Netanyahu meets with Hosni Mubarek


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The Israeli prime minister Benjamin Netanyahu and Egyptian president Hosni Mubarak meet today in a bid to revive peace talks with the Palestinians ahead of a possible three-way meeting later this month. Mr Netanyahu's visit, his second since May, will coincide with the arrival of US Middle East envoy George Mitchell in the region as Washington continues its push to get the peace process back on track.

Israel's expansion of Jewish settlements in the Palestinian West Bank, which defies US pressure and Palestinian Authority president Mahmud Abbas's condition for resuming talks, is likely to top the agenda in Cairo. The two leaders are also expected to discuss the exchange of an Israeli soldier held by the Islamist movement Hamas in the Gaza Strip for more than 1,000 Palestinian prisoners in Israeli jails.

The United States has sought to fast-track a peace process that would lead to the creation of a Palestinian state alongside Israel. It has floated the possibility of hosting a meeting between Mr Netanyahu and Mr Abbas on the sidelines of the UN General Assembly, according to the Israeli president Shimon Peres. But both sides have rebuffed the US call for goodwill gestures that would see a freeze to settlement construction in return for Arab states beginning to normalise ties with Israel.

Arab countries have said normalisation will only come after substantive peace talks, or a settlement to the conflict, and Mr Abbas insists that he will not meet Mr Netanyahu before a complete end to settlement construction. Earlier this month, Mr Netanyahu authorised the construction of 455 new homes in West Bank settlements, prompting Mr Abbas to say that there was no point in attending a summit with him.

Washington criticised the settlement expansion as "inconsistent" with the peace process, but has also said it does not consider a settlement freeze a condition for peace talks to resume. Israel has said it would weigh demands for a freeze in settlement construction in the West Bank. However, it stresses that this would be time-limited, would not include the newly authorised construction, nor the 2,500 homes currently being built, and would also exclude occupied east Jerusalem.

Israeli media reported last week that Mr Netanyahu said he believed he would reach a deal on settlements with the United States when Mr Mitchell arrived. If a deal is secured, it would place pressure on Mr Abbas to retreat from his calls for an immediate freeze of all settlement construction before resuming negotiations. Egypt has been mediating between rival Palestinian factions Fatah in the West Bank, and Hamas, which rules the besieged Gaza Strip which the Israeli military attacked at the turn of the year.

It has been Israel's main Arab interlocutor since the two signed a peace treaty in 1979, but the neighbours remain at odds over the peace process. Cairo has also acted as a mediator in talks between Hamas and Israel on a possible deal to end the crippling Gaza blockade and free Gilad Shalit, the Israeli soldier captured by Palestinian militants more than three years ago. Efforts to reach a deal have reportedly intensified in the past month, but a senior Hamas official in Damascus, where the group's leadership is exiled, on Saturday downplayed reports of an imminent agreement.

* AFP

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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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Why are asylum seekers being housed in hotels?

The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.

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