Salam Fayyad, the prime minister of the Palestinian Authority, wants Hamas to participate in upcoming elections.
Salam Fayyad, the prime minister of the Palestinian Authority, wants Hamas to participate in upcoming elections.

Salaam Fayyad offers 'pragmatic' olive branch to Hamas



RAMALLAH // If nothing else, Salaam Fayyad is reasonable, a trait that befits a man who is a trained economist and has spent more of his life in academia than politics.

Which is why after more than four years of bitter infighting between Hamas and Fatah, the largest faction of the Palestine Liberation Organisation, the prime minister of the Palestinian Authority last month invited the Gaza Strip's Islamist rulers to join a national unity government.

The PLO and the United States, his most important political and financial backer, were not happy. Nor, to say the least, was Israel, which has viewed Mr Fayyad as someone whom it can "deal with".

But with the possibility looming that the feud could block the path to Palestinian statehood for yet another generation of Palestinians, the 58-year-old prime minister put aside his personal aversion for Hamas and extended it an olive branch.

Not surprisingly, Mr Fayyad this week called his overture to Hamas "pragmatic".

"It's not ideal, but what I'm proposing represents a vast improvement over what exists right now," he said during an interview in his Ramallah office.

Under Mr Fayyad's plan, the PA and Hamas would recognise one other's security control over their respective territory - the PA in the West Bank and Hamas in the Gaza Strip - and would join a national unity government predicated on nonviolence.

Mr Fayyad dismisses critics who say his timing and priorities are wrong.

"Many people have told me, 'This is too theoretical. How do you intend to prepare for statehood under occupation, an oppressive occupation, with its capricious control regime and all?'" he said, referring to Israel's military control of land that Palestinians claim for their own state.

"But that's thinking statically. You can't wait until you get the perfect alignment of the stars."

Mr Fayyad believes it is important for Hamas to participate in presidential and legislative elections, which are expected to be held by September. During the last round of legislative elections in 2006, Hamas won a majority 74 seats in the Palestinian Legislative Council, setting off an intense political stalemate that culminated in a brief civil war.

"We want these elections to be inclusive. They will be fair and transparent. It is up to Hamas whether it wants to participate, but we would want Hamas to participate, that's for sure," he said.

Some Hamas officials, however, have rejected the balloting that would lead to a national unity government. So, too, have PLO members, including Amin Maqboul, the secretary-general of Fatah's Revolutionary Council, who was reported in the Jerusalem Post on Sunday to have called the idea of unity government with Hamas "unreasonable and unacceptable".

Time and geography are working against the naysayers, according to Mr Fayyad.

"With each passing day the separation becomes more part of the reality of the Palestinian landscape," he said. "This is the fourth year of separation, and we think that elections can be an instrument for unification."

Mr Fayyad has numerous critics. They say he is too enamoured of American power and that his government has been caught flat-footed by the upheaval and demands for change sweeping Middle East.

"Our problem with his platform, his policies, are political, economic and social," said Khalida Jarrar, who is with the Popular Front for the Liberation of Palestine, a PLO faction.

"I mean, he is an appointed figure, not one who is popularly elected by the Palestinian people."

Mr Fayyad insists, however, that his political and economic agenda echo the aspirations that have fueled the popular uprisings in Tunisia and Egypt - the yearning for "citizenship rights", improved living conditions, more job opportunities and accountable government. "Government has to be responsive to people's aspirations and needs, and people have to feel it," he said.

He ticked off a list of Palestinian achievements: "More than 2,000 kilometres of new, paved roads, 180 new schools, institutions that are functioning well in their own areas of jurisdiction but then they are coordinating very well."

Like almost everyone else in the region, Palestinians are caught up in the ferment, he said.

"It appears as though we will be rolling with this change in a positive way, in a way that will ultimately help us do our job better."

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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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The goal should be for grade 1 and 2 students to become fluent readers

Subjects like technology, social studies, science can be taught in later grades

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Revision of curriculum should be undertaken as per research findings

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Systematic learning of Standard Arabic grammar

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