EU diplomat Johan Floderus is reunited with his family at Arlanda airport in Stockholm, Sweden, after being detained in Iran. AP
EU diplomat Johan Floderus is reunited with his family at Arlanda airport in Stockholm, Sweden, after being detained in Iran. AP
EU diplomat Johan Floderus is reunited with his family at Arlanda airport in Stockholm, Sweden, after being detained in Iran. AP
EU diplomat Johan Floderus is reunited with his family at Arlanda airport in Stockholm, Sweden, after being detained in Iran. AP

Sweden acknowledges 'mixed feelings' over Iran prisoner swap deal


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Sweden's Prime Minister Ulf Kristersson said he understood the "mixed" reaction after his country freed an Iranian national convicted of war crimes in return for the release of two Swedes detained in Iran.

Iranian national Hamid Nouri returned to Iran on Saturday after being freed from Swedish prison as part of a prisoner swap deal mediated by Oman.

Nouri was serving a life sentence after being found guilty of "grave breaches of international humanitarian law and murder" over his role in a purge in which at least 5,000 prisoners were killed in Iran in 1988.

Sweden freed him on Saturday, in return for the release and return home of Swedish citizen and EU diplomat Johan Floderus and dual national Saeed Azizi, who Mr Kristersson said had been "imprisoned without reason by Iran".

In a news conference after their release, Mr Kristersson said he understood that the swap had been "received with mixed feelings," but that he stood by the "difficult" decision.

"These are two people who have experienced hell on earth," he said.

"I understand how this is received with mixed feelings, not least among Swedes who stem from Iran. This was not an easy deliberation the government has had to make, but sometimes you have to do difficult things and do what is right."

Sweden's Prime Minister Ulf Kristersson holds a press conference to discuss the return of the detainees in Stockholm, Sweden. EPA
Sweden's Prime Minister Ulf Kristersson holds a press conference to discuss the return of the detainees in Stockholm, Sweden. EPA

Floderus, 33, was detained in Iran in April 2022 at Tehran airport as he was returning from a trip with friends. He was charged with spying for Israel and "corruption on earth," which carries the death penalty.

He had worked as an aide to the European Commissioner for Home Affairs, and in the European External Action Service.

Sweden said he had been detained illegally and demanded his immediate release.

Azizi, 60, was arrested in November 2023 after returning from Sweden to Iran.

Sweden's government said the Swedish-Iranian dual national had been arrested on "wrongful grounds" and called for his release.

In March, a Tehran court upheld a five-year-sentence for Azizi on charges of assembly and collusion against national security.

He was held in Iran's notorious Evin prison. Azizi's lawyer had highlighted his deteriorating health condition and said he had prostate cancer.

Swedish citizen Johan Floderus, right, is greeted by Swedish Prime Minister Ulf Kristersson at Arlanda airport near Stockholm. AFP
Swedish citizen Johan Floderus, right, is greeted by Swedish Prime Minister Ulf Kristersson at Arlanda airport near Stockholm. AFP

Mr Kristersson said that both men had been used as "pawns" by Iran with the aim of securing the return of Nouri.

"Iran used them both as pawns in a cynical negotiations game with the purpose of getting the Iranian citizen Hamid Noury released from prison in Sweden. He is convicted of serious crimes committed in Iran in the 1980s," Mr Kristersson said.

"As prime minister I have a special responsibility for Swedish citizens' safety. The government has therefore worked intensively on the issue, together with the Swedish security services which have negotiated with Iran."

European Commission President Ursula von der Leyen welcomed the release of them from "unjustified Iranian custody" and congratulated Sweden on its work to get them freed.

Saeed Azizi and John Floderus pose for a photo after they landed at Arlanda airport near Stockholm, Sweden. AFP
Saeed Azizi and John Floderus pose for a photo after they landed at Arlanda airport near Stockholm, Sweden. AFP

'An affront'

But a lawyer on the Nouri case and rights groups have criticised the release of Nouri as part of the deal.

Lawyer Kenneth Lewis, who represented a dozen plaintiffs in the Nouri case in Sweden, told Reuters that his clients were not consulted and were "appalled and devastated" over his release.

"This is an affront to the entire justice system and everyone who has participated in these trials," he said.

Mr Lewis said his clients sympathised with the Swedish government's efforts to get its citizens home but said Nouri's release was "totally disproportionate".

The National Council of Resistance of Iran, a coalition of groups based in exile opposed to the Iranian government, said the decision appeared to show that Sweden had yielded to blackmail and hostage-taking tactics in a move that would encourage Tehran.

Hamid Nouri in court in Sweden. Photo: Wikipedia
Hamid Nouri in court in Sweden. Photo: Wikipedia

The Iranian government claimed Nouri had been imprisoned by an "illegal Swedish court decision that lacked legitimacy" and welcomed his return.

"Hamid Nouri, who has been in illegal detention in Sweden since 2019, is free and will return to the country in a few hours," Kazem Gharibabadi, head of Iran's High Council for Human Rights, said in a post on X, formerly known as Twitter.

It comes after Iran and the US agreed to a prisoner swap last year.

In September, Tehran confirmed five Iranian citizens detained in the US would be released in exchange for five Americans held in Iran.

“Under a prisoner swap deal between the two countries, the five Iranian nationals who were held illegally for circumventing Washington’s anti-Iran sanctions will be released,” Iran's Permanent Mission to the UN in New York said at the time.

The announcement by the Iranian mission came after the Biden administration issued a blanket waiver for international banks to transfer $6 billion in frozen Iranian money from South Korea to Qatar without fear of US sanctions.

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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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Updated: June 16, 2024, 6:44 PM