JERUSALEM // The Israeli cabinet on Sunday postponed a scheduled debate on a law to offer compensation to settlers willing to leave parts of the occupied West Bank. That may have been just as well for Ehud Olmert, the Israeli prime minister, and his deputy, Haim Ramon, who proposed the bill, because the debate promises to be a rancourous one.
The Evacuation Compensation Bill proposes that the Israeli government buy out anyone who agrees to be moved from settlements east of Israel's separation barrier, mostly to settlements west of the barrier, before any comprehensive agreement is reached with the Palestinians.
As such, the bill is notable not only for tackling head on what most think is unavoidable, namely how to evacuate Israeli settlements in the West Bank, but also for establishing the separation barrier as the de facto border around which negotiations will revolve.
Mr Olmert said Israel needed to look into the issue of voluntary relocation of settlers, especially since "serious negotiations" with the Palestinians are underway.
"Negotiations evidently could at some stage lead to decisions, including removing residents from their places of abode. We should look at what this all means," Mr Olmert said at the start of the weekly Cabinet meeting on Sunday.
But all three candidates vying to succeed Mr Olmert as head of Kadima in a Sept 17 poll and ultimately as prime minister have voiced their objections to the bill.
Tzipi Livni, the foreign minister and front-runner in the leadership race, said a compensation offer was premature and should only be considered after a comprehensive agreement had been reached with the Palestinian side.
Her closest rival, Shaul Mofaz, the minister of transport, said the legislation would "weaken" Israel in future negotiations with the Palestinians, while outsider Meir Shetrit, the interior minister, said approving the bill could undermine the stability of some West Bank settlements.
Their opposition to the proposed bill prompted criticism from the liberal Israeli press. By opposing the legislation, wrote Uzi Benziman in the Haaretz newspaper, the three contenders had revealed themselves to be "entrenched in an outdated world view". The legislation, he continued, was a "timely step ? freeing Israel from the burden of becoming a binational state".
But the bill is notable not only for wanting to tackle an issue that most consider unavoidable - how to evacuate at least some settlements. By essentially demarcating the separation barrier as a de facto border beyond which settlements are likely to be removed but behind which they are liable to stay and be annexed, Israel would appear to be pre-empting negotiations.
For Israeli liberals, wedded to the idea of a negotiated solution, this should pose a problem. Gershon Baskin, head of the Israel-Palestinian Centre for Research and Information, however, rejected this reading of the bill.
"Olmert has reportedly proposed that Israel keep control of around eight per cent of the West Bank. The separation barrier takes around 10 per cent, so there would be some adjustment to the barrier. It is only reasonable to expect that some compromise based on the barrier be reached."
Mr Baskin accepted, however, that the bill meant the route of the barrier would be the "point of the beginning of negotiations" and also noted that the legislation was another indirect admission by the Israeli government that the barrier is more than just a security measure
Indeed, to Yisrael Harel, an Israeli columnist and the former head of the Yesha Council, the umbrella organisation for Jewish settlements in the West Bank, the bill is notable for its unilateralism.
"This is a unilateral decision that says to the whole Israeli population, take it or leave it," said Mr Harel. "We will compensate you here and there, but this is our borderline when it comes to the central part."
While Mr Harel accepts that "everyone knows" that if there is agreement with the Palestinians, the barrier route will be the border, he opposes the bill, which he says is an attempt by the government to "buy people's principles" and believes it is a non-starter.
"The settlements east of the barrier are ideological ones. Very few people will take up this offer."
To Palestinians, the unilateralism implicit in the bill is unacceptable in principle. Palestinian negotiators consider the 1967 armistice lines as the only acceptable border, though the PLO has been willing to talk about a limited swap of around two per cent of that land.
In addition, all settlements in occupied territory are illegal according to international law, and while, again, Palestinian negotiators have shown willingness to entertain the idea of some settlements being annexed to Israel, they are likely to baulk at the scale of such annexation the route of the separation barrier would necessitate.
"In general terms, if the Israeli government is contemplating removing settlers, this is good," said Ali Jarbawi, a Palestinian analyst. "But the fact that they are only compensating settlers east of the wall means that Israel wants to impose a settlement on the Palestinians according to Israeli conditions. In other words, Israel is unilaterally deciding what it wants to keep and what it wants to rid itself of."
Nevertheless, Mr Baskin considers the bill, should it gain government sponsorship and be legislated in parliament, a "sign of progress".
"I think it would be an important message to the Palestinian people and one that would strengthen Abu Mazen [Mahmoud Abbas, the Palestinian president]."
okarmi@thenational.ae
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Teaching in coronavirus times
PROFILE
Name: Enhance Fitness
Year started: 2018
Based: UAE
Employees: 200
Amount raised: $3m
Investors: Global Ventures and angel investors
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AUSTRALIA SQUAD
Aaron Finch, Matt Renshaw, Brendan Doggett, Michael Neser, Usman Khawaja, Shaun Marsh, Mitchell Marsh, Tim Paine (captain), Travis Head, Marnus Labuschagne, Nathan Lyon, Jon Holland, Ashton Agar, Mitchell Starc, Peter Siddle
RESULT
Wolves 1 (Traore 67')
Tottenham 2 (Moura 8', Vertonghen 90 1')
Man of the Match: Adama Traore (Wolves)
Dhadak
Director: Shashank Khaitan
Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana
Stars: 3
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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.”
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
Dunki
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Schedule for show courts
Centre Court - from 4pm UAE time
Johanna Konta (6) v Donna Vekic
Andy Murray (1) v Dustin Brown
Rafael Nadal (4) v Donald Young
Court 1 - from 4pm UAE time
Kei Nishikori (9) v Sergiy Stakhovsky
Qiang Wang v Venus Williams (10)
Beatriz Haddad Maia v Simona Halep (2)
Court 2 - from 2.30pm
Heather Watson v Anastasija Sevastova (18)
Jo-Wilfried Tsonga (12) v Simone Bolelli
Florian Mayer v Marin Cilic (7)
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Starring: Jamie Foxx, Angela Bassett, Tina Fey
Directed by: Pete Doctor
Rating: 4 stars