Israel could release Marwan Barghouti, a Fatah leader, who is serving five life sentences for planning attacks that killed Israeli civilians and soldiers.
Israel could release Marwan Barghouti, a Fatah leader, who is serving five life sentences for planning attacks that killed Israeli civilians and soldiers.

Gaza truce hinges on prisoners swap



TEL AVIV // The Israeli cabinet may approve this week a draft on a long-term ceasefire agreement with Hamas that hinges on the Islamist group releasing an Israeli soldier it has held captive for 2½ years. Israel's cabinet may meet as soon as tomorrow to decide on whether to support the draft, government officials said. The meeting would follow what appears to be a toughening in the stance of Ehud Olmert, Israel's outgoing prime minister, who insisted on Sunday that Israel would not fulfill Hamas's key demand - the opening of the Gaza Strip's border crossings - until the soldier, Sgt Gilad Shalit, is freed in a prisoner swap. "The key now is Gilad Shalit - if that issue is settled, then other things could follow," said Mark Regev, a spokesman for Mr Olmert.

Mr Olmert's position may further cloud prospects for an Egyptian-mediated effort to clinch a truce soon because Hamas is believed to want Israel to open Gaza's crossings before any prisoner swap takes place. It was not clear yesterday whether Hamas would agree to exchange prisoners before embarking on the other terms of the ceasefire. Egypt has struggled to seal an 18-month truce in the Gaza Strip that would replace a shaky ceasefire in place since Jan 18, when Israel ended a 22-day onslaught in the territory that killed about 1,300 Palestinians. The Egyptian-proposed deal calls for the reopening of Gaza's crossings, all of which are controlled by Israel except for Rafah, which is managed by Egypt. The pact also includes Israel's freeing of hundreds of Palestinian prisoners it holds in exchange for Sgt Shalit, as well as reconciliation talks between Hamas and its rival, the Fatah movement, which Hamas violently routed from Gaza in 2007.

Although progress on the agreement has been slow, the two sides appear to aim at reaching a resolution soon amid expectations that a new hardline political leadership will take the Israeli government helm within weeks. Benjamin Netanyahu, viewed by analysts as having the best chance of becoming the next prime minister despite his hawkish party's second-place showing in last week's parliamentary elections, is believed to prefer renewing Israel's military offensive in Gaza in a bid to topple Hamas instead of sealing a ceasefire with the group.

The prisoner exchange deal has also encountered some obstacles, however. According to Al Ahram, Egypt's state-owned newspaper, Israel is still resisting Hamas's demands that it release four Palestinian prisoners convicted of killing Israeli civilians, and is insisting they be exiled to Syria, Lebanon or other countries instead of returning to their homes. They are Ibrahim Hamed, the leader of Hamas's military wing in the West Bank, who was convicted of engineering attacks on Jewish settlements in the Israeli-occupied territory; Abdullah Barghouti, a Hamas member who was sentenced to 67 consecutive life terms for organising suicide bombings in Israel; Abbas al Sayyed, another Hamas member sentenced to 35 life terms for similar charges, and Ahmed Saadat, head of the Popular Front for the Liberation of Palestine, who was sentenced to 30 years in prison by an Israeli military court in December "because of his position and activities within the terrorist movement".

There is also a possibility that Israel could release Marwan Barghouti, a jailed Fatah leader, in a bid to bolster Mahmoud Abbas, the US-backed Palestinian president and head of Fatah. Mr Barghouti was arrested in 2002 in the West Bank during a violent Palestinian uprising against Israel and sentenced to five life terms on charges of orchestrating attacks that killed Israeli civilians and soldiers. Mr Barghouti is considered one of the most popular leaders of Fatah in the West Bank and is often viewed as a possible successor within the faction to Mr Abbas. In 2007, Haaretz called for Mr Barghouti's release, saying he had attempted for years to persuade Israeli leaders to end through negotiation the occupation of territories viewed by Palestinians as part of their future state.

Mr Olmert's new emphasis on achieving the release of Sgt Shalit is part of a bid to rehabilitate his public image after a string of police corruption investigations forced him to resign last year, Israeli commentators said. Israelis both on the right and left of the political spectrum have pushed the government to step up efforts to free Sgt Shalit, whose captivity has been an especially emotional issue in a country where most people have relatives or friends who serve as soldiers in the citizen army. Haaretz, a left-wing newspaper, reported yesterday that Mr Olmert - together with Tzipi Livni, the foreign minister, and Ehud Barak, the defence minister - view Sgt Shalit's release as a "more substantial achievement" than a ceasefire, which could easily be violated by continued rocket fire from Gaza and military action by a new hawkish government headed by Mr Netanyahu.

vbekker@thenational.ae

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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