Saudi Foreign Minister Prince Faisal bin Farhan, right, and Iranian Foreign Minister Hossein Amir-Abdollahian hold a news conference in Riyadh on Thursday. EPA
Saudi Foreign Minister Prince Faisal bin Farhan, right, and Iranian Foreign Minister Hossein Amir-Abdollahian hold a news conference in Riyadh on Thursday. EPA
Saudi Foreign Minister Prince Faisal bin Farhan, right, and Iranian Foreign Minister Hossein Amir-Abdollahian hold a news conference in Riyadh on Thursday. EPA
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute, and a columnist for The National
August 20, 2023
A pivotal shift has materialised in Iranian foreign policy, suggesting a profound transformation is under way in Tehran’s grand strategy towards relations with Arab Gulf countries.
For its part, the Biden administration has made a notable about-face, abandoning the policy of past US administrations to exclude the Gulf states from US-Iranian nuclear negotiations.
Washington now welcomes Saudi-Iran rapprochement as it aligns with American interests. It views this improvement in relations as an opportunity to establish an additional communication channel with Tehran, with a view to nudge Iran away from Russia in the aftermath of the Ukrainian conflict.
However, the primary obstacle to any hopes of seeing a new Iran lies in the contradiction between the established dogma of its regime and its transitional pragmatism.
Iranian Foreign Minister Hossein Amir-Abdollahian articulated a compelling sentiment during his recent visit to Riyadh, which aimed at restoring diplomatic ties and paving the way for Iranian President Ebrahim Raisi’s trip to the Saudi capital soon. He said that Iran can collaborate with Saudi Arabia to promptly resolve regional issues, underscoring Tehran’s support for achieving security and harmony in the region without fragmentation.
These words await to be matched by deeds, nonetheless a few questions arise.
Where does Iran’s supreme leader, Ayatollah Ali Khamenei, stand on rapprochement? What are the conditions demanded by the Islamic Revolutionary Guard Corps, which exercises control over Iranian foreign policy? How does Israel factor into the equation? Will exclusive sway over Lebanon be granted to Hezbollah as compensation for suspending its regional activities?
US and Saudi tanks take part in the 'Eager Lion' multinational military manoeuvre in Al Zarqa governorate, Jordan last year. AFP
The Biden administration’s priority is to capitalise on Iran’s willingness to shift its stance and behaviour in the Gulf and towards the US
Such complex issues appear to have been parked aside for now, as Riyadh and Tehran focus on bilateral issues, as well as Gulf security, in their “first basket” of discussions, while putting Hezbollah’s regional roles into the “second basket”. This approach is due to concerns that bringing Hezbollah’s activities to the negotiation table could jeopardise the talks.
However, the issue with such an approach is that it implies a potential willingness to grant Iran exceptions in the region. The reality on the ground, after all, indicates that regional stability cannot be achieved without addressing Iran’s regional activities.
Nonetheless, it seems that the Biden administration doesn’t oppose focusing on the “first basket”. It is open to postponing discussions around the thorny issues, including Hezbollah’s dominance in Lebanon, if there is an implicit understanding that there will be no military confrontation between the Iranian proxy and Israel – regardless of the public posturing seen on both sides.
The Biden administration’s priority is to capitalise on Iran’s willingness to shift its stance and behaviour in the Gulf and towards the US. It will also hope it can play a role in countering Russian influence in the region. If Tehran is willing to accept American goodwill, Washington may be prepared to offer incentives similar to the deal that saw the release of American detainees and prisoners in exchange for the release of $6 billion of Iranian assets held in South Korea.
Iran fully comprehends that it needs American help if it wants to return to the global markets and develop its oil and technological infrastructure, as well as restore normality. Moscow has limitations in how much support it can extend to Iran due to the war in Ukraine. China, meanwhile, does not impose on Iran the decision to align either with itself or with the US, nor is the Biden administration doing so.
Of course, the Iranian regime isn’t compromising on its ideology. It is, instead, introducing modifications to it and adopting a more tempered approach to accommodate new realities. This strategy is designed to sustain itself.
Tehran aspires for regional respect and the restoration of its prestige.
On the other hand, Hezbollah is determined to strengthen its grip over Lebanon. Up to this point, it has enjoyed substantial backing from influential members within the Iranian regime.
Some experts, particularly in the Arab world, expect an eventual power struggle in Tehran to lead to a reduction in the IRGC’s influence. Consequently, they believe, Hezbollah will become weaker and, therefore, be willing to align with Iran’s place in the world and assume a more proportionate role regionally and within Lebanon.
While this outcome may sound logical, it remains a mere possibility rather than reflecting an established policy. Herein lies the inherent danger and potential miscalculation.
One could argue that the problem in Lebanon lies within its political class and opportunistic alliances among various political parties. Similarly, one could argue that Lebanon’s economic decline is chiefly the responsibility of the government, parties, representatives, and people. However, these facts don’t invalidate the observation that regional stability will remain elusive as long as Hezbollah maintains its dominance in Lebanon (even as it scales back its regional activities).
Saudi Foreign Minister Prince Faisal bin Farhan said that the restoration of his country’s diplomatic ties with Iran was a pivotal juncture for regional security. This is undeniably valid. He further underscored Saudi Arabia’s aspiration to bolster bilateral relations with Tehran, expressing a sincere and earnest desire to cultivate mutual trust. This stance is also on the mark, given that regional security forms an integral facet of bilateral relations.
Nevertheless, this phase has yet to reach the stage of complete trust; rather, it represents a probation period based on good intentions, extending beyond mere bilateral dynamics.
Other GCC countries are also working towards improving relations with Iran. Some are playing a role in achieving closer ties between Washington and Tehran, including on matters related to Iran’s nuclear weapons programme and the gradual removal of US sanctions on Iran, as an alternative to a comprehensive nuclear deal. This comprehensive deal had previously excluded the Gulf countries, due to decisions made by Iran, the US and Europe, with the agreement of China and Russia.
Times have changed, and historical circumstances have led to an unforeseen shift due to the war in Ukraine and Nato’s subsequent expansion both within and beyond Europe. The Biden administration is aiming to increase Russian isolation by attempting to separate Tehran from Moscow.
That said, the ongoing US-Iran agreements include elements of a more comprehensive deal that goes beyond the mere reduction of tensions between Washington and Tehran. If it materialises, this strategic deal will be akin to a “Grand Bargain”. As is said, however, the devil is in the details.
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four
Sept 21: Group A Winner v Group B Runner-up (Dubai)
Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)
Sept 23: Group A Winner v Group A Runner-up (Dubai)
Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)
Sept 25: Group A Winner v Group B Winner (Dubai)
Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)
Sept 28: Final (Dubai)
Company Profile
Name: JustClean
Based: Kuwait with offices in other GCC countries
Launch year: 2016
Number of employees: 130
Sector: online laundry service
Funding: $12.9m from Kuwait-based Faith Capital Holding
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.”
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.
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples. Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts. Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
