Israel slams Dutch company for cutting water ties over settlements



JERUSALEM // A Dutch water company’s decision to cut ties with Israel’s national water carrier over its operations in the West Bank sparked anger in Israel yesterday, in the latest instance of growing international impatience with Israel’s settlement expansion.

Vitens, the largest drinking water supplier in the Netherlands, said it was ending its joint projects with the Mekorot water company since “these cannot be seen outside their political context”.

The European Union, along with most of the international community, considers Israeli settlements in the West Bank and East Jerusalem illegal and an obstacle to the establishment of a Palestinian state in territories Israel conquered in the 1967 war. With nearly 600,000 Israelis now living on lands captured in 1967, the Palestinians say the continued settlement construction is a sign of bad faith and making it ever more difficult to partition the land.

Israeli settlements have come under heavy international criticism since peace talks with the Palestinians resumed in July. A series of Israeli announcements to build more settlement homes have drawn international condemnations and Palestinian threats to walk out of the talks, and prompted US secretary of state, John Kerry, to question Israel’s commitment to peace.

Last month, Israel acceded to a European funding ban on projects in the occupied territories by assuring the EU it would not spend money received under a technology-sharing pact in the West Bank or East Jerusalem. Earlier this week, Britain’s overseas trade body issued a warning to firms investing in Israeli settlements, saying ties to the Israeli communities established in the West Bank could be bad for business.

Israel has rejected the criticism of its settlements, saying their fate should be resolved through negotiations.

Israeli foreign ministry Spokesman Yigal Palmor said that the Vitens decision was “devoid of any common sense”, particularly since the Israeli company has cooperated closely with Jordan and the Palestinians on water projects under the auspices of the World Bank.

“They have probably caved into political pressure by anti-Israel groups, and in their eagerness to pander to those groups they have scored high points in the theater of the absurd,” he said.

But Tzipi Livni, Israel’s chief peace negotiator, said the Dutch decision reflected just how isolated Israel has become over the settlement issue.

Speaking at Tel Aviv University, she said “it hurts my heart” to see the Dutch end cooperation with Mekorot, which does work in the West Bank on behalf of Israelis and Palestinians.

* Associated Press

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
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Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Profile

Company name: Marefa Digital

Based: Dubai Multi Commodities Centre

Number of employees: seven

Sector: e-learning

Funding stage: Pre-seed funding of Dh1.5m in 2017 and an initial seed round of Dh2m in 2019

Investors: Friends and family 

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

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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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.