Members of the paramilitary Popular Mobilisation Forces take part in their graduation ceremony at a military camp in Karbala. Reuters
Members of the paramilitary Popular Mobilisation Forces take part in their graduation ceremony at a military camp in Karbala. Reuters
Members of the paramilitary Popular Mobilisation Forces take part in their graduation ceremony at a military camp in Karbala. Reuters
Members of the paramilitary Popular Mobilisation Forces take part in their graduation ceremony at a military camp in Karbala. Reuters


Will Iran be pleased with Biden's Middle East exit?


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August 01, 2021

As Iran seeks to expand its influence in Iraq and Afghanistan – its neighbours to the west and east – its leaders are watching with great interest recent developments in both countries. Tehran is determined to turn Iraq into a satellite state and replicate the militia model it has created there in Afghanistan, with the declared purpose of confronting Al Qaeda and ISIS and containing a resurgent Taliban.

Iran’s leadership, which includes Supreme Leader Ayatollah Ali Khamenei, President-elect Ebrahim Raisi and the Islamic Revolutionary Guard Corps, will never abandon the regime's policy of embedding militia groups inside countries they seek to tame. These well-armed and well-trained militias then create enough clout to challenge the sovereignty of the countries in which they exist and, thereby, ensure their subservience to Iran. As Tehran continues with this strategy, it is counting on silence from the western powers, including the US and the major European nations.

It is also banking on the much-needed financial windfall it could gain from the lifting of sanctions on the part of the US and other global powers in return for reviving the 2015 nuclear deal. Iran is in dire need of money to prop up its economy and to also, presumably, fund its military operations in the region.

Currently, however, the Vienna talks are going slowly for several reasons – including Mr Raisi’s presidential transition, the US’s preoccupation with its combat troop withdrawals from Afghanistan and Iraq this year, and suspicions about Tehran’s plans to sow more unrest in Iraq to further dominate its internal affairs.

Tehran is in a hurry particularly as it tries to quell unrest inside the country over economic problems, shortage of water and other issues. An end to sanctions on Iran’s oil and banking sectors is key to resolving some of these issues. But even as the Biden administration seems keen to revive the nuclear deal, the aforementioned factors have slowed negotiations. The regime has reached out to its so-called allies – China and Russia – for their help to expedite the talks, but to no avail.

To complicate matters for Tehran, there are signs of an internal rift among its ruling elites. The details are yet to emerge, but this could explain why a strategy meeting originally scheduled for this week has been delayed by a fortnight.

Regardless of these ebbs and flows, Iraq and Afghanistan remain key to Tehran’s strategic calculus.

The regime will have watched closely US President Joe Biden’s meeting with Iraqi Prime Minister Mustafa Al Kadhimi in Washington earlier in the week. Mr Biden has assured Mr Al Kadhimi of continued American support to the Iraqi government and its institutions. The US president also announced he will be withdrawing combat troops stationed in the country, although American soldiers will continue to be on the ground to provide training.

US President Joe Biden meets Iraqi Prime Minister Mustafa Al Kadhimi in Washington earlier in the week. EPA
US President Joe Biden meets Iraqi Prime Minister Mustafa Al Kadhimi in Washington earlier in the week. EPA
Iran’s motivations are throwing up a range possibilities regarding Iraq’s near-term future

Iran, which has long warned against western and Arab “interference” in Iraq, will view Mr Biden’s announcement as an opportunity to complete its mission of turning that country into a satellite state. For this reason, Tehran has categorically rejected any proposal to link the Vienna talks with its regional policy. It will not be asked to restrain its operations inside Iraq, or impede its other regional projects that go through that country, which acts as a landbridge connecting Iran to Syria.

Iran’s motivations, therefore, are throwing up a range possibilities regarding Iraq’s near-term future: a change of government in Baghdad; a shift in tactics employed by the Popular Mobilisation Forces (PMF) – an Iraqi government-sponsored umbrella organisation of militias considered close to Tehran; the postponement of October’s parliamentary election; or the nature of the election itself, which could either be free and fair or rigged.

