The first Iran nuclear deal, signed in 2015, took former US president Donald Trump very little time to withdraw from three years later. The agreement’s supporters decried the move as a rash attack on years of careful diplomacy that had made the world safer. Iran claimed it was proof the US was a destabilising, untrustworthy partner, a narrative its regime has been pushing since the 1979 revolution, and that it fundamentally changed the calculus of its geopolitical situation.
Quick to end, it has taken far longer get a revised version off the ground. If the first deal was so groundbreaking, it begs the question why has a new one not come about sooner? There are many reasons – a lack of trust is definitely there – but it also suits powerful factions in Iran to kick the can down the road for as long as possible.
That might be about to end. While the process is not yet finished, all signs point to the negotiations entering a critical phase in the next few days and weeks that could result in a new deal.
On Monday, Iran sent its response to a "final" draft text submitted by the EU. It has taken 16 months of indirect US-Iranian talks, with the EU mediating, to get this far. The US has said it will share its opinion on the document "privately". Iran says that its "additional views and considerations" to the text would be conveyed later.
Tehran has also encouraged the US to show flexibility on remaining sticking points. The country's foreign minister, Hossein Amirabdollahian said: "Specifically, there are three issues … if these three issues are resolved, we can reach an agreement." He did not say what they were.
They are, however, widely believed to be Iran's anger at an International Atomic Energy Agency investigation into traces of uranium at sites in the country, a lack of guarantees that the US would not again walk away from a deal and the future of how the west labels and sanctions the Islamic Revolutionary Guard Corps.
The nuclear containment of Iran is an issue of global importance, one that the previous deal managed to some degree. What it did not do was contain the destabilising effect of the IRGC in the Middle East, which the group exercised through its wide network of militias and proxy groups in the region.
However tempting a deal might be, the allies of Arab states at the negotiating table must not cede ground on the important issue of containing Iran's strategy of consolidating its regional power by sowing instability. Managing the IRGC is an integral part of achieving this.
Engaging with the issue would also make the West safer. Intelligence officials are reported to have said that Hadi Matar, the man accused of stabbing author Salman Rushdie at a recent event in the US, had contact with the IRGC. In July, the FBI said that Tehran had hatched a plan to kidnap Iranian-American activist Masih Alinejad from her home in Brooklyn. Last Wednesday, the US Justice Department charged a member of the IRGC for being part of a plot to kill former American national security adviser John Bolton and secretary of state Mike Pompeo.
Iran is keen to stress it is not reliant on a deal. Mr Amirabdollahian has said that Tehran has a "plan B". But a better deal than the last makes the world safer. That includes Iran. The country has much to gain from re-entering the international fold. It has much to lose, as do its neighbours, if it chooses yet more isolation in the critical days ahead.
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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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.”
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A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5