Sudanese Prime Minister Abdalla Hamdok. Reuters
Sudanese Prime Minister Abdalla Hamdok. Reuters
Sudanese Prime Minister Abdalla Hamdok. Reuters
Sudanese Prime Minister Abdalla Hamdok. Reuters

Trump administration presses Sudan on Israel normalisation before US election day


Bryant Harris
  • English
  • Arabic

The US administration is continuing to lobby Sudan to normalise ties with Israel as President Donald Trump trails in polls behind Democratic opponent Joe Biden, less than two weeks before election day.

Secretary of State Mike Pompeo raised the issue with Sudanese Prime Minister Abdalla Hamdok in a call on Thursday.

State Department spokeswoman Morgan Ortagus said Mr Pompeo praised Mr Hamdok’s efforts to "improve Sudan’s relationship with Israel and expressed hope that they would continue".

An Israeli delegation had arrived in Sudan to discuss normalising relations, Israeli media reported on Wednesday.

Agreement thought to be close

Israel is “very close to normalising ties with Sudan", Israeli Intelligence Minister Eli Cohen told Channel 13 News.

Israeli Regional Co-operation Minister Ofir Akunis said he had “a reasonable basis to believe” that a normalisation announcement would be made before US election day on November 3.

Mr Pompeo visited Sudan in August, when he pressed Mr Hamdok on the issue. The visit was documented by The National in this video.

Mr Hamdok and other Sudanese officials had expressed scepticism over any such agreement with Israel, but Washington announced a deal this week to take Sudan off its terrorism blacklist.

Mr Trump announced Monday that the US would take Sudan off its state sponsor of terrorism list after Khartoum made a $335 million deposit for victims of past terrorist attacks, and their families.

The money will compensate the families of victims from the 1998 Al Qaeda attacks on the US embassies in Kenya and Tanzania, and the 2000 attack on the USS Cole  in Yemen.

Sudan's former government under Omar Al Bashir harboured Al Qaeda members complicit in the bombings but the Sudanese military removed him from power last year after mass protests.

Sudan's ousted president Omar al-Bashir was convicted of corruption in December 2019. AFP
Sudan's ousted president Omar al-Bashir was convicted of corruption in December 2019. AFP

Khartoum's inclusion on the list prevents it from receiving foreign assistance as the country grapples with a democratic transition, the Covid-19 pandemic and an economic crisis.

The push to get Sudan to normalise ties comes after the UAE, Bahrain and Israel signed the Abraham Accords at the White House last month.

A US delegation accompanied Emirati officials to Israel this week to sign follow-up deals, including visa-free travel between the two countries and a pipeline that would carry oil from the Gulf to the Mediterranean Sea.

“The State Department, Secretary Pompeo, the administration are very supportive of states taking bold and brave steps to enhance their ties with Israel,” assistant secretary of state for Near Eastern affairs, David Schenker said on Thursday.

“We think that there’s a positive trajectory in the region and I look forward to more states signing on.”

The UAE signed the Abraham Accord with Israel at the White House on September 15.

As part of the accord, Israel pledged to suspend annexation of Palestinian land.

Since the signing, the UAE has consistently reaffirmed its support for a separate Palestinian state.

Mr Schenker recently returned from a regional tour that included stops in Lebanon, Morocco and the UK.

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.”

Four-day collections of TOH

Day             Indian Rs (Dh)        

Thursday    500.75 million (25.23m)

Friday         280.25m (14.12m)

Saturday     220.75m (11.21m)

Sunday       170.25m (8.58m)

Total            1.19bn (59.15m)

(Figures in millions, approximate)

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