Former US State Department senior adviser Vali Nasr said that Iran and the US on a 'fundamental level' need to make a deal. Pawan Singh / The National
Former US State Department senior adviser Vali Nasr said that Iran and the US on a 'fundamental level' need to make a deal. Pawan Singh / The National
Former US State Department senior adviser Vali Nasr said that Iran and the US on a 'fundamental level' need to make a deal. Pawan Singh / The National
Former US State Department senior adviser Vali Nasr said that Iran and the US on a 'fundamental level' need to make a deal. Pawan Singh / The National

Iran and US 'need to build back trust' to save nuclear deal


Leila Gharagozlou
  • English
  • Arabic

Hope remains that the US, Iran and the EU can reach an agreement on reviving the 2015 nuclear pact as negotiators resume talks in Vienna on Thursday, according to Vali Nasr, a former US State Department senior adviser.

The talks ended last week amid an air of pessimism, with US Secretary of State Antony Blinken saying time was running out for a deal.

In Tehran, a senior diplomat said US reluctance to guarantee lifting sanctions was the obstacle.

However, both sides on a “fundamental level” need to make a deal and that is a good thing, according to Mr Nasr, now a professor at the Johns Hopkins School of Advanced International Studies.

For Iran, the incentive is the lifting of US sanctions imposed by former president Donald Trump that have seriously damaged its economy. For the US, there are concerns that failure to reach a deal could lead to a regional crisis and conflict, Mr Nasr told The National.

He said the grim scenarios that the 2015 nuclear agreement sought to prevent had returned.

Mr Nasr said the dangers increase if Iran heads towards nuclear weapons capability,

“That’s a scenario in which we know how to start a conflict, but nobody in Washington is confident that they can contain it or end it.

“Not only would it be costly for the US but very costly for Iran’s neighbours, and one thing Iran has made clear is that a war would not be contained on Iranian soil.”

Mr Nasr said the main problem in the negotiations was a lack of trust. Iran's leadership has lost its trust in the US and that sanctions will be lifted at all.

“What makes these talks difficult for Iran is that going back into a deal without US guarantees is risky ... hugely risky.”

The 2015 deal was reached during the final year in office of Mr Trump's predecessor, Barack Obama. Former Iranian president Hassan Rouhani, a relative moderate who faced criticism for the agreement from Iranian hardliners, was succeeded by hardline President Ebrahim Raisi in August.

“If a deal is made then, in two years when a new [US] president comes in everything comes back, Mr Raisi loses face, Iran's supreme leader [Ayatollah Ali Khamenei] loses face and then the moderates will be back and say you didn’t do any better,” Mr Nasr said.

  • Iran's President-elect Ebrahim Raisi is pictured during his first press conference since his election in Tehran.
    Iran's President-elect Ebrahim Raisi is pictured during his first press conference since his election in Tehran.
  • Iran's new president hailed what he called a 'massive' voter turnout.
    Iran's new president hailed what he called a 'massive' voter turnout.
  • Mr Raisi said that his government would continue the nuclear negotiations with world powers.
    Mr Raisi said that his government would continue the nuclear negotiations with world powers.
  • Mr Raisi said US must lift the sanctions and return to JCPOA deal.
    Mr Raisi said US must lift the sanctions and return to JCPOA deal.
  • President-elect Ebrahim Raisi attends a news conference in Tehran. Reuters
    President-elect Ebrahim Raisi attends a news conference in Tehran. Reuters
  • Mr Raisi replaces moderate Hassan Rouhani.
    Mr Raisi replaces moderate Hassan Rouhani.
  • President-elect Ebrahim Raisi arrives for his first press conference in the capital Tehran.
    President-elect Ebrahim Raisi arrives for his first press conference in the capital Tehran.

Iran is still willing to cut a deal, but the question is at what price, Mr Nasr said.

The Iranians have been asking for a guarantee that a repeat of 2018 – when Mr Trump withdrew the US from the nuclear deal – will not happen, but this is guarantee that President Joe Biden cannot give, he said.

“The US is basically telling them, 'You give up your nuclear programme, go back to 2015, give up missiles, cut back in Iraq, Lebanon and Yemen; you do all those things but we cannot guarantee that sanctions won’t come back.' For Iran, this won’t work.”

Iran responded to Mr Trump's withdrawal from the nuclear pact, officially known as the Joint Comprehensive Plan of Action, by incrementally breaching the limits set on its levels of enriched uranium and stockpiles, a tactic Mr Nasr said was dictated by the US style of negotiation.

“When you go the table with the US, the US runs a really rough bargain – 'I can impose sanctions on you and it is nothing to me. What do you have to bargain with me?' The problem Iran had under Trump, which it is trying to avoid now, is the issue of leverage. With the signing of the JCPOA, Iran gave up any leverage it may have had, leaving them vulnerable during the Trump years.”

Now the tactic is to “build as big and scary a programme as possible”, creating an incentive for the US to come to the table, he said.

Mr Nasr said another obstacle to progress in the talks is the domestic landscape in the US and Iran.

Mr Biden is facing a Congress that has bipartisan support against diplomacy with Iran and he will be unlikely to sell a “less for less” deal, essentially a deal where Iran gives up less and the US asks for less, he said.

Mr Raisi has to deal with a struggling economy, water and electricity shortages, the coronavirus pandemic, frequent protests, political infighting and the question of eventual succession of the supreme leader.

Mr Raisi's administration needs success in the talks not just for himself but for the conservative factions in Iran, Mr Nasr said.

For the past eight years, Iran's conservative and hardline groups have been saying they could do better than the moderates and the Rouhani administration, now they need to deliver, he said.

Unlike other authoritarian governments, Iran’s government does face pushback from its people and if the new government cannot deliver on their promises, “they are going to face a very unhappy disgruntled population and the cost of managing that will be high”, he said.

Mr Nasr said the talks are likely to go on for another two or three rounds until March 2022. Although a deal is unlikely in that time frame, there is a possibility of a breather. The US could give Iran some leeway to sell more oil and get access to funds in exchange for a halt to the ramping up its nuclear programme, he said.

Ultimately, a deal can only be reached through building up trust and both sides showing that they can abide by the terms, he said.

Abramovich London

A Kensington Palace Gardens house with 15 bedrooms is valued at more than £150 million.

A three-storey penthouse at Chelsea Waterfront bought for £22 million.

Steel company Evraz drops more than 10 per cent in trading after UK officials said it was potentially supplying the Russian military.

Sale of Chelsea Football Club is now impossible.

Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%0D%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%0D%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%0D%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%0D%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%0D%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%0D%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%0D%3C%2Fp%3E%0A
What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

INFO

What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 

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.”

Updated: December 09, 2021, 10:05 AM