David Friedman has been confirmed as the US ambassador to Israel.  Tom Williams / Getty Images / February 16, 2017
David Friedman has been confirmed as the US ambassador to Israel. Tom Williams / Getty Images / February 16, 2017

US Senate approves settlement backer as Israel envoy



WASHINGTON // The US senate has approved the appointment of President Donald Trump’s former bankruptcy lawyer, a supporter of Israeli settlement building, as Washington’s ambassador to Israel.

Mr Trump’s choice of 58-year-old David Friedman, a man with a history of undiplomatic declarations, had raised concerns about America’s commitment to a two-state Middle East peace deal.

But at a confirmation hearing last month, Mr Friedman apologised for the harsh language he has used in the past and the senate has now approved his appointment by a margin of 52 to 46.

Mr Trump’s administration has been slow to appoint new ambassadors to replace those who stepped down at the end of former president Barack Obama’s term. More than 70 posts remain open.

But the Israel job was seen as a key indicator of the new administration’s attitude to the Israeli-Palestinian conflict, and Mr Friedman’s nomination was welcomed by the Israeli right.

Before becoming the ambassadorial nominee, Mr Friedman was known as a vocal supporter of Israeli causes, including the building of settlements on Palestinian land in Jerusalem and the West Bank.

He clashed with American Jewish progressive groups, notably dubbing liberals “worse than kapos,” - a reference to Jewish collaborators who worked as guards in Nazi prison camps.

And he is widely seen as hostile to the two-state solution — the vision of an end to the conflict in which Israel and a future Palestine live side-by-side within agreed borders.

Mr Trump’s administration insists it might support this idea if Israel comes to a deal, but has clearly softened the Obama administration’s tough criticism of Israeli settlements.

Democratic senator Dianne Feinstein voted against Friedman and dubbed him “too divisive to serve in one of our nation’s most sensitive diplomatic positions.”

And the liberal Jewish lobby group J Street said it was “heartened” that the level of opposition to Friedman’s confirmation showed that his views were outside the US mainstream.

But the Republican Jewish Coalition welcomed the vote, arguing “there is no question that the relationship between the US and Israel will grow stronger.”

* Agence France-Presse

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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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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