti-Semitism, leaving scope for local officials to do things their way and bring in questionnaires that amount to “Muslim tests”, said law professor Tarik Tabbara.
While MPs rejected a clause that would have specifically required applicants to support Israel’s right to exist, the new law “doesn’t shut the back door” to such a test, said Prof Tabbara, a former adviser to Germany's integration commissioner.
A questionnaire could ask people “what is their view of Israel, what do they think of Jews”, he said, as well as asking whether people have fundamentalist views on men and women.
“I’m a bit concerned," he said. "We’ve seen for a lot of years now that the question of equality of the sexes has been used against the Muslim population, especially by conservatives who usually don’t really care very much about equality of the sexes. They discovered this as a kind of test.”
Israel loyalty
All over Berlin there are symbols of Germany’s determination to atone for its past and show solidarity with Israel and Jewish people, including in the current conflict. An Israeli flag flies outside Berlin’s city hall. A Holocaust survivor appears on advertising screens holding a sign saying “we remember”. Israelis taking shelter in Germany have been told they can overlook visa rules until April.
Pro-Palestinian symbols are less obvious; a lamppost sticker here, a scrawl of "boycott Zara" on a fashion shop window there. Some presentations and exhibitions have been taken down, Mr Musharbash says.
The president of the German-Palestinian Society, Mr Musharbash sympathises with Jewish people going through tough times, but worries too that criticism of the Israeli government is being conflated with anti-Semitism.
He says that Germany should, by its own historical logic, owe a debt to the Palestinians too because it was in the aftershocks of the Holocaust that people were displaced from what is Israel today.
“I can and must be able to criticise anyone’s politics, without being accused of being anti-Israel or being against Israel’s right to exist,” he said.
“It is an advantage of democracy that you can openly express your opinion without going to prison. If this is suddenly narrowed down so that you cannot express your opinion as used to be normal, there will be disappointment in this democracy, and trust in this democracy will go astray. That does not encourage integration.”
Mr Musharbash accepts there are some elements in the pro-Palestinian scene who act outside the law, such as Islamists, Hamas supporters and people who shout ignorant slogans at rallies.
German intelligence believes a wide range of extremists is seizing on the unrest, from supporters of ISIS and Al Qaeda to Turkish communists, with Berlin the main breeding ground for criminal behaviour. Police have been injured in pro-Palestinian clashes.
Zaid Abdelnasser, a leading figure in a banned pro-Palestinian network called Samidoun, was considered so far beyond the pale after Hamas attacked Israel that even a far-left group called Red Aid ended its campaign to save him from deportation.
Three men from Lebanon, Egypt and the Netherlands were arrested in December in an alleged Hamas plot involving a secret weapons cache in Europe, which prosecutors claim was destined for Berlin.
Several prosecutors have determined that the slogan “from the river to the sea, Palestine will be free” is also punishable because it is linked to Hamas and can be seen as a call for Israel’s elimination.
What is murkier is when anti-Israel views do not amount to crimes, but are nonetheless considered so offensive to Germany’s post-1945 principles that they could land migrants in hot water.
“It’s pretty unclear when someone meets this threshold,” Prof Tabbara said. “The new clause runs against some kind of behaviour that is not criminal, that doesn’t meet the threshold of criminal law. Where it begins, that’s going to be a tough issue to sort out.”
While Germany bans Holocaust denial – which is to question a historical fact – subjective views on Israel come with stronger legal protection, MPs have been told. One state, Saxony-Anhalt, has nonetheless said it will require aspiring new citizens to recognise Israel’s right to exist.
Authorities could not generally harass people just for attending protests, or scour their social media at will, migrants are reassured. However, they are advised to consult a lawyer if their residency is up for renewal, for fear they could be intimidated.
Minority concerns have not gone totally ignored. A new expert commission on hatred against Muslims is shortly to begin work in Berlin, after an internal survey found shocking levels of anti-Islam and anti-Jewish sentiment in the city.
Ministers are also showing increasing frustration with Israel. “There are rules even in the right to self-defence, and international humanitarian law remains valid even in a fight against terrorists,” Foreign Minister Annalena Baerbock said this week.
But Germany’s stance that protecting Israel is a fundamental “reason of state” remains rock-solid. A spokesman for the chancellery this week defined that credo like this: “If in doubt, we stand on Israel’s side.”
Far-right lurks
Blue election posters for the far-right AfD have popped up in Berlin before a February 11 by-election.
Unease at the AfD’s right-wing rhetoric burst on to the streets after party members were caught holding secret talks on “remigration” of foreigners.
It is not often a ruling party welcomes mass protests but the rallies showed a “silent majority” in Germany taking to the streets, said Social Democrat Cansel Kiziltepe, the top Berlin official responsible for integration.
