Palestinians still pursuing statehood recognition


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JERUSALEM // The Palestine Liberation Organisation is still "actively pursuing" statehood recognition in the United Nations Security Council even though their bid failed last year, a Palestinian official said yesterday.

That insistence came hours after Susan Rice, the US ambassador to the UN, told an audience in New York that the Palestinians had apparently decided that it was an inauspicious time to seek a vote, despite the Council's new members.

"The fact is, nobody knows for sure what the Palestinians will choose to do," Ms Rice added.

A Palestinian official told The National yesterday that the US envoy was incorrect and questioned her motives.

"I don't know what Mrs Rice is basing her calculations on, but it seems she just wants to further discourage us from pursuing this," said the official.

In the face of strong US and Israeli opposition, the PLO applied to the Council last September for UN membership.

But a UN committee to consider the application failed to reach consensus and the Palestinians have so far not requested a formal vote in the Council.

The official said it was too early to say how the Council's new non-permanent members who were elected to two-year terms in January - Azerbaijan, Guatemala, Morocco, Pakistan and Togo - would vote.

"Nothing is set in stone because none of these countries have stated their positions on the matter," he said.

The five permanent members of the Council are the US, Russia, France, China and the UK.

Ms Rice's comments on the Palestinian statehood bid came in a speech to the American Jewish Committee, a non-governmental organisation.

"I presume that is because the Palestinians decided that, given the voting's likely outcome in the Council, it wasn't timely to push it to a vote," she said, explaining why she believed the Palestinian application remained in committee.

Asked whether the Council's new composition might change the Palestinians' prospects for success, Ms Rice said: "We are roughly in the same place now as we were last year, and potentially even in a better position."

Last year, the Palestinian delegation to the UN, led by the Palestinian Authority president, Mahmoud Abbas, failed to win the support of the nine members of Council for the statehood bid.

The US had already indicated it would veto the measure, but the Palestinians deemed the nine ballots - the number of votes normally needed for passage - a moral victory. They could only gain the support of eight Council members, however.

Diplomats told Reuters that situation remains the same, despite the changes in the Council's membership.

Newcomer Azerbaijan is thought likely to support the Palestinian application.

But Guatemala is unlikely to follow its predecessor, Brazil, in backing the Palestinians. The other three newcomers represent no change.

The Palestinians must decide whether to push for a Security Council vote anyway, take the issue to the UN General Assembly - which cannot confer membership but can upgrade their status as observers - or do nothing as contacts continue with Israel over a possible resumption of peace talks.

Ms Rice reaffirmed the US line that a Palestinian state would come only through direct negotiations with Israel, not "through a shortcut at the United Nations".

She stressed US backing at the UN for Israel.

Some US Republicans have accused the US president, Barack Obama, of being insufficiently supportive of Israel.

hnaylor@thenational.ae

* Additional reporting by Reuters

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Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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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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