The death of hardline President Ebrahim Raisi robs the clerical establishment that controls Shiite Iran of a crucial figure amid multi-pronged confrontations abroad and ahead of an expected political transition at the top.
Iranian authorities have confirmed that Mr Raisi died in a helicopter crash on Sunday. He was a potential successor-in-waiting to the supreme leader, Ayatollah Ali Khamenei, as well as being an experienced enforcer and manager in the iron-fisted system of rule.
It was the first sudden death of a figure of such importance in Iran since the US assassination of Quds Force commander Qassem Suleimani in 2020.
The choreographed funeral of Maj Gen Suleimani, attended by leaders of ideological militia proxies of Iran, was used to convey Iran’s determination to keep up its Middle East reach.
This time, however, Mr Raisi’s death has more of a domestic impact, observers say, although he played main roles, together with Foreign Minister Hossein Amirabdollahian, who died with him, in charting Iran’s outside posture.
The unexpected exit of the president is widely seen as improving the chances of Mr Khamenei’s son, Sayyid Mojtaba, succeeding his 85-year old father in a tightly controlled domestic scene, after authorities crushed several protest and civil disobedience movements in the last 15 years.
A father-son scenario, however, would no longer differentiate Iran from other hereditary republics in the Middle East, and could face more obstacles within the establishment, compared with Mr Raisi, who was a relative shoo-in for the role.
In Egypt, for example, the late president Hosni Mubarak could not install his son Jamal, as he faced opposition from the military before the onset of the Arab uprisings in 2010-2011.
Waiel Olwan, senior researcher at the Jusoor Centre for Studies in Istanbul, said Mr Raisi was a “special case" that will be difficult to replace.
“As the main candidate to succeed Khamenei, he had a major say on internal and external policies," Mr Alwan said.
He and Mr Amirabdollahian "were not just part of the political kitchen in Iran".
"They managed the scene," he said, putting forward two scenarios.
The least likely, he said, is internal disruption that would weaken Iran's position in the ongoing conflict with Israel and the US amid the war in Gaza.
"It will disrupt the transition and handing over the files to a new team, but no more," said Mr Alwan, who pointed out that the security apparatus remains under control.
"The mastermind [Khamenei] and [his subordinates] in the establishment remain," he added.
Mr Amirabdollahian might even leave a “more significant legacy”, than the former president, said Lebanese political analyst Joseph Daher.
He cited Mr Amirabdollahian's closeness to the Islamic Revolutionary Guards Corps (IRGC), which contributed to his frequent travels to Lebanon to meet Hezbollah leader Hassan Nasrallah.
The IRGC has fostered militant groups across the regions throughout the years, including Hezbollah, which collaborated in supporting President Bashar Al Assad in Syria's civil war and backing Iraqi security forces against ISIS militants. "Nothing has changed. The key actors in the foreign policy files, Iran’s supreme leader and the IRGC are still in place," Mr Daher said.
Hazem Ayyad, a veteran Jordanian political commentator, said replacing Tehran's foreign minister and the apparent successor to the supreme leader will create competition and temporarily "confuse the Iranian internal scene", but will not fundamentally weaken Iran abroad.
Mr Raisi, however, was seen as having built stronger relations with China, which helped withstand increased US sanctions, although some Chinese corporations have held back operations out of concern they will fall foul of US restrictions.
He was also an advocate of a tough stance on the nuclear file and in confrontations with Washington and Israel, although after more violent struggles with the US and Israel this year, Iran has pursued de-escalation.
But this has meant no let up in support for Hezbollah and the other militia players on whom Iran relies, political analyst Ali Safari said from Tehran.
“This support policy is not [made by an] individual; it is a fundamental policy within the Islamic Republic," he said.
The main impact of the helicopter crash, however, is its affect on the top of the pyramid.
Syrian political commentator Ayman Abdel Nour said unless a new figure emerges to challenge Mojtaba Khamenei, his path to power is almost assured.
“If there is a hereditary succession then the Islamic Republic will be basically transformed into a another Pahlavi empire, wearing an extremist Islamic gown.”
Nada Maucourant Atallah reported from Beirut
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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.”
MATCH INFO
Karnataka Tuskers 110-5 (10 ovs)
Tharanga 48, Shafiq 34, Rampaul 2-16
Delhi Bulls 91-8 (10 ovs)
Mathews 31, Rimmington 3-28
Karnataka Tuskers win by 19 runs