International Atomic Energy Agency director general Rafael Grossi. EPA
International Atomic Energy Agency director general Rafael Grossi. EPA
International Atomic Energy Agency director general Rafael Grossi. EPA
International Atomic Energy Agency director general Rafael Grossi. EPA

Iran operated three secret nuclear sites until early 2000s, UN watchdog says


Lemma Shehadi
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Iran had at least three undeclared nuclear sites until the early 2000s, but refuses to provide “credible answers" about its activities there, the UN’s nuclear watchdog said on Monday.

The three sites, Varamin, Marivan and Turquzabad, were accessed by inspectors from the International Atomic Energy Agency in 2019 and 2020. Uranium particles were detected at the sites.

But the agency’s efforts to obtain an explanation have gone unanswered, said the IAEA director general Rafael Grossi.

“Unfortunately, Iran has repeatedly either not answered, or not provided, technically credible answers to the agency’s questions,” he said at the quarterly board meeting on Monday.

This included high-level meetings and consultations, he added. Mr Grossi last week met Iranian Foreign Minister Abbas Araghchi in Cairo, along with Egyptian Foreign Minister Badr Abdelatty.

The lack of answers has meant the IAEA could not conclude that Iran's nuclear programme is "entirely peaceful", as Tehran has long claimed, Mr Grossi said. He accused Tehran of seeking to “sanitise the locations”, which he said has impeded the agency's work.

Details of the three sites were revealed in the IAEA’s quarterly report, which was widely leaked last week. It found that Iran had an estimated 400kg of uranium enriched up to 60 per cent as of May 17, marking an increase of more than 133kg since the last report in February.

Uranium needs to be enriched to about 90 per cent to develop nuclear weapons. The amount of material is enough to produce 10 weapons if refined to that level.

"The agency’s comprehensive assessment of what took place, based on our technical evaluation of all available safeguards-relevant information, has led us to conclude that these three locations, and other possible related locations, were part of an undeclared structured nuclear programme carried out by Iran until the early 2000s and that some activities used undeclared nuclear material," Mr Grossi said.

He said that, while uranium enrichment was not illegal, Iran's continued accumulation of the material meant the IAEA would keep a close watch on its operations.

"When you are the only country in the world that is doing something like this at a level, which is very close to the level that you need to have a nuclear expolosive device, then [the IAEA] cannot ignore it," he said.

He suggested the nuclear material produced at the sites was “still outside of safeguards”.

The announcement comes as Iran holds indirect negotiations with the US over its nuclear programme. Mr Grossi said he supported the negotiations and called for a diplomatic solution that would include arrangements for the IAEA to properly verify Iran’s stockpile of nuclear material.

“I will continue to support and encourage the US and Iran to spare no effort and exercise wisdom and political courage to bring this to a successful conclusion,” he added. “The effect of a stabilised situation in Iran with regards to its nuclear programme will be immediate and bring the Middle East one big step closer to peace and prosperity."

France, the UK and Germany are preparing to press for a vote at the quarterly board meeting that could lead to UN sanctions being reimposed in October. The countries will refer to the report that highlights Iran's failure to comply with the 2015 nuclear deal.

Iran threatened to release files pertaining to Israel's nuclear programme on Sunday, without specifying where the documents were from.

Mr Grossi confirmed that "documents belonging to the agency were in the hands of the Iranian authorities", adding this was a sign that Tehran was not co-operating with the IAEA's work.

"This is part of our assessment on the co-operation. We believe that an action like this is not compatible with the spirit of co-operation," he said.

The 2018 nuclear deal, also known as the Joint Comprehensive Plan of Action, eased sanctions on Iran in return for placing restrictions on its nuclear programme. The deal is set to expire in Autumn this year.

US President Donald Trump withdrew from the deal in 2018, during his first term in office. The findings in the IAEA report mean the terms under which the 2015 deal was signed could no longer be revived.

"The JCPOA was designed to be applied to a very specific type of Iran programme, which is totally different now," Mr Grossi said. "Even if you wanted to revive it, it would not be enough."

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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.”

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Updated: June 09, 2025, 1:40 PM