NEW YORK // When Turkey's foreign minister, Ahmet Davutoglu, entered the UN Security Council on Monday afternoon, he urged the 15-nation body to condemn Israel's deadly commando raid on the Gaza aid flotilla "in the strongest terms".
Using powerful language, Ankara's envoy labelled the operation "murder conducted by a state" and "banditry and piracy" on the high seas, while calling on the UN to launch an "independent international investigation" that brings the perpetrators to justice.
But after 13 hours of diplomatic wrangling, Turkish and Arab diplomats left the Manhattan-based chamber yesterday with a compromise statement that had been significantly watered-down by Israel's stalwart council ally: the United States.
The agreed presidential statement "deeply regrets the loss of life" aboard the aid flotilla and called for a "prompt, impartial, credible and transparent investigation" - without specifying whether this is conducted by Israel's military, the UN or another body.
Upon leaving the chamber in the early hours, diplomats acknowledged that the outcome text is a compromise between 15 nations with divergent views, offering enough ambiguity for the Americans, Israelis and Arabs to assert their own interpretations.
The US deputy ambassador to the UN, Alejandro Wolff, said the "text reads pretty clearly" and reinforces the American position that "Israel can conduct a credible and impartial, transparent, prompt investigation internally".
His Palestinian counterpart, Riyadh Mansour, said the statement can be "read in more than one way". Over the coming days, diplomats from Arab and Muslim nations "will be converging on the office of the [UN] secretary general [Ban Ki-moon], asking him to ? appoint individuals who are capable of conducting an independent investigation," he said.
While expressing "frustration" at failing to negotiate a tougher condemnation of the Israeli marine attack, which left at least nine activists dead, Mr Mansour said ambiguity in the wording was "a small price to pay to keep Israel isolated".
Mr Ban has yet to determine who will carry out the probe and will be "discussing a future course of action" with Turkey, Israel and Security Council members over coming days, his spokeswoman, Maria Okabe, told reporters yesterday.
The UN Human Rights Council in Geneva debated a draft resolution backed by Pakistan and Sudan that condemns an "outrageous attack" and calls for independent investigators to travel to Israel and probe the allegations. The 47-nation body's previous investigations have criticised Israel heavily.
While Palestinian supporters portray the water-borne activists as peaceful deliverers of much-needed aid, the Israelis describe those aboard the so-called "freedom flotilla" as provocative, armed thugs who sought to create an international crisis.
Analysts are divided over an incident that underlines long-established arguments over Israel's right to self-defence, the morality of its blockade on Gaza's struggling 1.5 million citizens and whether the Jewish state overreacts with unnecessary force.
"Any investigation must be done by an independent body, otherwise it will be seen as an inside-job," said Meir Javedanfar, the director of the Middle East Economic and Political Analysis Company. Sara Hassan, a regional analyst for the forecast group IHS Global Insight, said: "The Americans are buying the Israelis time ? giving them some breathing space."
Opinions were divided over whether providing unwavering diplomatic support for Israel is in Washington's best interests. Mr Javedanfar said Israel was "running out of favours" and warned his countrymen are "becoming a liability for the Americans".
"If the US wants to be a true friend of Israel it must learn to be an honest broker and be seen to be such. At present the US is seen as endorsing what most of the international community see as totally unacceptable," said Oliver McTernan, the director of the interfaith group Forward Thinking. "It exposes the moral and intellectual weakness of US policy."
But Conn Carroll, an editor for the conservative US think tank, The Heritage Foundation, described the importance of supporting its Israeli ally in a "tough neighbourhood" beside countries such as Iran, which Washington accuses of seeking nuclear weapons.
"When the US distances itself from Israel, as the Obama administration has done, it makes confrontation and conflict in the region more likely, not less."
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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.”