Obama caught between US support for Israel's stance and global anger



WASHINGTON // As international outrage over the Israeli flotilla raid grows, many are urging Barack Obama to sharpen his criticism of Israel and end US support for policies that have choked off the flow of humanitarian aid to the Gaza Strip. Contrasting the forceful condemnations issued by Turkey, Europe and the United Nations, the White House so far has issued only tepid criticism of Israel. In a phone conversation on Monday with Prime Minister Benjamin Netanyahu, Mr Obama expressed his "deep regret at the loss of life" but also stressed "the importance of learning all the facts and circumstances" that led to the incident, the White House Press office said.

The State Department sounded a similarly cautious tone, saying in a statement that the United States "deeply regrets the tragic loss of life". "We are working to ascertain the facts, and expect that the Israeli government will conduct a full and credible investigation," the statement said. For Mr Obama, reacting to the incident requires striking a delicate balance between affirming traditional US support for Israel and showing that he is in tune with the Muslim world, which he has made a priority of his administration.

But some critics - including diplomats, US Muslim leaders and dozens of demonstrators who protested outside the White House this week - say the administration is not doing enough to show that it understands the surging Muslim anger. Turkey's foreign minister, Ahmet Davutoglu, who was in Washington for talks with Hillary Clinton, the US secretary of state, said Ankara wanted a clear US condemnation of Monday's raid, Reuters reported. "Some of our allies are not ready to condemn the Israeli actions," Mr Davutoglu said.

Namik Tan, the Turkish ambassador to the United States, told the Washington Post that he expected a "much stronger reaction" from the Obama administration. Nihad Awad, national executive director of the Council on American-Islamic Relations, urged Mr Obama to "speak out strongly against this massacre of civilians" and to take "concrete steps to end the humanitarian siege imposed on Gaza". Marina Ottaway, the director of the Middle East Program at the Carnegie Endowment for International Peace, called the White House response "inadequate".

"Obama must decide whether to sacrifice his credibility in the region in order to continue a well-established US tradition of mild rebukes toward Israel, or break with 'business-as-usual' policies and condemn the Israeli action." Still, other observers such as Steven Cook, who specialises in US Middle East policy at the Council on Foreign Relations, defended the administration, saying it has appropriately sought to "lower the temperature" and seek out the facts before issuing a knee-jerk criticism.

"I think their reaction has been generally responsible," Mr Cook said. "I'm not sure anyone knows right now what happened here other than that the Free Gaza activists, Israel and the government of Turkey were all looking for a confrontation and they got it." Most observers agree on one point: that the incident is likely to complicate US-led peace efforts. Mr Netanyahu cancelled a meeting yesterday that was billed as a chance for him to improve his government's strained relationship with the White House. Meanwhile, Palestinian President Mahmoud Abbas may now be even more hesitant to return to the negotiating table, analysts say.

Mr Abbas, who condemned the Israeli raid as a "massacre", is still scheduled to meet with Mr Obama next week. sstanek@thenational.ae

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.”

Bio

Born in Dubai in 1994
Her father is a retired Emirati police officer and her mother is originally from Kuwait
She Graduated from the American University of Sharjah in 2015 and is currently working on her Masters in Communication from the University of Sharjah.
Her favourite film is Pacific Rim, directed by Guillermo del Toro

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Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent