There was a sigh of disappointment around the world when news broke on Tuesday that the presidents of the USA and Iran were not going to shake hands. The White House had encouraged speculation that Barack Obama might chance upon Hassan Rouhani in the corridors of the UN. Journalists eager to add drama to the annual dronefest at the UN General Assembly picked up the ball and ran with it.
In fact, it was never likely that the two men would press the flesh after more than 30 years of estrangement. The Iranians never gave a hint that this was part of the plan, and any sober assessment of the balance of forces in Tehran would conclude that such a rash step would not help Mr Rouhani consolidate his power.
Despite the hype, the divide between Iran and America is not something that can be crossed with expressions of peace and love. Handshakes, in any case, are more appropriate when the diplomatic deal is sealed rather than as an empty sign of goodwill.
Mr Rouhani's speech, while stripped of the provocations of his predecessor, Mahmoud Ahmadinejad, was hardly a surrender document. He spoke of a somewhat limited "framework to manage our differences", making clear that the Islamic Republic still opposed America's global hegemony.
For his part Mr Obama was a touch more accommodating, stating clearly that he was not aiming at regime change, and referring to the fatwa of the supreme leader, Ayatollah Ali Khamenei, which renounced nuclear weapons. But he was not so indulgent as to avoid mentioning all the Americans who had been killed or taken hostage by Iran and its surrogates.
In short, neither side has yet made any substantive new step to unblock the impasse of the negotiations over Iran’s nuclear programme. For that reason alone, a handshake would have been premature.
The effect of all the handshake hype has been to open Mr Rouhani to accusations of being a simple PR man tasked to lift the sanctions which are strangling the Iranian economy.
This line of attack has been avidly pursued by the Israeli embassy in Washington and will be followed up when Prime Minister Benjamin Netanyahu delivers his UN speech warning the Americans against the mullahs’ “honey trap”.
Mr Rouhani is of course not the decider in the nuclear issue.
That role undoubtedly belongs to Ayatollah Khamenei, with the Revolutionary Guards jealously in control of the technology and viewing Mr Rouhani's election with deep suspicion.
By the same token, it could be said that Mr Obama is hardly the sole decider in this matter in America.
Just about the only thing that a divided Congress can agree on is rejection of Iran’s nuclear enrichment programme, which happens to be the Israeli line.
Mr Obama should still pursue negotiations. This is a rare opportunity. A chance to improve relations with Iran under the moderate president, Mohammad Khatami, was lost through American hesitation. It was killed stone dead when George W Bush, for the sake of a good line in his 2002 State of the Union Speech, included Iran in the “axis of evil”. So it should not be missed again.
But no one has indicated how the nuclear negotiation is going to work. Both sides will demand that the other moves first. Iran will demand that the US starts by easing the sanctions; Washington will open by saying that Iran must stop nuclear enrichment, as the UN Security Council has repeatedly demanded. Mr Rouhani told the UN that enrichment was Iran’s right and not a topic for discussion.
This is not like Richard Nixon going to China in 1972 to end 25 years of estrangement.
Both countries had a clear interest in doing so, though Washington needed all Henry Kissinger’s skills to get round the issue of the American ally Taiwan. But the Taiwan issue is nothing compared to the weight of Israel in America’s calculations in the Middle East, and the fears of its Arab allies at the prospect of growing Iranian influence in the region.
The prospects for a quick nuclear deal look cloudy. But what if Iran’s goal is a long-term change in how it is perceived in the region? For the mullahs to stay in power, Iran’s identity must remain based on opposition to America, but this does not require daily provocations against the US, particularly at a time when US power is waning.
Ray Takeyh, an Iranian-American scholar at the Council for Foreign Relations in New York, has suggested that Iran now wants to present itself as a force for stability in the region. By lining up with the US on the need for Syria to remove its chemical weapons, Iran has taken a step in this direction. This is in stark contrast to Moscow, which is clutching at conspiracy theories to try to shift blame from the Syrian regime for the August chemical weapons attack.
Iran is critical to US attempts to stabilise what the US calls the Greater Middle East. It could be helpful to the US in Afghanistan as the Pentagon moves its troops out next year. The chaos of Iraq is now forgotten in Washington, thanks to the ability of powerful countries to move on from their mistakes. But Iran is now the dominant outside power there and closer US-Iranian ties would surely benefit that country.
In the long term a more cooperative Iran might be seen as less of a threat to its neighbours. The world might then find its nuclear programme less threatening. It might be able to accept that Iran could have the technology but stop short of possessing nuclear arms, which would leave the tattered nuclear Non-Proliferation Treaty still just about credible.
That is a long way off. So far we have only a mullah’s smile, which is not a bankable currency. And certainly not one which is accepted by America’s allies or by Congress in Washington. But if, after 34 years of self-isolation, the Iranian regime wants to change the way the world sees it, then now is the time.
aphilps@thenational.ae
On Twitter: @aphilps
MATCH INFO
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The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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Toss: Sindhis, elected to field first
Pakhtoons 137-6 (10 ov)
Fletcher 68 not out; Cutting 2-14
Sindhis 129-8 (10 ov)
Perera 47; Sohail 2-18
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Zayed Sustainability Prize
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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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The biog
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ADCC AFC Women’s Champions League Group A fixtures
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
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Warn others to prevent further harm
Courtesy: Crystal Intelligence
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Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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.”