NEW YORK // Israeli prime minister Benjamin Netanyahu will meet Donald Trump in Washington on Wednesday, providing the first test of the American president’s campaign commitments to closer ties as well as his promise to move the US embassy to Jerusalem.
After eight years of frosty relations with Barack Obama, many in Mr Netanyahu’s right-wing coalition believe they now have a friend in the White House.
The meeting could set the tone for Israel’s most important relationship. It may also clarify Mr Trump’s sometimes contradictory and confused approach to the Middle East, with the two leaders expected to discuss regional security and the threat from Iran.
“The alliance between Israel and America has always been extremely strong. It’s about to get even stronger,” Mr Netanyahu said as he boarded a plane to Washington.
“President Trump and I see eye to eye on the dangers emanating from the region, but also on the opportunities.”
Mr Trump was outspoken in his support of Israel during his presidential campaign. He promised to relocate the US embassy to Jerusalem and said he was opposed to any pause in West Bank settlement construction.
Mr Trump has also entrusted much of his Middle East policy to his son-in-law, Jared Kushner. Not only did Mr Kushner grow up in an Orthodox Jewish family but he is a family friend of the Israeli prime minister and his parents’ charity has donated thousands of dollars to a settlement in the occupied West Bank.
It marks a break from Mr Obama, who, like previous US presidents, was committed to Palestinian statehood and consistently opposed settlement building. Despite
However, since his inauguration, Mr Trump has reversed a string of controversial foreign policy stances, including reconfirming America’s One China policy and expressing support for Nato.
On Israel, he has publicly cooled on moving the embassy and on settlement building. “I am not somebody that believes that going forward with these settlements is a good thing for peace,” he told an Israeli newspaper last week.
Some detect the influence of Arab diplomacy. Jordan’s King Abdullah met Mr Trump last week and reportedly warned him that moving the US embassy to Jerusalem would have a detrimental effect on Israel-Palestinian relations.
There are also other reasons for letting the Palestinian question lie. Israel has been quietly reaching out to Gulf states which share its fear of a resurgent Iran. A sudden move by the US could inflame tensions in the region and risks destroying a nascent, de facto alliance between Mr Trump, Israel and the GCC.
Mr Trump's team is complying with Mr Netanyahu's view about how to deal with Iran, said Adnan Khalil, chief editor of Al Hawadeth newspaper which serves American Arabs.
“Also Gulf states — especially Saudi Arabia — have the same perspective. This is a unique coalition now,” he added.
Mr Trump may be waking up to the complexities of the Middle East and realising that bombastic campaign promises on moving the embassy, for example, may disrupt other goals such as curbing Iranian influence.
Others see the pragmatic hand of Mr Netanyahu, the arch survivor. Some analysts believe he is trying to dampen the hopes of fractious right-wingers among his coalition partners and within his own Likud Party.
In the past, he was able to use Mr Obama’s opposition to settlements to keep settler groups in line and maintain the status quo.
Mr Trump’s election changed that, energising hardline ministers who want to make the West Bank part of Israel and to kill off the two-state solution.
But since his inauguration, the new president has begun to express a more sceptical position on settlements.
As a White House statement put it at the start of the month: “While we don’t believe the existence of settlements is an impediment to peace, the construction of new settlements or the expansion of existing settlements beyond their current borders may not be helpful in achieving that goal.”
Lisa Goldman, contributing editor of the Israeli magazine +972, said she believed the White House would not have softened its stance without the go-ahead from the Israeli leadership.
“Netanyahu is in a difficult position from his Right flank,” she said. “And he is very happy with the status quo.”
Watching whether Mr Netanyahu feels the need to lecture his host on settlements — as he did Mr Obama — will provide clues to their relationship, she added.
That relationship goes back to before Mr Trump entered politics. In 2013, he made an election video for Mr Netanyahu which ended with the line: “Vote for Benjamin, terrific guy, terrific leader, great for Israel”.
And then there is Mr Kushner, whose real estate developer father Charles was friendly with Mr Netanyahu before he became prime minister.
During one visit to the family home in New Jersey, Mr Netanyahu even slept in the teenage Kushner’s bed. On another, he played football with boys at a school bearing the Kushner name.
Before Mr Netanyahu left for Washington, he faced calls from Naftali Bennett, his hardline education minister, to use the meeting to abandon the two-state solution. But the Israeli prime minister told his Likud cabinet ministers there would be no sudden shift.
“This requires a responsible and considered policy — and thus I intend to act. I have navigated Israeli-US relations in a prudent manner and I will continue to do so now,” he said.
foreign.desk@thenational.ae
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Zayed Sustainability Prize
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.”
What to watch out for:
Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways
The hulls of three ships will be used for the roof
The hulls will painted to make the largest Italian tricolour in the country’s history
Several pillars more than 20 metres high will support the structure
Roughly 15 tonnes of steel will be used
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Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The biog
Date of birth: 27 May, 1995
Place of birth: Dubai, UAE
Status: Single
School: Al Ittihad private school in Al Mamzar
University: University of Sharjah
Degree: Renewable and Sustainable Energy
Hobby: I enjoy travelling a lot, not just for fun, but I like to cross things off my bucket list and the map and do something there like a 'green project'.
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All times UAE ( 4 GMT)
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Saturday, September 30
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Sunday, October 1
Race: 11am - 1pm