Iranian President Hassan Rouhani walks alongside Iran's Atomic Energy Organisation chief Ali Akbar Salehi at the Bushehr nuclear power plant (AFP PHOTO / IRANIAN PRESIDENCY WEBSITE / MOHAMMAD BERNO)
Iranian President Hassan Rouhani walks alongside Iran's Atomic Energy Organisation chief Ali Akbar Salehi at the Bushehr nuclear power plant (AFP PHOTO / IRANIAN PRESIDENCY WEBSITE / MOHAMMAD BERNO)

Engagement or isolation are Iran’s only options



Iran and the P5+1 countries (the US, UK, France, Germany, Russia and China) meet in Geneva this week to resume their search for an agreement on Iran’s nuclear programme. Although these sessions will focus on technical aspects of the Iranian programme, the chances of their success will depend on whether Tehran is prepared to abandon decades of ideological hostility in favour of a more pragmatic approach towards international relations.

US-Iranian talks, which began with an informal meeting between John Kerry and Mohammad Jawad Zarif yesterday, will culminate in a session on Sunday incorporating representatives of Iran and all of the P5+1 powers. In theory, the Geneva talks should lead to an agreement in principle by March and in detail by the end of June. The declared aim of the P5+1 is to prevent Iran from developing a nuclear weapons programme while permitting civil nuclear energy capability under close international supervision.

No agreement will be possible unless the US and Iran set aside their intense mutual suspicion. The format of the Geneva talks shows that the P5+1 structure serves mainly as a forum for an intense haggling process between Washington and Tehran. The Iranian negotiators are aware that a rejectionist lobby in Tehran is watching their every move. Similarly, Mr Kerry is worried that the Republican-dominated US Congress could sabotage any proposed deal with Iran by proposing new sanctions.

Overshadowing the entire process is the awareness that the issue of the nuclear programme is inseparable from Iran’s tentative efforts to break out of isolation. For Iran, defiance of the US and its allies used to enhance its reputation among global opponents of the “imperialist” West. After suppressing domestic opposition, Tehran bolstered its domestic legitimacy through its claim to embody Islamic values and Iranian nationalism. As the US and its allies floundered and then withdrew from Iraq, Iran was able to exploit Washington’s uncertainty to further its own influence over Baghdad and Damascus.

With the rise of ISIL and the threat of a Taliban resurgence in Afghanistan, Iran is faced with an increasingly unstable neighbourhood. The collapse of state authority in large areas of Iraq and Syria has drawn Tehran into seemingly intractable local conflicts. While the Iranian regime used to gain credit for promoting the Palestinian cause, the Arab world now sees the complicity of the Iranian Revolutionary Guards in Bashar Al Assad’s persecution of Syrian civilians. Paradoxically, Iran was more secure with US troops in neighbouring Iraq and Afghanistan than they are now without them.

International sanctions and the recent decline in oil prices have exposed Iran’s over-dependence on hydrocarbons exports. The growing economic imperatives behind a policy of engagement were evident in the combative performance of Mr Zarif in the Iranian parliament last week. Faced with criticism that Iran had been too accommodating towards the P5+1, Mr Zarif responded by claiming that the international community now recognised Iran as a “powerful and logical actor that cannot be set aside or ignored” and that “large countries and large corporations are lining up at our door”.

Iranian leaders are now faced with a hard choice between leading a continuing revolutionary crusade and developing a more pragmatic relationship with the international community. The evidence suggests that Hassan Rouhani and his allies wish to take the road of moderation. Mr Rouhani has sought to build broader public support for his policy of engagement with the P5+1. His remark that “our ideals are not bound to centrifuges”, given to an audience of economists in Tehran last week, suggests that Mr Rouhani has accepted that Iran can best serve its national interests by compromising over the nuclear issue.

The argument is ultimately about whether or not the Islamic Republic can withstand the shock of “opening up” to the outside world. Although he repeatedly denounces the US as the “enemy”, Ayatollah Ali Hosseini Khamenei, Iran’s Supreme Leader, has said he will “accept any just and rational agreement”. Perhaps the success of the entire deal will turn on the Supreme Leader’s ability to overcome his distrust of those he sees as Iran’s historic enemies.

The reality is that international sanctions and the toll taken by declining oil prices mean that Iran needs this agreement more than the P5+1 powers. Some years ago, in anticipation of the potentially lengthy diplomatic process needed to deal with Iran’s nuclear ambitions, former US secretary of state Henry Kissinger warned that normal relations with Tehran “cannot happen unless Iran’s leaders decide whether they are representing a cause or a nation”.

The time has come for the Islamic Republic to choose between ideology and national interests. As the June deadline looms, Iran can opt for either deepening isolation or a new engagement with the international community.

Stephen Blackwell is an inter­national politics and security ­analyst

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Paris Can Wait
Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars

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Sustainable Development Goals

1. End poverty in all its forms everywhere

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

3. Ensure healthy lives and promote well-being for all at all ages

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

5. Achieve gender equality and empower all women and girls

6. Ensure availability and sustainable management of water and sanitation for all

7. Ensure access to affordable, reliable, sustainable and modern energy for all

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

10. Reduce inequality  within and among countries

11. Make cities and human settlements inclusive, safe, resilient and sustainable

12. Ensure sustainable consumption and production patterns

13. Take urgent action to combat climate change and its effects

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

17. Strengthen the means of implementation and revitalise the global partnership for sustainable development

Slow loris biog

From: Lonely Loris is a Sunda slow loris, one of nine species of the animal native to Indonesia, Malaysia, Thailand and Singapore

Status: Critically endangered, and listed as vulnerable on the International Union for Conservation of Nature red list due to growing demand in the global exotic pet trade. It is one of the most popular primate species found at Indonesian pet markets

Likes: Sleeping, which they do for up to 18 hours a day. When they are awake, they like to eat fruit, insects, small birds and reptiles and some types of vegetation

Dislikes: Sunlight. Being a nocturnal animal, the slow loris wakes around sunset and is active throughout the night

Superpowers: His dangerous elbows. The slow loris’s doe eyes may make it look cute, but it is also deadly. The only known venomous primate, it hisses and clasps its paws and can produce a venom from its elbow that can cause anaphylactic shock and even death in humans

What is 'Soft Power'?

Soft power was first mentioned in 1990 by former US Defence Secretary Joseph Nye. 
He believed that there were alternative ways of cultivating support from other countries, instead of achieving goals using military strength. 
Soft power is, at its root, the ability to convince other states to do what you want without force. 
This is traditionally achieved by proving that you share morals and values.

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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.”

The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
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The bio

His favourite book - 1984 by George Orwell

His favourite quote - 'If you think education is expensive, try ignorance' by Derek Bok, Former President of Harvard

Favourite place to travel to - Peloponnese, Southern Greece

Favourite movie - The Last Emperor

Favourite personality from history - Alexander the Great

Role Model - My father, Yiannis Davos