Mourners pray over the body of Mohsen Fakhirzadeh, the Iranian nuclear scientist who was assassinated on Friday. AP
Mourners pray over the body of Mohsen Fakhirzadeh, the Iranian nuclear scientist who was assassinated on Friday. AP
Mourners pray over the body of Mohsen Fakhirzadeh, the Iranian nuclear scientist who was assassinated on Friday. AP
Mourners pray over the body of Mohsen Fakhirzadeh, the Iranian nuclear scientist who was assassinated on Friday. AP

After scientist's murder, Iran should opt for restraint


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The assassination last week of a top Iranian scientist, Mohsen Fakhrizadeh, is undoubtedly a blow to the malign mission in which he was accused of playing a central role: Tehran’s suspected nuclear weapons programme. But the fallout, if mismanaged, could be damaging to the region as a whole.

For Tehran's hardliners, looking like an ineffective victim is unconscionable

Iran has faced similar setbacks before. Four Iranian nuclear scientists were assassinated between 2010 and 2012. And last January, the head of the Quds Force of the Islamic Revolutionary Guard Corps, Qassem Suleimani, was killed in a US strike. While it remains unclear who is behind the killing, attacks like these fuel anxiety in Iran's government.

Despite threats of a severe response each time, however, Tehran’s immediate retribution tends to be more muted. The fact that there was no direct military response after the killing of Suleimani, whose death was far more significant and symbolic than Fakhrizadeh, is telling about the unlikelihood of such a response this time around.

There are important distinctions between the two men's profiles. Suleimani was a soldier who had ordered many assassinations. Fakhrizadeh’s killing was more surprising as he was not seen as an immeditate military target. Although Iran’s progress towards a nuclear weapon must not be allowed to continue apace, critics will question whether long-term safety and justice are served if extra-judicial killings become a staple of strategies to contain those ambitions.

Moreover, Fakhrizadeh’s assassination creates new risks. Iran has many violent proxy groups in the region. They endanger the lives of those living in countries in which Iranian influence is strong. Rising tensions could result in tragic missteps, like Iran's inadvertent downing of a Ukrainian airliner, killing all 176 passengers, in the tense atmosphere after Suleimani's assassination.

Iranian state media has said that Fakhirzadeh's body will be taken to various shrines throughout the country. AFP
Iranian state media has said that Fakhirzadeh's body will be taken to various shrines throughout the country. AFP

There are political risks, too. Fakhrizadeh’s killing and the emotive internal response to it could empower those in Tehran advocating aggressive reactions. Perhaps this is what the assassins were relying on. Iran’s hard-line faction already has some momentum, as the country struggles under sanctions, Covid-19 and a plunging economy. Paranoia within the government could make Iran move its activities further underground, complicating future negotiations for a new nuclear deal to curb its weapons programme.

History shows us that an Iran under pressure can be particularly volatile. For Tehran’s hardliners, looking like an ineffective victim is unconscionable. In contrast, the real danger to Iran, its people and the wider Middle East, would be the reckless actions advocated by the fringe. Iran should view its current vulnerability as proof that it cannot justify its pariah status any longer.

In less than two months, Joe Biden will take his seat in the Oval Office and his administration will endeavour to find a more certain path by which Iran can come in from the cold. This can only happen, however, if Iran’s leaders can demonstrate restraint and level-headedness, and walk away from their destabilising activities within their borders and around the region.

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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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Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

The Bio

Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”

Holiday destination: “I like Paris very much, it’s a city very close to my heart.”

Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”

Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”