NAZARETH, ISRAEL // Pressure is mounting on Benjamin Netanyahu, the Israeli prime minister, to bring the opposition leader Tzipi Livni into the government after last week's difficult meeting with the US president, according to senior analysts.
Yaron Ezrahi, a political science professor at Hebrew University in Jerusalem, said Mr Netanyahu now understood that he faced a stark choice between clashing with the White House and ditching the far-right parties in his coalition.
During the talks in Washington, Barack Obama said he expected an immediate halt to settlement building, a move rejected by Mr Netanyahu's main coalition partners and many in his own right-wing Likud Party.
The Israeli prime minister hinted this week he will probably renew the call for Ms Livni, the leader of Kadima, a centrist party, to join the coalition after his failure to tempt her into a unity government following February's general election.
Highlighting the alleged threat of Iran's gaining a nuclear warhead as the main danger facing Israel, he told his party on Monday the priority was to "reach as broad a national unity as possible to repel the danger. Our relations with the United States are important and we must preserve them".
Prof Ezrahi said: "As long as Netanyahu didn't know how obstinate Obama was going to be, he could afford to ignore all the signs coming from the White House. But after the talks in Washington, Netanyahu's hand is considerably weaker.
"Netanyahu and Livni are now indispensable to each other."
Tensions within the current coalition have mounted over the past week, particularly over indications that Mr Netanyahu may try to dismantle a handful of tiny outpost settlements as a minimal concession to the US administration.
The White House is demanding an immediate freeze on all settlement expansion in the West Bank to prepare the ground for a peace deal with the Palestinians.
Mr Netanyahu is opposed to the creation of a Palestinian state and is offering a much vaguer "economic peace".
Yesterday, Dan Meridor, the intelligence agencies minister, met US officials in Britain in what the Israeli media described as an attempt to persuade the White House to allow continued expansion of the larger settlements in return for a crackdown on two dozen outposts.
Ehud Barak, the defence minister and leader of the much-diminished left-wing Labor party, is expected to convey the same message on a trip to Washington next week.
Last Thursday Mr Barak sent in security forces to dismantle one outpost, Maoz Esther, east of Ramallah, that consisted of five huts and two tents. There are more than 100 similar outposts across the West Bank, ostensibly unauthorised by the government and housing a few thousand settlers.
On Monday Mr Barak also approved "zoning notices" against a further 10 outposts, setting in motion proceedings that could eventually lead to their demolition.
He promised to dismantle a total of 26 outposts, a pledge Israel made to the previous US administration of George W Bush but has yet to fulfil.
Observers, however, were largely unimpressed by the supposedly tough new stance. It was the fourth time Maoz Esther has been dismantled and, as on previous occasions, the settlers were allowed back a few hours later.
Uri Avnery, leader of the Gush Shalom peace group, accused Mr Barak of conducting only "a performance of 'demolishing outposts'".
Nehemia Strasler, of the liberal Haaretz newspaper, argued that the spectacle was meant to "divert [US] attention from the construction taking place all over the West Bank".
At a cabinet meeting on Sunday, the right-wing parties vied in denouncing Mr Barak, with one calling his move a "witch-hunt" against the settlers. The next day Mr Netanyahu tried to reassure his party by suggesting the crackdown on outposts would win US backing for Israel's hard line on Iran.
Writing in Haaretz, Aluf Benn, another columnist for the paper, noted: "Netanyahu is in a trap: the more he tries to persuade Obama he can provide the diplomatic goods, the quicker his coalition will expire."
Mr Netanyahu's only saviour, according to Prof Ezrahi, is his chief rival for power, Ms Livni. He said the Israeli public expected unity from senior politicians during times of crisis and neither Mr Netanyahu nor Ms Livni would want to be seen wrecking the chances of a unity government.
"Israelis believe the country's existence totally depends on US support and will judge harshly any leader who risks jeopardising that relationship. That is the most pressing political constraint on Mr Netanyahu."
Ms Livni added to the pressure on Mr Netanyahu this week. She accused him of "bad management" and said Israel was "witnessing signs of a diplomatic collapse".
Yesterday she criticised the government's preference for the road map, a US peace plan from 2003, saying it delayed direct talks with the Palestinians for too long.
"Refraining from talking will bring us to a situation in which we won't have a partner for talks," she told Army Radio.
Ms Livni faces her own political constraints. Shaul Mofaz, her main challenger to lead Kadima, has been lobbying among colleagues against her earlier refusal to join the coalition.
He added that most Kadima legislators privately agreed with him on the need for a unity government.
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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.”
How green is the expo nursery?
Some 400,000 shrubs and 13,000 trees in the on-site nursery
An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo
Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery
Approximately 340 species of shrubs and trees selected for diverse landscape
The nursery team works exclusively with organic fertilisers and pesticides
All shrubs and trees supplied by Dubai Municipality
Most sourced from farms, nurseries across the country
Plants and trees are re-potted when they arrive at nursery to give them room to grow
Some mature trees are in open areas or planted within the expo site
Green waste is recycled as compost
Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs
Construction workforce peaked at 40,000 workers
About 65,000 people have signed up to volunteer
Main themes of expo is ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.
Expo 2020 Dubai to open in October 2020 and run for six months
Things Heard & Seen
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