President Barack Obama and the Palestinian Authority President Mahmud Abbas pictured during a meeting at the Waldorf Astoria Hotel in New York City. Mandel Ngan / AFP PHOTO
President Barack Obama and the Palestinian Authority President Mahmud Abbas pictured during a meeting at the Waldorf Astoria Hotel in New York City. Mandel Ngan / AFP PHOTO
President Barack Obama and the Palestinian Authority President Mahmud Abbas pictured during a meeting at the Waldorf Astoria Hotel in New York City. Mandel Ngan / AFP PHOTO
President Barack Obama and the Palestinian Authority President Mahmud Abbas pictured during a meeting at the Waldorf Astoria Hotel in New York City. Mandel Ngan / AFP PHOTO

Day of decision on Palestine


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NEW YORK // Palestinians insisted they would take their statehood bid to the United Nations Security Council today in spite of intense international pressure to agree to a formula that would avert a direct confrontation with the United States.

The push for Palestinian statehood Latest stories, background and analysis from The National

The speech at the UN on Wednesday by Barack Obama, the US president, meanwhile, was received poorly on the streets of Cairo and Tripoli where people said his position on Palestinian statehood compared unfavourably with his stance on the Arab Spring.

By contrast, his words were welcomed effusively by Benjamin Netanyahu, the Israeli prime minister, when the two leaders met on Wednesday. Mr Netanyahu said Mr Obama could wear his pledge to veto a Palestinian application for full membership of the UN at the Security Council as a "badge of honour".

The US may be forced to wield that veto as various ideas put forward to avoid a vote appear to have failed. Under one reported proposal, Mahmoud Abbas, the Palestinian leader, would submit the Palestinian application today as planned, but agree to wait for a vote until efforts to establish another round of direct negotiations with Israel ran their course.

Husam Zomlot, spokesman for the Palestinian delegation in New York, angrily rejected the suggestion that the Palestinians had agreed to this, calling the plan "absolutely unfounded" and "deceitful".

"Nothing has changed. We are trying to implement a plan that has been gathering momentum for some time now."

Mr Zomlot said the Palestinians would wait only "a couple of days" after submitting their application and only for procedure, not for "political reasons", after which they would "act swiftly".

He did not, however, spell out what action Palestinians would take should the UN Security Council not vote on their application within that time frame, or what would happen after a vote at the Security Council. He would only say that all options are on the table including going to the UN General Assembly for a vote seeking full UN membership.

Mr Abbas and Mr Obama met on Wednesday night, but little appeared to have been achieved. Mr Zomlot simply described the talks as "very formal". Jay Carney, the White House spokesman, at a press conference on Wednesday, said Mr Obama had maintained the administration's "very transparent" position opposing "actions at the United Nations".

But Palestinians were clearly despondent with Mr Obama's speech to the General Assembly. They were disappointed that the American president's assertion that the "promise written down on paper - 'all human beings are born free and equal in dignity and rights' - is closer at hand", does not seem to apply to them.

At a press conference on Wednesday at the UN, Nabil Shaath, a Palestinian Liberation Organization official, blamed domestic US politics for Mr Obama's speech and said that in an election year in the US it was inevitable that he would be addressing a "different audience".

Indeed, said Mr Shaath, that was partly the reason for the Palestine Liberation Organisation to go to the UN. If the US is not now in a position to push for a two-state solution, the international community needed to be consulted. The PLO does not believe Palestinians can wait any longer, while land which could form part of a future state disappears to Israeli settlements.

The Palestinian UN bid is also evidence of a near total lack of faith in US mediation. If an American president like Mr Obama - whose Cairo speech in 2009 held out so much promise and who has supported the democratic aspirations of Libyans, Syrian, Tunisians and Egyptians - cannot secure progress towards an end to the Israeli occupation, it only solidifies the already prevalent view that the US cannot be trusted to be a neutral mediator.

The US is also likely to disappoint a broader audience, said Marwan Muasher, a former Jordanian deputy prime minister and now with the Carnegie Endowment for International Peace, a Washington-based think tank.

"If the US is interested in changing their image in the area, it won't be able to do that by standing against a resolution that calls on people to have independence and freedom."

Yet that is exactly the message that Mr Obama seemed to send Palestinians on Wednesday. It was certainly the message received in Ramallah where demonstrators took to the streets to protest a speech they said placed the American president squarely on the side of the Israeli occupation.

That was also the message understood in other countries. In Cairo, an editorial in the government-owned Al Ahram newspaper criticised years of stagnation in the peace process under US auspices and said a vote at the UN might "at least revive the issue at a political level."

And while Egyptians remain preoccupied with their own issues, some saw Mr Obama's speech simply as a sop to a domestic audience.

"I think Obama is manipulating the situation because he has his eye on the elections," said Rasha Ramsi, a graduate student studying political science at Cairo University. "He said that the only solution is to negotiate and that a UN resolution will never solve this problem. Well, then what is the point of having the UN?"

Libyans too had time to consider the Palestinian plight at the UN amid their own travails. At a clothes shop in Tripoli, Souad Fetouri, a charity worker, said she had been disappointed by Mr Obama's decision to block UN recognition of a Palestinian state.

"In the beginning western countries helped us in Libya for humanitarian reasons," she said. "But in the end, it always comes down to interest."

Malek Turki, 25, who works at a nearby cafe, said he felt Mr Obama's presidency had run its course.

"Next year I want to see someone new," he said. "Four years of Obama is enough. It's true he encouraged revolutionaries, and that's good. But I don't agree with how he's dealing with Palestine, and look at Syria - there he's doing nothing at all."

okarmi@thenational.ae

With additional reporting by Bradley Hope in Cairo and John Thorne in Tripoli

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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.”