GAZA CITY // On a recent hot, dry afternoon, Yasser Rihan, 30, was wrapping up the day's work on a construction site in the southern part of Gaza City.
Mr Rihan was laying the foundation for a new orphanage, the kind of institution increasingly in demand in the battered Gaza Strip and the kind of construction that is now almost non-existent in the impoverished and isolated enclave.
The only reason this construction is going ahead, a "miracle", according to Mr Rihan, is that instead of relying on modern construction materials like cement, steel and glass, the orphanage is being built from mud bricks and usable rubble from the many destroyed buildings and houses in Gaza.
"From nothing, we create something," said Mr Rihan, who used to work in a factory that made ordinary bricks, now long closed. His obvious pride in the ability of Gazans to cope aside, however, Mr Rihan said given a choice he would still prefer to build with modern materials.
"I have no experience of mud brick housing. But I can tell you that it takes longer."
Of course, Mr Rihan, along with nearly 1.5 million other Gazans, has no choice. The Israeli sanctions on the Gaza Strip have seen crossings to the Palestinian enclave closed to anything but the absolute minimal emergency relief essentials such as food and medicine. Construction materials and other goods have been barred from entry for over two years.
Increasingly, however, international actors are beginning to up the pressure on Israel to ease the closure on Gaza. On Wednesday, more than 40 UN and other international NGOs again reiterated long-standing calls for an immediate end to the Israeli closure on the Gaza Strip, which was described as a "collective punishment".
"We call for free and uninhibited access for all humanitarian assistance ? We also call for a return to normalised trade," said a joint statement read at a news conference in a UN warehouse in Jerusalem, where aid destined for the impoverished Palestinian enclave is stored.
The statement was signed by, among others, the UN agency for Palestinian refugees, UNRWA, Oxfam International and Care, as well as several dozen smaller organisations.
More importantly, the United States is also increasing its pressure on Israel to ease the Gaza closure, according to a report on Thursday in the Haaretz newspaper, an Israeli daily. The United States is reported to want Israel to allow in construction materials as well as help breathe life into Gaza's economy by allowing for the import and export of commodities.
Crucially, Washington is reported as wanting Israel to delink the issue of Sgt Gilad Shalit, the Israeli soldier captured along the border with Gaza three years ago, from the issue of the crossings. Meanwhile, Hamas is also reported to be willing to lower its demands for a prisoner exchange deal for Sgt Shalit following a visit last week by the former US president, Jimmy Carter.
Whether or not such US pressure, behind the scenes and still very much informal, will sway the hard-line Israeli government under Benjamin Netanyahu is another matter. In his much-publicised speech last week, Mr Netanyahu made no bones about his absolute rejection of dealing with Hamas, which Israel, as well as the United States, considers a terrorist organisation.
But the United States is acutely aware that to boost the domestic standing of Mahmoud Abbas, the Palestinian Authority president, the reconstruction of Gaza must begin, preferably under PA auspices. That, in turn, can only happen if Fatah and Hamas agree to a unity arrangement whereby the Fatah-led West Bank PA regains a foothold in Gaza.
A unity government would also be a way for international actors to deal with the reality of the Gaza Strip without having necessarily to deal directly with Hamas. The US administration has accordingly made preparations for dealing with a Palestinian unity government, notably by asking the US Congress to approve continued aid to the Palestinian Authority even if Hamas joins in government.
The United States still wants Hamas to abide by the Quartet's conditions that it recognise Israel, renounce the armed resistance and abide by previously signed agreements, something the Islamist movement has so far refused to do. Nevertheless, Hamas has been increasingly eager to point out that in practice it is abiding by a ceasefire and that it would be willing to abide by previous agreements if Israel does the same, something that may be enough to persuade the United States to give it a go.
Evidence that Washington is now less opposed to Fatah and Hamas agreeing to a unity government came last week with the unexpected boost that Egyptian-mediated unity negotiations, long stalled, received when Hamas and Fatah members met both in Gaza and the West Bank and thrashed out their own prisoner-exchange deal, a long-time bone of contention between the two Palestinian factions.
That deal has still to be implemented. Yesterday, the PA released 20 imprisoned Hamas members after Hamas had earlier criticised the West Bank leadership of not living up to its side of the bargain. Hamas criticised the release as "meaningless" and said in the week since the agreement had been struck, the PA had arrested more than 100 Hamas members.
Nevertheless, the agreement to release prisoners is an important confidence-building step that may indicate that unity talks, scheduled to conclude on July 7, could finally be gaining some traction. A successful conclusion to those talks will see international pressure on Israel to lift its closure on Gaza gain further traction.
Until then, the labour-intensive and slow mud-brick industry in Gaza will remain the only potential form of reconstruction available to the tens of thousands of Gazans still homeless after Israel's onslaught on Gaza this year.
okarmi@thenational.ae
ANALYSTS’ TOP PICKS OF SAUDI BANKS IN 2019
Analyst: Aqib Mehboob of Saudi Fransi Capital
Top pick: National Commercial Bank
Reason: It will be at the forefront of project financing for government-led projects
Analyst: Shabbir Malik of EFG-Hermes
Top pick: Al Rajhi Bank
Reason: Defensive balance sheet, well positioned in retail segment and positively geared for rising rates
Analyst: Chiradeep Ghosh of Sico Bank
Top pick: Arab National Bank
Reason: Attractive valuation and good growth potential in terms of both balance sheet and dividends
THE BIO
Age: 30
Favourite book: The Power of Habit
Favourite quote: "The world is full of good people, if you cannot find one, be one"
Favourite exercise: The snatch
Favourite colour: Blue
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.”
Other promotions
- Deliveroo will team up with Pineapple Express to offer customers near JLT a special treat: free banana caramel dessert with all orders on January 26
- Jones the Grocer will have their limited edition Australia Day menu available until the end of the month (January 31)
- Australian Vet in Abu Dhabi (with locations in Khalifa City A and Reem Island) will have a 15 per cent off all store items (excluding medications)
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Generational responses to the pandemic
Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:
Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.
Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.
Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.
COMPANY%20PROFILE
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Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
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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.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Ad Astra
Director: James Gray
Stars: Brad Pitt, Tommy Lee Jones
Five out of five stars
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47