Mahmoud Ahmadinejad unveils the satellite-carrier rocket in Tehran yesterday.
Mahmoud Ahmadinejad unveils the satellite-carrier rocket in Tehran yesterday.
Mahmoud Ahmadinejad unveils the satellite-carrier rocket in Tehran yesterday.
Mahmoud Ahmadinejad unveils the satellite-carrier rocket in Tehran yesterday.

Rocket up, tension down: mixed signals from Iran


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Iran successfully launched a home-made satellite-carrier rocket yesterday that hurled a rat, two turtles and a collection of worms into space. The president, Mahmoud Ahmadinejad, boasted that the Islamic republic would soon dispatch its own astronauts to orbit Earth. Hours earlier, he indicated that Tehran would, despite repeated earlier rejections, accept a vital confidence-building measure to defuse tensions over his country's nuclear programme.

The mixed signals from Tehran - of muscular technological prowess and a possibly U-turn on a long-standing United Nations-brokered uranium fuel exchange deal - come as the Iranian regime faces growing challenges at home and abroad. The Iranian opposition is preparing to stage huge, peaceful protest rallies on February 11, while the US is pressing hard for new sanctions against Iran over its nuclear programme.

Yesterday's display of Iran's rocket virility also follows reports that the United States is bolstering its defences in the Gulf against potential Iranian missile attacks. Western nations fear Iran's ambitious space programme technology could be diverted into developing long-range ballistic missiles capable of carrying nuclear warheads. Tehran denies any such intentions and insists its nuclear programme is solely aimed at the peaceful generation of electricity.

Iran proclaimed that its menagerie-bearing rocket, named the Kavoshgar-3 - Farsi for Explorer-3 - was the "first Iranian launch into orbit with a living thing". A beaming Mr Ahmadinejad trumpeted: "This was a huge breakthrough - Science is an arena - where we can defeat the [West's] domination." He also unveiled a new, domestically-built light booster rocket, named Simorgh (phoenix), as well as three home-built satellites to mark Iran's National Space Day.

But in a surprise move on Tuesday night, Mr Ahmadinejad said he had "no problem" with four month-old UN-brokered proposals to temporarily neuter any perceived threat from Iran's nuclear programme. Iran formally rejected the accord weeks ago after making a series of counter-offers that were rejected by the West because they would not stall Tehran's ability to build a weapon. The deal was initially brokered in October by the International Atomic Energy Agency (IAEA). It requires Iran to send about 75 per cent of its stockpile of low-enriched uranium (LEU) abroad in one batch for further refinement and conversion into fuel rods for use in an internationally-monitored medical research reactor in Tehran.

The accord would delay Iran's potential to build a nuclear bomb by a year, according to experts, buying time for a comprehensive settlement of the seven-year-old nuclear dispute. "We have no problem sending our enriched uranium abroad," a relaxed-looking Mr Ahmadinejad said in an interview with Iranian state television. "We say: 'We will give you our 3.5 per cent enriched uranium and will get the fuel.' It may take four to five months until we get the fuel."

That time frame, however, falls short of the period of about a year that experts say is needed for Iran's 3.5 per cent LEU to be enriched to the 20 per cent level required for its medical reactor. Nor did the Iranian president specify whether Iran would export its LEU in one batch. This was another condition set by the so-called P5+1: the five permanent members of the UN Security Council - the US, China, Russia, Britain and France - and Germany.

There was suspicion in western capitals yesterday that Iran's intention was to play for time and sow discord over further sanctions at the UN Security Council. Western scepticism was pithily expressed by Germany, whose foreign minister, Guido Westerwelle, said: "Iran has to be measured by its actions, not by what it says." Washington said it was not prepared to renegotiate the uranium-swap accord, but if there was a genuine change of heart in Iran the US looked forward to Tehran informing the IAEA.

Russia said it would welcome Mr Ahmadinejad's move provided that it meant Iran accepted the deal outlined last October. The Iranian president had originally appeared to welcome the fuel exchange deal, possibly seeing it as a way to bolster his legitimacy abroad while his standing at home had plummeted because of his disputed re-election last June. But he swiftly backtracked after his rivals across the political spectrum attacked the deal, mostly to prevent him taking any credit for a diplomatic breakthrough that would improve relations with the US, which polls show would be popular with most Iranians.

Yesterday's rocket launch was timed to coincide with 10 days of celebrations marking the 31st anniversary of Iran's Islamic Revolution, which climax on February 11. Exactly a year ago, Iran proclaimed it had burst into the global space race by using a home-made rocket to launch into orbit its first domestically-made satellite, the Omid (hope), for what it said were peaceful telecommunications and research purposes.

On Monday, a Pentagon report said Iran had expanded its ballistic missile capabilities and posed a significant threat to US and allied forces in the Middle East. In a counter-move, officials in Washington said the US was placing specialised ships with missile-targeting capabilities off Iran's coast, and anti-missile systems in at least four Gulf states - the UAE, Bahrain, Kuwait and Qatar. Iran on Tuesday scoffed that the new American deployments were a "puppet show", claiming that Washington's real aim was to boost US influence in the region. Iranian officials insisted Tehran has good relations with neighbouring countries and accused the US of creating "Iran-phobia" in the region.

mtheodoulou@thenational.ae

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.”

PRO BASH

Thursday’s fixtures

6pm: Hyderabad Nawabs v Pakhtoon Warriors

10pm: Lahore Sikandars v Pakhtoon Blasters

Teams

Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.

Squad rules

All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.

Tournament rules

The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.

Gulf Under 19s final

Dubai College A 50-12 Dubai College B

The specs: Volvo XC40

Price: base / as tested: Dh185,000

Engine: 2.0-litre, turbocharged in-line four-cylinder

Gearbox: Eight-speed automatic

Power: 250hp @ 5,500rpm

Torque: 350Nm @ 1,500rpm

Fuel economy, combined: 10.4L / 100km

The biog

Age: 59

From: Giza Governorate, Egypt

Family: A daughter, two sons and wife

Favourite tree: Ghaf

Runner up favourite tree: Frankincense 

Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”

Farage on Muslim Brotherhood

Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.

Europe wide
Some of French groups are threatening Friday to continue their journey to Brussels, the capital of Belgium and the European Union, and to meet up with drivers from other countries on Monday.

Belgian authorities joined French police in banning the threatened blockade. A similar lorry cavalcade was planned for Friday in Vienna but cancelled after authorities prohibited it.

PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

'Munich: The Edge of War'

Director: Christian Schwochow

Starring: George MacKay, Jannis Niewohner, Jeremy Irons

Rating: 3/5

SWEET%20TOOTH
%3Cp%3E%3Cstrong%3ECreated%20by%3A%3C%2Fstrong%3E%20Jim%20Mickle%2C%20Beth%20Schwartz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Nonso%20Anozie%2C%20Christian%20Convery%2C%20Adeel%20Akhtar%2C%20Stefania%20LaVie%20Owen%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A

Russia's Muslim Heartlands

Dominic Rubin, Oxford