Palestinian tensions over Iran summit attendance



RAMALLAH // Confusion over whether the Hamas prime minister will attend a meeting of non-aligned nations in Iran this week has sharpened tensions with Palestinian rivals and has underscored the Islamist group's uncertain position.

Hamas officials confirmed on Saturday the Gaza-based premier, Ismail Haniyeh, had accepted an invitation to attend a gathering of the Non-Aligned Movement (NAM) in Tehran, which was expected to open later this week.

But both Iranian and Hamas officials appeared to backtrack yesterday, after the president of the Palestinian Authority (PA), Mahmoud Abbas, threatened on Saturday to skip the meeting if Mr Haniyeh attended. Mr Abbas received an invitation to attend.

A Hamas-linked website stated that Mr Haniyeh "won't attend Tehran NAM summit". Moreover, two semi-official Iranian news agencies, ISNA and Mehr, quoted the summit's spokesperson, Mohammad Forqani, as saying the Hamas leader was not invited.

That contradicted news reports over the weekend saying that Mr Haniyeh was invited to the gathering of 120 developing nations as a guest of the Iranian president, Mahmoud Ahmadinejad.

The issue highlights divisions within the Palestinian leadership and has exacerbated bad blood between Hamas and Fatah and the umbrella Palestine Liberation Organisation (PLO), both of which Mr Abbas chairs. Hamas, which won parliamentary elections in 2006, wrested control of the Gaza Strip from Fatah in 2007. Recent efforts to reconcile the factions have foundered because of political differences and bickering over holding Palestinian elections.

The PA's prime minister, Salam Fayyad, implored his Hamas counterpart in a statement issued on Saturday not to attend the summit, calling it a "stab in the back of the Palestinian national project".

"The Palestinian Liberation Organisation is the sole representative of all the Palestinian people," Mr Fayyad said. Hamas has received money and, some say, weapons from Iran, but its ties with Tehran have been complicated after the group dismantled its headquarters in Damascus last year.

That decision was prompted by the killing of thousands of people by forces loyal to Syria's president Bashar Al Assad, during an 18-month uprising. Iran is a firm ally of Mr Al Assad's government.

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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.”

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