Firaz Yassin, left, manager of the Diwan coffee shop, says the US election is of little interest to people in Ramallah.
Firaz Yassin, left, manager of the Diwan coffee shop, says the US election is of little interest to people in Ramallah.
Firaz Yassin, left, manager of the Diwan coffee shop, says the US election is of little interest to people in Ramallah.
Firaz Yassin, left, manager of the Diwan coffee shop, says the US election is of little interest to people in Ramallah.

Palestinians hoping for 'positive' input from Obama


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RAMALLAH // Customers at the Diwan coffee shop in the centre of Ramallah were distinctly underwhelmed by the historic election of Barack Obama. America may have elected its first African-American president, but here pop videos played non-stop on the two television screens, while the talk was more focused on the upcoming Champions League football fixtures than global politics. "It really makes no difference to us," said Hussem Abu Aisheh, 37, a social worker from Nablus who had come to Ramallah to visit friends. "The pro-Israel lobby in the US is too strong and all US presidents, whatever their party, have shown they support Israel." Mr Abu Aisheh said he had not followed the election on TV but had instead watched Tuesday's football games. "I am more concerned with what happens to Real Madrid," said the social worker, who is also studying for an MA in political science at Nablus's Al Najjah University. "I don't expect any change for us with this election." Mr Abu Aisheh's apathy was common among the coffee shop's clientele, according to manager Firaz Yassin. Diwan is located near several ministries and caters to mostly civil servants, but Mr Yassin said he had shown the football on Tuesday night since no one was interested in following the elections. "No one has been talking about it much," said the 35-year-old, who works in the ministry of transport when he is not looking after the coffee shop. "You might hear a passing remark, but really, people don't see [the election] as important for them." Palestinian officials, however, were more forthcoming. "We are hopeful that [Barack Obama's] presidency will be positive for the peace process and positive for finding a solution to the Palestinian-Israeli conflict," said Rafiq Husseini, the chief of staff of the office of Mahmoud Abbas, the Palestinian president. Mr Husseini said Mr Abbas had been impressed by Mr Obama when the two met this year and that the latter had shown that he "understood the issues in depth". "He has promised his people change and that includes that America will deal with global issues in a different manner and with an approach based on justice and co-operation. If that is the case, it will bode well for the Palestinians and the region as a whole." Guarded optimism was the word from Gaza. "This is a historic day," said Ahmed Yousef, a senior Hamas official. "All over the world, people were watching and waiting for the announcement that Obama had won. [US President George W] Bush had put the whole world at risk with his 'war on terror'. Everyone wanted change." However, Mr Yousef cautioned against too much hope. "For us as Muslims and Palestinians, it's difficult to judge Obama. We hope that this election will be a turning point when it comes to the Palestinian question and that the new administration will be serious about Palestinians having their own independent state and will not just back Israeli aggression. We will see in the next six months." Whatever politicians say, it is hard to escape the feeling that among Palestinians generally the loss of faith in US mediation and motives is total. Mr Abu Aisheh was not impressed with Mr Obama's African background, saying it was likely it would be negative for Palestinians since, "he will have to prove his support for Israel even more". Political analysts, too, were guarded in their judgment, with the upcoming Israeli elections being seen as much more important. "No matter who is in the White House, if [right wing Israeli leader Benjamin] Netanyahu is in power here, Israel will reject any US pressure [towards peace]," said Walid Salem, a political analyst. "I don't think the Americans are able to apply significant pressure on Israel, and even if Obama tries, the structures of power in the US will stand in his way." Mr Salem nevertheless said he saw Mr Obama as a "visionary" and that he was hopeful that "eventually" this would have a positive effect on the Palestinian issue. "I hear him use the kind of language that will raise American awareness of global issues. It won't have an immediate impact on Palestinians but it will on international relations in general and in the end this will help us." The caution among analysts and officials and cynicism among ordinary people is perhaps not surprising in a place where Tuesday's Israeli military incursion into Gaza, that ultimately resulted in the deaths of six Gazans, was widely seen as having taken place under the cover of the US elections when the world's attention was focused elsewhere. It is the reaction to such incidents that will help shape Palestinian judgment on an Obama administration once it is sworn in. Until then, most will simply agree with Mr Yassin. "Someone leaves, another comes. For us there is no difference." okarmi@thenational.ae

ENGLAND SQUAD

Goalkeepers: Jack Butland, Jordan Pickford, Nick Pope 
Defenders: John Stones, Harry Maguire, Phil Jones, Kyle Walker, Kieran Trippier, Gary Cahill, Ashley Young, Danny Rose, Trent Alexander-Arnold 
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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.”