Iran’s decision this week to release the crew members of a South Korean ship, the Hankuk Chemi, seized in the Strait of Hormuz last month demonstrates that the entire enterprise was nothing more than an exercise in the ancient art of hostage-taking.
The Iranian authorities insist that the release of the 19 crew was undertaken on entirely “humanitarian” grounds. But the fact that their decision coincided with an undertaking by Seoul to work for the release of $7 billion of Iranian funds frozen in South Korea tells a very different story.
Ever since the 1979 Iranian revolution, the regime has frequently resorted to hostage-taking in an attempt to achieve various policy goals, from the US embassy siege in Tehran, which was undertaken to put pressure on Washington to hand over Iran’s recently deposed Shah, to the Western hostage crisis in Lebanon in the 1980s, which we now know was orchestrated to persuade the US to provide Tehran with much-needed weaponry for its campaign against Iraqi dictator Saddam Hussein during the Iran-Iraq war.
Four decades may have passed since those events, but judging by its recent seizures of several foreign and dual citizens, the regime has lost none of its enthusiasm for taking hostages when it suits its broader policy objectives.
And, as the case of the South Korean tanker by Iran’s Islamic Revolutionary Guard Corps demonstrates, the most likely motive is usually related to Tehran’s desperate need to avoid the crippling effects of US sanctions.
Iranian forces seized the tanker during the dying days of the administration of former US president Donald Trump on January 4 as it passed through the Strait of Hormuz, accusing it of “causing environmental pollution”.
The ship was escorted to the port of Bandar Abbas, where its 20-strong crew, including nationals of South Korea, Indonesia, Vietnam and Myanmar, were detained.
Now, following weeks of intense negotiations between South Korean diplomats and Tehran, Iran has announced it is allowing all the ship’s crew members – with the exception of the captain – to leave the country. Announcing the decision, Iran’s Foreign Ministry spokesman, Saeed Khatibzadeh, told state media that the ship’s crew “had received permission to leave the country in a humanitarian move by Iran”.
South Korea had withheld the money because of American sanctions on Iranian oil
South Korean officials insist no chemicals were spilled by the ship nor were any rules breached, and claimed the ship had been approached by speed boats operated by the IRGC while sailing in international waters.
It is no coincidence that Iran, which has a history of seizing ships bearing the flags of nations it has disputes with, has long been furious that South Korea had refused to release an estimated $7bn of Iranian oil-export revenue that it says it needs to purchase anti-coronavirus medicines, including possible vaccines. The money had been withheld because of American sanctions on Iranian oil.
Apparently serendipitously, South Korea simultaneously pledged to speed up the unfreezing of the $7bn in a bid to “restore trust”.
At the end of last year, it emerged that Iran had released a British-Australian scholar, Kylie Moore-Gilbert, detained since 2018 on charges of spying for Israel, in a prisoner swap for three convicted Iranian terrorists. Ms Moore-Gilbert, a lecturer in Islamic Studies at the University of Melbourne, was arrested by IRGC agents after she travelled to Iran in 2018 to attend a conference. She was handed a 10-year sentence, much of it served in Iran’s notorious Evin Prison, where she staged several hunger strikes and claimed her mental state was deteriorating because of prolonged spells of solitary confinement. She was eventually released in late November as part of an agreement in which Thailand freed three Iranian terrorists convicted of a failed plot to assassinate Israeli diplomats in Bangkok in 2012.
The case of Nazanin Zaghari-Ratcliffe, a British-Iranian mother who has been jailed for five years in Iran on similarly trumped-up spying charges, is another high profile example of this institutionalised kidnap-for-ransom strategy to resolve long-standing disputes.
In the case of Ms Zaghari-Ratcliffe, who is due to complete her term and be released next month, her imprisonment is said to relate to a long-standing £400 million debt that Iran says is owed by Britain relating to the non-delivery of tanks ordered by the Shah in 1979. Ms Zaghari-Ratcliffe’s husband Richard, who has run a high-profile campaign for her release in Britain, has accused Tehran of indulging in “state hostage-taking” in relation to his wife’s ordeal.
Not all of Iran’s attempts to hold foreign nationals captive are successful. Earlier this week, it was revealed that a British-Iranian academic facing nine years in jail on spying charges is now safe in the UK. Kameel Ahmady, a British-Iranian academic conducting research on child marriage and female genital mutilation in Iran, was convicted two months ago of collaborating with a hostile government after the IRGC claimed that a charity he once worked for had received funding from the US.
