An Eritrean woman with her daughter outside an apartment in Jerusalem that was set ablaze. Israel said it will step up deportation plans for 25,000 African migrants and jail those who try to enter the country.
An Eritrean woman with her daughter outside an apartment in Jerusalem that was set ablaze. Israel said it will step up deportation plans for 25,000 African migrants and jail those who try to enter theShow more

Israel's 'draconian' measures will not deter African migrants



TEL AVIV // Refugee advocates yesterday criticised as "draconian" Israel's announcement that it would begin jailing African asylum-seekers for up to three years, saying the measure would do little to deter more migrants from entering Israel illegally.

In another development that reflected hostility towards the newcomers arriving through the Israeli-Egyptian desert border, Benjamin Netanyahu, the Israeli premier, said yesterday that Israel will step up deportation plans for 25,000 of the migrants.

The tens of thousands of African asylum-seekers in Israel are increasingly drawing antagonism among Israelis, ramped up by a few rape cases involving the migrants and by right wing politicians' warnings about the dangers Israel faces should it fail to stem their influx.

Yesterday, arsonists set fire to an apartment in Jerusalem housing Eritrean asylum seekers, spray-painting "get out of the neighbourhood" over the entrance to the home. Police termed the incident as "very serious", as four of the residents were taken to a hospital with burns and smoke inhalation.

Rights groups have condemned Israel's refusal to grant asylum - or even review asylum applications - to almost all of the 60,000 migrants, mostly from Eritrea and Sudan, who have made long treks through the Sinai desert to cross into Israel over the last three years.

Israel claims the Africans came to seek better livelihoods and therefore do not qualify as refugees, but the migrants say they are fleeing persecution or war. Most have been driven to destitution because Israel refuses to examine their asylum requests or provide them with aid.

Israeli officials have said they hope to use the new legislation as a deterrent to dissuade more Africans from coming. Aside from an imprisonment of up to three years for the migrants, the law would also punish anyone who helps them or provides them with shelter.

Until now, the Africans who were caught crossing into Israel from Egypt have been held at the Saharonim detention facility for a few weeks. Many of them were then driven by bus into Tel Aviv, where their presence has stoked tensions with Israeli locals in the working-class neighbourhoods in which they are concentrated.

From now on, Israel plans to jail the African newcomers without charge in Saharonim, a facility made up of both buildings and concrete-floored tents, which it plans to expand to allow for the housing of 5,400 people.

Refugee advocates said the plan would be difficult to implement beyond a few months because, even with the expansion, Israel lacks the room for the 2,000 African migrants who arrive each month. Furthermore, they say, the jailing would not effectively deter others.

"This law is draconian and horrible and serves no purpose," said Sigal Rozen, the public-policy coordinator for the Hotline for Migrant Workers advocacy group. "This won't deter anyone because these people still prefer to sit in an Israeli prison rather than in an Eritrean or Sudanese prison."

William Tall, the representative in Israel for the United Nations High Commissioner for Refugees, said in an interview that a "long detention of asylum seekers would be contrary" to the 1951 UN Refugee Convention to which Israel was an initiator and signatory.

He said he was not aware of a similar law in any other western country and that Israel's measure should not apply to asylum seekers.

Israel has faced criticism on its contention that most of the Africans came only to look for work.

Tricia Redeker Hepner, a specialist on Eritrea from the University of Tennessee, said tens of thousands of Eritreans have fled their country to escape indefinite conscription in the army as well as a period of "service" to the state that often entails hard labour in mines for men and sexual servitude for women.

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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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