The Palestinian president Mahmoud Abbas, right, held almost three hours of talks with George Mitchell, the US Special Envoy to the Middle East, at his headquarters in Ramallah yesterday.
The Palestinian president Mahmoud Abbas, right, held almost three hours of talks with George Mitchell, the US Special Envoy to the Middle East, at his headquarters in Ramallah yesterday.

Abbas insists on US guarantees before restarting peace talks



TEL AVIV // The Palestinian president, Mahmoud Abbas, met Washington's Middle East envoy yesterday in a bid to revive peace talks, even as Israel's razing of Palestinian homes and approval of new Jewish settler houses in East Jerusalem appeared likely to deepen the rift between the two sides.

Mr Abbas convened with George Mitchell at the PA's headquarters in the West Bank city of Ramallah for almost three hours. Mr Abbas's aides said the discussion included the Palestinians' request for US guarantees, such as an Israeli settlement freeze, before they would agree to return to any peace talks.

Speaking a week after Washington admitted failure in securing an Israeli moratorium on settlement building that would have revived direct negotiations, Mr Mitchell conceded that the US is facing challenges in its mediation role but would continue in its efforts.

"As we expected, there had been many difficulties, obstacles and setbacks along the way. We accept it, but we are determined to persevere in our efforts until we reach the successful conclusion that I think we all want," he told reporters after meeting Mr Abbas.

The Palestinian leader is due to meet Arab League foreign ministers today in Cairo about the next steps in the peace process, his spokesman, Nabil Abu Rudeina, said.

But tensions between Israel and the Palestinians seemed likely to heighten after Israeli authorities, accompanied by dozens of police, destroyed two Palestinian homes under construction in East Jerusalem that they claimed had no permit.

Witnesses told Agence France-Presse that a bulldozer destroyed a single-storey building in the southern Sur Bahir neighbourhood, although it was unoccupied at the time. Another smaller and also uninhabited structure was razed in the Ras al Amud neighbourhood near the Mount of Olives, AFP reported.

Many Palestinians build homes in East Jerusalem without permits because such authorisations are extremely difficult for them to obtain from the Jerusalem municipality. Palestinians, who want East Jerusalem as the capital of their future state, have accused Israeli authorities of preventing Arab residents of the city from legally constructing homes out of political considerations.

Israel views East Jerusalem as part of its capital and Benjamin Netanyahu, the right-wing prime minister, has insisted he will oppose giving up parts of the holy city. Israel captured East Jerusalem in the 1967 Arab-Israeli War and annexed it in a move that was never recognised by the international community.

Also yesterday, Peace Now, an Israeli anti-settlement group, said that the Jerusalem municipality had approved the construction of 24 housing units in four buildings for Jewish settlers in the midst of the Palestinian neighbourhood of As Suwwana, just east of Jerusalem's Old City. Hagit Ofran, a director at Peace Now, said that Jerusalem's building and planning committee had given the go-ahead to a group affiliated with Elad, a settler movement that has acted aggressively to set up Jewish homes in East Jerusalem.

The White House is trying to return Israelis and Palestinians to indirect negotiations after its bid to continue face-to-face talks came to naught just three weeks after they were re-launched on September 2. The attempt failed because Israel rejected the Palestinian demand to freeze settlement construction in the occupied West Bank for another three months after a previous 10-month moratorium expired on September 26.

Palestinian Authority officials said yesterday that the talks between Mr Mitchell and Mr Abbas focused on a letter that Saeb Erekat, a Palestinian negotiator, handed last week in Washington to Hillary Clinton, the US secretary of state, asking for a series of US pledges before any US-mediated shuttle diplomacy is resumed.

The letter demanded a complete stop to Israeli building of Jewish settlements in the West Bank and East Jerusalem. It also urged the US to either recognise the creation of a Palestinian state within the territory captured by Israel in 1967, or not hinder the Palestinians from seeking such recognition from the United Nations Security Council.

The Palestinians have also said in recent days that they want Washington to produce an outline for clear terms of reference for the negotiations, their likely duration and the role the US will play in the talks.

Late on Monday, Mr Mitchell met with Mr Netanyahu in Jerusalem, just hours after the Israeli premier called the issue of Jewish settlement growth "marginal" to the peace talks.

Mr Netanyahu, speaking to reporters during a visit to the country's north, said the two had spoken "about ways to advance the peace process, because that is Israel's aim".

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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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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Changing visa rules

For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.

Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.

It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.

The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.

The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.