Yukiya Amano, the new director general of the International Atomic Energy Agency, begins his post at a critical juncture for the nuclear industry, which is gearing up for an expected "renaissance" of civilian atomic power.
Yukiya Amano, the new director general of the International Atomic Energy Agency, begins his post at a critical juncture for the nuclear industry, which is gearing up for an expected "renaissance" of civilian atomic power.
Yukiya Amano, the new director general of the International Atomic Energy Agency, begins his post at a critical juncture for the nuclear industry, which is gearing up for an expected "renaissance" of civilian atomic power.
Yukiya Amano, the new director general of the International Atomic Energy Agency, begins his post at a critical juncture for the nuclear industry, which is gearing up for an expected "renaissance" of

New man in the nuclear hot seat


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Later this month, the world's foremost nuclear watchdog, the International Atomic Energy Agency (IAEA), is expected to affirm its choice of Yukiya Amano as its new director general, to succeed Mohammed el Baradei, in November.

The occasion will mark the first changing of the guard in a dozen years at the Vienna-based agency, and comes at a critical juncture for the nuclear industry, which is gearing up for an expected worldwide renaissance of civilian atomic power amid continuing threats of nuclear arms proliferation. Mr Amano, the Japanese ambassador to the international organisation in the Austrian capital, will be Japan's first IAEA chief, despite the strength of his home country's civilian nuclear sector and its historically unique position as the only country ever to have suffered a nuclear attack.

In senior government posts in his home country related to nuclear arms control and science, he has gained extensive experience in nuclear disarmament, non-proliferation and energy policy. He also has a reputation as a "quiet diplomat", more interested in technical performance than ruffling political feathers. Yet Mr Amano was far from a unanimous choice to lead the IAEA. In July, it took the agency's 35-nation government board several rounds of voting to muster the two-thirds majority required for the election of a new director general, and it only managed that after one member agreed to abstain.

In eventually winning the vote, Mr Amano narrowly defeated South Africa's Abdul Minty, whose candidacy had mainly been supported by developing countries. Mr Amano was the choice of most western nuclear nations, including the US. "I have received the support from 23 countries, which is the necessary number of votes to be selected as the next director general of the IAEA. I am very pleased for this support," Mr Amano said after the vote. "Also, as a national coming from Japan, I'll do my utmost to prevent the spread of nuclear weapons.

"In order to do that, solidarity of all the member state countries from north, from south, from east and west is absolutely necessary." That invites the question of whether Mr Amano will be able to unify a divided IAEA membership to back whatever strategies he adopts to identify and defuse threats of nuclear weapons proliferation. Besides inheriting the politically sensitive nuclear dossiers of Iran, North Korea and Syria, Mr Amano will have to balance the often conflicting demands of developing nations for access to nuclear power against western powers' concerns over keeping nuclear technology out of hostile hands.

If the IAEA is to do its work effectively, its new chief will also have to persuade member countries struggling to cope with the financial and economic crisis to contribute more money to its budget. Mr Amano will also need to calm critics who charge that the IAEA has become too politicised. That could be the most troublesome part of the legacy bequeathed by Mr el Baradei, who in 2005 shared the Nobel Peace Prize with the agency he still heads. The Norwegian Nobel Committee said the award honoured efforts to prevent nuclear energy from being used for military purposes while ensuring it remained available for peaceful use in the safest possible way.

But in pursuing those goals, Mr el Baradei, who has never been shy of using his position at the IAEA to air his personal views on politically charged issues from world hunger to Israel's treatment of Palestinians, may have inflamed some political leaders he might have done better to assuage. A few years back, Mr el Baradei annoyed the then US president George W Bush by aggressively defending the IAEA's finding of no evidence that Saddam Hussein's regime had restarted its nuclear weapons development programme. In 2003, ignoring the agency's advice, the US invaded Iraq.

Now, the IAEA finds itself in a strikingly similar controversy over Iran. Just this month, France accused the IAEA of withholding evidence that could help the international community determine whether Iran is trying to build an atomic bomb, after Mr el Baradei said talk of an Iranian bomb had been "hyped". The French claim came after Israeli allegations that the agency had held back key parts of its recent report on Tehran's nuclear plans. Bernard Kouchner, the French foreign minister, said the missing information was in the report's unpublished annexes.

"Specifically, in the annexes, there are elements which enable us to ask questions about the reality of an atomic bomb. There are issues of warheads, of transport," Mr Kouchner said. "I am not exaggerating. It is clear on reading the IAEA documents that not a single question has been answered." Another French official told Agence France-Presse that the IAEA's report had been watered down, and that the agency's inspectors had gathered "a whole series of pieces of evidence" regarding Iran's pursuit of nuclear weapons. That was despite the report stating that Iraq had barred inspectors from workshops where it could be assembling nuclear missiles and had failed to share information about its testing of high explosives and multiple detonators.

