Jerusalem // A new Israeli law banning entry to foreigners who support boycotting the country came under fire on Tuesday from human rights groups and the opposition, who called it “thought control” harmful to Israel’s international standing.
The approval of the law late on Monday was defended by government ministers and supporters as a necessary response to the movement that calls for Israel to be boycotted over its 50-year occupation of the Palestinian territories.
Israel sees the boycott movement as a strategic threat – a claim activists deny, saying they only want to see the occupation end.
The law follows other recent measures seen as targeting left-wing NGOs, and human rights groups said it could affect their work.
Israel has been faced with boycott calls for decades, but the movement known as BDS (Boycott, Divestment and Sanctions) has raised its profile in recent years with help from famous backers such as Roger Waters.
In response, Israeli politicians have become more combative under Prime Minister Benjamin Netanyahu’s current coalition government, seen as the most right-wing in the country’s history.
Last year, Israel budgeted 118 million shekels (Dh118m) to fight the movement.
The bill, which passed by a vote of 46 to 28, means visas and residence permits will not be given to those who have “knowingly issued a public call to boycott the state of Israel or pledged to take part in such a boycott,” a parliament statement said.
It applies to those who are not Israeli citizens or permanent residents, and includes those who are members of organisations calling for a boycott, it said.
“We think that border control should not be used as thought control,” said Hagai El-Ad, executive director of prominent Israeli human rights group B’Tselem.
He noted that Israel also controls who enters the Palestinian territories, apart from through one border crossing into Gaza from Egypt, and said the law could “absolutely” affect his group’s work.
The law defines boycott as “deliberately avoiding economic, cultural or academic ties with another person or body solely because of their affinity with the state of Israel, one of its institutions or an area under its control, in such a way that may cause economic, cultural or academic damage.”
The reference to “an area under its control” means the law also applies to activists’ calls to shun dealings with Jewish settlements in the occupied territories.
Public security minister Gilad Erdan defended the law on Tuesday, saying “every country has the right to determine who enters its borders.”
But Jewish Voice for Peace, a US human rights group supporting BDS, went as far as to compare the law to US President Donald Trump’s revised ban on refugees and travellers from six Muslim-majority nations.
“Israel just passed its own discriminatory travel ban barring supporters of nonviolent tactics to end Israel’s violations of Palestinian rights,” its executive director Rebecca Vilkomerson said in a statement.
“My grandparents are buried in Israel, my husband and kids are citizens, and I lived there for three years, but this bill would bar me from visiting because of my work in support of Palestinian rights.”
Anti-settlement NGO Peace Now called the law “neither Jewish nor democratic.”
It said it “will not prevent the boycott but just erode Israel’s standing in the world and lead us toward international isolation.”
Those who supported the bill however said it was simply a matter of self-defence, saying Israel should not open its doors to those they allege want to harm the country.
“If someone demeans me, I do not let them into my home,” said David Amsalem, a knesset member from Mr Netanyahu’s Likud party, according to the Jerusalem Post.
*Agence France-Presse
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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.”