Jordan's King Abdullah warns Gaza conflict leaves region 'on brink of the abyss'


Tim Stickings
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The conflict in Gaza leaves the whole region in danger of “falling into the abyss”, Jordan’s King Abdullah II said on a visit to Germany on Tuesday.

After talks with Chancellor Olaf Scholz in Berlin, the king said the “extremely tragic and dangerous situation” in Gaza would “get much worse unless we stop this war and the human catastrophe it is creating”.

The king told a press conference that the “threat of this war expanding is real” as Mr Scholz warned Iran and Hezbollah against intervening in the war between Israel and Hamas.

The cost that any wider conflict “will bring on all of us is too much to bear” and “all our efforts are needed to make sure we don’t get there”, King Abdullah said amid concerns about a new wave of Palestinian refugees.

“The whole region is at the brink of falling into the abyss that this new cycle of death and destruction is pushing us towards,” he said.

Jordan’s head of state is visiting Germany as part of a diplomatic push that has seen him hold talks with Britain’s Prime Minister Rishi Sunak and Italian Prime Minister Giorgia Meloni in recent days. Mr Scholz was due to set off for Israel immediately after the meeting with King Abdullah.

The king ruled out taking in refugees from the conflict, saying this was a “red line” for Jordan and Egypt. More than two million displaced Palestinians already live in Jordan, according to the UN, and Israel's military has ordered much of Gaza's population to relocate before an expected ground invasion.

King Abdullah said the humanitarian crisis should be dealt with inside Gaza rather than “pushing the Palestinian challenge and their future on to other people’s shoulders”.

Jordan is home to two million Palestinian refugees and is unwilling to take any more. AFP
Jordan is home to two million Palestinian refugees and is unwilling to take any more. AFP

He said a lack of food, water and electricity for people in Gaza was “unacceptable on all levels” as he called for the world to condemn the killing of civilians “on both sides”.

“It is imperative to work on de-escalation as quickly as possible and to be able to protect the innocent civilians on all sides of this conflict,” he said.

“We cannot continue this cycle of violence every single year. Unless there is a political horizon that brings Israelis and Palestinians together that then allows Israelis and Arabs to come together, this will continue to be a cycle of violence that none of us can afford.”

Mr Scholz said Israel could count on Germany’s support as he prepared to travel to Tel Aviv and Egypt. He was expected to hold talks with Prime Minister Benjamin Netanyahu and Egypt’s President Abdel Fattah El Sisi.

Saying Germany and Jordan had a “common goal” of preventing a “wildfire” in the region, he said he “expressly warned Hezbollah and Iran not to intervene in the conflict”.

The German leader said it was “important to differentiate” between the Palestinian people and the Hamas leadership, which he said had “no right to speak for them”.

“The Palestinian people in Gaza – they too are victims of Hamas,’ he said.

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UAE currency: the story behind the money in your pockets
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Tips for used car buyers
  • Choose cars with GCC specifications
  • Get a service history for cars less than five years old
  • Don’t go cheap on the inspection
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  • If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell

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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.”

Five ways to get fit like Craig David (we tried for seven but ran out of time)

Start the week as you mean to go on. So get your training on strong on a Monday.

Train hard, but don’t take it all so seriously that it gets to the point where you’re not having fun and enjoying your friends and your family and going out for nice meals and doing that stuff.

Think about what you’re training or eating a certain way for — don’t, for example, get a six-pack to impress somebody else or lose weight to conform to society’s norms. It’s all nonsense.

Get your priorities right.

And last but not least, you should always, always chill on Sundays.

Updated: October 17, 2023, 2:15 PM