Davos 2024: Nuclear watchdog chief says Iran is 'galloping ahead' with uranium enrichment


Rory Reynolds
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Iran is “galloping ahead” with its uranium enrichment programme and continues to put up barriers to inspections, the head of the global nuclear watchdog has said.

Rafael Grossi, director general of the International Atomic Energy Agency, stressed that Tehran must abide by the nuclear proliferation treaty it signed up to.

“Iran is the only non-nuclear weapon state which is enriching uranium at this very, very high level – very close to weapons grade,” he told The National.

“I'm not saying they have a nuclear weapon, I'm saying this is sensitive. And when you're doing that … you abide by the rules,” he said.

Iran is the only non-nuclear weapon state which is enriching uranium at this very, very high level - very close to weapons-grade
Rafael Grossi,
IAEA director general

The IAEA’s latest report found Iran has increased the rate at which it is producing near weapons-grade uranium, reversing a slowdown that started in mid-2023.

Mr Grossi said Iran's push for high-grade uranium comes at a time of huge tension in the Middle East, with the war in Gaza fuelling hostility towards Israel and its allies.

Daily barrages of missiles and drones fired by the Iran-backed Houthi group in Yemen have created an international shipping and security crisis in the Red Sea.

Mr Grossi said dialogue remains open with Iran, which has claimed its programme is for civilian use – even amid sabre-rattling against Israel and other adversaries.

“A snapshot shows a programme which is galloping ahead, moving ahead with ambitious goals. We have nothing against that. But we say the visibility of the international inspectorate, the IAEA, must be commensurate with those activities.”

Technicians work at the Arak heavy water reactor, which is required to make nuclear materials. AP
Technicians work at the Arak heavy water reactor, which is required to make nuclear materials. AP

Western powers say otherwise – that Tehran wants nuclear weapons to threaten its enemies.

Even if Iran's nuclear programme is intended for civilian use, Mr Grossi said, it is not abiding by its obligations.

“Iran is party to the nuclear non-proliferation treaty, they should abide by this commitment,” he said.

“Iran should do much more than it's doing.”

Mr Grossi said Tehran continues to bar certain inspectors from its facilities, based on nationality.

“This of course is contrary to the spirit of our work,” he said. “This is very, very counterproductive.”

Saudi Arabia's nuclear sprint

Turning to the Middle East's nuclear future, Mr Grossi said Saudi Arabia is on the verge of a sprint to produce civilian nuclear power.

“This will be of course a game changer in terms of the energy landscape of the world and of the Gulf. It's very wise that as a country, just as the United Arab Emirates did a few years ago, they now look at diversification,” he said.

Mr Grossi, who visited Riyadh last month, said the government is in the process and building up the human workforce and the expertise it will need.

“They are on the verge of receiving their first research reactor, built by an Argentine company, which will be a tool for training their engineers, their nuclear physicists.

“They are interested to move fast, just like the UAE did.”

An oil field in south-eastern Saudi Arabia. Mr Grossi welcomed the kingdom's moves to diversify its energy sources. Reuters
An oil field in south-eastern Saudi Arabia. Mr Grossi welcomed the kingdom's moves to diversify its energy sources. Reuters

Mr Grossi said the UAE remains a strong example of a nation that can make civilian nuclear energy a part of its energy mix in a very short space of time.

“One of the criticisms that has been addressed to the nuclear industry has been that it's too slow and too expensive. Well, what we see at Barakah is a clear demonstration that it needn't be.

“I've been in nuclear diplomacy and nuclear work for more than 30 years and can tell you that is it very rare to see a project where you go from zero to being a fine nuclear producer within a decade, which has been amazing.”

At Cop28 in Dubai last month, conversations around nuclear energy took centre stage.

The need to develop nuclear energy, at a time when fossil fuels will be gradually phased out, was part of the final text that all countries agreed on.

“It's a return to realism,” Mr Grossi said.

“Cops were places where the word 'nuclear' was taboo. And now at the end of the conference, you have a final document that says nuclear should be accelerated. So I think the world should take notice, there will be important outcomes and consequences [from Cop28].”

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Recycle Reuse Repurpose

New central waste facility on site at expo Dubai South area to  handle estimated 173 tonne of waste generated daily by millions of visitors

Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site

Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area

Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent  organic waste  and 13 per cent  general waste.

About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor

Recycling at Ras Al Khor unit:

Plastic items to be converted to plastic bags and recycled

Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays

Glass waste into bowls, lights, candle holders, serving trays and coasters

Aim is for 85 per cent of waste from the site to be diverted from landfill 

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.”

Look north

BBC business reporters, like a new raft of government officials, are being removed from the national and international hub of London and surely the quality of their work must suffer.

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Updated: January 17, 2024, 8:59 AM