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Israel was on tenterhooks on Wednesday as a second hostage deal with Hamas appeared closer than ever, raising the prospect of an end to one of the most traumatic crises in the region’s history.
If fully realised, the three-part deal could free all 98 hostages taken from Israel, living and dead, and end the Gaza war, in which more than 46,700 Palestinians have been killed and the vast majority of the strip’s population displaced.
Despite Israeli public opinion surveys long showing a preference for a deal to release the captives, there has been vocal opposition to one throughout the process and wider unease about the concessions Israel would have to make to secure an agreement, which include the release of Palestinian detainees held on terror charges and significant Israeli withdrawal from the strip without having secured a decisive defeat of Hamas.
The most vocal opposition came from far-right National Security Minister Itamar Ben-Gvir. As reports indicating progress have mounted since the beginning of the week, Mr Ben-Gvir, who has consistently favoured a heavy military approach in Gaza over negotiations with Hamas, led the charge against a deal, calling on his far-right political ally Finance Minister Bezalel Smotrich to leave the government if a deal is reached. Mr Ben-Gvir earlier boasted that he had prevented a similarly “terrible” deal on a number of occasions during the past year.
In response, Mr Smotrich said on X on Wednesday that the war should go on, but remained ambiguous on whether he would support or oppose the deal. Israeli news outlet Haaretz reported late on Wednesday afternoon that Mr Smotrich had concluded a meeting with Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz.
Amir Avivi, a former Israeli general, said there is “no right or wrong” when it comes to support for a deal and that an agreement is more “a matter of what we prioritise at this specific moment”.
“As we enter this deal, Israel has to come up with a new strategy about how to defeat Hamas,” he added. "This is a long-term process. Gaza is a ticking bomb. Diffusing it is going to take many years.
“What’s happening now is Hamas is rebuilding itself faster than we’re destroying them." He said he believes the Trump administration in the US will be much more open to new Israeli proposals on how to defeat the group.
Carmit Palty Katzir, who had one family member killed and two taken hostage during the Hamas-led October 7 attacks, called for a deal to be passed, saying her story is a “very sad example of the consequences of what might happen when you’re able to rescue hostages on time, but delay”, in reference to her mother, who died soon after her release in the first truce deal of November 2023.
“We had a chance to tell her how much we loved her and for her to meet her daughters and grandkids," she said. "There are so many people we can still save. We have to save them."
A social worker, Ms Palty Katzir, whose father was killed on October 7 and whose brother was killed in captivity in Gaza, was part of planning efforts potentially to receive the latest round of hostages, who are expected to be in far worse condition than those released during the first deal.
Dr Amir Blumenfeld, a physician who works on treating and rehabilitating Gaza war hostages, said “every system in the body is damaged due to stays in captivity like this, especially in tunnels”.
“After 15 months we pretty much expect many illnesses, physical and mental, from everyone, no matter who it was before what their shape or medical condition,” he added. “I call every one of them a humanitarian case that needs to be released as soon as possible.”
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.”
PRO BASH
Thursday’s fixtures
6pm: Hyderabad Nawabs v Pakhtoon Warriors
10pm: Lahore Sikandars v Pakhtoon Blasters
Teams
Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.
Squad rules
All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.
Tournament rules
The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
The specs: Volvo XC40
Price: base / as tested: Dh185,000
Engine: 2.0-litre, turbocharged in-line four-cylinder
Gearbox: Eight-speed automatic
Power: 250hp @ 5,500rpm
Torque: 350Nm @ 1,500rpm
Fuel economy, combined: 10.4L / 100km
