Rescue workers at the destroyed Iranian embassy compound in Damascus. AP
Rescue workers at the destroyed Iranian embassy compound in Damascus. AP
Rescue workers at the destroyed Iranian embassy compound in Damascus. AP
Rescue workers at the destroyed Iranian embassy compound in Damascus. AP

US Centcom head visits Israel as Iran warns of an 'imperative' to strike


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The head of the US military's Central Command met top military leaders in Israel on Thursday, as Iran appeared poised to take retaliatory action for last week's Israeli strike on the Iranian embassy compound in Damascus.

Gen Michael Kurilla had a previously planned visit to Israel but it was brought forward due to recent developments, Pentagon press secretary Maj Gen Pat Ryder said.

The Centcom chief “moved up his trip” to meet Israeli military leaders and “discuss the current security threats in the region”, Maj Gen Ryder told reporters.

The visit came the same day as Iran said it has an “imperative” to attack Israel and accused the UN Security Council of bearing some responsibility for not taking action after the strike.

Israel has been on high alert since its April 1 killing of several senior members of the Islamic Revolutionary Guard Corps, including Mohammad Reza Zahedi, who led the Quds Force in Syria and Lebanon. The attack risks a massive broadening of the Israel-Gaza war.

“Had the UN Security Council condemned the Zionist regime’s reprehensible act of aggression on our diplomatic premises in Damascus and subsequently brought to justice its perpetrators, the imperative for Iran to punish this rogue regime might have been obviated,” the Iranian mission to the UN said on X.

The UN Security Council did not condemn the April 1 strike but Russia said it had drafted a press statement condemning the Israeli attack.

We were “stopped by the insistence of our Anglo-Saxon colleagues”, Moscow's UN envoy Vasily Nebenzya told reporters.

Speculation is mounting that an Iran retaliation to the embassy attack might be imminent.

A US official told Reuters late on Thursday that Washington expects that Iran will carry out an attack on Israel, but not one that would be big enough to draw the US into the war.

According to US and Iranian sources quoted by the Wall Street Journal on Friday, Tehran has drawn up plans for an attack which could be carried out within the next two days.

“The strike plans are in front of the supreme leader [Ayatollah Ali Khamenei] and he is still weighing the political risk,” the Journal quoted an adviser to the Iranian leadership as saying.

Iran's supreme leader said on Wednesday that Israel “must be punished and it shall be” for the attack, using his Eid Al Fitr sermon to renew threats of retaliation.

Mr Khamenei also said the intensified bombing of Gaza during Ramadan had left a “bitter taste” in the mouths of Muslims and criticised western governments for their support of Israel.

US President Joe Biden on Wednesday said Iran is “threatening to launch a significant attack on Israel”.

“As I told Prime Minister [Benjamin] Netanyahu, our commitment to Israel's security against these threats from Iran and its proxies is ironclad,” Mr Biden said.

Washington has denied any involvement in the strike on the Iran embassy compound, with White House press secretary Karine Jean-Pierre saying on Thursday that the US has “warned Iran not to use this attack as a pretext to escalate further in the region or attack us facilities or personnel”.

Some Republicans, however, are calling for the US to get more involved if Iran does launch a counterstrike.

“Israel is under threat of imminent attack by Iran. President Biden needs to warn the ayatollahs immediately that the United States will back Israel to the hilt and the joint American-Israeli retaliation for any attack will be swift and devastating,” said Tom Cotton, a Republican senator.

The US State Department on Thursday issued a warning to American workers and their families in Israel not to travel outside Tel Aviv, Jerusalem and Be'er Sheva.

British Prime Minister Rishi Sunak said Iranian threats to carry out a missile strike against Israel were “unacceptable”, as he reaffirmed the UK’s support for the country's right to defend itself.

“We, like the Americans, fully support Israel’s right to defend itself against that,” he said on Thursday.

Russia and Germany on Thursday urged countries in the Middle East to show restraint.

German Foreign Minister Annalena Baerbock called on her Iranian counterpart Hossein Amirabdollahian to urge “maximum restraint” to avoid further escalation.

Russia's Foreign Ministry told citizens they should not travel to the Middle East, especially to Israel, Lebanon and the Palestinian territories.

“Right now it's very important for everyone to maintain restraint so as not to lead to a complete destabilisation of the situation in the region, which doesn't exactly shine with stability and predictability,” Kremlin spokesman Dmitry Peskov told a news briefing.

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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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