US President Donald Trump has put off revealing his Middle East peace plan again. Reuters
US President Donald Trump has put off revealing his Middle East peace plan again. Reuters

Exclusive: Trump peace plan now likely after Israeli elections, US officials say



The release of President Donald Trump's Middle East peace plan has been further delayed, US officials have confirmed.

Mr Trump set a four-month deadline in September for his long-awaited plan to be made public but his timeframe has now shifted as Israel heads to early elections in April, the US government is under its longest partial shutdown in history, and the break in communications continues between Washington and the Palestinian Authority (PA).

"It will likely be released within the next few months, perhaps after the Israeli election, but no final decision has been made yet," a senior US official said in a closed briefing attended by The National.

Media leaks on what the plan will or will not address are dismissed by the Trump administration as inaccurate. “Very few people on the planet” know its details, tweeted special envoy for the Middle East peace process Jason Greenblatt.

But even those who know would insist that the text is not finalised and is “undergoing final edits” as of this week, an official added.

The senior US official said the proposal would be “detailed and thorough”.

“We have taken every issue and explained our vision and path to a solution. There is an economic component to the plan. We hope to involve Arab countries including Egypt, Jordan, and other regional partners,” he said.

“We envision massive capital (via investments) into Gaza and the West Bank if our plan takes root and Gaza stabilises,” another senior official said. “But our plan is not simply economic peace,” he cautioned, explaining that it will also address terrorism and the traditional final status issues such as Jerusalem and the borders.

The text will also reflect new challenges in the Middle East such as the rise of Al Qaeda and ISIS, the Syrian war, the Gaza situation, and Hezbollah's 140,000-rocket arsenal as new threats have emerged since Washington’s last serious effort at peacemaking in 2000. “The margin of error has shrunk because of these issues,” the official said.

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Asked about the plan's chance of succeeding, given President Mahmoud Abbas's rejection of the US as a mediator, the officials did not seem too perturbed. “The PA has not seen consequences for its disruptive behaviour over the last few decades. Everyone coddled them. We shouldn’t be expected to do so, especially since that approach failed to achieve peace,” one official said when asked about the US closing the Palestinian Liberation Organisation office in Washington and moving its embassy from Tel Aviv to Jerusalem.

“We hope that they come to the negotiating table. The Palestinians have a lot to gain from this plan. This US president is unique and he may be able to go where others haven’t."

Asked about Syria and any US plans to recognise Israeli sovereignty over the occupied Golan Heights, an official said the decision was up to Mr Trump. He said, however, that “Israel has had concerns over US withdrawal plans from Syria, but our conversations and lengthy meetings have helped in easing concerns as well as providing answers”.

Former US negotiator and peace envoy Dennis Ross told The National that the viability of the US as a mediator will be judged by whether "the plan is credible, both in terms of preparation for its roll-out and its content".

“The substance is the key, but even the right substance will still require careful preparation: privately sharing the plan in writing with key Arab leaders in advance; letting them have some imprint on it; and negotiating word for word what they will say when it is unveiled,” Mr Ross advised.

At a minimum, “the plan will have to provide for a [Palestinian] state that looks credible in terms of contiguity and that state must have a significant part of Arab East Jerusalem as its capital” for the document to be taken seriously, he said.

But Daniel Shapiro of the Institute for National Security Studies, who was an ambassador to Israel under Barack Obama, said the prospects are dim for the plan and US peacemaking efforts. "There is zero chance of negotiations now due to leadership dynamics on both [Israeli and Palestinian] sides," he told The National.

“That's unlikely to change after the Israeli elections, and the Palestinians will be no more likely than they are now to accept the Trump administration as mediator,” Mr Shapiro said. One purpose for releasing the plan he said, “should be for keeping the two-state solution alive and viable for when different leaders emerge”.

He said any US proposal has to be a “detailed, realistic plan that describes two states”. At the same time, the plan could be rejected by both sides, and could put Mr Trump at odds with his support base. “Since it is so hard to square this circle, I think it is unlikely that they [US team] will ever present any plan.”

A negative reaction from the Palestinian Authority is almost guaranteed, said Ghaith Al Omari of the Washington Institute for Near East Policy. A former adviser to the Palestinian negotiating team, Mr Al Omari said: “It is safe to assume that the Palestinians will say no.”

Mr Abbas has said the Trump administration must reverse the embassy move to Jerusalem before any negotiations.

The big question, Mr Al Omari said, is whether Arab states will react positively to the plan even if the Palestinians reject it.

“This depends on two factors: first, what the plan says on the various issues, particularly Jerusalem, and second, whether the US has an overall regional policy that addresses the interests of Arab states, particularly when it comes to confronting Iranian aggression.”

US Secretary of State Mike Pompeo is hosting a summit to counter Iran and pursue Middle East peace in Poland next month. Israel and key Arab states will be invited to the meeting.

Mr Al Omari said the US plan’s chances of acceptance within the Palestinian body politic were diminished by Mr Abbas’s weakness.

“President Abbas and other Palestinian leaders do not have the political credibility today to agree to any compromises and will likely reject any peace proposal, even if it is a reasonable one,” he said.

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

Rating: 1/5

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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.”

UAE - India ties

The UAE is India’s third-largest trade partner after the US and China

Annual bilateral trade between India and the UAE has crossed US$ 60 billion

The UAE is the fourth-largest exporter of crude oil for India

Indians comprise the largest community with 3.3 million residents in the UAE

Indian Prime Minister Narendra Modi first visited the UAE in August 2015

His visit on August 23-24 will be the third in four years

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, visited India in February 2016

Sheikh Mohamed was the chief guest at India’s Republic Day celebrations in January 2017

Modi will visit Bahrain on August 24-25

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Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

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Founders: Mohamed Al Fayed and Mohammed Hammedi

Launched: October 2019

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