Hillary Clinton, the US secretary of state, will be meeting with the representatives of several countries in Sharm El Sheikh tomorrow.
Hillary Clinton, the US secretary of state, will be meeting with the representatives of several countries in Sharm El Sheikh tomorrow.

Clinton starts Middle East peace quest



RAMALLAH // She is coming, she said, to collect thoughts on how best to move forward on seeking peace and security in the region. But Hillary Clinton, in her first visit as US secretary of state, is unlikely to be much wiser by the time she leaves for Europe on Wednesday. There is still no government in Israel, where Benjamin Netanyahu, who has been asked to form a coalition government, looks likely to include a number of far-right parties, lukewarm at best on peace negotiations with the Palestinians.

Having been rebuffed by Tzipi Livni, the Israeli foreign minister and head of Kadima, Israel's largest party, Mr Netanyahu could find himself having to balance the demands of far-right coalition partners with pressure from Washington. Mr Netanyahu himself has never fully embraced the two-state solution toward which Mrs Clinton has said Washington has a "strong commitment". Mrs Clinton, in a recent interview with Voice of America, also said the US administration would work toward the creation of a viable, independent Palestinian state in the West Bank and Gaza, putting Washington immediately at odds with Mr Netanyahu, who at best talks of Palestinian "self-rule".

A similar dynamic exists on the Palestinian side, where unity talks have just got under way in Cairo. The outcome of those talks, which seek to reconcile the estranged Fatah and Hamas factions, will to a large extent determine US relations with the Palestinians. Mrs Clinton has said that unless Hamas accedes to international conditions to renounce armed resistance, recognise Israel and abide by previous PLO commitments, a unified Palestinian Authority will not necessarily be a positive step. Hamas continues to refuse those demands, saying that similar conditions - ending the occupation, recognising a Palestinian state and abiding by previously signed agreements - should apply to Israel.

Moreover, politically strengthened after Israel's recent offensive, Hamas can drive a hard bargain with Mahmoud Abbas, the Palestinian president whom Washington will talk to and whose domestic standing suffered as a result of the Israeli offensive. An inflexible US position on a unity government could put Mr Abbas in an unworkable position between domestic and foreign pressures. The one tangible result that may come of her visit is movement on reconstruction efforts in Gaza. Mrs Clinton is due in Sharm El Sheikh, Egypt, tomorrow to take part in a regional conference on rebuilding Gaza after Israel's devastating three-week offensive. Palestinians estimate the cost of reconstruction there at US$2.8 billion (Dh10.3bn). The US is expected to pledge $900 million.

But any movement on that front will hinge on progress in the Egyptian-mediated ceasefire negotiations between Hamas and Israel. These are currently bogged down over a prisoner exchange for Sgt Gilad Shalit, an Israeli soldier captured in 2005, as well as domestic Israeli wrangling after Amos Gilad, the senior Israeli negotiator in those talks, fell out with Ehud Olmert, the outgoing prime minister.

Low-level violence, meanwhile, continues in and around the Gaza Strip. Yesterday, at least one rocket was fired across the border from Gaza, while Israel has continued to launch air strikes at smuggling tunnels under the Gaza-Egypt border. Mrs Clinton and the representatives of the dozen or so countries who will meet in Sharm El Sheikh tomorrow will be unable to make much headway in efforts to rebuild Gaza for as long as no formal or semi-formal ceasefire agreement is in place.

Barack Obama, the US president, has said he would "hit the ground running" in pushing Palestinians and Israelis toward a comprehensive agreement. But doubts remain over how much effort the US can exert for Palestinian-Israeli peace amid several other priorities for Washington, including the global financial crisis, Iran, Iraq and Afghanistan. Mrs Clinton's visit, shortly after the second visit of George Mitchell, Washington's Middle East envoy, is partly meant to underline America's commitment to press diplomatic efforts.

But it comes at a time of little clear leadership and no diplomatic movement on either the Palestinian and Israeli sides, both of whom will be looking to the US for direction. If Mrs Clinton is here to look for ideas, she will find she is not the only one. okarmi@thenational.ae

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

US tops drug cost charts

The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.

Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.

In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.

Some of the costliest drugs worldwide include Lipitor for high cholesterol. 

The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.

High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.

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.

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

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UAE currency: the story behind the money in your pockets

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.”

COMPANY%20PROFILE
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About Takalam

Date started: early 2020

Founders: Khawla Hammad and Inas Abu Shashieh

Based: Abu Dhabi

Sector: HealthTech and wellness

Number of staff: 4

Funding to date: Bootstrapped

Key developments

All times UTC 4

The years Ramadan fell in May

1987

1954

1921

1888

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
DMZ facts
  • The DMZ was created as a buffer after the 1950-53 Korean War.
  • It runs 248 kilometers across the Korean Peninsula and is 4km wide.
  • The zone is jointly overseen by the US-led United Nations Command and North Korea.
  • It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
  • Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
  • Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
  • Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012. 
  • Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.