The Egyptian President Hosni Mubarak, right, with the Palestinian Authority President Mahmoud Abbas in Cairo yesterday.
The Egyptian President Hosni Mubarak, right, with the Palestinian Authority President Mahmoud Abbas in Cairo yesterday.
The Egyptian President Hosni Mubarak, right, with the Palestinian Authority President Mahmoud Abbas in Cairo yesterday.
The Egyptian President Hosni Mubarak, right, with the Palestinian Authority President Mahmoud Abbas in Cairo yesterday.

Optimism as prisoner swap talks progress


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RAMALLAH // In spite of repeated denials, reports that Hamas and Israel are close to agreeing a prisoner exchange deal continue unabated. According to Israeli media reports, Khaled Meshaal, the Hamas leader-in-exile, was en route yesterday to Cairo for discussions on how to finalise an exchange deal that would see at least 450 Palestinian prisoners released in stages in return for the release of Cpl Gilad Shalit, an Israeli soldier captured three years ago along the border with Gaza. Mr Meshaal is due to meet Egyptian officials as well as a delegation from Gaza during his visit. Hamas yesterday said that Mr Meshaal was in Cairo for talks on how to further Palestinian unity discussions, and a spokesman denied that a prisoner exchange deal was on the agenda. "There are several reasons for the visit," said Ayman Taha, the spokesman. "The main one is the internal dialogue. A prisoner exchange deal will only be discussed if it happens to come up in talks." Mahmoud Abbas, the Palestinian president and Fatah leader, was also in Cairo yesterday for talks with the Egyptian President Hosni Mubarak, but it was not clear whether there was a connection between the visits of the two rivals, Mr Abbas and Mr Mashaal. Mr Abbas left before Mr Mashaal arrived, but he did say the topic of reconciliation talks came up during his discussions with Mr Mubarak. He also reiterated his stance that a total settlement freeze was a condition for restarting talks with the Israelis. Speculation about a prisoner exchange deal picked up pace last week when it was revealed that Germany was involved in mediation efforts along with Egypt. Germany has mediated prisoner exchange deals involving Israel before, the latest in 2006 between Israel and Hizbollah, the Lebanese Shiite group. Cairo has been trying to mediate the release of Cpl Shalit since 2007 but with no luck. Hamas has previously asked for a non-regional mediator in a bid to ensure that Israel lives up to its side of any bargain. According to a report last week in Der Spiegel, a German magazine, Israel has already agreed to a deal in which it would release 450 Palestinian prisoners, including some convicted of killing Israelis. Hamas would then allow Cpl Shalit to travel to Cairo, after which Israel would release more prisoners. Some of those released, according to the report, would be exiled, a sticking point in previous negotiations. Hamas has yet to respond to the proposal. German involvement would certainly take negotiations to another level, and Mr Taha acknowledged that German mediation efforts were "extremely serious". Nevertheless, he said, negotiations were "only at the beginning". Also last week, Israel released nine Hamas ex-parliamentarians imprisoned since 2006. While the nine legislators had served their full 40-month sentences, the release could be seen as a first confidence-building measure. On the other hand, it seems improbable that Hamas would agree to a deal in the absence of a separate agreement on the issue of opening crossings into Gaza. While Israel's siege on the impoverished Gaza Strip has somewhat eased in recent weeks, Israel still bars much-needed construction materials from entering Gaza. The two-year Israeli siege has had a dramatic impact on Gaza's economy. Some 95 per cent of local industries have had to shut down, while repair work to Gaza's electricity power plant and debilitated sewage system remains undone. In addition, the absence of construction materials means that any reconstruction of Gaza after Israel's devastating onslaught in January cannot begin. Mr Taha accepted that a prisoner exchange deal with Israel could have a positive impact on the internal Palestinian dialogue. Nevertheless, he said, without an opening of the crossings, "there would be no exchange deal". okarmi@thenational.ae

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10. James Rodriguez - to Real Madrid in 2014/15 - €75m

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.”

GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

Director: Athale

Rating: 4/5

ULTRA PROCESSED FOODS

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;

- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,

- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.