Key developments across the Middle East in recent days have helped to renew a sense of optimism among some about a turnaround in US-Iran relations. But this could yet amount to wishful thinking on their part, as both Washington and Tehran prepare to host meetings over the coming week to decide how to more effectively deal with their adversary.
Decision-makers in Washington will discuss various options to contain the Iranian regime, including perhaps the launch of pre-emptive military strikes. Meanwhile, commanders of the Islamic Revolutionary Guard Corps – Tehran's influential paramilitary volunteer militia – will focus on their existing strategies in Lebanon and Iraq, where the regime wields considerable influence and is determined to keep within its orbit at any cost and by any means.
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Member of the Islamic Revolutionary Guard Corps are said to be preparing for an important meeting with the Iranian army in Tehran in the coming days. AFP
In short, far from rapprochement, the coming days and weeks could well witness a further escalation in tensions between the two regional powers.
In a phone call with Mr Al Kadhimi, US President Donald Trump said Iraq was important to regional and international stability, adding that America would continue to provide economic aid. In turn, Mr Kadhimi said Baghdad was keen to have the best possible relations with Washington.
Yet, none of this need necessarily translate to a radical shift in Iran’s policy of control in Iraq – or vis-a-vis American presence in the country – because the regime would simply not give up its influence in Iraq to the US. What's more, I have been told by those in the know that Tehran views Mr Al Kadhimi's government to be a transitional one – a “temporary solution”.
Iraq is therefore no less vulnerable to destabilisation. It remains fragile so long as the US-Iran conflict is not settled.
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Lebanon is a different matter. In the Iranian regime's calculus, that country is essentially a liquid asset so long as Hezbollah dominates its politics and society. Tehran is therefore not as willing to back down there, and is ready to carry out whatever measures possible to guarantee its continued hold.
Of course, this does not mean that Lebanon is more important to the regime than Iraq is. Lebanon is just less complicated for Iran, even though it shares a border with Israel – one of the regime's biggest adversaries. There is a known margin of agreements, red lines, security zones and buffer strips manned by the United Nations Interim Force on the border. There is also now a buffer zone in the Golan Heights guaranteed by Russia, created with the implicit consent of the Assad regime, in neighbouring Syria.
A view from The National: Germany is right to see Hezbollah for what it really is
Supporters of Hezbollah hold photos of slain Iranian general Qassem Suleimani as they listen to a televised speech by Hezbollah leader Hassan Nasrallah in a southern suburb of the Lebanese capital Beirut. EPA
A giant cutout of Qassem Suleimani set up in the Garden of Iran park built by the Iranian government in the southern Lebanese village of Maroun Al Ras near the border with Israel. AFP
A view of a giant cutout depicting Iran's late top general Qasem Soleimani, who was killed in a US drone strike near Baghdad airport on January 3, 2020. AFP
A Hezbollah supporter holds pictures of Qassem Suleimani during a ceremony marking the the end of a 40-day Muslim mourning period for the Iranian general and the anniversary of the assassination of Hezbollah leaders Abbas Al Moussawi, Ragheb Harb and Imad Mughniyeh. AP Photo
Hezbollah supporters hold pictures of Qassem Suleimani in the southern suburb of Beirut. AP Photo
Hezbollah leader Hassan Nasrallah addresses supporters via a video link. EPA
A Hezbollah supporter holds a photo of Qassem Suleimani during a rally to mark the group's Martyrs Day. EPA
Supporters of Hezbollah hold photos of Hassan Nasrallah and Iran's supreme leader Ali Khamenei in southern Beirut. EPA
An screen grab from Hezbollah's Al Manar TV shows Hassan Nasrallah delivering a televised address from an undisclosed location in Lebanon. AFP
Hezbollah supporters wave the group's flag as they listen to Hassan Nasrallah speak. AP Photo
Hezbollah supporters sing the Lebanese and Hezbollah anthems during a ceremony marking the deaths of slain commanders and the Iranian general Qassem Suleimani in the southern suburb of Beirut. AP Photo
Washington's position regarding Beirut's fate is not entirely clear. In fact, the only bit of clarity we have is that Washington views its situation exclusively through the prism of fighting Hezbollah.
Hezbollah was recently deemed a terrorist entity by Germany, which according to the US is an effective approach to dealing with its growing influence in the region. Washington continues to crack down on its global operations and networks, even as it applies pressure on European countries to refrain from providing economic aid to Beirut as long as its government fails to adopt radical reforms – including the ending of Hezbollah's domination over the airport, ports and border crossings with Syria.
