Tehran is earthquake-prone and running out of water. Bloomberg
Tehran is earthquake-prone and running out of water. Bloomberg
Tehran is earthquake-prone and running out of water. Bloomberg
Tehran is earthquake-prone and running out of water. Bloomberg


Why Iran's new president is desperate to move the capital from Tehran


  • English
  • Arabic

November 28, 2024

Iran’s President, Masoud Pezeshkian, has been in office for less than four months, a time dominated by Israel’s war in the region, including its direct exchange of fire with Iran. But last week his government put the focus on an evergreen domestic issue: the changing of Iran’s capital city.

Every single Iranian administration in the past four decades has mused over taking the capital out of Tehran and Mr Pezeshkian is one of those most enthusiastic about it. It fits well with his theme of tackling regional inequality in Iran and overcoming the marginalisation of Iran’s border regions. Last week, Mr Pezeshkian showed some seriousness by announcing that his Vice President, Mohammad Reza Aref, had been handed the task.

Mr Pezeshkian had raised the matter a few weeks ago, when he listed Tehran’s lack of sufficient water resources, subsidence problems and air pollution as factors that necessitated the move. He also suggested that the capital must move south, close to Iran’s lengthy coastal shore, something he has also brought up in meetings with MPs from coastal provinces such as Hormozgan and Sistan and Baluchistan. As these are two Sunni-majority provinces, such support also fits well with Mr Pezeshkian’s attempt to tackle discrimination against ethno-religious minorities in the country.

The problems Mr Pezeshkian cites are well-known. Tehranis consume an astronomical amount of water – more than 6.5 million cubic metres a year, which is twice that of New York City, a city with about the same population. The consumption increases by almost 3 per cent every year without Tehran’s water resources getting any bigger.

The city has difficulty providing enough water and electricity to its ever-ballooning population. Currently, the city’s population increases to as much as 15 million during working hours, when commuters arrive from surrounding areas.

It fits well with his theme of tackling regional inequality in Iran

Proponents of the move also see it as a way of decentralising governance and the economy. Around 25 per cent of the Iranian economy is concentrated in Tehran.

If Iran were to make this move, it would be hardly unique. Dozens of countries have done the shift before, and others, such as South Korea, Egypt and Indonesia, are working on it. Iran itself has had dozens of capitals throughout its long history, with Tehran having served in this role only since the late 18th century when the then village of only 15,000 people was picked by the founder of the Qajar dynasty, Agha Mohammad Khan, as his capital.

Will Tehran’s time in the sun finally come to an end after more than two centuries? It doesn’t appear likely in the medium-term, at least, since there are many obstacles that cannot be tackled by Mr Pezeshkian’s enthusiasm alone.

One problem is picking the next capital. Mr Pezeshkian’s suggestion is the southern coast, perhaps the Makran region of Baluchistan, where the port of Chabahar links Iran to the Gulf of Oman. But Chabahar is a whooping 1,800km away from Tehran and organising such a move would be a logistical nightmare.

Others suggest Isfahan, perhaps the best-known historical capital of the country (during the Safavid era from 1598 to 1736). But the city is already Iran’s unofficial second capital and such a move wouldn’t bode well for decentralisation. Isfahan is in Iran’s central, desert-heavy areas, which means it’s not much better placed for water resources. Hamedan, another historic city that has been populated for several millennia, has a similar problem, as does Yazd. Cities closer to Tehran, such as Arak or Saveh, share one major problem with the capital: susceptibility to earthquakes.

In short, although every single president raises the possibility of changing the capital, there has never been a consensus on its replacement. In the 1980s, Prime Minister Mirhossein Mousavi’s administration suggested a shift to somewhere near Tafresh, a few hours south of Tehran, near Arak. In the 2010s, then-president Mahmoud Ahmadinejad did the most to make the shift, in line with his love for gimmicky, headline-grabbing moves. His suggestion was the planned city of Parand, a short metro ride away from Tehran.

