Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
August 14, 2022
Regardless of whether or not the global powers succeed in reviving the Joint Comprehensive Plan of Action (JCPOA) with Iran, western governments involved in the negotiations to rein in the latter's nuclear weapons programme should examine all possible scenarios and their implications, and not just panic over the prospect of the talks failing. Further, merely hoping that a deal would soften the Iranian regime’s expansionist doctrine and the activities of its Islamic Revolutionary Guard Corps (IRGC) is wishful thinking.
Lately, western powers seem to be eagerly sprinting towards securing an agreement. A faction within the Biden administration in Washington seems desperate for a big foreign policy win. The three European powers involved in the talks – France, Germany and the UK – may be hoping that a deal serves the interests of a continent that is both thirsty for Iranian oil and gas and fearful of Tehran's nuclear blackmail. There is an assumption in the West that Tehran is no longer a threat to European security – either due to wishful thinking in some European capitals or because backroom dealings are being held with the Iranian regime.
While the revival of the JCPOA will lift sanctions on Iran, it might also empower the IRGC to implement the regime’s doctrine. Recall that this doctrine seeks to undermine comparatively weak Arab states, export Iran’s model to them, and foster paramilitary forces loyal to Tehran that erode Arab sovereignty. Hezbollah in Lebanon is a case in point.
It's possible that a lack of political consensus in the US on Iran’s nuclear programme will make it difficult for the Biden administration to secure an agreement ahead of the mid-term election in November. Some experts worry that a deal before the election will damage the governing Democratic Party’s prospects. But there are those who feel that a deal could favour the party at the ballot box.
In any case, the Iranian regime, which has demanded the removal of the IRGC from the US terror list, might consider postponing the same in return for an agreement, which it needs in order to revive its economy. But can the Biden administration provide such a guarantee? It’s not improbable. The formula being discussed could separate the IRGC issue the nuclear programme, in a trilateral framework comprised of the US, Europe and Iran. This framework wouldn’t require Russia or China, both of which stand with Iran and would benefit from sanctions being lifted on Tehran anyway.
Europe has a number of tools it can use to influence Iran’s behaviour, including Iran’s reliance on European technology
Moreover, the question of the IRGC's legitimacy is currently not the greatest obstacle to a deal. It is the issue of the world’s inability to monitor Iran’s nuclear programme, which has led to serious disagreements between Tehran and the International Atomic Energy Agency.
Let’s say, for the sake of argument, that cutting a deal is necessary to prevent Tehran from developing nuclear weapons, and to avoid a confrontation between Iran and Israel. Let’s say there are hidden benefits to international and regional understandings that gradually open a new chapter in Iran’s behaviour and security alignments. What, then, would be the safeguards that should be considered or adopted in order to avoid the negative repercussions of a deal in the region, and to preserve American and European strategic ties with the Arab world – especially given China and Russia’s strategic alignments with Iran? In what areas should the concerned parties be vigilant to avoid repeating the mistakes of the past? And could the prospective deal become a tool with which Iran destroys the sovereignty of Iraq, Syria and Lebanon?
Creative language may be used to address the issue of IRGC's designation, to avoid obstruction, for example by condemning its past actions while expressing hope for its better behaviour in the future. An alleged Iranian plot, uncovered recently, to assassinate former US president Donald Trump’s national security adviser John Bolton could be deemed as one of its "past actions". The Europeans, meanwhile, believe Iranian-inspired terror plots on their soil have ceased, and they could insist on the preservation of the status quo.
However, they should also apply pressure on Iran’s activities in the Arab world. If this isn’t a matter of priority for the West, then it should remember that Europe is separated from the Arab region only by the Mediterranean Sea, a route that illegal immigrants continue to use to reach the continent. It is, therefore, in its interest to be alert to the Middle East’s security challenges.
Moreover, Europe has a number of tools it can use to influence Iran’s behaviour.
Representatives from Iran, right, and the EU, left, attend a meeting of the joint commission on negotiations aimed at reviving the Iran nuclear deal in Vienna last December. AFP
There are economic tools, including Iran’s reliance on European technology and on the continent’s companies to make a recovery; as well as Iran's desperate need to reintegrate itself with the global economy. As fantastical as it sounds, there may be those in Europe who think that a deal that could avert an energy crisis might also encourage Tehran to pivot to the West.
In return, the West may hope a deal leads to stable Israel-Iran relations; the expansion of the Abraham Accords, and finally, a new security architecture in the Middle East that will help resolve several regional disputes.
Take Lebanon, for example, which faces economic turmoil, threats to its sovereignty, challenges to judicial independence, and an inability to invest in its own hydrocarbon resources.
The first step towards addressing the country’s myriad challenges must be to resolve the issue of the demarcation of its maritime borders with Israel. Iran is not currently hindering this process, but its proxy, Hezbollah, has entered the fray through making threats, deploying drones and inserting the "resistance" as a party to oil and gas exploration and extraction. Perhaps this is “a good cop, bad cop” routine from Tehran and Hezbollah, but those seeking the nuclear deal must secure a guarantee from Iran that lifting of sanctions against it will not fuel Hezbollah’s domination over the Lebanese state.
There are other instruments leverage over Iran that are available to western capitals, if these countries are truly honest in their stated concern for Lebanon's independence. And although the country's politicians are indeed responsible for its economic collapse, the upcoming phase of events requires the major powers to cease blaming the Lebanese people exclusively for their problems. They have a major responsibility on their shoulders to protect Lebanon and other vulnerable Arab nations from the repercussions of a deal with Iran.
The US and Europe, in particular, need to ensure that their regional objectives are translated into policy implemented with a set of rules and the threat of consequences for those who flout it. Otherwise, the wider world – and not just the region – is likely pay a heavy price down the road.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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.”
Carly Lewis (captain), Emily Fensome, Kelly Loy, Isabel Affley, Jessica Cronin, Jemma Eley, Jenna Guy, Kate Lewis, Megan Polley, Charlie Preston, Becki Quigley and Sophie Siffre. Deb Jones and Lucia Sdao – coach and assistant coach.
Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.