Joe Biden has hit Iran (and political commentators) where it hurts


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The Biden administration is starting to implement a novel approach towards Iran, which is a key foreign policy priority. Last week's US air strike in Syria demonstrates that the numerous commentators who claimed to fully understand US President Joe Biden's policy in advance have been jumping to unfounded conclusions. They appear to have been badly mistaken.

In 2016, former president Donald Trump made strident opposition to his predecessor Barack Obama's participation in the nuclear agreement between six major international powers and Iran a theme of his candidacy. With typical hyperbole he called it “horrible” and "the worst deal in history".

He said the same things about the North American Free Trade Agreement, the Trans-Pacific Partnership, the Paris climate protocol and several other major accords. But Mr Trump and his allies had a particular antipathy for the JCPOA nuclear deal, and in May 2018 he withdrew the US from it all together.

The aftermath of recent US air strikes on a small group of buildings at an unofficial crossing at the Syria-Iraq border near Al Qaim, Iraq. AFP
The aftermath of recent US air strikes on a small group of buildings at an unofficial crossing at the Syria-Iraq border near Al Qaim, Iraq. AFP

Last year, in stark contrast, Mr Biden, who had served as Mr Obama's vice president for eight years, ran in opposition to Mr Trump's disavowal of the pact. He vowed to seek an early return to the deal, while conceding that it had flaws and limitations. Mr Biden agreed that additional understandings regarding timetables, sunsets, missile development and support for violent extremist groups are all required.

Many observers – both in the US and abroad, and proponents and opponents of the nuclear agreement alike – assumed they had Mr Biden all figured out. This would be, many said, effectively a return to the previous Democratic administration – year nine of the Obama era – at least as they imagined it had been and for good or ill.

They pointed to Mr Biden's role as vice president, and that his Secretary of State Antony Blinken and National Security Adviser Jake Sullivan are also Obama administration veterans. And they noted that outreach to Iran would be led by Rob Malley, a prominent supporter of the agreement, under the direction of Wendy Sherman, its principal American architect during the Obama years.

When both sides assumed this means that Mr Biden will prioritise a resumption of nuclear diplomacy with Iran and, if possible, a return to the JCPOA, they were correct. He said as much. Supporters of the agreement rejoiced, while opponents gnashed their teeth.

They all failed to take seriously that Mr Biden, Mr Blinken and Mr Sullivan, among others, were serious when emphasising that they learned lessons during the Obama era, particularly regarding nuclear diplomacy with Iran. This was assumed to be just campaign rhetoric or, if not, then self-deceiving hubris.

Joe Biden's advisers, Jake Sullivan, left, and Antony Blinken, second right, are Obama-era veterans. AFP
Joe Biden's advisers, Jake Sullivan, left, and Antony Blinken, second right, are Obama-era veterans. AFP

But the real hubris belonged to those in both camps, and around the world, who believed they could intuit the Biden policy or simply extrapolate it from Obama approaches, as if nothing has changed, such leaders are incapable of adapting, or Mr Biden is simply a replica of Mr Obama.

These assumptions lacked an appreciation of presidential history. Mr Obama's foreign policy differed markedly his first and second terms, as did George W Bush's.

A static foreign policy would constitute brain-dead foolishness, ideological inflexibility and diplomatic malpractice. The context for statecraft is ever-changing and anyone who can’t learn lessons from errors is in the wrong profession.

Just a few weeks into his presidency, JCPOA opponents were already accusing Mr Biden of "weakness" and giving away the store to Tehran – largely because that is what they assumed he was going to do – while its supporters complained he had already waited too long.

A man is treated at a hospital after he was injured during a rocket attack on US-led forces in Erbil earlier this month. Reuters
A man is treated at a hospital after he was injured during a rocket attack on US-led forces in Erbil earlier this month. Reuters

Exhibit A for the right was three rocket attacks against US-related interests in Iraq in mid-February. The Biden administration's statement that we will respond "in a time and place of our choosing" was assumed by both sides to be a typical rationalisation for not doing anything, which appalled the right and comforted the left.

Those suppositions were shattered by the February 26 air strikes against pro-Iranian militia facilities, which were carefully targeted at the most sensitive, significant piece of contested real estate for Iran in the Middle East: the Syria-Iraq crossing point and highway near Al Qaim.