Virtually everyone seems to have a reason to demonstrate in Berlin. Next to rallies on the far right and the Israel-Gaza war, there are farmers holding a vigil against budget cuts, Russian and Ukrainian flags waved, a one-man animal rights protest, even a show of anger at Argentina’s new president.
One lamppost sign that pleaded “Stop the coalition chaos” near Chancellor Olaf Scholz’s office has been amended to read simply: “Stop the chaos”.
What is clear is that the AfD is tapping into a deep well of voter frustration as it enjoys a bounce in the polls.
Surveys show Mr Scholz’s government is deeply unpopular, caught amid economic woes, high illegal migration and an image of weak leadership. A rush of more than 300,000 asylum claims last year is a top voter concern.
The next general election is not until 2025 but voters could use regional elections in three eastern states, the AfD’s heartland, to give Mr Scholz a kicking in the autumn.
Any co-operation with the AfD is taboo, but a win in the east could make it harder to stop the AfD having at least some sway.
The talk of mass deportations “has made clear what that would mean for vulnerable groups”, Peggy Piesche, a director of a civic education agency, told a meeting of Berlin councillors on integration. (“Shouldn’t you be neutral?”, fired back an AfD man, speaking up for the only time in a three-hour sitting.)
There is talk of trying to ban the AfD, although that is a long and difficult process. A court ruling this week that stripped a small neo-Nazi party of state funding could point the way to an alternative.
Some worry that the whole debate is a gift to the AfD, which complains of a campaign against it. At least the word “remigration” is on everyone’s lips now, the AfD claims.
Deportation drive
It is not only the right-wing fringe talking about deporting migrants.
A day before easing the path to citizenship, MPs passed another law that aims to send 600 more failed asylum seekers a year back home.
The offer to Morocco, likewise, comes with a price tag – that the government in Rabat must take back more migrants who travelled illegally to Germany.
Ministers are under pressure from local authorities who say they cannot find housing for the 329,000 people who sought asylum last year, almost a third of them Syrians. There are stories of cramped bedrooms and people living in containers. The strained situation has helped fuel the AfD’s rise.
Many of those in limbo in Germany made a difficult journey to get there.
At the EU’s borders, smuggling gangs often run by ethnic groups such as Syrians, Afghans or Moroccans are in increasingly aggressive and sometimes armed competition.
In northern Serbia, along a land route to Germany, these groups “have tried to fence off different sections of the border to control independently”, said David Suber, a University College London researcher who has advised border police in Europe.
“It’s not chance that the nationalities of these groups reflect the nationality of some of the largest migrant populations, also because in general people on the move coming from Syria, from North Africa or from Afghanistan are some of the largest groups that are trying to cross to Europe,” he said.
“But this does not mean that Syrian smugglers smuggle only Syrians. The groups are generally open to clients from any nationality or background.”
Germany has brought in emergency checks at its southern and eastern borders. The quicker road to citizenship is meant to balance all this by making the legal route more attractive than smuggling.
The three-year route is open to people who speak excellent German or show they are particularly well integrated. Elderly Turkish “guest workers” who helped rebuild West Germany can skip parts of the process.
Last year 1,004 Syrians acquired citizenship by the fast-track route in Berlin, more than all other nationalities put together. A new relaxed stance on dual nationality means people can settle in Germany without cutting ties with their homeland.
“It’s so hard to be in a new community, even if the community supports you,” said Syrian refugee chef Malakeh Jazmati.
“German people are welcoming, especially in Berlin. Friendly people around me in the community support me very well. But I’m still pining to live in my Damascus.”
At the far right’s secret meeting there was talk of using people’s dual nationality against them, stripping them of German citizenship without leaving them stateless.
Is the new generation of dual citizens walking into a trap? On this at least, Prof Tabbara’s answer is reassuring, as long as things do not get really out of control in Germany.
A German passport “gives the same right to everyone who has the nationality”, he said. “It’s not that we could say having two passports is a good reason to be treated differently.
“If this is happening, then we would already be in a situation where the rule of law doesn’t protect you anyway.”
