US gambles on peace package to reinstate settlement freeze



WASHINGTON // The Obama administration is gambling that a new package of incentives reportedly offered Israel to reinstate a partial settlement construction moratorium for three months will be enough to breathe life into stalled direct talks between Palestinians and Israelis.

But three months provide the narrowest window for progress. Should negotiations break down again, it is not clear what Washington's next move will be. The United States seems to hope that once negotiations begin they will garner enough momentum to dissuade either party from walking away.

The stated intention to discuss borders of a future Palestinian state from the outset is partly tailored to entice the Palestinians to stay the course, it being a long-held view among Palestinian officials that should borders be agreed to first, most of the rest will fall into place. But there is recognition that agreement on borders cannot be finalised in the three months before any new moratorium ends. Having apparently committed itself not to ask Israel to renew such a partial construction freeze, it is unclear what measures would remain to the US.

The Palestinian side has already objected to the reported incentives package because it does not contain any provision to halt settlement construction in occupied East Jerusalem. And with the US reportedly guaranteeing to veto UN resolutions hostile to Israel, it neutralises the one threat the Palestinian side has wielded should negotiations fail, namely to seek unilaterally UN recognition for statehood in mid-2011.

Viewed in one way, the reported package offers little new to Israel. The arms incentives are a completion of a deal that Israel abandoned due to budgetary restraints, while the US has a long record of vetoing UN resolutions against Israel. Nevertheless, if reports are true that the US is committing not to ask for any extension to a moratorium, it suggests the administration has accepted that restraining expansion has not worked, said Geoffrey Aronson, of Washington's Foundation for Middle East Peace.

"I think what we are seeing is an admission that the idea of effective constraints on settlement expansion has failed," he said.

The US State Department has yet to confirm details of the deal apparently thrashed out last week. But with the reported deal coming after suggestions last month, since denied, that the US had offered to support a full Israeli army presence at the Jordan Valley under any final-status agreement, the indications are that the administration has moved considerably closer to accepting Israel's security priorities.

"The most important strategic achievement by Israel, if the deal is as reported, is that it suggests the US has accepted Israel's security narrative for the West Bank," said Mr Aronson.

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

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The winners

Fiction

  • ‘Amreekiya’  by Lena Mahmoud
  •  ‘As Good As True’ by Cheryl Reid

The Evelyn Shakir Non-Fiction Award

  • ‘Syrian and Lebanese Patricios in Sao Paulo’ by Oswaldo Truzzi;  translated by Ramon J Stern
  • ‘The Sound of Listening’ by Philip Metres

The George Ellenbogen Poetry Award

  • ‘Footnotes in the Order  of Disappearance’ by Fady Joudah

Children/Young Adult

  •  ‘I’ve Loved You Since Forever’ by Hoda Kotb 
What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

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Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

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.”