Zhao Leji, left, chairman of the National People's Congress of China, talks to North Korean leader Kim Jong-un during a visit to Pyongyang this month. Photo: Korea News Service via AP
Zhao Leji, left, chairman of the National People's Congress of China, talks to North Korean leader Kim Jong-un during a visit to Pyongyang this month. Photo: Korea News Service via AP
Zhao Leji, left, chairman of the National People's Congress of China, talks to North Korean leader Kim Jong-un during a visit to Pyongyang this month. Photo: Korea News Service via AP
Zhao Leji, left, chairman of the National People's Congress of China, talks to North Korean leader Kim Jong-un during a visit to Pyongyang this month. Photo: Korea News Service via AP

North Korea sends delegation to Iran after Covid-related gap


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A high-level North Korean economic delegation was on its way to Iran, the North's state media said on Wednesday, for what would be the two countries’ first official talks since the start of the Covid-19 pandemic.

Embracing the idea of a "new Cold War”, North Korean leader Kim Jong-un is pushing to build co-operation with countries confronting the US, as his intensified weapons tests prompted the US and South Korea to expand their military drills.

Pyongyang's delegation led by Yun Jung-ho, North Korea’s Minster of External Economic Relations, flew out on Tuesday, official Korean Central News Agency said. State media did not immediately provide further details.

The governments in Pyongyang and Tehran are among the few that support Russian President Vladimir Putin’s invasion of Ukraine, with each accused of providing Russia with military equipment.

The last known occasion North Korea sent senior officials to Iran was in August 2019, when a group led by Pak Chol-min, vice chairman of North Korea's Parliament, made a week-long visit. The two countries had active diplomatic exchanges until North Korea sealed its borders in an effort to stave off the pandemic, before a cautious reopening last year.

South Korea’s Unification Ministry, which handles affairs with the North, did not immediately comment on the latest visit.

North Korea has been making efforts for months to boost the visibility of its ties with Russia and China, as Mr Kim attempts to break out of diplomatic isolation and join a united front against the US.

In 2023, the North Korean leader visited Russia’s far east for a rare summit with Mr Putin, which highlighted the countries’ expanding military co-operation, including the North’s alleged transfers of artillery shells, missiles and other munitions to Russia.

Mr Kim this month hosted senior Chinese official Zhao Leji, who heads the ceremonial parliament and ranks third in the ruling Communist Party hierarchy. It was the highest-level meeting between the countries in years.

On Wednesday, Kim Yo-jong, the North Korean leader’s powerful sister, condemned the latest rounds of US-South Korean joint military drills and insisted the allies would never break the North’s determination to build up “our overwhelming and most powerful military muscle”.

The statement comes a week after Linda Thomas-Greenfield, US ambassador to the UN, called for the international community to be alert to the possibility of military co-operation between North Korea, Iran and Russia. Tehran has been accused of providing drones to Russia for use in the war against Ukraine.

“We are concerned about … the Iranians providing weapons to the Russians and the Russians also supporting efforts to help [North Korea] expand their own research into developing weapons,” she said. "And certainly, that would be the case with Iran as well."

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.”

Trump v Khan

2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US

2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks

2019: Trump calls Khan a “stone cold loser” before first state visit

2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”

2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.

Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

Retail gloom

Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.

It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

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Updated: April 24, 2024, 11:56 AM