"There remain a number of outstanding issues which give rise to concerns, and which need to be clarified to exclude the existence of possible military dimensions to Iran's nuclear programme," the IAEA wrote. But the French reaction is noteworthy if only because Paris seldom sides with Israel. The Jewish state is not a member of the IAEA because it has not signed the agency-administered nuclear non-proliferation treaty, but it has long been among the toughest critics of Mr el Baradei. In 2007, it called for his removal as the agency's head.

But it was on Mr el Baradei's watch in 2004 that the IAEA found Iran to be non-compliant with international nuclear proliferation safeguards and reported its findings to the UN. That was after the agency had been criticised for doing little to curb the weapons programme that Libya eventually surrendered, after the US invasion of Iraq. Recently, Mr el Baradei has said his "gut feeling" was that Tehran was aiming to develop atomic weapons, implying he lacked proof.

It will be interesting to see what Mr Amano makes of all this. So far, he has commented diplomatically that he has not yet seen the evidence. Another issue the incoming IAEA chief will have to face is the growing resentment of developed nations at strict regulation of their access to nuclear power, which many need because they are desperately short of electricity. Developing countries and some other nations feel a sense of unfairness about the nuclear non-proliferation treaty, because the five nuclear powers ? the US, Britain, France, Russia and China ? are exempt from such restrictions and yet have taken few steps towards nuclear disarmament.

These issues are of direct relevance to the UAE, which is planning to develop the Arab world's first civilian nuclear power programme while, of necessity, maintaining historic trade ties with Iran, its close neighbour. Throughout the planning of its nuclear programme, the UAE has worked closely with the IAEA and actively sought its advice. It has not railed against the IAEA's rules for peaceful nuclear development but rather has embraced them, for instance by pledging to forgo activities such as uranium enrichment that could be linked to a weapons programme.

And experts at the Emirates Centre for Strategic Studies and Research say the threat of regional nuclear arms proliferation is a danger to the country. That should neatly align the UAE's position with the principles endorsed by Mr Amano, suggesting the new IAEA chief could become a powerful ally. The UAE, on the verge of signing a landmark agreement with the US on peaceful nuclear trade and technology transfer, and of launching its programme with help from US experts, faces lingering resistance to its nuclear ambitions from some US politicians. They remain sceptical that the nation could prevent the transfer of sensitive technology to Iran.

If anything should happen to inflame US misgivings, Mr Amano's soft-pedal diplomacy could prove invaluable. Other developing nations lining up to join the nuclear club could come to realise that they need a "quiet diplomat" in their corner. tcarlisle@thenational.ae

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- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

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Goalkeepers: Dean Henderson (Man Utd), Sam Johnstone (West Brom), Jordan Pickford (Everton)

Defenders: John Stones (Man City), Luke Shaw (Man Utd), Harry Maguire (Man Utd), Trent Alexander-Arnold (Liverpool), Kyle Walker (Man City), Tyrone Mings (Aston Villa), Reece James (Chelsea), Conor Coady (Wolves), Ben Chilwell (Chelsea), Kieran Trippier (Atletico Madrid)

Midfielders: Mason Mount (Chelsea), Declan Rice (West Ham), Jordan Henderson (Liverpool), Jude Bellingham (Borussia Dortmund), Kalvin Phillips (Leeds)

Forwards: Harry Kane (Tottenham), Marcus Rashford (Man Utd), Raheem Sterling (Man City), Dominic Calvert-Lewin (Everton), Phil Foden (Man City), Jack Grealish (Aston Villa), Jadon Sancho (Borussia Dortmund), Bukayo Saka (Arsenal)

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FINAL RESULT

Sharjah Wanderers 20 Dubai Tigers 25 (After extra-time)

Wanderers
Tries: Gormley, Penalty
cons: Flaherty
Pens: Flaherty 2

Tigers
Tries: O’Donnell, Gibbons, Kelly
Cons: Caldwell 2
Pens: Caldwell, Cross

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

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5pm: Maiden (PA) Dh 80,000 1,400m

National selection: AF Mohanak

5.30pm: Handicap (PA) Dh 90,000 1,400m

National selection: Jayide Al Boraq

6pm: Handicap (TB) Dh 100,000 1,400m

National selection: Rocket Power

6.30pm: Abu Dhabi Championship Listed (PA) Dh 180,000 1,600m

National selection: Ihtesham

7pm: Wathba Stallions Cup Handicap (PA) Dh 70,000 1,600m

National selection: Noof KB

7.30pm: Maiden (PA) Dh 80,000 2.200m

National selection: EL Faust

Match info

Wolves 0

Arsenal 2 (Saka 43', Lacazette 85')

Man of the match: Shkodran Mustafi (Arsenal)

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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  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
The years Ramadan fell in May

1987

1954

1921

1888

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5