Mr Ahmady was lucky that after three months of interrogation by Iranian security officials, he was released on bail prior to his trial. But after he was convicted in December and given a nine-year jail term, he decided to escape, travelling over the mountains on foot before eventually making his way to Britain. As a result, unlike the other unfortunate victims of Iran’s policy of state-sponsored hostage-taking, Mr Ahmady is once again a free man. The empty cell that awaited him, however, will surely be filled by another.
Con Coughlin is a defence and foreign affairs columnist for The National
RACE CARD
6.30pm: Handicap (TB) $68,000 (Dirt) 1,600m
7.05pm: Meydan Sprint – Group 2 (TB) $163,000 (Turf) 1,000m
7.40pm: Curlin Stakes – Listed Handicap (TB) $88,000 (D) 2,200m
8.15pm: UAE Oaks – Group 3 (TB) $125,000 (D) 1,900m
8.50pm: Zabeel Mile – Group 2 (TB) $163,000 (T) 1,600m
9.25pm: Balanchine – Group 2 (TB) $163,000 (T) 1,800m
10pm: Al Shindagha Sprint – Group 3 (TB) $130,000 (D) 1,200m
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 National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
MATCH INFO
Uefa Champions League last 16, second leg
Liverpool (0) v Atletico Madrid (1)
Venue: Anfield
Kick-off: Thursday, March 12, midnight
Live: On beIN Sports HD
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Start-up hopes to end Japan's love affair with cash
Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.
Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.
Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.
Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.
Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.
WE%20NO%20LONGER%20PREFER%20MOUNTAINS
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RESULTS
1.45pm: Handicap (TB) Dh80,000 (Dirt) 1,400m
Winners: Hyde Park, Royston Ffrench (jockey), Salem bin Ghadayer (trainer)
2.15pm: Conditions (TB) Dh100,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard
2.45pm: Conditions (TB) Dh100,000 (D) 1,200m
Winner: Hurry Up, Royston Ffrench, Salem bin Ghadayer.
3.15pm: Shadwell Jebel Ali Mile Group 3 (TB) Dh575,000 (D) 1,600m
Winner: Blown by Wind, Xavier Ziani, Salem bin Ghadayer
3.45pm: Handicap (TB) Dh72,000 (D) 1,600m
Winner: Mazagran, Tadhg O’Shea, Satish Seemar.
4.15pm: Handicap (TB) Dh64,000 (D) 1,950m
Winner: Obeyaan, Adrie de Vries, Mujeeb Rehman
4.45pm: Handicap (TB) Dh84,000 (D) 1,000m
Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly.
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
The specs
Engine: 3.0-litre six-cylinder MHEV
Power: 360bhp
Torque: 500Nm
Transmission: eight-speed automatic
Price: from Dh282,870
On sale: now
Results
1.30pm Handicap (PA) Dh50,000 (Dirt) 1,400m
Winner Al Suhooj, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)
2pm Handicap (TB) 68,000 (D) 1,950m
Winner Miracle Maker, Xavier Ziani, Salem bin Ghadayer
2.30pm Maiden (TB) Dh60,000 (D) 1,600m
Winner Mazagran, Tadhg O’Shea, Satish Seemar
3pm Handicap (TB) Dh84,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer
3.30pm Handicap (TB) Dh76,000 (D) 1,400m
Winner Alla Mahlak, Adrie de Vries, Rashed Bouresly
4pm Maiden (TB) Dh60,000 (D) 1,200m
Winner Hurry Up, Royston Ffrench, Salem bin Ghadayer
4.30pm Handicap (TB) Dh68,000 (D) 1,200m
COMPANY%20PROFILE
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SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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'Project Power'
Stars: Jamie Foxx, Joseph Gordon-Levitt, Dominique Fishback
Director: Henry Joost and Ariel Schulman
Rating: 3.5/5
How to help
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Breaking News: The Remaking of Journalism and Why It Matters Now
Alan Rushbridger, Canongate
How to help
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Killing of Qassem Suleimani
MATCH INFO
Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')
Brighton & Hove Albion 1
Ulloa (20')
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
Results
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Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5