Democratic presidential candidate former Vice President Joe Biden. AP, File
Democratic presidential candidate former Vice President Joe Biden. AP, File
Democratic presidential candidate former Vice President Joe Biden. AP, File
Democratic presidential candidate former Vice President Joe Biden. AP, File

Joe Biden would not move US embassy in Jerusalem if elected

Although he would not undo Donald Trump's decision to move the embassy, he called it 'short-sighted and frivolous'

Associated Press

April 30, 2020

  • English
  • Arabic

Democratic presidential candidate Joe Biden said Wednesday that the US embassy in Israel would remain in Jerusalem if he’s elected, even as he called President Donald Trump’s decision to move the diplomatic base from Tel Aviv “short-sighted and frivolous.”

Mr Biden, speaking during a virtual fundraiser, suggested relocating the embassy again would not help the stagnant peace process between the Israeli government and the Palestinian Authority that have fought for generations over how to divide land and power, especially Jerusalem.

Mr Trump’s decision effectively ratified the Israeli government’s claim on the disputed capital that is a holy city for Jews, Muslims and Christians.

Yet rather than reversing Mr Trump, Mr Biden told donors he’d reopen a US consulate in East Jerusalem to engage Palestinian leaders in talks about a “two-state solution” that has long been the official US posture toward Israel and the Palestinians.

“I’ve been a proud supporter of a secure, democratic Jewish state of Israel my entire life,” Mr Biden said Tuesday. But, he added, “My administration will urge both sides to take steps to keep the prospect of a two-state solution alive.”

Mr Biden’s remarks Wednesday were among the most detailed explanations of the issue he has given during the 2020 campaign.

Congress authorized the embassy move to Jerusalem in 1995 – with Mr Biden voting for the measure as a Delaware senator – but a succession of presidents from both major parties delayed the shift, setting conditions as part of ongoing peace negotiations.

Mr Biden said Mr Trump gave away that leverage.

“Moving the embassy when we did without the conditions having been met was short-sighted and frivolous,” the former vice president said. “It should have happened in the context of a larger deal to help us achieve important concessions for peace in the process.”

Mr Trump ostensibly backs a two-state solution. But his 2018 decision to move the embassy from Tel Aviv reflected his alignment with Israeli Prime Minister Benjamin Netanyahu, an unapologetic hardliner in advancing Jewish claims to Jerusalem and surrounding regions.

Whiile you're here

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.”