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more from Janine di Giovanni
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Boulder shooting victims
• Denny Strong, 20
• Neven Stanisic, 23
• Rikki Olds, 25
• Tralona Bartkowiak, 49
• Suzanne Fountain, 59
• Teri Leiker, 51
• Eric Talley, 51
• Kevin Mahoney, 61
• Lynn Murray, 62
• Jody Waters, 65
Story%20behind%20the%20UAE%20flag
%3Cp%3EThe%20UAE%20flag%20was%20first%20unveiled%20on%20December%202%2C%201971%2C%20the%20day%20the%20UAE%20was%20formed.%C2%A0%3C%2Fp%3E%0A%3Cp%3EIt%20was%20designed%20by%20Abdullah%20Mohammed%20Al%20Maainah%2C%2019%2C%20an%20Emirati%20from%20Abu%20Dhabi.%C2%A0%3C%2Fp%3E%0A%3Cp%3EMr%20Al%20Maainah%20said%20in%20an%20interview%20with%20%3Cem%3EThe%20National%3C%2Fem%3E%20in%202011%20he%20chose%20the%20colours%20for%20local%20reasons.%C2%A0%3C%2Fp%3E%0A%3Cp%3EThe%20black%20represents%20the%20oil%20riches%20that%20transformed%20the%20UAE%2C%20green%20stands%20for%20fertility%20and%20the%20red%20and%20white%20colours%20were%20drawn%20from%20those%20found%20in%20existing%20emirate%20flags.%3C%2Fp%3E%0A
The specs: 2018 Renault Koleos
Price, base: From Dh77,900
Engine: 2.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 170hp @ 6,000rpm
Torque: 233Nm @ 4,000rpm
Fuel economy, combined: 8.3L / 100km
Book%20Details
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More on animal trafficking
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
On Instagram: @WithHopeUAE
Although social media can be harmful to our mental health, paradoxically, one of the antidotes comes with the many social-media accounts devoted to normalising mental-health struggles. With Hope UAE is one of them.
The group, which has about 3,600 followers, was started three years ago by five Emirati women to address the stigma surrounding the subject. Via Instagram, the group recently began featuring personal accounts by Emiratis. The posts are written under the hashtag #mymindmatters, along with a black-and-white photo of the subject holding the group’s signature red balloon.
“Depression is ugly,” says one of the users, Amani. “It paints everything around me and everything in me.”
Saaed, meanwhile, faces the daunting task of caring for four family members with psychological disorders. “I’ve had no support and no resources here to help me,” he says. “It has been, and still is, a one-man battle against the demons of fractured minds.”
In addition to With Hope UAE’s frank social-media presence, the group holds talks and workshops in Dubai. “Change takes time,” Reem Al Ali, vice chairman and a founding member of With Hope UAE, told The National earlier this year. “It won’t happen overnight, and it will take persistent and passionate people to bring about this change.”
UAE-based players
Goodlands Riders: Jamshaid Butt, Ali Abid, JD Mahesh, Vibhor Shahi, Faizan Asif, Nadeem Rahim
Rose Hill Warriors: Faraz Sheikh, Ashok Kumar, Thabreez Ali, Janaka Chathuranga, Muzammil Afridi, Ameer Hamza
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The bio
Favourite vegetable: Broccoli
Favourite food: Seafood
Favourite thing to cook: Duck l'orange
Favourite book: Give and Take by Adam Grant, one of his professors at University of Pennsylvania
Favourite place to travel: Home in Kuwait.
Favourite place in the UAE: Al Qudra lakes
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
SPECS
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The view from The National
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5
The biog
Year of birth: 1988
Place of birth: Baghdad
Education: PhD student and co-researcher at Greifswald University, Germany
Hobbies: Ping Pong, swimming, reading
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
MATCH INFO
Day 2 at Mount Maunganui
England 353
Stokes 91, Denly 74, Southee 4-88
New Zealand 144-4
Williamson 51, S Curran 2-28
Zayed Sustainability Prize
2020 Oscars winners: in numbers
- Parasite – 4
- 1917– 3
- Ford v Ferrari – 2
- Joker – 2
- Once Upon a Time ... in Hollywood – 2
- American Factory – 1
- Bombshell – 1
- Hair Love – 1
- Jojo Rabbit – 1
- Judy – 1
- Little Women – 1
- Learning to Skateboard in a Warzone (If You're a Girl) – 1
- Marriage Story – 1
- Rocketman – 1
- The Neighbors' Window – 1
- Toy Story 4 – 1
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The British in India: Three Centuries of Ambition and Experience
by David Gilmour
Allen Lane
UAE currency: the story behind the money in your pockets
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
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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.”
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
Company profile
Company name: Nestrom
Started: 2017
Co-founders: Yousef Wadi, Kanaan Manasrah and Shadi Shalabi
Based: Jordan
Sector: Technology
Initial investment: Close to $100,000
Investors: Propeller, 500 Startups, Wamda Capital, Agrimatico, Techstars and some angel investors
Where to submit a sample
Volunteers of all ages can submit DNA samples at centres across Abu Dhabi, including: Abu Dhabi National Exhibition Centre (Adnec), Biogenix Labs in Masdar City, NMC Royal Hospital in Khalifa City, NMC Royal Medical Centre, Abu Dhabi, NMC Royal Women's Hospital, Bareen International Hospital, Al Towayya in Al Ain, NMC Specialty Hospital, Al Ain
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."