Australia expels Iran ambassador over anti-Semitic attacks on restaurant and synagogue


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Australia is to expel Iran's ambassador over Tehran's involvement in two anti-Semitic attacks in Melbourne and Sydney.

Iranian ambassador Ahmad Sadeghi and three other officials have been given seven days to leave the country. It is the first expulsion of an ambassador from Australia since the Second World War, Foreign Minister Penny Wong said.

Prime Minister Anthony Albanese said the Australian Security Intelligence Organisation had linked Tehran to attacks on a restaurant in Sydney and a synagogue in Melbourne.

“ASIO has gathered enough credible intelligence to reach a deeply disturbing conclusion,” he said, referring to the country's main domestic spy agency. “The Iranian government directed at least two of these attacks. Iran has sought to disguise its involvement, but ASIO assesses it was behind the attacks.”

Iran rejected the accusation and vowed reciprocal action. "The accusation that has been made is absolutely rejected," said foreign ministry spokesman Esmaeil Baghaei said in a weekly press conference, that "any inappropriate and unjustified action on a diplomatic level will have a reciprocal reaction".

He stated that Tehran believed the decision was rooted in "domestic developments" in Australia.

Australia will also legislate to list Iran's Islamic Revolutionary Guard Corps as a terrorist organisation, Mr Albanese added.

Since the outbreak of Israel's war on Gaza, Australian homes, schools, synagogues and vehicles have been the target of vandalism and arson. In October last year, there was an arson attack on the Lewis Continental Kitchen, a kosher takeaway and catering business, in Bondi, Sydney.

Australian Prime Minister Anthony Albanese leaves the Adass Israel Synagogue in Melbourne after a firebombing in December. AP
Australian Prime Minister Anthony Albanese leaves the Adass Israel Synagogue in Melbourne after a firebombing in December. AP

In December, the Adass Israel Synagogue in Melbourne was the target of an arson attack. Police charged a man in July and arrested a second suspect this month. “These were extraordinary and dangerous acts of aggression orchestrated by a foreign nation on Australian soil,” Mr Albanese said.

The expulsion of the Iranian diplomat comes amid a growing rift between Australia and Israel, after Canberra announced it would recognise a Palestinian state.

Israeli Prime Minister Benjamin Netanyahu has accused Mr Albanese of “betraying” Australia's Jewish community, one of the largest populations of Holocaust survivors per capita.

“While anti-Semitism is raging in Australia, including manifestations of violence against Jews and Jewish institutions, the Australian government is choosing to fuel it,” Mr Netanyahu said on X after Canberra denied a visa to far-right Israeli politician Simcha Rothman.

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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.”

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Updated: August 27, 2025, 5:57 AM