An Israeli soldier opens a gate at a checkpoint between the West Bank city of Hebron and a commercial crossing point into Israel on August 7, 2008.
An Israeli soldier opens a gate at a checkpoint between the West Bank city of Hebron and a commercial crossing point into Israel on August 7, 2008.
An Israeli soldier opens a gate at a checkpoint between the West Bank city of Hebron and a commercial crossing point into Israel on August 7, 2008.
An Israeli soldier opens a gate at a checkpoint between the West Bank city of Hebron and a commercial crossing point into Israel on August 7, 2008.

Israel wants to annex part of West Bank


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JERUSALEM // Israeli negotiators have told their Palestinian counterparts they want to annex 7.3 per cent of the West Bank as part of a final peace deal, Palestinian officials said today. In exchange, Israel would cede Israeli territory near the Gaza Strip that is equivalent to 5.5 per cent of the West Bank, and would open a passage to allow Palestinians to travel between the West Bank and Gaza. The officials, who are close to the negotiations, spoke on condition of anonymity because the talks are supposed to be secret. Nabil Abu Rdeneh, an aide to the Palestinian president Mahmoud Abbas, would not comment on the Israeli offer, but said "the gap between the two positions on the issue of borders is still wide".

Palestinian officials have said they agree in principle to a land swap that would enable Israel to annex some large Jewish settlements in the West Bank. However, the officials said they're not willing to swap more than 1.8 per cent of the West Bank. The Israeli proposal resembled offers made by Israel in previous rounds of negotiations in 2000 and 2001 before the process broke down in violence. Today, the two Palestinian territories are controlled by bitter rivals: Hamas rules Gaza, while Mr Abbas' Western-backed government controls the West Bank and is negotiating with Israel.

According to the Israeli offer, the land swaps would only go ahead once Abbas had regained control of Gaza, the Israeli daily Haaretz reported today. That appears increasingly unlikely to happen, as Hamas has effectively eliminated internal opposition and is firmly in control of the coastal strip and its 1.4 million residents. Haaretz also claimed that Mr Abbas has agreed to put off negotiations on Jerusalem.

However, Mr Abbas has said repeatedly that all issues are on the table and that he's not ready to reach a partial deal. The final borders of the two states, Israel and Palestine, are only one of the three main issues facing the sides. They must also resolve the fate of the Palestinian refugees who lost their homes when Israel was established in 1948 and their descendants. The third issue, and the thorniest, involves Jerusalem, with its holy sites coveted by both sides. The Palestinian negotiator Saeb Erekat said the report of the Israeli offer was "baseless or half-truths", and charged that Israel was preparing to make it look as if the Palestinians were responsible for rejecting a generous deal.

"We hope the Israeli side will stick to the agreement to continue negotiations away from the media and not to begin engagement in the blame game," Mr Erekat said. Mark Regev, an Israeli government spokesman, declined to comment on the report, but said "important progress" had been made in recent months, "including on the issue of final borders". "More work still needs to be done, and we are committed to continuing the effort to try to reach a joint Israeli-Palestinian document," he said.

The current Israeli-Palestinian talks were launched at a US-sponsored peace conference late last year, with the goal of reaching an agreement by the end 2008. Both sides have increasingly indicated they doubt they can bridge the gaps between then by the deadline. Further complicating matters, Mr Olmert has been buffeted by corruption charges and is facing the end of his term in office. The Israeli leader announced that he will step down after his Kadima Party elects a new leader in September, though he might stay on as head of a caretaker government for months afterward if national elections are called.

If true, the report could indicate Mr Olmert is trying to sew up important parts of a peace deal before leaving office. *AP

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UAE currency: the story behind the money in your pockets

The Dark Blue Winter Overcoat & Other Stories From the North
Edited and Introduced by Sjón and Ted Hodgkinson
Pushkin Press 

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

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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.”