Hezbollah commandos carry the coffin of slain Hezbollah commander, Imad Mughnieh, during his funeral in the southern suburbs of Beirut on February 14, 2008. Mazen Akl / AFP
Hezbollah commandos carry the coffin of slain Hezbollah commander, Imad Mughnieh, during his funeral in the southern suburbs of Beirut on February 14, 2008. Mazen Akl / AFP

Foreign policy flops characterise Iranian diplomacy

An interesting development has taken place at Iran’s foreign ministry in recent days. In a shake-up of posts, foreign minister Mohammad Javad Zarif named Hossein Jabiri Ansari to take over as deputy foreign minister for Arab and African affairs.

Mr Ansari replaced Hussein Amir Abdel Lahyan, who is considered close to the Revolutionary Guards and had oversight of Syrian and Lebanese affairs. Arab press reports described the new deputy foreign minister as a “friend” of the Arab states.

The appointment was interpreted as an attempt by Mr Zarif to gain control of relations with the Arab world, at a time when these have reached an all-time low, amid sectarian conflict from Lebanon to Iraq to Yemen.

While the move will hardly eliminate the Revolutionary Guards from the equation, it could add flexibility to relationships otherwise fraught with tension.

If that is indeed the result, it would not be bad for Iran. The Islamic Republic’s ties with Arab countries cannot be deemed a success – or rather its successes have only heightened domestic polarisation in countries, leading to accusations that Iran is pursuing power by destabilising the region.

A policy of playing on the region’s divisions may have earned Iran political leverage, but it has also generated strong resistance to whatever it does. Like Turkey, Iran is turning into a peripheral state getting burnt while playing Arab politics.

Nowhere is this more evident than in Syria. The Iranians and their allies – including Hizbollah, Iraqi militias, and Shia recruits from Afghanistan and elsewhere – are caught in a quagmire, with no end in sight.

There has been much speculation that Iran is spearheading a resettlement of foreign Shia in Syria, but it’s difficult to see such a project work when the Iranians are facing considerable military difficulties.

In recent weeks, they and their allies have suffered major casualties in southern Aleppo province. Illustrating how the Iranian agenda may differ from that of Russia, regardless of their cooperation in defending Bashar Al Assad’s regime, Russian aircraft have not intervened to help Iran and its allies.

One can speculate as to why that is the case, with the Russians pursuing their own aims in Syria, including a dialogue with the United States over a resolution to the war there. But the reality is that Iranians and their Shia partners are bearing the brunt of the fighting, and all the signs are that they are not winning.

With every passing day Mr Al Assad can see that reliance on Iran has its limits, regardless of whether they helped sustain him until now. What this means from a Russian perspective is that the Syrian leader will have greater trouble playing Russia and Iran off against each other so as to sidestep a political outcome to the Syrian conflict that may lead to his departure.

Iran’s policies in Lebanon are not much more successful. While its ally Hizbollah is powerful, this has produced resentment in the rest of the country, which sees the party as a state within a state. Hizbollah has been implicated in the 2005 assassination of prime minister Rafiq Hariri, is viewed as responsible for the presidential void, and is increasingly regarded, even by Shia, as corrupt.

On top of this Lebanon’s Shia are paying a high price. The Gulf is essentially closed to them today as an outlet for work opportunities, while the community flounders economically at home.

Many Shia families are losing their sons in Hizbollah’s war in Syria. And now even opening a bank account can be a headache, as banks, facing potential American sanctions, fear Shia depositors who may have ties with the party.

In Iraq, Iran has made considerable headway and is a power broker, but at what cost? The Sunnis are alienated, helping lead to the emergence of ISIL, while even the state is ambivalent about the expanding power of pro-Iranian militias.

The country is fragmented, creating the impression that Iranian influence can only thrive where Arabs are at odds with each other – hardly a message an avowed “anti-imperialist” country wants to send.

And in Yemen, with the conflict at a standstill, Iran is probably hurt as much as the other countries that are involved. Suffering turns populations against everyone.

For a diplomat like Mr Zarif, this panorama of conflict cannot be reassuring. An Iran that only mobilises enemies is hardly ideal for a government wanting to bring the country in from the cold. His margin of manoeuvre will not be great, as he may be contested by hardliners. However, for a nation with a high view of its regional role, isolation does not serve this goal.

Mr Zarif may seek to remedy that. However, the country often seems to have a split personality, as the current debate over the nuclear deal can attest.

But the minister’s success in removing Mr Abdel Lahyan was meaningful. It confirmed there are those in Tehran with a fresh vision for addressing the Arab world.

Michael Young is a writer and editor in Beirut

On Twitter: @BeirutCalling


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Pages: 240
Publisher: Hirmer Publishers
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Director: Nag Ashwin

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Main Event : Catchweight 165lb
Martun Mezhulmyan (ARM) v Acoidan Duque (ESP)
Co-Main Event : Bantamweight
Felipe Pereira (BRA) v Azamat Kerefov (RUS)
Mohamad Osseili (LEB) v Amir Fazli (IRN)
Catchweight 161 lb
Zhu Rong (CHI) vs. Felipe Maia (BRA)
Catchweight 176 lb
Handesson Ferreira (BRA) vs. Ion Surdu (MDA)
Catchweight 168 lb
Artur Zaynukov (RUS) v Sargis Vardanyan (ARM)
Ilkhom Nazimov (UZB) v Khazar Rustamov (AZE)
Jalal Al Daaja (JOR) v Mark Alcoba (PHI)
Jakhongir Jumaev (UZB) v Dylan Salvador (FRA)
Catchweight 143 lb
Hikaru Yoshino (JPN) v Djamal Rustem (TUR)
Javohir Imamov (UZB) v Ulan Tamgabaev (KAZ)
Catchweight 120 lb
Larissa Carvalho (BRA) v Elin Oberg (SWE)
Hussein Salem (IRQ) v Arlan Faurillo (PHI)


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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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Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
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Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment

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Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match

WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura

Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe

United States Championship Jeff Hardy (champion) v Jinder Mahal

SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos

Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt

Casket match The Undertaker v Rusev

Singles match John Cena v Triple H

Cruiserweight Championship Cedric Alexander v Kalisto

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Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2


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64 - Rory McIlroy (NIR)

66 - Jon Rahm (ESP)

67 - Tom Lewis (ENG), Tommy Fleetwood (ENG)

68 - Rafael Cabrera-Bello (ESP), Marcus Kinhult (SWE)

69 - Justin Rose (ENG), Thomas Detry (BEL), Francesco Molinari (ITA), Danny Willett (ENG), Li Haotong (CHN), Matthias Schwab (AUT)