Centrifuge machines in the Natanz uranium enrichment facility in central Iran. AP
Centrifuge machines in the Natanz uranium enrichment facility in central Iran. AP
Centrifuge machines in the Natanz uranium enrichment facility in central Iran. AP
Centrifuge machines in the Natanz uranium enrichment facility in central Iran. AP

Iran expanding enrichment at Natanz plant, says IAEA


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Iran is expanding its enrichment of uranium beyond the threshold of 20 per cent purity at the Natanz plant, the International Atomic Energy Agency says.

The country is already enriching to 60 per cent, but this does not involve keeping the product, the UN nuclear watchdog said on Monday.

The move will probably help Iran refine its knowledge of the enrichment process, something western powers generally condemn because it is irreversible. However, since this time the product is not being collected, it will not immediately accelerate Iran's production of uranium enriched to close to weapons-grade.

It has, however, prompted the IAEA to “increase the frequency and intensity of its safeguards activities” at the aboveground Pilot Fuel Enrichment Plant (PFEP) at Natanz, the IAEA said in a report seen by Reuters.

Around 90 per cent uranium is considered weapons-grade.

Outlining the report, the IAEA said Iran informed it last week of changes to the set-up of centrifuges — the machines that enrich uranium at the plant. Iran would then feed uranium enriched to up to 20 per cent into limited numbers of extra centrifuges without collecting the product.

“On 25 October 2021, the agency verified that Iran began feeding (uranium hexafluoride gas) enriched up to 20 per cent U-235 into a single IR-6 centrifuge in R & line 2 at PFEP and that the resulting product and tails streams were being recombined,” the IAEA report said, meaning that after the enriched product was separated it was mixed with the centrifuge's waste and not kept.

Iran said it planned to also feed uranium enriched to up to 20 per cent into other single centrifuges or small to medium-sized cascades, or clusters, of machines on the same line, but those were not being fed at the time, the IAEA said.

Iran has yet to announce a date to resume discussions in Vienna about reviving the 2015 nuclear pact under which it curbed its nuclear programme in return for relief from US, EU and UN economic sanctions.

Then-US president Donald Trump abandoned the pact in 2018 and reimposed harsh US sanctions. About a year later, Iran started violating some of the deal's limits on uranium enrichment.

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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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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

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The specs

Price, base / as tested Dh960,000
Engine 3.9L twin-turbo V8 
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Power 661hp @8,000rpm
Torque 760Nm @ 3,000rpm
Fuel economy, combined 11.4L / 100k

Updated: October 26, 2021, 7:59 AM