A Palestinian runs next to a burning tyre during clashes with Israeli forces during a protest in Hebron in the Israeli-occupied West Bank. Reuters
A Palestinian runs next to a burning tyre during clashes with Israeli forces during a protest in Hebron in the Israeli-occupied West Bank. Reuters
A Palestinian runs next to a burning tyre during clashes with Israeli forces during a protest in Hebron in the Israeli-occupied West Bank. Reuters
A Palestinian runs next to a burning tyre during clashes with Israeli forces during a protest in Hebron in the Israeli-occupied West Bank. Reuters

West Bank violence in a 'downward spiral', UN envoys says


Adla Massoud
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The UN's Middle East envoy told the Security Council on Friday that the situation in the occupied West Bank is in a downward spiral that is becoming increasingly difficult to contain.

This could be the deadliest year for Palestinians in the West Bank since 2006, Tor Wennesland said.

More than 120 Palestinians have been killed in raids and fighting in the West Bank and East Jerusalem this year, with violence surging following a series of attacks that killed 19 people in Israel in the spring.

The Israeli army said most of the Palestinians killed have been militants and said it was forced to act due to the refusal of Palestinian security forces to clamp down on armed factions.

However, local youths protesting against the incursions and some civilians have also lost their lives in the violence.

Alarmed by the intensity of violence in the occupied West Bank, Mr Wennesland reiterated that all perpetrators must be held accountable and called for security forces to exercise maximum restraint.

A Palestinian takes part in clashes with Israeli forces during a protest in Hebron in the Israeli-occupied West Bank. Reuters
A Palestinian takes part in clashes with Israeli forces during a protest in Hebron in the Israeli-occupied West Bank. Reuters

Unless the core political issues are addressed, the envoy warned, the deep-rooted mistrust and hostility between Israelis and Palestinians will continue to grow.

But Riyad Mansour, the Palestinian UN ambassador, asked the Security Council: “What would you do if your country was occupied, if your land was stolen and if your people were oppressed?

“Either we live side by side, or I fear we might die side by side.

"Help us live.”

Linda Thomas-Greenfield, the US ambassador to the UN, condemned the "spike" in violence and called for all perpetrators to be held accountable.

"Just as we've called on the Palestinian Authority to do more to prevent attacks, we also call on Israel to apply equal resources and equal vigour to prevent and investigate all violent attacks against Palestinians," she said.

"All perpetrators must be held accountable for their outrageous attacks. The world must see that arrests, convictions and punishments are carried out without bias."

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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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Updated: October 28, 2022, 5:17 PM