Few believe that the ongoing nuclear talks between the US and Iran will succeed. The two parties are far apart diplomatically, and Tehran’s increased demands and technical nuclear advances of late have made a return to the 2015 Joint Comprehensive Plan of Action unlikely.
Should the current nuclear standoff persist, what should Washington do?
Like his predecessors, US President Joe Biden is committed to stopping Tehran from acquiring nuclear weapons. But his administration has not clarified what its official position is regarding a nuclear-threshold Iran – that is, an Iran that has the capability to quickly build an atomic weapon but doesn’t actually do so.
While it is unknown whether Iran is already a latent nuclear state, it is certain that the country is closer than ever to becoming one. This creates a serious dilemma for Washington. On the one hand, an Iranian bomb, especially if kept in the basement, does not constitute a direct threat to the US. On the other, if Washington does not stop Iran from achieving nuclear latency, the Israelis could likely launch an attack against Iran because they would view such an outcome as an existential threat. Israel’s concerns of any kind of advanced Iranian nuclear capability, latent or operational, are deeper than those of any country in the region, considering the tragic Jewish experience during the Second World War.
To avoid a regional war, the Biden administration must communicate very clearly to the Iranians that it cannot tolerate nuclear latency
The position of the Israelis no doubt complicates and adds a sense of urgency to US policy. They much prefer not to use force against Iran without Washington’s diplomatic and military support, but they could if they have to. They did it before, both in 1981 against Iraq’s Osirak nuclear research reactor and in 2007 against Syria’s Al Kibar nuclear facility.
Granted, Iran’s nuclear infrastructure is a lot more extensive and dispersed. Also, the Iranians have spent many years investing in stronger defences, precisely to prevent the Iraqi and Syrian scenarios. And unlike the Iraqis and the Syrians, the Iranians have serious retaliatory options, be it directly with their considerable missile force or through their well-armed proxies in the region, including Hezbollah and Hamas. An Israeli-Iranian kinetic exchange could easily lead to a regional war.
The Israelis are fully aware of the limitations and potentially immense costs of any airstrikes they might launch against Iran. They know they don’t have the capability to destroy Iran’s nuclear programme in its entirety. They also expect that Iran will rebuild, possibly in a short time, everything Israeli jets will destroy. But this is unlikely to deter them because they believe nothing threatens their survival more than a regime that does not accept their existence and can either use a nuclear weapon against them or extend a nuclear umbrella to its regional allies.
To avoid a regional war, the Biden administration must communicate very clearly to the Iranians that it cannot tolerate nuclear latency. If the Iranians ignore US wishes and continue to enrich uranium at higher levels, Washington will have three not-mutually-exclusive options to consider to increase the pressure against Tehran: more economic sanctions, clandestine operations and overt military force.
Of these three, the credible threat of military force is most likely to push Tehran to reconsider its maximalist negotiations tactic. Iran has survived harsh US and international sanctions for years, and further economic punishment will most probably not change its behaviour, especially if China continues to buy Iranian oil at a discounted price. The same logic applies to cyber-attacks or assassinations of Iranian nuclear scientists – tools that have allegedly been used by the US and Israel but to no avail.
Yet the conventional military option is one Washington is least eager to entertain, let alone use. Mr Biden came into office determined, like his two predecessors, to focus on domestic policy and strategic competition with China, primarily in East Asia. The last thing he will agree to is launch another costly US military intervention in the Middle East. But the US could find itself dragged into a regional war anyway if Tehran keeps pursuing nuclear blackmail and Israel responds militarily.
The use of force against Iran should never be taken lightly, especially after the US strategic disaster in Iraq. The risks are not small and the payoffs are not clear. But it is thoroughly misguided and downright disingenuous to compare a surgical strike against Iranian nuclear facilities to what the US did in Iraq in 2003.
No one could rightly argue for toppling the Iranian regime like the US did in Baghdad. The goal here is to push Iran to adjust its nuclear calculus and make the necessary concessions.
Most American critics of the use of force against Tehran believe, some openly, that the world can live with a nuclear-armed Iran. They argue that the US has dealt with nuclear-armed adversaries such as Russia, China and North Korea, and Iran should be no different.
Except that Iran is, in fact, very different. None of those countries has a leadership that is guided by religious ideology. Also, Iran has caused more bloodshed and sown more chaos in the Middle East than any of these three countries in their respective regions. Now imagine a radical Iran bent on regional hegemony and armed with the absolute weapon: it is a recipe for not only regional war but also nuclear proliferation.
It is a stretch to believe that such costs are more tolerable than Washington’s use of precise military force against Iran’s nuclear facilities. It is true that there is no military solution to the nuclear crisis with Iran. But to suggest that Iran will not be deterred under pressure, or that any use of force against it is unacceptable or morally objectionable, is flat out wrong.
Negotiations must be the only pathway to a resolution of this crisis, but to save diplomacy and avert war, Washington has to clearly communicate its red lines to Iran and credibly threaten to use force if Iran ignores them.
LEADERBOARD
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Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Star%20Wars%3A%20Episode%20I%20%E2%80%93%20The%20Phantom%20Menace
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Young women have more “financial grit”, but fall behind on investing
In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.
While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.
In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all).
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”
Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.
"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."
Company%20profile
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MATCH INFO
BRIGHTON 0
MANCHESTER UNITED 3
McTominay 44'
Mata 73'
Pogba 80'
Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
The%20specs
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Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Company%C2%A0profile
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World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
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.”
Company%20Profile
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The biog
DOB: March 13, 1987
Place of birth: Jeddah, Saudi Arabia but lived in Virginia in the US and raised in Lebanon
School: ACS in Lebanon
University: BSA in Graphic Design at the American University of Beirut
MSA in Design Entrepreneurship at the School of Visual Arts in New York City
Nationality: Lebanese
Status: Single
Favourite thing to do: I really enjoy cycling, I was a participant in Cycling for Gaza for the second time this year
RoboCop%3A%20Rogue%20City
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The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
The biog
Fatima Al Darmaki is an Emirati widow with three children
She has received 46 certificates of appreciation and excellence throughout her career
She won the 'ideal mother' category at the Minister of Interior Awards for Excellence
Her favourite food is Harees, a slow-cooked porridge-like dish made from boiled wheat berries mixed with chicken
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