Capture of US drone provides respite for Iran


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"Satan's eye has been gouged out," a jubilant Iranian daily trumpeted yesterday, referring to Iran's capture of an unmanned US surveillance drone that was apparently staking out the Islamic republic's nuclear facilities. And the deputy chief of Iran's armed forces warned that "the US government will have to pay a high price for its unacceptable actions".

Brigadier General Masoud Jazayeri declared: "Our defensive actions will not be limited to our geographical borders." A leading parliamentarian, Esmail Kowsari, chipped in by warning that if another drone tried to fly over Iran, the country would "target every US military base anywhere in the world."

Despite the lurid threats, however, analysts doubt Iran will retaliate militarily, given its inability to match American firepower. Tehran's propaganda and intelligence coup in netting the radar-evading, RQ-170 Sentinel drone last week can instead be used by the increasingly isolated regime to drum up domestic support while bolstering its claims that Iran is the victim of American aggression.

The episode has also helped to distract attention from ever-tightening sanctions and the diplomatic fallout from the recent storming of the British Embassy in Tehran.

"It is far better to use the prospect of a western threat, which is always hanging there, to get the population to mobilise behind the regime … than actually taking action," said Scott Lucas, an expert on Iran and US foreign policy at Birmingham University in England.

Other analysts point out that Iran has failed to retaliate against a seemingly intensifying campaign of covert operations by the US and Israel, which may be working independently or, at times, together.

There has been a spate of mysterious explosions inside Iran, nuclear scientists have been assassinated, and the uranium enrichment facility at Natanz was temporarily disrupted by the Stuxnet virus last year.

The covert campaign, together with punitive sanctions, has aimed to derail Iran's suspected quest for nuclear weapon's capability - an ambition Tehran denies - without having to resort to direct military action that could lead to a regional conflagration and plunge the global economy into further turmoil.

Neither the US nor Israel has acknowledged responsibility for these various attacks, although each has expressed satisfaction with any resulting setbacks to Iran's nuclear programme.

In turn Iran, which is usually keen to blame both arch enemies for all its troubles, has gone out of its way to insist that recent explosions were accidents that had nothing to do with the 'Great Satan' (America) or the 'Zionist entity' (Israel).

The most serious 'accident' took place on November 12 when a huge explosion ripped through a Revolutionary Guards base 48 kilometres west of Tehran, killing at least 17 people, including a founder of Iran's ballistic missile programme, General Hassan Tehrani Moghaddam.

So why has Iran not hit back? One theory is that despite sanctions, the mysterious explosions, assassinations and the Stuxnet attack, Tehran was steadily progressing with its nuclear programme. "And if they were to retaliate right now, they may provide [the US with the pretext] for a larger war" which could seriously set back Iran's cherished atomic ambitions, said Trita Parsi, president of the National Iranian American Council, on relations between Iran, the US and Israel, said.

Despite heated rhetoric on both sides, neither Iran nor the US wants a military confrontation and each has shown restraint. For instance, the US had mulled plans to go into Iran and recover or destroy the captured drone but decided not to because of the "escalatory risk of it", Dr Parsi said in an interview.

Meir Javedanfar, an Iranian-born analyst based in Israel, argues that the main goal of the US drone operation to spy on Iran was to "expose any secret nuclear activity that can be used to muscle Iran back to the negotiating table".

He added in an interview: "I see the entire international community preferring a peaceful solution to this problem. But it seems to me the thinking in the West that (Iran's supreme leader Ayatollah Ali) Khamenei is not going to come to the negotiating table of his own will, so he has to be forced."

In the absence of direct dialogue with Tehran, however, covert operations could "very easily lead to a real war", said Dr Parsi, author of A Single Roll of the Dice - Obama's Diplomacy with Iran, published this month.

A major point of concern is the possibility of clashes between US and Iranian warships in the crowded waters of the Gulf.

Farideh Farhi, an expert on Iran at the University of Hawaii, said: "It's a thin line that the Obama administration is trying to walk: on the one hand fanning speculation that it, along with Israel, is indeed engaged in covert operations… to unsettle Tehran, and on the other hand claiming that it is the more righteous player in this war of nerves."

Iran is, meanwhile, revelling in the US's embarrassment over the loss of a CIA drone 250 kilometres inside Iranian territory. Boasting technological prowess, Iran claims the aircraft was brought down last week by an "electronic ambush" by a Revolutionary Guards cyber unit.

Tehran will also hope that the drone incident complicates US relations with Afghanistan, where the stealth aircraft was based. Iran's foreign ministry yesterday summoned the Afghan ambassador to protest the violation of Iranian airspace.

And, goading the US, Iran's semi-official Mehr news agency reported on Thursday that Russia and Chinese officials have asked for permission to inspect the captured drone.

How it came down is unclear. The largely intact, boomerang-shaped aircraft was triumphantly paraded on Iranian television on Thursday night. US officials, rejecting Iran's claims the aircraft was electronically hijacked, said it suffered a malfunction.

Some aviation experts said the drone is basically a glider, which could come down gently if it ran out of fuel: it would be damaged only slightly on landing unless it hit something.

Yet the drone was supposedly programmed to either automatically return to its base in Afghanistan in the event of a mishap or possibly even self-destruct. So how it was recovered by the delighted Iranians remains a mystery.

Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
Nick's journey in numbers

Countries so far: 85

Flights: 149

Steps: 3.78 million

Calories: 220,000

Floors climbed: 2,000

Donations: GPB37,300

Prostate checks: 5

Blisters: 15

Bumps on the head: 2

Dog bites: 1

War 2

Director: Ayan Mukerji

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

Rating: 2/5

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.”

Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

THE BIO

Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.

Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.

Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.

Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.

 

 

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff

The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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Transmission: 8-speed dual-clutch auto

Fuel consumption: 10.4L/100km

Price: from Dh547,600

On sale: now 

New UK refugee system

 

  • A new “core protection” for refugees moving from permanent to a more basic, temporary protection
  • Shortened leave to remain - refugees will receive 30 months instead of five years
  • A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
  • To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
  • Under core protection there will be no automatic right to family reunion
  • Refugees will have a reduced right to public funds
COMPANY PROFILE

Company name: Blah

Started: 2018

Founder: Aliyah Al Abbar and Hend Al Marri

Based: Dubai

Industry: Technology and talent management

Initial investment: Dh20,000

Investors: Self-funded

Total customers: 40

Brief scores:

Everton 0

Leicester City 1

Vardy 58'

How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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UAE currency: the story behind the money in your pockets