Khalid Meshaal said the talks, set to begin in Washington next week, were not a sincere effort.
Khalid Meshaal said the talks, set to begin in Washington next week, were not a sincere effort.

Hamas leader rejects direct negotiations



DAMASCUS // The resumption of Middle East peace talks has been dismissed by the Hamas leader, Khalid Meshaal, as nothing more than a public relations exercise, designed to help the US president in the run-up to mid-term elections and polish Israel's tarnished image after its assault on an aid flotilla. Speaking on Tuesday night in Damascus, where he lives in exile, Mr Meshaal said the direct talks, due to begin in Washington next week, were not a sincere effort to end more than 60 years of war and would, therefore, not result in a peace agreement.

He urged the Egyptian president, Hosni Mubarak, and Jordan's King Abdullah II not to take part in the discussions. They have been invited by US mediators to attend negotiations led by Mahmoud Abbas, the president of the Palestinian Authority (PA), and Benjamin Netanyahu, the Israeli prime minister. "For the Americans, President [Barack] Obama is looking to appeal to voters ahead of the coming midterm elections and Israel wants to repair the damage to its image after the Gaza war, the Lebanon war and the 'Freedom Flotilla'," Mr Meshaal told The National after a speech in which he warned that the consequences of the summit could be "catastrophic" for the region.

"By entering these talks, Netanyahu can present an image that Israel is concerned about peace, and he will do so with an Arab umbrella [if Jordan and Egypt attend], this is helping Netanyahu polish his photo in the eyes of the world. There are no Palestinian or Arab reasons for these talks." Meaningful peace talks would require, among other things, an end to Palestinian divisions, which have split the Hamas-controlled Gaza Strip from the PA-administered West Bank, Mr Meshaal said. But faltering reconciliation efforts had been undermined by the resumption of direct talks, he insisted.

Hamas officials in Gaza had been due to hold a meeting with their PA counterparts, but that was cancelled as soon as the Washington talks were announced, Mr Meshaal said, because Hamas did not want them to be seen as a sign of its support. "Reconciliation is now delayed. It's not a priority - the priority is the direct talks," he said. "There has been an American veto on Palestinian reconciliation; they want to focus on the direct talks and to benefit from the division and weakness of the Palestinian political position."

Hamas's refusal to endorse the negotiations means that, even in the unlikely event of an agreement between the PA and Israel, a major Palestinian faction - one powerful enough to have won elections and retain control of Gaza in the face of a crippling siege and international isolation - will not have signed up to the deal. Mr Meshaal made it clear Hamas would not adhere to the terms of any peace agreement should one arise from the talks, calling them "illegitimate" and saying they "do not commit our people to anything".

The direct Palestinian-Israeli negotiations are the first since the previous effort collapsed without making progress two years ago, when Israel launched a devastating 22-day military offensive on the Gaza Strip. Despite Hamas's total rejection of the talks, the White House has said it is "very hopeful" they will bring an end to decades of conflict. The Obama administration has said it aims to see a complete peace settlement within a year, resulting in the creation of an independent Palestinian state.

Mr Obama, who made a point of trying to reach out to Arab public opinion in the early days of his presidency, has struggled to make any progress on Middle East peace, admitting the issue was more difficult to solve than he had anticipated. His Democratic Party is contesting mid-term elections in two months, under huge pressure from Republican rivals, and would surely benefit from some positive Middle East news.

There is a chance, however, that the talks, brokered by the quartet - the United States, the European Union, Russia and the United Nations - will break down almost immediately over Israeli construction of settlements in the occupied territories. Palestinian negotiators have said they will withdraw from discussions if Israel ends a temporary freeze on the building that is due to expire on September 26.

Israel has built more than 100 settlements, considered illegal under international law, in the West Bank and East Jerusalem since the 1967 occupation began. Washington had called for a total halt on construction, but later climbed down over the matter. Before next week's talks, Mr Netanyahu has said reaching a peace agreement "is a difficult challenge but is possible". The chief Palestinian negotiator, Saeb Erekat, has said Israel will have to make a choice between building settlements and peace. "I hope they choose peace," he said. "I hope that Mr Netanyahu will be our partner in peace."

While the PA and the Israeli government are preparing for the summit, Mr Meshaal said mediation between Hamas and Israel over a prisoner swap had "reached a blocked door" and that "nothing [now] was happening" over the issue. Hamas has held Gilad Shalit as a prisoner since 2006, and has refused to release the Israeli soldier unless Israel frees hundreds of the thousands of Palestinians held in its jails.

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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.”

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5