Israel, US resume defence aid talks halted over Iran deal



JERUSALEM // Israel and the United States have resumed talks on future defence aid that Prime Minister Benjamin Netanyahu suspended in protest at the Iran nuclear deal, the Israeli ambassador to Washington said on Sunday.

The allies had been looking to agree on a 10-year aid package to extend the current US grants to Israel worth US$3 billion annually, which are due to expire in 2017. But Netanyahu froze negotiations ahead of the July deal reached between Iran and world powers, which Israel deems insufficiently stringent.

“With the nuclear deal now moving ahead, Israel is also moving ahead, hoping to forge a common policy with the United States to address the continuing dangers posed by Iran,” Ambassador Ron Dermer said in a Facebook post.

“Discussions over a new Memorandum of Understanding between Israel and the United States, which had been on hold for some time, resumed this past week in Washington,” he said, using a term for the defence-aid agreement.

Before the suspension, the two sides were close to a new package of grants worth $3.6 billion to $3.7 billion a year, US and Israeli officials have said. They have predicted that the amount could rise further as Israel argues that it needs more aid to off-set a likely windfall for Iran in sanctions relief which might be used to finance anti-Israel guerrillas.

The top US military officer, Marine General Joseph Dunford, arrived in Israel on Saturday for a visit that Dermer said would include defence-aid discussions. He added that Israeli Defence Minister Moshe Yaalon, visiting Washington later this month, would pursue those talks, as would Netanyahu when he meets US President Barack Obama in the White House on November 9.

“Israel hopes that the discussions we are now engaged in will culminate in a long-term agreement that will dramatically upgrade Israel’s ability to defend itself by itself against any threat and enable Israel to address the enormous challenges we now face in the region,” Dermer said.

* Reuters

Company Profile
Company name: OneOrder

Started: October 2021

Founders: Tamer Amer and Karim Maurice

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Industry: technology, logistics

Investors: A15 and self-funded 

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1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29

2. Sam Bennett (IRL) Deceuninck-QuickStep - same time

3. Phil Bauhaus (GER) Bahrain Victorious

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1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28

2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35

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Stage seven

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3. Pello Bilbao (ESP) Bahrain-Victorious, at 5s

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Formula Middle East Calendar (Formula Regional and Formula 4)
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

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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