Michael Young: Lebanon's two primary pillars are quivering
A demonstrator is seen next to a burning fire in front of a bank during a protest against growing economic hardship in Sidon, Lebanon. Reuters
A detained demonstrator stands near Lebanese army soldiers during a protest against growing economic hardship in Sidon, Lebanon. Reuters
Interior view of a damaged bank that was set ablaze by protesters in Tripoli, northern Lebanon. EPA
Lebanese people inspect a burnt out car of the Lebanese Internal Security Forces which was set ablaze by protesters in Tripoli, northern Lebanon. EPA
Anti-government protesters shout slogans during a protest against the collapsing Lebanese currency and the price hikes of goods, in front the central bank in Beirut, Lebanon. EPA
Anti-government protesters ride their motorcycles during a protest against the collapsing Lebanese currency and the price hikes of goods, in front the central bank in Beirut, Lebanon. EPA
Lebanese men inspect a burnt out car of the Lebanese Internal Security Forces which was set ablaze by protesters in Tripoli, northern Lebanon. EPA
Workers install metallic barriers on the facade of a bank as a protective measure against vandalism in Tripoli, northern Lebanon. EPA
Exterior view of a damaged bank that was set ablaze by protesters in Tripoli, northern Lebanon. EPA
Workers install metallic barriers along the facade of a bank as a protective measure against vandalism in the Lebanese capital Beirut. AFP
Anti-government protesters shout slogans during a protest against the collapsing Lebanese currency and the price hikes of goods, in front the central bank in Beirut, Lebanon. EPA
Lebanese riot control police watch as annti-government protesters gather during a demonstration against the collapsing Lebanese currency and the price hikes of goods, in Beirut, Lebanon. EPA
Anti-government protesters ride their motorcycles during a protest against the collapsing Lebanese currency and the price hikes of goods, in front the central bank in Beirut, Lebanon. EPA
A demonstrator smashes a window of a bank during a protest against growing economic hardship in Sidon, Lebanon. Reuters
The complacency of Lebanon’s leaders, political parties, and its financial and banking institutions, vis-a-vis corruption and nepotism even as Beirut appeals to the world for aid has prompted Alistair Burt, a former UK minister, to call for the Lebanese to reform their system.
“Sort out the corruption and get your economy sorted and stop running to other people," he said at a summit organised by the Beirut Institute last week. "The solutions have got to be in the hands of those who are governing in Lebanon. Ultimately the issue of Hezbollah can't be ducked and that's got to be tackled.”
In this context, UN Secretary-General Antonio Guterres's report to the Security Council on the implementation of Resolution 1559 – which supports free and fair presidential elections in Lebanon and calls upon remaining foreign forces to withdraw from the country– has interesting implications. Mr Guterres said: "I continue to urge the government and the armed forces of Lebanon to take all measures necessary to prohibit Hezbollah and other armed groups from acquiring weapons and building paramilitary capacity outside the authority of the state."
Circling back to US-Iran relations, the whispers about pragmatism are seemingly coming out of some corridors in Washington, because of the desire to avert a confrontation, and from Tehran, as part of a process of reconfiguration ahead of the US presidential election but also as a result of the domestic difficulties in Iran.
Some have also noted that silence on the part of Tehran and Hezbollah about Israel's brazen determination to annex West Bank and the Jordan Valley could be a sign of their willingness to allow the so-called Deal of the Century concerning the fate of Palestine to pass. But the question is: what are they looking for in return? This is a deeper and more important question that may be at the heart of the choice between escalation and de-escalation in US-Iranian relations.
A view from The National: Israel's new government is a sign of further disasters to come
US Secretary of State Mike Pompeo is pictured near a Patriot missile battery in central Saudi Arabia. AFP
Reports suggesting that the US move to withdraw patriot missiles from Saudi Arabia could signal a new assessment that it does not consider Iran to be a major threat are inaccurate. They have also been dismissed by US Secretary of State Mike Pompeo.
Be that as it may, the meeting in Tehran will shed further light on the fate of Lebanon. Meanwhile, the one in Washington will give us an idea about whether the mood there is for confrontation, or for a pragmatic truce.
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute
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.”
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood. Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues. Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity. Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
Best book: Awaken the Giant Within by Tony Robbins
Food of choice: Sushi
Favourite colour: Orange
Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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Avatar: Fire and Ash
Director: James Cameron
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UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023 More than 3.5 million Indians reside in UAE Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.