Prince Turki Al Faisal, the former Saudi intelligence head and diplomat, said one of the main issues confronting Mr Al Kadhimi and his government was that of internal security and stability.

“Of course we all want [Mr Al] Kadhimi to succeed,” Prince Turki told me recently. “Unfortunately, the PMF continues to launch missiles at the protected areas of Baghdad, [such as] the US embassy. He still has not managed to make it [the PMF] a component of the [Iraqi] security forces.”

However, another expert I spoke to was more optimistic about Iraq's future. Michael Knights, a fellow at the Washington Institute, said US-Iraq relations will continue to flourish – much as Iran will hope they won’t. “There will be no US military withdrawal from Iraq. It is a ‘recategorisation’ of the role of US forces in Iraq from combat to non-combat,” he said. “[But] the fact is they are already non-combat [in practice].” This, according to Mr Knights, comes as Iraqi militias in question are getting increasingly isolated.

Prince Turki, however, expressed concern about future stability in West Asia, particularly if the Iranian regime gets its way in Vienna. He is worried about the impact of Iran's “extraterritorial ambitions not just on the Arab world but also, as we've seen now, they've announced that they're establishing the PMF in Afghanistan”.

As to the rationale behind Iran’s ambitions in Afghanistan, Hoshyar Zebari, the former Iraqi foreign minister, said Tehran fears the Taliban’s influence. “It is very clear [the Iranians] are nervous,” Mr Zebari said. "They are not comfortable about the US leaving Afghanistan and the Taliban taking over their border."

While it’s always prudent to expect belligerence from Iran, might it also show an appetite for reconciliation, particularly given its internal challenges and those on its borders? As he aims for economic renewal, Mr Raisi might be keen to reassure Saudi Arabia that he is serious about seeking dialogue and eventually an accord with the Kingdom. There is chatter in Tehran about possible negotiations in August.

However, Prince Turki is not holding his breath on the possibility of such a dialogue bearing fruit. The two countries held negotiations in Iraq recently, but Tehran’s policies and actions continue along the same path. He said: “What separates us [Saudi Arabia] from the Iranians is a huge history of factual implementation of Iranian ambitions in our part of the world. [A possible accord] isn't going to happen soon, if it ever does.”

Indeed, there is no indication that Iran is working to alter its regional strategy. And so, it is time for decision makers in the West to stop pretending that they cannot hear or read what its regime is saying.

THE BIO

Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.

Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.

Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.

Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.

 

 

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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BRIEF SCORES

England 228-7, 50 overs
N Sciver 51; J Goswami 3-23

India 219, 48.4 overs
P Raut 86, H Kaur 51; A Shrubsole 6-46

England won by nine runs

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FULL%20FIGHT%20CARD
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MATCH INFO

FA Cup final

Chelsea 1
Hazard (22' pen)

Manchester United 0

Man of the match: Eden Hazard (Chelsea)

Walls

Louis Tomlinson

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Married Malala

Malala Yousafzai is enjoying married life, her father said.

The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.

Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.

Australia men's Test cricket fixtures 2021/22

One-off Test v Afghanistan:
Nov 27-Dec 1: Blundstone Arena, Hobart

The Ashes v England:
Dec 8-12: 1st Test, Gabba, Brisbane
Dec 16-20: 2nd Test, Adelaide Oval, Adelaide (day/night)
Dec 26-30: 3rd Test, Melbourne Cricket Ground, Melbourne
Jan 5-9, 2022: 4th Test, Sydney Cricket Ground, Sydney
Jan 14-18: 5th Test, Optus Stadium, Perth

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.”

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

Based: Dubai, UAE

Sector: Laundry

Employees: 170

Funding: about $8m

Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

Charlotte Gainsbourg

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Updated: August 01, 2021, 7:30 AM