Iranian Foreign Minister Hossein Amir-Abdollahian and Russian Foreign Minister Sergey Lavrov arrive for a joint news conference in Tehran on Thursday. Reuters
Iranian Foreign Minister Hossein Amir-Abdollahian and Russian Foreign Minister Sergey Lavrov arrive for a joint news conference in Tehran on Thursday. Reuters
Iranian Foreign Minister Hossein Amir-Abdollahian and Russian Foreign Minister Sergey Lavrov arrive for a joint news conference in Tehran on Thursday. Reuters
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
June 26, 2022
Pragmatism is in a race with recklessness in Iran, as the final countdown begins to either rescue the Vienna talks with the purpose of reviving the JCPOA, or let the negotiations collapse that would then unleash a nuclear-armed state in the region. The room for manoeuvring is shrinking and time is running out.
Russia has re-inserted itself into this race, marked by Russian Foreign Minister Sergey Lavrov's visit to Tehran on Thursday.
The trip was a milestone, as Moscow effectively blessed Iran's possible transformation into a nuclear-armed state. Russia has also entrusted Iran with securing their common interests in Syria, a country where both governments are allied with the Assad regime. Just as importantly, Moscow and Tehran agreed to activate their strategic pact similar to the one the latter signed last year with China, which the two sides believe is crucial towards firming up a Chinese-Russian-Iranian troika.
At the joint news conference, both Mr Lavrov and Iranian Foreign Minister Hossein Amirabdollahian hinted that the door to the Vienna talks remain open but only just. Mr Amirabdollahian said Iran and EU officials maintain contact, affirming that Tehran will not abandon diplomacy and remains serious about reaching a sustainable agreement on the JCPOA.
Such statements suggest that Tehran still prefers prudence over recklessness. The devil, however, is in the details, with one such detail being the Iranian regime's demand that the Islamic Revolutionary Guard Corps be removed from America's terror list – a condition that US President Joe Biden has categorically rejected. Meanwhile, Iran continues to oppose American insistence on a strict monitoring regime for Tehran's nuclear programme.
Moscow understands that its preoccupation in Ukraine has weakened its position in Syria
Behind closed doors, it seems, Russia and Iran agreed that the chances of success in Vienna are diminishing, and that, therefore, they need to explore alternatives. According to a readout by a source apprised of the discussions, Russia appeared ready to support Iran’s nuclear future. This marks a shift in Moscow’s position, which was hitherto committed to non-proliferation of nuclear weapons and other weapons of mass destruction. Indeed, Russia and its fellow permanent members of the UN Security Council had previously agreed to prevent an expansion of the so-called nuclear weapons club. But the war in Ukraine may have undone this consensus.
Moscow, meanwhile, seems conflicted between its determination to further its strategic pact with Iran and its desire to see better Iran-Gulf relations.
In Tehran, Mr Lavrov said his country is working to guarantee the security of the Gulf region and is seeking the improvement of relations between Iran and the Gulf countries. He called for a dialogue between Iran and the Arab states to build confidence and take steps that reinforce stability in the region. These sentiments are commendable, but Moscow doesn't appear to be using its leverage over Iran to check its regional behaviour in Iraq, Lebanon, Syria and Yemen.
To be sure, Moscow’s gesture of encouragement towards Tehran acquiring nuclear weapons and allowing for the latter's confrontation with Israel in the future will only serve to destabilise the broader region.
Russian diplomats have made it clear to their Iranian counterparts that Moscow does not wish to see an Iran-Israel confrontation, but they have affirmed Iran’s right to respond to Israel if provoked. They have also reiterated the importance of Iran's interests in Syria and the Iranian regime’s right to confront any force that could harm its interests or those of Russia. Moscow has, in the process, given Iran the green light to act as a security guarantor in Syria, even if that means gradually replacing some of Russia’s own role in the country.
Moscow understands that its preoccupation in Ukraine has weakened its position in Syria, leading to a strategic loss to what it views to be Turkish and Israeli provocations in the Arab country. It has, therefore, agreed for Iran to step up its efforts in Syria. The likely failure of the Vienna talks will serve to unshackle Iran’s hands in the region, in Russia’s view, and Syria could become a key arena for activating a potential Iran-Israel conflict.
US President Joe Biden waves as he disembarks from Air Force One upon his arrival in Munich on the eve of the G7 summit. AFP
If Tehran determines that the time has come to retaliate for the failure of the Vienna talks and the continuation of sanctions against it, the regime could expand its operations inside Iraq, Lebanon, and perhaps even the waterways in the region, with implicit Russian blessings.
Russia remains angry with Israel for its stance on Ukraine, its disruption of the Vienna talks, its lack of regard for Russian interests, and its repeated military operations inside Syria. There is also some Russian resentment towards Israel for its alleged operations inside Iran targeting the IRGC and nuclear installations. The mood in the Kremlin currently favours leveraging Iran’s anger in the event of the collapse of the Vienna talks. An Iran-Israel war could distract from Russian's actions in Ukraine and become an additional source of worry and embarrassment for Washington, an ally of Israel.
Some may question the value of a Russia-Iran strategic pact at a time when both countries are under sanctions and facing increasing international isolation. But Russia remains a permanent member of the Security Council and so, it is capable of eroding the foundations of the international order as its fury grows. Indeed, as Russia is seeking to chart an independent course, it could circumvent unilateral and international sanctions imposed on itself and Iran.
For now, Tehran continues to seek a breakthrough in Vienna. If the talks fail, it is ready to work with Russia. But even if they succeed, it sees no contradiction between benefiting from the resulting lifting of sanctions and cementing its pact with Russia.
What has become amply evident in recent weeks is that the Middle East continues to hold strategic value. It is important, therefore, for the US to think strategically. At a time when Iran is engaging with China and Russia, Washington must further develop serious, comprehensive and permanent co-operation agreements with the GCC states, led by Saudi Arabia.
Company profile
Name: Dukkantek
Started: January 2021
Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani
Based: UAE
Number of employees: 140
Sector: B2B Vertical SaaS(software as a service)
Investment: $5.2 million
Funding stage: Seed round
Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid When: April 25, 10.45pm kick-off (UAE) Where: Allianz Arena, Munich Live: BeIN Sports HD Second leg: May 1, Santiago Bernabeu, Madrid
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), EsekaiaDranibota (Harlequins), Matt Mills (Exiles), JaenBotes (Exiles), KristianStinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), EmosiVacanau (Harlequins), NikoVolavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), ThinusSteyn (Exiles)
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.
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.”
The Indoor Cricket World Cup
When: September 16-23
Where: Insportz, Dubai
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
Monster
Directed by: Anthony Mandler
Starring: Kelvin Harrison Jr., John David Washington
3/5
England World Cup squad
Eoin Morgan (capt), Moeen Ali, Jofra Archer, Jonny Bairstow, Jos Buttler (wkt), Tom Curran, Liam Dawson, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, James Vince, Chris Woakes, Mark Wood