A Palestinian surveys the damage caused by an Israeli raid in Nur Shams camp in the Israeli-occupied West Bank. Reuters
A Palestinian surveys the damage caused by an Israeli raid in Nur Shams camp in the Israeli-occupied West Bank. Reuters
A Palestinian surveys the damage caused by an Israeli raid in Nur Shams camp in the Israeli-occupied West Bank. Reuters
A Palestinian surveys the damage caused by an Israeli raid in Nur Shams camp in the Israeli-occupied West Bank. Reuters

Israel enforcing apartheid in the West Bank, says former Mossad chief


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Israel is enforcing a system of apartheid in the occupied West Bank, a former Mossad chief said on Wednesday, becoming the second former top official to condemn the occupation in recent weeks.

“There is an apartheid state here. In a territory where two people are judged under two legal systems, that is an apartheid state,” Tamir Pardo said in an interview with the Associated Press.

Mr Pardo, who served as the head of the intelligence agency from 2011 to 2016, said his views on the West Bank were “not extreme – it's a fact”.

His comments follow similar accusations from retired Israeli general Amiram Levin, who said the army is complicit in war crimes in the occupied West Bank.

Israel has occupied the West Bank and East Jerusalem since 1967, controlling territory Palestinians envision as part of a future independent state.

Israeli actions in the West Bank this year have made 2023 the bloodiest since 2005, breaking last year's record.

More than 180 Palestinians have been killed this year, according to a tally by the Associated Press.

Near daily raids have affected the cities of Jenin and Nablus, where the army has sent Apache helicopters and drones to attack militants in densely populated areas.

A two-day raid on Jenin refugee camp in July, which killed 12 people and left much of the area in rubble, was widely condemned.

Mr Pardo said Israeli citizens can get into a car and drive wherever they want, excluding the blockaded Gaza Strip, while Palestinians cannot drive everywhere.

Israelis are barred from entering Palestinian areas of the West Bank, but can drive across Israel and throughout the 60 per cent of the West Bank that Israel controls. Palestinians need permission from Israel to enter the country and often must pass through military checkpoints to move within the West Bank.

He said he had repeatedly urged Prime Minister Benjamin Netanyahu to decide on Israel's border demarcation.

“Israel needs to decide what it wants,” Mr Pardo said. “A country that has no border has no boundaries.”

The extreme right-wing cabinet, many of whom live in illegal settlements, has expanded Israel's occupation of the West Bank, with the government accelerating the construction of new settlements.

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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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Updated: September 06, 2023, 8:06 PM