The American Israel Public Affairs Committee has secured two of its major lobbying priorities on Capitol Hill, including legislation pushing the Biden administration to expand the Abraham Accords.
Last week, a bipartisan group of 18 senators introduced the Israel Relations Normalisation Act of 2021, which would require the Biden administration to try to extend the Abraham Accords to countries that have not yet established ties with the close US ally.
“The Abraham Accords between Israel and like-minded nations have the potential to fundamentally change the Middle East for the better,” James Risch, the top Republican on the Senate foreign relations committee, said after introducing the bill.
“Former opponents and rivals have come together to address shared challenges, and I am proud to co-sponsor this legislation that reaffirms the United States’ commitment to strengthen and expand these historic agreements.”
Aipac cancelled its annual summit, typically held in March, this year because of the Covid-19 pandemic.
Thousands of Aipac activists typically descend on Capitol Hill after the summit to push Congress to enact the group’s agenda.
But this month the group’s volunteers lobbied senators, representatives and congressional staffers online.
The Israel Relations Normalisation Act is one of five major items on Aipac’s agenda this year.
Mr Risch’s office said the bill would require the State Department, Defence Department and the US Agency for International Development to co-ordinate on a strategy convincing more countries to normalise relations with Israel.
The bill would require the State Department to submit a strategy to Congress that includes “a detailed description” of how the US government would use its diplomatic influence to convince other countries to forge ties with Israel.
The Israel Relations Normalisation Act, Aipac also succeeded in convincing senators to take a tough line on Iran as the Biden administration struggles to revive the nuclear deal.
The UAE, Bahrain, Sudan and Morocco normalised relations with Israel during the administration of president Donald Trump.
After signing the Abraham Accords last year, the UAE struck a $23 billion arms deal with the US that included 50 F-35 fighter jets.
Washington also removed Sudan from its state sponsor of terror list, unlocking $81 million in humanitarian assistance, and the Trump administration recognised Morocco's claim over disputed parts of the Sahara.
While the UAE arms deal remains under review, Sudan remains off the terror list and President Joe Biden has not yet reversed the Trump administration's position on the disputed Sahara region.
Beyond the Israel Relations Normalisation Act, Aipac also succeeded in convincing senators to take a tough line on Iran as the Biden administration struggles to revive the nuclear deal.
Mr Risch joined Lindsey Graham, foreign relations committee chairman Bob Menendez and 40 other senators in a letter to Mr Biden last week urging him to take a tough line on Iran through his administration’s nuclear diplomacy.
“While we may have differing views on [the nuclear deal] and the overall approach of the Trump administration’s maximum pressure campaign, we must confront the reality that Iran has accelerated its nuclear activity in alarming ways, including increasing its centrifuge research and production and enriching uranium up to 20 per cent,” the senators wrote.
“We believe it is critical you consult with our European allies, Israel and Gulf security partners on a path forward with Iran.
"The recent Abraham Accords provide hope that our partners and allies can work together to further regional co-operation.”
The Aipac-backed letter also calls on Mr Biden to “use the full force of our diplomatic and economic tools in concert with our allies and the United Nations Security Council” to also address Iran’s ballistic missile programme.
Mr Biden has vowed to lift the Trump-era sanctions on Iran if Tehran returns to compliance with its end of the bargain.
But he has promised to address Iran's ballistic missile programme and support for regional proxies in a follow-on agreement after reviving the nuclear deal.
Mr Biden is also coming under pressure from the more dovish wing of the Democratic party.
Jewish Insider reported on Friday that Chris Murphy and Tim Kaine, two Democratic senators, are circulating a letter calling for a "compliance for compliance" approach to serve "as a starting point to reset US relations with Iran" – less stringent criteria than those outlined in the Aipac letter.
Reuters also quoted a US official on Friday stating Washington could lift sanctions before Iran returns to full compliance, as long as both sides agree “on what steps are going to be taken mutually".
But Aipac has plenty of room to secure other victories on Capitol Hill.
The lobby group is also pushing members of the House of Representatives to sign a letter backing aid for Israel and opposing growing efforts to make the country's military aid depend on human rights concerns.
Aipac is also backing legislation to sanction foreign countries and people who back Hamas and the Islamic Jihad movement, and another bill to encourage the US and Israel to collaborate on treatment for post-traumatic stress disorder.
Ways to control drones
Countries have been coming up with ways to restrict and monitor the use of non-commercial drones to keep them from trespassing on controlled areas such as airports.
"Drones vary in size and some can be as big as a small city car - so imagine the impact of one hitting an airplane. It's a huge risk, especially when commercial airliners are not designed to make or take sudden evasive manoeuvres like drones can" says Saj Ahmed, chief analyst at London-based StrategicAero Research.
New measures have now been taken to monitor drone activity, Geo-fencing technology is one.
It's a method designed to prevent drones from drifting into banned areas. The technology uses GPS location signals to stop its machines flying close to airports and other restricted zones.
The European commission has recently announced a blueprint to make drone use in low-level airspace safe, secure and environmentally friendly. This process is called “U-Space” – it covers altitudes of up to 150 metres. It is also noteworthy that that UK Civil Aviation Authority recommends drones to be flown at no higher than 400ft. “U-Space” technology will be governed by a system similar to air traffic control management, which will be automated using tools like geo-fencing.
The UAE has drawn serious measures to ensure users register their devices under strict new laws. Authorities have urged that users must obtain approval in advance before flying the drones, non registered drone use in Dubai will result in a fine of up to twenty thousand dirhams under a new resolution approved by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.
Mr Ahmad suggest that "Hefty fines running into hundreds of thousands of dollars need to compensate for the cost of airport disruption and flight diversions to lengthy jail spells, confiscation of travel rights and use of drones for a lengthy period" must be enforced in order to reduce airport intrusion.
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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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Favourite colour: All the colours that dogs come in
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