The Abraham Accord to normalise ties between the UAE and Israel is a natural progression of regional shifts and puts governance ahead of past grievances, former US peace negotiator Dennis Ross said.
Mr Ross, who worked on US peace negotiations between Arabs and Israelis during four previous Democratic and Republican administrations, said challenges relating to security, water, cybersecurity issues, health and technology could no longer be put on hold.
The UAE highlighted the benefits of greater co-operation from the accord, with Bahrain also announcing that it would normalise relations with Israel a few weeks later.
“The accords are significant in telling us how the region is changing," said Mr Ross, now a senior fellow at the Washington Institute for Near East Policy.
"We are seeing how Arab states are sending a message that they are looking after their national interest.
"It doesn’t mean they are forgetting about the Palestinians but they are sending a message of realities in the region and needs that they have.
“The Emirates imposed linkage, they didn’t walk away from the Palestinian issue.".
Mr Ross was referring to Israel suspending its planned annexation of occupied Palestinian land under the agreement.
He said this prevented the worst outcome for the Palestinians, which would have permanently derailed a two-state solution.
“If the annexation had gone ahead, you wouldn’t have seen UAE do this, and if UAE hadn’t done it, Bahrain wouldn’t do it," Mr Ross said
The accords differed from previous peace agreements with Israel by Egypt and Jordan in emphasising people-to-people relations and not involving territory, said Mr Ross, who worked on the Camp David talks, the Oslo agreements, Jordan’s peace treaty with Israel and the Hebron agreement.
“Both those countries were in a state of war with Israel. Bahrain and UAE have no common border with Israel, no territorial conflict.”
Mr Ross expected other countries to follow suit in normalising ties with Israel, starting with Sudan and Oman.
“I would put Morocco after that,” he said.
In five years, most Arab Gulf countries with the exception of Kuwait and Qatar could have peace agreements with Israel, he said.
But in the case of Saudi Arabia, it might be gradual.
“Saudis are not going to take this kind of a step [soon], but it doesn’t mean they won’t take partial steps," Mr Ross said.
“The two that would hold out are Qatar and Kuwait. The others [in the Gulf] in five years from now are very likely.”
He said Doha’s ties to the Muslim Brotherhood and Turkey would delay such action.
Mr Ross urged the Palestinian Authority to come to the table and reduce its association with “forces of rejection”, namely Turkey, Iran and the Muslim Brotherhood.
The former envoy said the PA would be making a mistake in assuming that a Joe Biden administration, if the Democratic nominee won the November presidential election, would bring a transformative approach to the conflict.
“A Biden administration is not going to come in and present its own peace plan because they realise the divide [between Israelis and Palestinians] is too great to bridge," Mr Ross said.
"What they will do is try to build on what is happening right now in brokering Arab-Israeli agreements."
If President Donald Trump wins a second term, Mr Ross expects the PA to make its way back to the negotiating table.
But mostly, he said, the normalisation agreements are an end result of convergence of views between the parties on regional threats, a realisation that the US is less reliable and that Israel is part of the region.
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
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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.”
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
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What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
Killing of Qassem Suleimani
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900