Some allies don’t share US eagerness for deal with Iran


Hussein Ibish
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The sudden convergence of foreign ministers in Geneva over the weekend – John Kerry the US secretary of state, his colleagues from Iran, the UK, France, Germany and Russia, plus the EU's foreign policy chief and a Chinese vice-minister – suggested that an interim agreement on Tehran's nuclear programme might have been at hand.

But while the US, Iran and others appeared to be nearing an agreement, French Foreign Minister Laurent Fabius declared mais non.

The French insisted that the agreement being contemplated didn’t go far enough in forcing the Iranians to mothball a heavy-water plutonium reactor near the city of Arak. And they took a tougher line in demanding that Iran not only suspend its production of 20-per-cent-enriched uranium, but convert existing stocks into oxidised forms more difficult to use in nuclear weapons.

With this last-minute intervention, France showed again that under different governments in recent years it has become the most hawkish western nation on matters involving the Middle East and neighbouring areas. France pushed the Libyan intervention, invaded and rescued Mali, was most enthusiastic about strikes against Syrian chemical weapons targets and, on Iran, refused to accept what it bluntly called a “sucker’s deal”.

Notably, it was the French, not the Americans, who publicly insisted that the concerns of the West’s Middle East allies, including the Arabian Peninsula states and Israel, be part of the equation.

EU foreign policy chief Catherine Ashton, in a brief press conference with the Iranian foreign minister, Mohammad Javad Zarif, said tersely that talks would resume in Geneva on November 20.

Ever since the new Iranian president, Hassan Rouhani, launched his “charm offensive” of sustained overtures towards the West, with the overt blessing and support of Supreme Leader Ayatollah Ali Khamenei, the prospect of an agreement has become plausible, after many years of stalemate.

French objections aside, it is really the convergence of US and Iranian desires to avoid an even deeper confrontation over the nuclear file that makes an agreement possible at this stage. Both sides have an incentive to buy time, postpone a potential confrontation and leave the most difficult decisions for another day.

US President Barack Obama’s formula – that “Iran will not be allowed to possess a nuclear weapon” – looks straightforward at first glance, but the precise meaning of “possess”, and exactly what constitutes “a nuclear weapon”, would have to be defined in order to glean the precise trigger for an American military intervention.

Still, this policy does commit the US to intervene at some point if Iran persists in attempting to become a nuclear power. But it’s clear that the Obama administration has a strong preference for diplomacy over force.

The palpable urgency on the Iranian side reflects the crippling effect of the latest and toughest sanctions regime on the Iranian economy. Many observers see Mr Rouhani’s strong electoral mandate as a reflection of overwhelming public demand for a serious effort to get these sanctions, especially on banking and oil, lifted or at least eased. Mr Khamenei’s strong backing for Mr Rouhani suggests that even he realises there is a pressing need to achieve this.

This urgency is also the product of the fact that while Mr Rouhani has a mandate and real domestic political momentum to make an overture to the international community and the West, he also faces stiff opposition from Iranian hardliners.

Mr Khamenei’s recent admonition to the Revolutionary Guard that it “does not have a political role”, and the hardliners’ strong backlash against Mr Rouhani’s courting of the West underscore the size of the domestic political challenges he faces.

The Iranians seek an easing of the most pressing sanctions in exchange for easily reversed suspensions of enrichment and other aspects of its programme. France is not the only potential obstacle. Some of what Iran is looking for would require the approval of the US Senate which is, if anything, moving to tighten rather than loosen sanctions.

Even if a “first step” deal is achieved, and buys time for both sides, a broader agreement that essentially ensures Iran will not become a nuclear power would be much more challenging. It would hinge on the number and kind of centrifuges Iran may retain, and other measures that reverse Iranian progress to date.

But this is what American allies – including the United Arab Emirates, which Mr Kerry is scheduled to visit today, and Saudi Arabia – will require if they are to believe the United States has fulfilled its regional responsibilities.

Israel, meanwhile, has said it will not feel bound by any western agreement with Iran.

If the US is seen as simply buying time for itself while leaving its allies vulnerable, they may look for other options. Israel may launch a military strike of its own. And GCC states may look beyond Washington for protection.

Some of America’s traditional friends seem to be concluding, with alarm, that the US is morphing from the guarantor of regional stability to a broker of unsatisfactory and tenuous agreements with regimes that should be confronted or contained. The impression that only last-minute French intervention prevented a rushed and unwise agreement with Iran – even if that impression is unfounded and unjust – exacerbates rather than assuages such fears.

This trend is profoundly unhealthy. It is strongly in the interests of America and its Middle East allies that confidence in US leadership, and mutual respect and loyalty, be revived and strengthened.

Hussein Ibish is a senior fellow at the American Task Force on Palestine and a columnist for Now Media. He blogs at www.ibishblog.com

On Twitter: @ibishblog

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The five types of long-term residential visas

Obed Suhail of ServiceMarket, an online home services marketplace, outlines the five types of long-term residential visas:

Investors:

A 10-year residency visa can be obtained by investors who invest Dh10 million, out of which 60 per cent should not be in real estate. It can be a public investment through a deposit or in a business. Those who invest Dh5 million or more in property are eligible for a five-year residency visa. The invested amount should be completely owned by the investors, not loaned, and retained for at least three years.

Entrepreneurs:

A five-year multiple entry visa is available to entrepreneurs with a previous project worth Dh0.5m or those with the approval of an accredited business incubator in the UAE.  

Specialists

Expats with specialised talents, including doctors, specialists, scientists, inventors, and creative individuals working in the field of culture and art are eligible for a 10-year visa, given that they have a valid employment contract in one of these fields in the country.

Outstanding students:

A five-year visa will be granted to outstanding students who have a grade of 95 per cent or higher in a secondary school, or those who graduate with a GPA of 3.75 from a university. 

Retirees:

Expats who are at least 55 years old can obtain a five-year retirement visa if they invest Dh2m in property, have savings of Dh1m or more, or have a monthly income of at least Dh20,000.

COMPANY%20PROFILE
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The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

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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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Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons.  Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.

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The%20specs
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THE SPECS

Engine: 3-litre V6

Transmission: eight-speed automatic

Power: 424hp

Torque: 580 Nm

Price: From Dh399,000

On sale: Now

FROM%20THE%20ASHES
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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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Based: Dubai, UAE

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Funding: $40 million

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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners