This handout picture released by the Iranian Army Media Office shows Iranian and Omani soldiers taking part in a joint in a military exercise at an undisclosed location in Oman on October 10 2024. AFP
This handout picture released by the Iranian Army Media Office shows Iranian and Omani soldiers taking part in a joint in a military exercise at an undisclosed location in Oman on October 10 2024. AFP
This handout picture released by the Iranian Army Media Office shows Iranian and Omani soldiers taking part in a joint in a military exercise at an undisclosed location in Oman on October 10 2024. AFP
This handout picture released by the Iranian Army Media Office shows Iranian and Omani soldiers taking part in a joint in a military exercise at an undisclosed location in Oman on October 10 2024. AFP

Iran and Oman hold joint naval and land military exercises


Robert Tollast
  • English
  • Arabic

Oman and Iran held joint naval and land forces drills on Thursday, aiming to enhance combat preparedness of the neighbours who share a maritime border along the Gulf of Oman.

The exercises come at a time when Iran is expecting what experts say could be a massive Israeli attack. Israel is expected to retaliate after an Iranian ballistic missile strike on October 1, involving 180 missiles, which damaged Nevatim, a strategically important Israeli air base.

A counter attack now would likely involve air strikes. But it could also come from the sea, due to Israel's cruise missile carrying Dolphin Class submarines. Amid Israel's wars in Gaza and Lebanon, where Iran supports Hamas and Hezbollah, the two countries have increasingly attacked each other directly. Israel killed two senior Iranian generals at Iran's Damascus embassy on April 1, sparking the first round of direct Iranian strikes.

The latest naval drills were held “to improve combat readiness and implement agreements related to maritime security scenarios,” Mehr news reported. The Jamaran destroyer “along with other surface combat units of the IRGC Navy” took part in the exercises, the goverment-linked outlet in Iran said.

The Jamaran, a small class of warship known as a corvette, was recently moored at Sultan Qaboos port, according to Tehran Times. The ship, built in 2010 with a crew of about 140, is one of Iran’s more advanced warships, able to carry torpedoes, powerful C-802 anti-ship missiles, drones and a helicopter.

The vessel has frequently patrolled the Arabian Sea during the current regional crisis, following the eruption of the Israel-Gaza war last year. The Jamaran was joined by the Zereh missile boat, a fast attack vessel with a crew of 31, the official IRNA news agency said.

The US has accused the Jamaran of failing to respond to a Ukrainian fishing vessel in distress in the Red Sea after it was struck with a Houthi missile. No Omani vessel was named in the naval drills.

A file image from 2019 shows Islamic Republic of Iran Navy frigate Jamaran during Iran-Russia-China joint naval drills in the Indian Ocean and the Gulf of Oman. AFP
A file image from 2019 shows Islamic Republic of Iran Navy frigate Jamaran during Iran-Russia-China joint naval drills in the Indian Ocean and the Gulf of Oman. AFP

Land exercises involved Omani helicopter-borne paratroops in an operation dubbed “Mountain Falcons 1”. The Times of Oman showed an army NH90 Tactical Transport Helicopter flying over the mountains in an undisclosed location.

On the Iran side, X account Iran Defence spotted Iranian paratroopers from the 65th brigade also taking part in the exercise. Video from the drills appears to show soldiers clearing an urban area of mock enemy fighters. Iran said the exercises involved counterterrorism training.

Iran Defence observed that the 65th “previously fought in Oman during the Dhofar war in the 1960-70s, under the previous name of the 23rd brigade," meaning that the unit was part of a coalition involving Britain during Iran's pre-revolution Shah-era.

The exercises were among several held involving both forces in recent months. In November, joint naval drills were held, including ships from the IRGC’s navy.

Last year, Oman held naval exercises with ships and aircraft from the US Central Command, the US' regional military headquarters.

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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