The Shaheen missile, part of Iran's medium range anti-aircraft air defence system Mersad (Ambush). Vahid Alaee / Reuters
The Shaheen missile, part of Iran's medium range anti-aircraft air defence system Mersad (Ambush). Vahid Alaee / Reuters

Iran’s proxies are more lethal than its nuclear programme



This week marks the halfway point on the journey to a deal over Iran's nuclear ambitions. Three months in, the preliminary deal between the six world powers and Iran appears to be working, although there remains considerable doubt – right up to the highest levels – over whether a long-term deal is even possible.

For the region, however, the question of Iran’s nuclear ambitions has never been about its pursuit of nuclear energy. The question has always been about the lack of clarity over the country’s intentions.

As serious as the nuclear issue is, there is a pressing need to address a more currently lethal question: not the dismantling of Iran’s nuclear weapons programme (if one even exists), but dismantling its network of militias and proxies across the region (which very much do).

Those have taken decades longer to build than Iran’s nuclear programme – and could prove difficult, even impossible, to uproot.

Mastering the nuclear cycle would put the Iranians in a strong position to rapidly acquire nuclear weapons, if they chose to do so.

Those two issues have been conflated, sometimes deliberately, so that the criticism about Iran’s nuclear programme appears to be about energy, when in fact it is about weaponry.

Those who criticise Iran for pursuing nuclear research are missing the point: it is perfectly legitimate for a country, especially one with such a venerable history of science and research, to seek to master the nuclear fuel cycle. Indeed, Iran’s right to do so is enshrined in the nuclear Non-Proliferation Treaty (NPT), which it has ratified.

But what concerns the Arabs is what Iran seeks to do with such knowledge. Iran’s hardline leadership has, in the past, sought to imply that the Middle East is against this acquisition of knowledge, when it is not. The concern is that Iran, having meddled both overtly and covertly in the affairs of the region, might be more, not less, likely to do so with a nuclear weapon.

Few – including the International Atomic Energy Agency, which monitors Iran’s nuclear programme – believe that Iran is definitely building a nuclear weapon. But the ambiguity is troubling, especially given Iran’s current capabilities through its regional proxies.

Foremost among its proxies is Hizbollah, by some margin the region’s most formidable militia, able to withstand attacks even from a foreign-armed state army like Israel. Hizbollah’s influence goes far beyond fighters and weapons, extending into the political sphere in Lebanon and into Syria.

In Iraq, Iran has immense influence with the political leadership, as well as influence with ordinary Shias. In Yemen, Iran supports the Houthi rebels in the north, as it does Hamas in the Gaza Strip.

That is the situation today. Imagine, then, a Middle East with a nuclear-armed Iran.

In the best case scenario, if Iran were to seek and acquire nuclear weapons, it would feel safe from attack by Israel or the United States and would then pull back its proxies and seek a more equitable, diplomatic relationship with its allies.

And yet, is this really realistic? Has any state, having spent so much money, political capital and indeed lives building alliances and militias, then simply given them up?

In Pakistan, despite enormous pressure from the United States to cut its ties with the Taliban, the intelligence services have maintained their links.

Far more likely, in fact, is that a nuclear-armed Iran would feel empowered to further throw its weight around in the region, knowing that it possessed the ultimate deterrent.

It is that prospect which most worries the Middle East. The argument most often advanced to justify an Iranian bomb is that the country is surrounded by those who wish to harm it – threatened first by the Americans occupying the country to its east, Afghanistan, and then to its west, Iraq; threatened by Israel and its threats to attack the country; and threatened by a military build-up from the Arab Gulf states. Under these circumstances, so the argument runs, Iran would seek to acquire a nuclear weapon as insurance for its own survival.

Yet, this confuses the cause with the result, and justifies the action because of the reaction. The Arab Gulf states have not sought to build up their militaries to threaten Iran, they have done so to reduce the threat from Iran. Peninsula Shield, the GCC’s defence force, was started as a direct reaction to the Iranian threat, back in the 1970s. In all those years, has Iran sought to calm tensions with the Arab Gulf states? Has it sought dialogue and cooperation?

The relationship that Iran has with Hizbollah and Hamas predates the American involvement in Afghanistan and Iraq, not by years, but by decades.

And it is that network of influence which is most worrying. The concern over Iran’s nuclear programme is a symptom, not the cause, of the regional distrust of Iranian intentions. This distrust stretches back decades and stems, first and foremost, from a lack of clarity over what the Iranian regime seeks as its role in the region, and comes about as a result of this growing network. It was the network that came first, and the mistrust followed.

Iran has spent enormous political and financial capital on its militias and its proxies. If it had spent the same time, money and effort on building real and metaphorical bridges with its neighbours, the concerns about its scientists mastering the nuclear cycle would likely not have arisen.

falyafai@thenational.ae

On Twitter: @FaisalAlYafai

Timeline

1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line

1962
250 GTO is unveiled

1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company

1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens

1976
First automatic Ferrari, the 400 Automatic, is made

1987
F40 launched

1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent

2002
The Enzo model is announced

2010
Ferrari World opens in Abu Dhabi

2011
First four-wheel drive Ferrari, the FF, is unveiled

2013
LaFerrari, the first Ferrari hybrid, arrives

2014
Fiat Chrysler announces the split of Ferrari from the parent company

2015
Ferrari launches on Wall Street

2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary

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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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Omar Yabroudi's factfile

Born: October 20, 1989, Sharjah

Education: Bachelor of Science and Football, Liverpool John Moores University

2010: Accrington Stanley FC, internship

2010-2012: Crystal Palace, performance analyst with U-18 academy

2012-2015: Barnet FC, first-team performance analyst/head of recruitment

2015-2017: Nottingham Forest, head of recruitment

2018-present: Crystal Palace, player recruitment manager

 

 

 

 

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Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

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Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Roger Federer's record at Wimbledon

Roger Federer's record at Wimbledon

1999 - 1st round

2000 - 1st round

2001 - Quarter-finalist

2002 - 1st round

2003 - Winner

2004 - Winner

2005 - Winner

2006 - Winner

2007 - Winner

2008 - Finalist

2009 - Winner

2010 - Quarter-finalist

2011 - Quarter-finalist

2012 - Winner

2013 - 2nd round

2014 - Finalist

2015 - Finalist

2016 - Semi-finalist

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million