This zone is key to Tehran's main geostrategic goal, a militarily secured corridor from Iran through Iraq and Syria and into Lebanon.

At least 17 militants were reportedly killed. This was a significant but measured response, calibrated and targeted to maximise the blow to Iran and minimise blowback for Washington.

Foreign policy doesn't remain static. Former US president Barack Obama's foreign policy, for instance, differed markedly his first and second terms, as did George W Bush's. EPA
Foreign policy doesn't remain static. Former US president Barack Obama's foreign policy, for instance, differed markedly his first and second terms, as did George W Bush's. EPA

Though few care to acknowledge this, it looked a lot more like a Trump action, although with subtlety and skill, than an Obama one.

Right-wing critics are largely unimpressed, because their objections are mainly political and ideological rather than policy or results-oriented.

But leftists and others, who were exuberant about an anticipated return to Obama-era indulgence of Tehran’s misbehaviour to protect negotiations at all costs, are howling in outrage.

Trita Parsi of the Quincy Institute, a leading proponent of Iranian interests in Washington, denounced Mr Biden for betraying diplomacy and sabotaging negotiations, as if Iran's proxies are not launching deadly attacks or that this should be tolerated with endless forbearance.

While voices on the right continue to insist Mr Biden is determined to shift US policy in Tehran's favour despite the counterstrike, their counterparts on the left say he is exposed as just another imperialistic bully. Plus, his nominal allies in Congress complained he acted without legal authority, which Mr Biden rightly dismissed.

In fact, the retaliatory air strikes suggest Mr Biden is crafting a novel, workable policy that emphasises concerted, sustained outreach to Iran involving serious compromises, though not capitulation or giveaways, but that nonetheless attacks by Iranian-controlled extremists will not be tolerated.

The president said his message to Tehran is: "Be careful."

Moreover, striking in Syria deftly avoided the trap of retaliation inside a politically volatile Iraq. Targeting an area of extreme strategic value to Tehran demonstrated an understanding of, and strong opposition to, Iran's predatory regional ambitions. Mr Biden hit them where it hurts.

This is all very bad news for implacable opponents of diplomacy. And it is terrible news for Tehran and its fellow travellers. But it should be highly reassuring to the rest of us.

Hussein Ibish is a senior resident scholar at the Arab Gulf States ­Institute and a US affairs columnist for The National

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

RACE CARD

6.30pm: Al Maktoum Challenge Round-3 – Group 1 (PA) $65,000 (Dirt) 2,000m

7.05pm: Handicap (TB) $65,000 (Turf) 1,800m

7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m

8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m

8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m

9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m

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

Squad: Majed Naser, Abdulaziz Sanqour, Walid Abbas, Khamis Esmail, Habib Fardan, Mohammed Marzouq (Shabab Al Ahli Dubai), Khalid Essa, Muhanad Salem, Mohammed Ahmed, Ismail Ahmed, Ahmed Barman,  Amer Abdulrahman, Omar Abdulrahman (Al Ain), Ali Khaseif, Fares Juma, Mohammed Fawzi, Khalfan Mubarak, Mohammed Jamal, Ahmed Al Attas (Al Jazira), Ahmed Rashid, Mohammed Al Akbari (Al Wahda), Tariq Ahmed, Mahmoud Khamis, Khalifa Mubarak, Jassim Yaqoub (Al Nasr), Ali Salmeen (Al Wasl), Yousef Saeed (Sharjah), Suhail Al Nubi (Baniyas)

Living in...

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.

The specs
Engine: 2.0-litre 4-cyl turbo

Power: 201hp at 5,200rpm

Torque: 320Nm at 1,750-4,000rpm

Transmission: 6-speed auto

Fuel consumption: 8.7L/100km

Price: Dh133,900

On sale: now 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

UAE currency: the story behind the money in your pockets
Dubai Women's Tour teams

Agolico BMC
Andy Schleck Cycles-Immo Losch
Aromitalia Basso Bikes Vaiano
Cogeas Mettler Look
Doltcini-Van Eyck Sport
Hitec Products – Birk Sport 
Kazakhstan National Team
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Macogep Tornatech Girondins de Bordeaux
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UAE Women’s Team
Under 23 Kazakhstan Team
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ACL Elite (West) - fixtures

Monday, Sept 30

Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)

Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)

Remaining Fixtures

Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final

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.”

Stamp duty timeline

December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%

April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.

July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.

March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.

April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4