Palestinians shout slogans and wave their national flag as they attend a rally commemorating the fifth anniversary of late Palestinian leader Yasser Arafat's death in the West Bank city of in Ramallah on November 11, 2009.
Palestinians shout slogans and wave their national flag as they attend a rally commemorating the fifth anniversary of late Palestinian leader Yasser Arafat's death in the West Bank city of in Ramallah on November 11, 2009.
Palestinians shout slogans and wave their national flag as they attend a rally commemorating the fifth anniversary of late Palestinian leader Yasser Arafat's death in the West Bank city of in Ramallah on November 11, 2009.
Palestinians shout slogans and wave their national flag as they attend a rally commemorating the fifth anniversary of late Palestinian leader Yasser Arafat's death in the West Bank city of in Ramallah

Scores gather to honour Arafat


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Tens of thousands of Palestinians gathered today to honour their iconic leader Yasser Arafat, with president Mahmud Abbas due to address the rally amid a brewing political crisis. The fifth anniversary of Mr Arafat's death finds Palestinians more divided than ever and his successor Mr Abbas pondering resignation because of stalled US-led peace efforts that have failed to bring about an independent Palestinian state.

A crowd waving Palestinian flags and banners of Mr Abbas's Fatah party crammed the government compound that contains Arafat's tomb to honour the man who catapulted the Palestinians' struggle onto the world stage and led them through nearly four decades of armed struggle and sputtering peace talks. A senior Palestinian security official estimated that more than 100,000 people had gathered in and around the Muqataa presidential compound, the headquarters of the Palestinian Authority and the site of Mr Arafat's mausoleum.

Mr Abbas was to address the crowd amid grim predictions by his aides that he may resign as president, perhaps leading to the collapse of the Palestinian Authority established by Mr Arafat during the Oslo peace process in the 1990s. "The moment of truth has come and we have to be frank with the Palestinian people that we have not been able to reach a two-state solution through 18 years of negotiation," chief Palestinian negotiator Saeb Erakat said.

"We have become convinced that Israel does not want a Palestinian state on lands it occupied in 1967," he said, referring to the Gaza Strip and the West Bank including east Jerusalem, which Israel captured in the Six Day War. Mr Abbas resigning would throw the divided Palestinians into new legal and political limbo. According to Palestinian Basic Law, to become effective Mr Abbas's resignation has to be approved by two thirds of the Palestinian parliament. But the chamber has not convened since 2006 and it is unclear whether it would do so if he quits.

If the resignation is approved, the speaker of parliament, Aziz Dweik of the rival Islamist Hamas movement, would assume the presidency until new elections are held within 60 days. But aides have indicated in recent days that if Mr Abbas steps down the entire Palestinian Authority could collapse, which would spell the end of the already defunct Oslo process and leave nearly four million Palestinians in Gaza and the West Bank once again dependent on Israel for basic services.

The Palestinians have said they will not resume peace talks with Israel without a complete freeze of Jewish settlements in the occupied West Bank and east Jerusalem, a demand initially backed by Washington. But Israel's hawkish Prime Minister Benjamin Netanyahu has refused to freeze settlements, and in recent weeks Washington has backed down, calling on both sides to return to the negotiating table without preconditions.

Mr Erakat said the two-state solution would only be possible at this point if there were "unprecedented international movement" towards pressuring Israel because "the situation has reached the point of no return." The presence of nearly a half million Jewish settlers in the occupied West Bank including east Jerusalem has long been seen by the Palestinians as a major obstacle to the establishment of a viable independent state.

Despite the fact that the international community, including the United States, views all settlements as illegal, the number of settlers has more than doubled since the start of the Oslo process in 1993. Mr Arafat, who died aged 75 in a French hospital on November 11, 2004, remains a beloved symbol of unity and resistance to Israel for the Palestinians, who have been riven by factional fighting in recent years.

* AFP

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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.”