Hamas and Israel reach Gaza ceasefire deal, pausing 15 months of fighting


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Israel and Hamas have reached a deal for a ceasefire in Gaza and the release of hostages held by the militant group, mediators announced on Wednesday night, bringing hope for an end to a war that has killed tens of thousands of Palestinians, destroyed the territory and threatened to start a wider regional conflict.

"Qatar, Egypt and US's efforts succeeded in securing ceasefire deal in Gaza," Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman, said at a news conference in Doha, where mediators from the three countries, along with Hamas and Israeli negotiators, were involved in the latest push for a deal. The ceasefire will take effect on January 19, said Sheikh Mohammed, who has been as his nation's chief mediator.

"The two belligerents in the Gaza Strip have reached a deal on the prisoner and the hostage swap, and [the mediators] announce a ceasefire in the hopes of reaching a permanent ceasefire between the two sides."

All eyes will be on whether Israel decides to strike Gaza in the next two days, claiming it is targeting the remnants of Hamas.

But news of the agreement sparked an outpouring of joyful relief in Gaza.

"Thank God that we have lived to see this moment," said Reem Al Shoubaki, 29, from Gaza City's Al Daraj district. 'But our hearts ache for those who have lost family and children in this brutal war."

A visibly relieved US President Joe Biden said the negotiations to reach a Gaza ceasefire had been some of the "toughest" of his career.

"I'm deeply satisfied this day has come, finally come," he said in a televised statement.

Israeli President Isaac Herzog gave a cautious welcome to the announcement of the deal. "I say in the clearest terms: This is the right move," he said. "This deal ... will bring with it deeply painful, challenging and harrowing moments," he added, alluding to domestic opposition to the agreement.

Hamas said the ceasefire was the "result of the legendary steadfastness of our great Palestinian people and our valiant resistance in the Gaza Strip".

The US, Egypt and Qatar have spent the past year trying to broker an agreement to pause the fighting and secure the release of the hostages captured by Hamas on October 7, 2023, during an attack on southern Israel that killed around 1,200 people. Nearly 100 of the around 250 people kidnapped by Hamas are still being held in Gaza and the Israeli military believes at least a third of those are dead.

The attack sparked an Israeli response that has to date killed more than 46,700 people and injured over twice that number, according to Gaza's health authorities. Most of the Palestinian enclave's 2.3 million people have been displaced and huge areas of built-up regions reduced to rubble. Dozens are still being killed daily in Gaza.

The announcement of a deal follows 15 months of war that has significantly altered the political and military landscape in the Middle East. The Gaza conflict sparked another war in Lebanon, drew Iran into an exchange of direct attacks with Israel and prompted Tehran's proxy in Yemen, the Houthis, to attack shipping in the Red Sea, disrupting global trade.

The deal provides for an initial six-week truce during which Hamas will release 33 Israeli hostages in exchange for a number of Palestinian detainees held in Israeli jails, Sheikh Mohammed said.

Also during the 42-day truce, Israeli forces will withdraw eastward away from densely populated residential areas to positions alongside the Palestinian side of the Gaza-Israel border.

The deal also provides for the the return home of Palestinians displaced by the war, and enabling the departure of the sick and wounded to receive treatment abroad, Sheikh Mohammed said.

Palestinians inspect the rubble of the Yassin Mosque after it was hit by an Israeli air strike at Shati refugee camp in Gaza City. AP
Palestinians inspect the rubble of the Yassin Mosque after it was hit by an Israeli air strike at Shati refugee camp in Gaza City. AP

The first phase also involves the large-scale delivery and distribution of humanitarian assistance in Gaza, as well as the rehabilitation of hospitals, health centres and bakeries. It also includes the entry of machinery to remove rubble, fuel and a large number of caravans and tents to house those who have lost their homes as a result of the war.

Sheikh Mohammed said the mediators will remain "in constant and continuous contact" with Israel and Hamas for the exchange of lists of hostages and Palestinian prisoners, and ensure that their release is carried out in a safe and smooth manner.

Negotiations over a second phase of the agreement will begin by the 16th day of the first phase and are expected to include the release of all remaining hostages, including Israeli male soldiers, a permanent ceasefire and the complete withdrawal of Israel from Gaza.

A third phase is expected to see the return of all remaining bodies of hostages and the start of Gaza's reconstruction, supervised by Egypt, Qatar and the UN.

The ceasefire agreement will first need to be approved by the government of Israeli Prime Minister Benjamin Netanyahu and his security cabinet. If successfully implemented, it will give Gaza its first respite from the fighting since a week-long truce in November 2023.

It will also bring to an end more than a year of fruitless efforts to reach a deal, with negotiations frequently faltering in the final stages. The process, however, was re-energised when Donald Trump won the US presidential election in November and after the president-elect repeatedly threatened there would be “hell to pay” if the hostages were not released before his January 20 inauguration.

Steve Witkoff, Mr Trump's nominated Middle East envoy, played a role in the final push for a deal, joining David Barnea, the director of Israel's Mossad spy agency, Ronen Bar, director of Israel's Shin Bet internal security, and Brett McGurk, the departing Middle East envoy for US President Joe Biden.

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Female 49kg: Mayssa Bastos (BRA) bt Thamires Aquino (BRA); points 0-0 (advantage points points 1-0).

Female 55kg: Bianca Basilio (BRA) bt Amal Amjahid (BEL); points 4-2.

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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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