Momentum builds for Middle East peace talks



WASHINGTON // High-level delegations from Egypt and Jordan met with top US officials yesterday for talks on the Israeli-Palestinian peace process, capping off a busy week of activity here and in the Middle East that signals a new determination by world leaders to revive the stalled negotiations.

Jordan's foreign minister, Nasser Judeh, met Hillary Clinton, the US secretary of state, and George Mitchell, the US special envoy to the Middle East. The Egyptian foreign minister, Ahmed Aboul Gheit, and the country's intelligence chief, Omar Suleiman, meanwhile, were also scheduled to meet Mrs Clinton and Mr Mitchell. Speaking after her meeting with Mr Judeh, Mrs Clinton urged Palestinians and Israelis to resume peace talks "without preconditions", backing Palestinian aims for a state along the 1967 boundaries.

The parties can reach a solution that "reconciles the Palestinian goal of an independent and viable state based on the 1967 lines, with agreed swaps and the Israeli goal of a Jewish state with secure and recognised borders", she said. Mr Judeh also encouraged the parties to return to talks stalled since last year but which he said should be bound by a timeline and a clear plan with "benchmarks". The visits come as the US is readying a new diplomatic push in the region.

Mr Mitchell leaves for Europe tomorrow for meetings with his counterparts in the "Quartet" of Middle East peacemakers, comprised of the US, the European Union, the United Nations and Russia. He then will travel to Israel and the Palestinian territories. The former senator, who helped broker the Northern Ireland peace accord in the late 1990s, said earlier this week he believed an agreement between the two sides could be reached within two years or less, as soon as both sides return to the negotiating table.

"The harder part is getting started than getting finished," he told the PBS programme Charlie Rose this week. For now, the Palestinian president, Mahmoud Abbas, refuses to resume direct talks without first securing a complete freeze on all Israeli settlement construction. After meeting with the Egyptian president, Hosni Mubarak, this week, Mr Abbas reiterated that he would resume talks only after "settlement activity ends".

Israel has agreed to halt construction in the West Bank for 10 months, but has stoked tensions by pushing ahead with housing projects in East Jerusalem, which Palestinians claim as the capital of their future state. On his visit to the region, Mr Mitchell is expected to be carrying "letters of assurance" to both the Palestinians and Israelis that outline the US position and contain pledges aimed to satisfy both sides. For Palestinians, that likely means a promise to pursue a two-state solution based roughly on the 1967 borders.

On the Israeli side, such a letter is likely to recognise large settlements as part of Israel in exchange for other territory. Arab leaders this week also held a series of meetings to discuss regional peace efforts. sstanek@thenational.ae

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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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