TEL AVIV // Benjamin Netanyahu, Israel's prime minister, is more likely to include centrist parties in his ruling coalition - if, as expected, he regains the premiership in this month's elections - after Chuck Hagel was nominated as the next US secretary of defence, analysts said yesterday.
Mr Hagel was named for the top Pentagon position on Monday.
His stance on Iran's nuclear ambitions and the Israeli-Palestinian peace process - the key foreign policy issues facing Israel - are viewed as being more moderate than those of Mr Netanyahu.
The United States is Israel's staunchest financial and diplomatic backer but the Israeli prime minister is said to already have a tense relationship with Barack Obama, the US president.
He may try to reduce the tensions by choosing centrist rather than right-wing political partners.
Mr Netanyahu's Likud party is predicted by all polls to win the January 22 elections.
"For Israel and for Mr Netanyahu, Hagel's nomination is a disaster," said Eytan Gilboa, a specialist on US-Israeli ties at the right-leaning Bar-Ilan University in Tel Aviv.
"He is perceived as opposing Israel's position on Iran and on talks with the Palestinians."
Mr Gilboa said the nomination of Mr Hagel - coupled with the naming of the former senator, John Kerry, known for his cautious approach to using military force, as secretary of state - "strengthens the case for Netanyahu to go with centrists" in his next government.
The Israeli premier may also pick moderate and centrist figures to head the foreign and defence ministries in a bid to improve ties with Washington and avoid disagreements on Iran and the Palestinians, said Mr Gilboa.
Mr Netanyahu heads what many commentators have called the most right-wing coalition in Israel's history, which mainly consists of ultranationalist and ultrareligious parties.
His government has drawn wide condemnation from both the US and European allies for impeding Palestinian statehood goals by advancing the construction of Jewish settlements in the West Bank.
Mr Netanyahu is also an advocate of a military strike against Iran's nuclear facilities, an option that is opposed by the White House.
Ahead of the upcoming ballot, analysts said Mr Netanyahu's party will have to join forces with other movements to build a coalition that would include a majority of the 120-member parliament.
They said he faced two main choices - either teaming up with the popular far-right party, Jewish Home, and the ultrareligious Shas party, or opting to partner with centrist movements such as the one headed by the former foreign minister, Tzipi Livni.
The second option may become more likely should Mr Hagel's appointment be confirmed in the senate.
Mr Hagel, a former Republican senator, has come under fire from fellow Republicans for being insufficiently supportive of Israel, though an apparent reluctance to impose tougher sanctions on Tehran.
Six years ago, he also refused to support a letter pressing the European Union to declare Lebanon's Hizbollah group - with which Israel had fought a 34-day war in 2006 - as a terrorist organisation.
He has also been criticised for calling, in a 2009 bipartisan letter, for a "pragmatic" approach towards Hamas, the Palestinian group regarded by Israel as a terror organisation.
Palestinian officials yesterday welcomed Mr Hagel's appointment. Hanan Ashrawi, a member of the Palestine Liberation Organisation's executive committee, suggested Mr Hagel may be less lenient than many other US officials towards Israel.
"I don't think one person will change US policy and I am not looking for a sudden shift, but his appointment would add a breath of fresh air to the US administration," she said.
"Here we have someone who is not easily intimidated by special-interest groups, particularly the pro-Israeli lobby."
In Israel, some right-wing political figures expressed fears that the naming of Mr Hagel would hurt Israel's ties with the US.
"Because of his statements in the past, and his stance toward Israel, we are worried," said Reuven Rivlin, a leading member of Likud and the speaker of Israel's parliament.
Some Israeli officials, however, played down the concerns of worsening relations.
Danny Ayalon, the deputy Israeli foreign minister and a former envoy to Washington, was quoted yesterday by Yedioth Ahronoth, Israel's best-selling newspaper, as saying: "I have met [Hagel] many times, and he certainly views Israel as a true and natural US ally."
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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.”
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Zayed Sustainability Prize
500 People from Gaza enter France
115 Special programme for artists
25 Evacuation of injured and sick
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
If%20you%20go
%3Cp%3EThere%20are%20regular%20flights%20from%20Dubai%20to%20Kathmandu.%20Fares%20with%20Air%20Arabia%20and%20flydubai%20start%20at%20Dh1%2C265.%3Cbr%3EIn%20Kathmandu%2C%20rooms%20at%20the%20Oasis%20Kathmandu%20Hotel%20start%20at%20Dh195%20and%20Dh120%20at%20Hotel%20Ganesh%20Himal.%3Cbr%3EThird%20Rock%20Adventures%20offers%20professionally%20run%20group%20and%20individual%20treks%20and%20tours%20using%20highly%20experienced%20guides%20throughout%20Nepal%2C%20Bhutan%20and%20other%20parts%20of%20the%20Himalayas.%3C%2Fp%3E%0A
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
