Benjamin Netanyahu convenes a cabinet meeting in Jersusalem. EPA
Benjamin Netanyahu convenes a cabinet meeting in Jersusalem. EPA
Benjamin Netanyahu convenes a cabinet meeting in Jersusalem. EPA
Benjamin Netanyahu convenes a cabinet meeting in Jersusalem. EPA

Israeli PM Netanyahu accuses UN nuclear watchdog of weakness on Iran


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Israeli Prime Minister Benjamin Netanyahu has said the UN’s nuclear watchdog, the International Atomic Energy Agency, risks becoming a political organisation ahead of its quarterly report on Iran’s nuclear research.

Last week, excerpts of the report were released to news outlets saying that two investigations had been resolved by the organisation, looking into the presence of unexplained, man-made uranium particles at two nuclear research sites in Iran.

The IAEA will be holding a press conference on its latest findings on Monday.

“Iran is continuing to lie to the International Atomic Energy Agency. The agency's capitulation to Iranian pressure is a black stain on its record,” Mr Netanyahu told his cabinet in televised remarks.

“If the IAEA becomes a political organisation, then its oversight activity in Iran is without significance, as will be its reports on Iran's nuclear activity.”

The agency has been investigating four sites in connection to enriched uranium and repeatedly said Iran must provide “credible explanations” for the presence of the particles, some of which showed evidence of high enrichment, above 80 per cent.

Experts say this is close to the “weapons grade” enrichment required for a nuclear bomb. Iran now has record stocks of 60 per cent enriched uranium, said to be enough for two nuclear weapons – assuming Iran could successfully build and test the devices.

One theory surrounding the presence of particles at a site in Mirivan is that they date back to Soviet-Iranian co-operation at a mine and research facility.

In an apparent reference to this, Mr Netanyahu said: “Iran's excuses … regarding the finding of nuclear material in prohibited locations are not only unreliable, they are technically impossible.”

After former US president Donald Trump quit the Iran nuclear deal in 2018, Tehran ramped up uranium enrichment. Israeli and western officials say it could switch from enrichment at 60 per cent fissile purity to 90 per cent – weapons-grade – within a few weeks.

In a 2012 UN speech, Mr Netanyahu deemed 90 per cent enrichment by Iran a “red line” that could trigger pre-emptive strikes. Experts are divided, however, on whether Israel – despite having an advanced military believed to be nuclear-armed – can deal lasting damage to Iran's distant, dispersed and well-defended facilities.

“In the event that we reach decision point, where the two options are the Iranians breaking out to a bomb or us taking action, we will take action,” Israeli Energy Minister Israel Katz, a member of Mr Netanyahu's national security cabinet, said.

“We are making all of the preparations at this very moment,” Mr Katz told Galey Israel radio.

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UAE currency: the story behind the money in your pockets
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The years Ramadan fell in May

1987

1954

1921

1888

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Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

While you're here

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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Updated: June 04, 2023, 5:59 PM