US and Iranian delegations are meeting in Muscat on Saturday for talks that could either pave the way for a new nuclear agreement and broader regional understandings, or risk fuelling further conflict in an already volatile Middle East.
On the eve of the talks, US President Donald Trump said Iran “can’t have a nuclear weapon”.
“I want Iran to be a wonderful, great, happy country, but they can’t have a nuclear weapon," Mr Trump told reporters on Friday night aboard Air Force One as he flew to Florida for the weekend.
His comments came hours before his envoy Steve Witkoff is set to meet Iran’s Foreign Minister Abbas Araghchi in Oman.
Signs of openness, but also threats, have preceded the negotiations, the first between a Trump administration eager for a quick deal and an Iranian leadership determined to show the country is not yet at its weakest point, despite the heavy blows it and its proxies have endured in the past year and a half.
With only a few months to go before Termination Day comes in October for the 2015 Joint Comprehensive Plan of Action that was agreed on by former US president Barack Obama, the pressure is on for Iran to comply with an agreement before more sanctions hit a struggling economy.
This time, the faces are new, the atmosphere different, and the stakes for the region are higher than ever if de-escalation and containment are not made immediate priorities. The good news, experts say, is that in today’s climate, the chances of reaching at least a preliminary agreement are higher than before.
“When the JCPOA was signed, Iran was in the position of the foe for the region. Today, it’s not. The sectarian conflict between the two crescents [Sunnis and Shiites] is not there any more and this is a major enabler for success,” said Mohammed Baharoon, director general of the Dubai Public Policy Research Centre (B'huth).
Amid this shifting atmosphere, Iran’s President Masoud Pezeshkian struck a notably different tone on Wednesday, extending a welcome to US investors, marking a departure from the combative rhetoric typically directed at Tehran’s chief adversaries. On the other side, US deputy special envoy to the Middle East Morgan Ortagus told The National in an interview that the Trump administration is packed with officials focused on “deliverables” and “outcomes”.
US deputy special envoy to the Middle East Morgan Ortagus: 'We know how to get deals'
However, members of the US team involved in reaching the 2015 agreement told The National there are factors now that could work against the talks succeeding. These include Mr Trump's history with Iran after pulling the US out of the JCPOA deal in 2018, during his first term in office, and adopting a policy of “maximum pressure” towards Tehran.
“We didn't have years of bad blood having built up, but we do now, and in particular with this president, and in particular with, you know, an Iranian system that didn't fully believe that we would commit to a deal in the first place,” said Richard Nephew, a senior research scholar at Columbia University who was part of the JCPOA negotiating team.
Gary Samore, director of the Crown Centre for Middle East Studies at Brandeis University in Massachusetts, who was involved in forming the framework of the agreement, said it was unclear whether the US negotiating team was strong and knowledgeable enough to make a deal happen.
“My own sense is that they don't really have the team capable to do a similar kind of deal as we got. But it doesn't mean that they can't do something,” he told The National.
Former UK ambassador to Iran, Nicholas Hopton, told The National that in his experience of dealing with Tehran, their main focus would be on buying time to ensure that they did not come under US-approved attack from Israel.
“Regime survival is always the core focus. After that, they will be aiming to see sanctions reduced,” said Mr Hopton, who is now director general of the Middle East Association in the UK.
“They need to show they are willing to engage, even if indirectly at first, which could lead to direct talks.”
He said that in the short-term, a loosening of support for Iran's regional armed allies may be necessary as they no longer have the same ability to pursue a strategy of “forward defence”, but that Hezbollah in particular would maintain its long-term backing.
“They are starting from a position of zero trust towards the US, which may be understandable given President Trump doesn’t always respect deals made by other people or even by himself, as we’ve seen perhaps at times, recently with Ukraine and Gaza.
“From the American perspective, unlike his first presidency when he set out to destroy the JCPOA, he now seems focused on negotiating a different kind of deal, something which beyond removing the threat of nuclear capabilities, could be focused on wider security issues and economic stability in the region.”
For the EU, the hope is for a breakthrough regarding the nuclear issue. “It’s important that we move forward on the nuclear file,” a senior European diplomat told The National. “We very much hope that American attempts to come to a negotiated solution with Iran is successful.”
Israel factor
Despite the overall promising signs, challenges remain on the horizon. In 2015, Israel's regional interests were not a significant part of the deal. Today, however, the dynamic has shifted. Israel and the US, particularly under Mr Trump, appear more closely aligned, with Washington showing greater willingness to involve Israel in major regional decisions.
Any solid deal would undoubtedly bring some de-escalation to the region, which has been a flashpoint of violence for more than 18 months and is in dire need of containment. But for many, the question is whether the US is willing to settle for an agreement that would bring a win for Mr Trump as a negotiator of peace, even if Israel is not entirely on board.
“Israel's involvement would add a difficult layer to the talks,” said Francesco Schiavi, a non-resident fellow at the Middle East Institute of Switzerland.
“Israel will have a very important role from Washington’s perspective regarding the final composition of the deal but, at the same time, I’m quite also equally sure that Trump's approach will lead him to get that achievement even if it’s not 100 per cent in the interests of [Israeli Prime Minister] Benjamin Netanyahu.”
Still, the onus remains on Iran and whether it is willing to place its potential gains as a regional team player ahead of its decades-long legacy as the face of the “resistance”.
Undoubtedly, however, Saturday's talks are historic and will mark the first time Mr Trump has negotiated with Iran. A breakthrough, no matter how small, could be the beginning of the end of nearly 50 years of distrust between the two nations.
“Tehran knows how to speak to the Trump administration,” said Holly Dagres, senior fellow at the Washington Institute, referring to an opinion piece written by Mr Araghchi in The Washington Post. There, he highlighted issues that are known to matter to Mr Trump, including incentives for trade and the need to avoid war.
It remains to be seen, however, whether the current faces of Iran's government will be the hope the country needs to break the stalemate and breathe new life into US-Iran relations, its economy and its future.
With reporting from Paul Carey in London and Willy Lowry in Washington.
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
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.”
Basquiat in Abu Dhabi
One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi.
The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier.
It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.
“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi.
Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
The%20specs
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What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press
MATCH INFO
Osasuna 1 Real Madrid 4
Osasuna: García (14')
Real Madrid: Isco (33'), Ramos (38'), Vázquez (84'), Jovic (90' 2)
Persuasion
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarrie%20Cracknell%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EDakota%20Johnson%2C%20Cosmo%20Jarvis%2C%20Richard%20E%20Grant%2C%20Henry%20Golding%20and%20Nikki%20Amuka-Bird%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201.5%2F5%3C%2Fp%3E%0A
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
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Fuel consumption, combined: 10.5L / 100km
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
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Torque: 790Nm from 2,000-3,600rpm
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Fuel consumption: 11.7L/100km
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