Jordan's King Abdullah II announced on October 21, 2018 that Jordan will reclaim two plots of territory leased under their 1994 peace deal. Menahem Kahana / AFP
Jordan's King Abdullah II announced on October 21, 2018 that Jordan will reclaim two plots of territory leased under their 1994 peace deal. Menahem Kahana / AFP

Israel learns it cannot act with impunity



Given the bigotry, discrimination and sheer brutality to which Palestinians have been subjected for decades by Israel, it is unsurprising that Tel Aviv treats its Arab neighbours with disdain. But as Jordanian analysts, officials and parliamentarians have argued, Israel has for too long taken its ties with the kingdom for granted. That might be about to change.

With an article of the 1994 Israel-Jordan peace deal that allowed Israel to lease Baqoura and Ghamr – fertile border lands owned by Jordan – set to renew automatically on Thursday, protesters took to the streets of Amman to urge King Abdullah to reclaim the territories. Meanwhile, 87 lawmakers signed a petition. All expressed their fury at decades of violent occupation. On Sunday, the king announced his decision to terminate the article.

This is a rare and significant admonition; Israel must understand that it cannot mistreat and murder Palestinians with impunity.

As a result, scenes of jubilation in Jordan greeted the decision, while Israeli analysts dismissed it as a populist manoeuvre. In many ways, this quarrel echoes the intractability of the Arab-Israeli conflict. Jewish entities owned Baqoura and Ghamr from the 1920s, although the lands became Jordanian following the 1948 war.

They serve as a humble reminder that people of different religions lived side by side in the Levant before war foisted borders upon them.

Today Israel is one of the region’s key destabilisers, running roughshod over Palestinians and international neighbours. But relations with Jordan have been particularly strained since July 2017 when two unarmed Jordanians were shot dead by an Israeli security officer at the Israeli embassy in Amman. Israel’s attempts to impose restrictions on the Al Aqsa mosque in Jerusalem, which is under Jordanian custodianship, have further soured relations. Clearly the 1994 deal brought no peace dividend for the Jordanians and it is time Israel faced the consequences of its actions.

And yet, Israeli agriculture minister Uri Ariel has already responded with intimidation, threatening on Monday to cut off water to Jordan.

Aside from the symbolic importance of reclaiming sovereign lands and confronting Israeli brutality, Jordan sits at a precarious juncture, politically and economically. With high national debt and mass unemployment, protesters filled the streets of Amman earlier this year. Meanwhile, Jordan is struggling to cope with more than 700,000 Syrian refugees.

The lands of Baqoura and Ghamr, where the Jordan and Yarmouk rivers converge, are the region’s breadbasket, blessed with fertile agricultural land. Back in Jordanian hands, they will provide crops and ample water supplies for a nation in need.

For too long Israel has bullied its neighbours and those same neighbours have turned a blind eye to Israel’s brutalisation of Palestinians. This should serve as a wake-up call in Tel Aviv that state-sponsored discrimination and murder will not go unpunished.

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.”

China and the UAE agree comprehensive strategic partnership

China and the UAE forged even closer links between the two countries during the landmark state visit after finalising a ten-point agreement on a range of issues, from international affairs to the economy and trade and renewable energy.

1. Politics: The two countries agreed to support each other on issues of security and to work together on regional and international challenges. The nations also confirmed that the number of high-level state visits between China and the UAE will increase.

2. Economy: The UAE offers its full support to China's Belt and Road Initiative, which will combine a land 'economic belt" and a "maritime silk road" that will link China with the Arabian Gulf as well as Southeast, South and Central China, North Africa and, eventually, Europe. 

3. Business and innovation: The two nations are committed to exploring new partnerships in sectors such as Artificial Intelligence, energy, the aviation and transport industries and have vowed to build economic co-operation through the UAE-China Business Committee.

4. Education, science and technology: The Partnership Programme between Arab countries in Science and Technology will encourage young Emirati scientists to conduct research in China, while the nations will work together on the peaceful use of nuclear energy, renewable energy and space projects. 

5. Renewable energy and water: The two countries will partner to develop renewable energy schemes and work to reduce climate change. The nations have also reiterated their support for the Abu Dhabi-based International Renewable Energy Agency.

6. Oil and gas: The UAE and China will work in partnership in the crude oil trade and the exploration and development of oil and natural gas resources.

7. Military and law enforcement and security fields: Joint training will take place between the Chinese and UAE armed forces, while the two nations will step up efforts to combat terrorism and organised crime. 

8. Culture and humanitarian issues: Joint cultural projects will be developed and partnerships will be cultivated on the preservation of heritage, contemporary art and tourism. 

9. Movement between countries: China and the UAE made clear their intent to encourage travel between the countries through a wide-ranging visa waiver agreement.

10. Implementing the strategic partnership: The Intergovernmental Co-operation Committee, established last year, will be used to ensure the objectives of the partnership are implemented.

 

 

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