Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
August 21, 2022
Driven by their determination to conclude a deal in the next 10 days to rein in Iran's nuclear weapons programme, the five permanent members of the UN Security Council (plus Germany) are attempting to navigate the red lines set by both Tehran and its adversary Israel.
The Iran nuclear weapons saga is a curious one. When Iraq was suspected of possessing weapons of mass destruction, the international community set out to disarm it, placing it under a strict monitoring regime and demanding that it provide the impossible proof of non-possession of biological weapons – which it had destroyed to avoid admitting to having them. Further, the US-led powers sought to "tame and destroy" Iraq for having dared to acquire WMDs in the first place. And yet, Iran is being treated differently.
Indeed, Tehran's nuclear blackmail has been met with surrender if not rewarded by the global powers. Meanwhile, both the East and West have turned a blind eye towards Israel's acquisition of nuclear weapons. And so, today, both Israel and Iran are nuclear states in varying degrees of advancement. Whatever the global powers say with respect to Iran's weapons programme, the latter is already a nuclear state. It is exactly why Tehran doesn't want to allow international scrutiny of its nuclear facilities.
In fact, the primary reason that the ongoing negotiations have yet to produce an agreement is the thorny issue of monitoring and inspecting these nuclear reactors. Even as Washington seeks strict controls, Tehran refuses comprehensive monitoring. The Europeans are seen to be making concessions, at the expense of the International Atomic Energy Agency’s jurisdiction, setting a dangerous precedent.
The US's continued global leadership means Washington bears primary responsibility for any deal with Iran
Israel has categorically said it will reject any deal that fails to address its existential anxieties. Its security is, right now, not top-of-mind for Biden administration officials, given their focus on the Ukraine war. But with Israel likely to be a talking point in this year's US mid-term election, the question is whether the administration will end up cutting a deal with its leaders to ensure it doesn't obstruct a deal with Iran.
The European powers of France, Germany and the UK, known as the "E3", appear more concerned by Iran’s red lines than by those set by Israel. They believe they can, along with Washington, assuage Israel’s concerns. On the other hand, they are in dire need of Iran’s energy given their fractured relations with Russia over to the latter's ongoing war with Ukraine. The E3, as well as Russia, are confident of influencing Israel through security guarantees, business and trade. But if Israel rejects the deal outright, they are likelier to stomach its military striking Iranian nuclear sites than they are willing to risk a no-deal scenario.
Russia is operating from a position of influence both with the Iranian and Israeli governments, leveraging the nuclear talks to restore whatever global standing it has lost due to the Ukraine war. Indeed, it views the Middle East as a stage upon which to reassert its prestige. According to one Russian source, Moscow has found in Iran a “political alter ego”, especially in Syria where it has outsourced its mission to Tehran.
A pertinent question being asked is whether the global powers are considering the implications of a nuclear deal on the Arab states' collective security. The Kremlin has apparently warned Tehran against "creating problems" in the region, at least in the short term, or there will be no deal.
But Moscow believes that Iran's influence and actions in the Middle East – be they direct or through Hezbollah, Tehran's proxy in Lebanon – cannot be stopped. My source told me that it cannot curb Iranian activities in Lebanon. "In our view, Iran is responsible for Lebanon, and its role there is historic. Lebanon is a security issue for Iran … this is Iran’s business, not ours, and nothing in Lebanon can be changed without Iran."
Hezbollah fighters pose during a ceremony to lay the foundation for a centre for 'jihadist tourism' in the Janta region of Lebanon on Friday. AFP
The West shares Moscow’s view that their collective priority should be to prevent cross-border military activities by Iran or Hezbollah against Israel. Given such a consensus, a prospective deal with Iran could include conceding to Tehran its primacy in Lebanon, in exchange for its assurance that peace on the latter's border with Israel will be maintained. However, such an agreement would be short-sighted. For allowing Tehran to turn Lebanon into a military base for itself would – from the West's point of view – benefit the Iran-Russia-China strategic troika, not to mention undermining the sovereignty of an independent state and risking civil war. Furthermore, it's hard to imagine there won't be a military clash in the future anyway.
And so, it is incumbent upon western ambassadors in Beirut to explain to their respective governments the consequences of such an agreement. Lebanon should press its ambassadors to the concerned countries into diplomatic action. The Lebanese people need to organise and mobilise, and ensure that they are not seen as silently surrendering to such a fait accompli. They should object to a nuclear deal that contains such sweeteners for the Iranian regime.
The US's continued global leadership means Washington bears primary responsibility for any deal with Iran. The Biden administration's enthusiasm to reach an agreement may be underpinned by its determination to avoid a war in the region. It may also be keen to revive the JCPOA, which was seen as an Obama-era achievement that the succeeding Trump administration had binned. But that doesn't mean it should willfully blind itself to the implications of the deal.
"Gifting" Lebanon, an independent country, to Tehran to use as a forward military base is something that Washington will come to regret. Further, unless the US understands the need to tackle Iran’s regional behaviour in Lebanon, Syria and Iraq, it would be making a huge strategic blunder. For it would, effectively, be leaving the region open to influence from its rivals.
National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Stars: Will Smith, Tom Holland, Karen Gillan and Roshida Jones
Rating: 4 out of 5 stars
UAE WARRIORS RESULTS
Featherweight
Azouz Anwar (EGY) beat Marcelo Pontes (BRA)
TKO round 2
Catchweight 90kg
Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)
Split points decision
Welterweight
Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)
TKO round 1
Flyweight (women)
Lucie Bertaud (FRA) beat Kelig Pinson (BEL)
Unanimous points decision
Lightweight
Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)
TKO round 1
Catchweight 100kg
Marc Vleiger (NED) beat Mohamed Ali (EGY)
Rear neck choke round 1
Featherweight
James Bishop (NZ) beat Mark Valerio (PHI)
TKO round 2
Welterweight
Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)
TKO round 1
Middleweight
Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)
Unanimous points decision
Bantamweight
Fabio Mello (BRA) beat Mark Alcoba (PHI)
Unanimous points decision
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)
TKO round 1
Bantamweight
Trent Girdham (AUS) beat Jayson Margallo (PHI)
TKO round 3
Lightweight
Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)
TKO round 1
Middleweight
Tarek Suleiman (SYR) beat Steve Kennedy (AUS)
Submission round 2
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
TKO round 2
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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.”
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.