Palestinians rest along the road after crossing from the northern Gaza Strip into the south of Gaza city. EPA
Palestinians rest along the road after crossing from the northern Gaza Strip into the south of Gaza city. EPA
Palestinians rest along the road after crossing from the northern Gaza Strip into the south of Gaza city. EPA
Palestinians rest along the road after crossing from the northern Gaza Strip into the south of Gaza city. EPA

UNRWA able to continue its work for now, UN says


Adla Massoud
  • English
  • Arabic

The UN said on Thursday that the aid agency for Palestinian refugees has sufficient funds to maintain its operations for now, but stressed the urgency of lifting the funding suspension to prevent an imminent halt in its services in the Gaza Strip as the organisation teeters on the brink of financial collapse.

UNRWA had previously warned it could run out of money by Thursday after more than a dozen countries last month paused funding worth about $450 million over allegations that 12 workers in Gaza had participated in the October 7 Hamas attacks on southern Israel.

“We believe that it's urgent for the suspension of funds to end for it to continue to function because soon, we're essentially on the brink of UNRWA not being able to provide services,” Farhan Haq, deputy spokesman for the UN secretary general, told The National.

“But as of right now, it is continuing to provide services.”

Two UN investigations into Israel’s allegations against the agency are under way, but the European Commission, the third biggest donor to UNRWA after the US and Germany, has demanded a separate audit and wants to appoint experts to carry it out.

The UN Secretary General's spokesman Stephane Dujarric told reporters the UN Office of Internal Oversight Services (OIOS), whose mandate is to investigate breaches of staff regulations and rules, sent an interim report on Wednesday to Secretary General Antonio Guterres.

Mr Dujarric said the OIOS have so far reviewed information and communications technology data held by UNRWA, including email records as well information received from various sources.

They have also been in communication with other Member States to obtain any information relevant to the investigation, he said, adding the investigation remains ongoing and OIOS staff are planning to visit Israel soon to "obtain information from Israeli authorities that may be relevant to the investigation".

UNRWA's director of communications Juliette Touma told The National that the agency has managed to pay salaries for this month but "are now working on March".

"We don't know what will happen beyond March," she added.

Humanitarian aid groups appealed to the EU and UN member states to release funding to UNRWA.

“It is important to ensure a thorough investigation into the grave allegations by the Israeli authorities that 12 UNRWA employees directly participated in the attacks on October 7, and to ensure full transparency and accountability going forward,” read a statement from the organisations.

“The investigation and any subsequent accountability measures must not derail the critical, life-saving work of UNRWA in Gaza and throughout the region.”

Israeli Prime Minister Benjamin Netanyahu has said that he intends to force the closure of UNRWA after the Gaza war.

Why western countries cutting funding to UNRWA, Gaza's main aid organisation? – video

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.”

Champions League Last 16

Red Bull Salzburg (AUT) v Bayern Munich (GER) 

Sporting Lisbon (POR) v Manchester City (ENG) 

Benfica (POR) v Ajax (NED) 

Chelsea (ENG) v Lille (FRA) 

Atletico Madrid (ESP) v Manchester United (ENG) 

Villarreal (ESP) v Juventus (ITA) 

Inter Milan (ITA) v Liverpool (ENG) 

Paris Saint-Germain v Real Madrid (ESP)  

%3Cp%3E%3Cstrong%3ETHE%20SPECS%3C%2Fstrong%3E%0D%3Cbr%3EEngine%3A%203.5-litre%20V6%0D%3Cbr%3ETransmission%3A%209-speed%20automatc%0D%3Cbr%3EPower%3A%20279hp%0D%3Cbr%3ETorque%3A%20350Nm%0D%3Cbr%3EPrice%3A%20From%20Dh250%2C000%0D%3Cbr%3EOn%20sale%3A%20Now%3C%2Fp%3E%0A
Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

Updated: February 29, 2024, 6:39 PM