RAMALLAH // The appointment of a little-known academic as Palestinian Authority prime minister has raised hope in the West Bank for fresh solutions to help an economy struggling under Israeli occupation.
Rami Hamdallah, president of Nablus's An Najah National University, was named premier on Sunday by Mahmoud Abbas, the PA president. The British-educated linguistics professor replaces Salam Fayyad, an internationally respected economist with limited support at home who resigned in April because of disputes with Mr Abbas's dominant Fatah faction.
Dianna Buttu, a former spokesperson for the Fatah-led Palestine Liberation Organisation (PLO), said many Palestinians wanted a shift away from the policies of relaxed bank lending, real-estate investment and institutional reform that came to define Mr Fayyad's six-year tenure.
Those policies earned Mr Fayyad respect from the United States and Europe, but at home his reforms were seen as failing to pressure Israel to end its 46-year occupation of the West Bank, Gaza Strip and East Jerusalem.
The local concern is whether Mr Hamdallah will "continue along the same trend of putting Palestinians into more debt, with the false guise of statehood, or whether he's going to think up policies to challenge the occupation", Ms Buttu said.
She said the prime minister should focus on providing political support to resist Israeli pressure, as well as financial support to Palestinians for home demolitions, arrests and settler attacks.
"He's going to have to fashion new strategies against the occupation, as well as Israeli policies of getting rid of Palestinians and taking their land," Ms Buttu said.
Mr Hamdallah's appointment comes amid efforts by John Kerry, the US secretary of state, to restart Israeli-Palestinian peace talks. Last week, he unveiled a US$4 billion (Dh14.7bn) aid package for the Palestinian economy as a sweetener.
Mr Kerry on Sunday welcomed Mr Hamdallah's selection and called for "a negotiated two-state settlement" with Israel that would allow Palestinians to build "a sovereign and independent" state.
Though affiliated with Fatah, Mr Hamdallah, 54, has little political experience and assumes a daunting portfolio. On top of steering an occupied economy that is heavily dependent on foreign handouts, he faces continued encroachment by Israeli settlers on land wanted for a Palestinian state.
He also must navigate fraught relations with Fatah's rivals, Hamas.
The factions signed an agreement last month to reinvigorate their stalled reconciliation efforts by forming a unity government by August and then holding national elections to reunite the Fatah-led West Bank with the Hamas-controlled Gaza Strip.
But Fawzi Barhoum, a Hamas spokesperson, said Mr Abbas, who has ruled by decree since his presidential term officially expired in 2009, "should have implemented the reconciliation" deal brokered between the factions instead of appointing Mr Hamdallah.
It was unclear when Mr Hamdallah will form a new government, which would be the fifth since 2006. Under Palestinian law, he has six weeks to form a government.
Hamas swept parliamentary elections in 2006, leading to a crisis that resulted in the group's takeover of Gaza from Fatah forces in 2007.
The deadlock has prevented Palestinians from holding presidential and parliamentary ballots.
Ayed Morrar, an activist from the West Bank village of Budrus who organises demonstrations against Israel's separation barrier, said villagers hoped to receive more support under Mr Hamdallah's leadership. That included financial support for peaceful protests against Israel, as well as for families of Palestinian prisoners in Israeli jails.
"Our leaders need to change their agenda to support activities that resist the occupation," he said, calling Mr Fayyad's policies "a distraction from our struggle".
But others doubt this would be a priority for Mr Hamdallah, a personal friend of Mr Abbas whose resume lists him as the general secretary for the Palestinian Central Elections Commission.
Hani Masri, an independent political analyst in Ramallah, said his appointment could be an attempt by Mr Abbas to consolidate his power. The Palestinian president, who also chairs Fatah and the PLO, had been at odds with Mr Fayyad because of the latter's independence in tackling such issues as corruption.
"He doesn't have an independent vision," Mr Masri said of Mr Hamdallah. "He will implement what the president wants him to do."
Abdul Sattar Kassem, a professor of political science at An Najah University, said Mr Hamdallah was chosen specifically because of his low profile. Other potential candidates could have angered Washington, and Israel, he said.
"He's not a political leader," Mr Kassem said. "We have a situation where we don't have political leaders any more, just people who listen to the demands of the Israelis and Americans."
Unnamed Israeli sources quoted by Haaretz newspaper described him as "pragmatic" with respect to negotiations with Israel, and said he had "developed professional contacts with many Israelis" over the years.
hnaylor@thenational.ae
Killing of Qassem Suleimani
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 specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.