In the final years of Mr Ahmadinejad’s term, the Majlis, Iran’s Parliament, even tabled a bill that urged the government to seriously consider the move. The bill finally passed in 2014, during the presidency of Mr Ahmadinejad’s successor, Hassan Rouhani. But neither Mr Rouhani nor his successor, Ebrahim Raisi, took it any further because of the price tag.

In 2016, the Rouhani government estimated that the shift would cost $78 billion. Ahmad Vahidi, Mr Raisi’s interior minister, raised the estimate up to $100 billion. This seems a fair estimate since it compares to the estimated cost of South Korea’s capital change. In 2018, the Majlis’s research centre published a detailed report on the issue, which noted many benefits before concluding that Iran was nowhere near being able to afford it.

Opponents of the shift say it’s a distraction from the real problems of the country. Gholamhossein Karbaschi, a popular former reformist mayor of Tehran, has pointed out that the city’s myriad issues won’t go away even if it’s not the capital any more, so the government should focus on the tough job of tackling these problems instead of going after the pipe dream of changing the capital. Mehdi Chamran, a conservative who is current chairman of Tehran’s city council, also opposes the idea.

Ali Eta, a reformist former spokesman of the council, has also reacted negatively to Mr Pezeshkian’s plan. This is noteworthy, considering Mr Eta is a doctoral candidate in urban studies at the University of Strasbourg and was a Pezeshkian surrogate during the presidential election earlier this year.

Mr Pezeshkian has raised the issue of capital shift “too hastily”, Mr Eta recently said. If Vice President Aref were to be tasked with a Tehran file, it should be solving the city’s existing problems rather than creating another city altogether with entirely new problems.

Like many of Mr Pezeshkian’s promises in a country facing many challenges, this one will likely have to wait.

Teri%20Baaton%20Mein%20Aisa%20Uljha%20Jiya
%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Amit%20Joshi%20and%20Aradhana%20Sah%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECast%3A%3C%2Fstrong%3E%20Shahid%20Kapoor%2C%20Kriti%20Sanon%2C%20Dharmendra%2C%20Dimple%20Kapadia%2C%20Rakesh%20Bedi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
PROFILE OF STARZPLAY

Date started: 2014

Founders: Maaz Sheikh, Danny Bates

Based: Dubai, UAE

Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

The five new places of worship

Church of South Indian Parish

St Andrew's Church Mussaffah branch

St Andrew's Church Al Ain branch

St John's Baptist Church, Ruwais

Church of the Virgin Mary and St Paul the Apostle, Ruwais

 

Turning%20waste%20into%20fuel
%3Cp%3EAverage%20amount%20of%20biofuel%20produced%20at%20DIC%20factory%20every%20month%3A%20%3Cstrong%3EApproximately%20106%2C000%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EAmount%20of%20biofuel%20produced%20from%201%20litre%20of%20used%20cooking%20oil%3A%20%3Cstrong%3E920ml%20(92%25)%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ETime%20required%20for%20one%20full%20cycle%20of%20production%20from%20used%20cooking%20oil%20to%20biofuel%3A%20%3Cstrong%3EOne%20day%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EEnergy%20requirements%20for%20one%20cycle%20of%20production%20from%201%2C000%20litres%20of%20used%20cooking%20oil%3A%3Cbr%3E%3Cstrong%3E%E2%96%AA%20Electricity%20-%201.1904%20units%3Cbr%3E%E2%96%AA%20Water-%2031%20litres%3Cbr%3E%E2%96%AA%20Diesel%20%E2%80%93%2026.275%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A

'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press

THE SPECS

Engine: Four-cylinder 2.5-litre

Transmission: Seven-speed auto

Power: 165hp

Torque: 241Nm

Price: Dh99,900 to Dh134,000

On sale: now

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

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.”

UAE currency: the story behind the money in your pockets
In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000
Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

The biog:

From: Wimbledon, London, UK

Education: Medical doctor

Hobbies: Travelling, meeting new people and cultures 

Favourite animals: All of them 

THE 12 BREAKAWAY CLUBS

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

Updated: November 28, 2024, 10:24 AM