Israeli prime minister calls off West Bank bus segregation



JERUSALEM // Israeli prime minister Benjamin Netanyahu on Wednesday ordered the suspension of a controversial ban on Palestinians riding the same buses as Jewish settlers when returning from Israel to the West Bank.

The announcement came hours after the three-month pilot project approved by defence minister Moshe Yaalon began.

An official in the prime minister’s office said Mr Netanyahu called Mr Yaalon to tell him he found his proposal “unacceptable” and the two men decided to freeze the plan.

Mr Yaalon had launched the pilot programme following repeated complaints from Jewish settlers who ride the buses and say the Palestinian workers constitute a security threat and harass female Jewish riders.

Israel captured the West Bank from Jordan in the 1967 war and Palestinians want it as part of their future state.

Thousands of Palestinians enter Israel for work each day from the West Bank and often return home in buses alongside Jewish settlers.

The Palestinian labourers all have security clearance and special permits, but the proposed change would have forced them to return home through the same checkpoint they entered and prevented them from riding West Bank buses alongside Israelis.

Critics derided the plan as racist and said it would harm Israel’s image, which has already been under pressure because of its continued settlement activity in the West Bank.

“The separation between Palestinians and Jews on public transportation is an unnecessary humiliation and a stain on the face of the country and its citizens,” opposition leader Isaac Herzog wrote on his Facebook page. “It adds unnecessary oil to the bonfire of hate against Israel in the world.”

Zehava Galon, leader of the dovish Meretz party, went further, saying, “This is how apartheid looks.”

The proposal even came under fire from backers of the settlements, who said it did not promote their cause and created undue damage to Israel’s image.

Mr Netanyahu quickly reversed course amid the criticism, marking an inauspicious start for a government that took office this week and has held only one cabinet meeting.

Mr Netanyahu’s narrow coalition is dominated by hardline lawmakers aligned with the West Bank settler movement.

Their support for further settlement construction, and their opposition to peacemaking with the Palestinians, has set the stage for likely clashes between Israel and its Western allies.

The bus segregation plan, if implemented, would have drawn global comparisons to both South African apartheid and the racial segregation on buses that sparked the American civil rights movement.

Israel’s largely ceremonial president, Reuven Rivlin, commended the reversal of course saying that such separation between Israelis and Arabs would be “unthinkable”

“Such statements go against the very foundations of the state of Israel, and impact upon our very ability to establish here a Jewish and democratic state,” he said. “It is important we remember that our sovereignty obligates us to prove our ability to live side by side.”

Meanwhile, a Palestinian attacker in a vehicle ran over two police officers in east Jerusalem on Wednesday.

Police spokesman Micky Rosenfeld said officers on the scene opened fire at the attacker and killed him. The two police officers were lightly wounded and evacuated to a hospital.

Israel has seen several isolated vehicular and stabbing attacks in Jerusalem in recent months, raising fears of a renewed wave of Palestinian violence like the one that gripped the country a decade ago.

* Agence France-Presse and Associated Press

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
The specs: 2018 Volkswagen Teramont

Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

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.”

KEY HIGHLIGHTS

Healthcare spending to double to $2.2 trillion rupees

Launched a 641billion-rupee federal health scheme

Allotted 200 billion rupees for the recapitalisation of state-run banks

Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets

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THE SPECS

Engine: 4.0L twin-turbo V8

Gearbox: eight-speed automatic

Power: 571hp at 6,000rpm

Torque: 800Nm from 2,000-4,500rpm

Fuel economy, combined: 11.4L/100km

Price, base: from Dh571,000

On sale: this week

THE%20SPECS
%3Cp%3EEngine%3A%204.4-litre%20twin-turbo%20V8%20hybrid%0D%3Cbr%3EPower%3A%20653hp%20at%205%2C400rpm%0D%3Cbr%3ETorque%3A%20800Nm%20at%201%2C600-5%2C000rpm%0D%3Cbr%3ETransmission%3A%208-speed%20auto%0D%3Cbr%3E0-100kph%20in%204.3sec%0D%3Cbr%3ETop%20speed%20250kph%0D%3Cbr%3EFuel%20consumption%3A%20NA%0D%3Cbr%3EOn%20sale%3A%20Q2%202023%0D%3Cbr%3EPrice%3A%20From%20Dh750%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A