US State Department spokesman Ned Price on Tuesday said sanctions relief remain a sticking point in the Iran nuclear talks. Photo: Reuters
US State Department spokesman Ned Price on Tuesday said sanctions relief remain a sticking point in the Iran nuclear talks. Photo: Reuters
US State Department spokesman Ned Price on Tuesday said sanctions relief remain a sticking point in the Iran nuclear talks. Photo: Reuters
US State Department spokesman Ned Price on Tuesday said sanctions relief remain a sticking point in the Iran nuclear talks. Photo: Reuters

US says it sees modest progress in Iran nuclear talks


Leila Gharagozlou
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Talks about reviving the 2015 Iran nuclear deal are moving forward in Vienna slowly but with some growth, the US has said.

On Tuesday, US State Department spokesman Ned Price said negotiations had shown "modest progress" and delegates were hoping to build on that in the coming week.

The eighth round of the talks, which started after Iran's hardline president Ebrahim Raisi took office, has been focused on lifting crippling sanctions imposed by the Trump administration.

Former president Donald Trump pulled the US out of the 2015 accord, known as the Joint Comprehensive Plan of Action and reinstated sanctions on Iran's economy.

A year after Mr Trump's decision, Iran abandoned the terms of the agreement, enriching uranium well above the agreed limits and increasing its installation of advanced centrifuges.

Iran has maintained that its goal at the talks is sanctions relief, while the US has been rigid in its stance against lifting them until Tehran curtails its nuclear programme.

Iran's chief negotiator Ali Bagheri on Tuesday held a meeting with the EU's Enrique Mora and the chief negotiators from China and Russia and also the heads of the EU, Germany, UK and France delegations.

China and Russia have taken centre stage since the nuclear talks restarted, working to co-ordinate liaisons between all the original signatories. On Monday, Iran's foreign ministry spokesman struck a positive tone when discussing the talks at his press briefing, saying his country had detected a new "realism" from the West.

Sanctions relief 'at the heart' of negotiations

Meanwhile, Mr Price outlined Washington's stance at his briefing on Tuesday, saying “sanctions relief and the steps that the United States would take when it comes to sanctions – together with the nuclear steps that Iran would need to take if we were to achieve a mutual return to compliance with the JCPOA – that’s really at the heart of the negotiations that are ongoing in Vienna right now."

Despite the slow progress, the arrival of South Korea's Vice Foreign Minister Choi Jong-kun on Tuesday was being taken by some as a positive sign for the ongoing talks. South Korea has been holding nearly $7 billion of Iran's assets frozen due to sanctions.

Washington has yet to approve a release of the funds.

Over the course of the past few years, Iran has repeatedly demanded that its funds be released.

Before the start of talks with the Biden administration, analysts had suggested that the release of Iran's frozen assets could be a good-faith move by the US administration.

While no major breakthroughs have been announced so far negotiators have said they hope to have talks wrapped up by the end of January or early February.

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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Updated: June 13, 2023, 12:10 PM