The resumption of nuclear talks tomorrow between Iran and six world powers is surrounded by more optimism than at any other time in recent years, but few expect a quick breakthrough in the decade-old standoff over Tehran’s nuclear ambitions.
Rejecting a key Western demand, Iran insisted yesterday it would not ship its enriched uranium stockpiles abroad. At the same time, it signalled flexibility on other major aspects of its nuclear programme.
“We will negotiate regarding the form, amount and various levels of [uranium] enrichment,” Iran’s deputy foreign minister, Abbas Araqchi, said. But exporting the “enriched material is a red line for Iran”.
Since the last round of talks ended in stalemate in April, developments in Iran have renewed hopes of major improvement in ties between Tehran and the West.
Iranians have elected a moderate new president, Hassan Rouhani, who pledged to ease the international sanctions that have been imposed for Tehran’s alleged failure to comply with United Nations standards for transparency in its nuclear undertakings.
“It is good to have centrifuges running, provided people’s lives and livelihoods are also running,” he declared during his June election campaign.
Last month Mr Rouhani broke a central taboo of Iran’s postrevolutionary system by taking a phone call from an American leader. His 15-minute chat with Barack Obama was the first presidential-level contact between the two countries in 34 years.
Mr Rouhani says he wants a deal within six months on Iran’s nuclear programme in the hope of easing the sanctions and has appointed his well-regarded, US-educated foreign minister, Mohammad Javad Zarif, to oversee talks with the UN Security Council’s five permanent members — the US, Russia, China, Britain and France — plus Germany, who together make up the so-called P5+1.
“It’s looking better than before but it’s very, very far from a done deal,” said Trita Parsi, president of the National Iranian American Council, an advocacy group. “The process is very fragile and the opponents of diplomacy on both sides are doing everything they can to make sure that this effort fails.”
For now, Mr Rouhani has the backing of Iran’s hardline supreme leader, Ayatollah Ali Khamenei, to explore the possibilities of a nuclear deal and to improve relations with Washington.
“The domestic political conditions in Tehran have never been as propitious for a settlement as they are today,” said Sir Richard Dalton, a former British ambassador to Iran.
However, many Iran experts point out that Mr Obama enjoys no such latitude from the US Congress, making it questionable whether he can deliver on a promise to ease sanctions if Tehran does give ground.
“The anti-Iran vibe is something that unites all of [US] Congress, so Obama might not be able to offer Tehran much,” said Dina Esfandiary, a nuclear non-proliferation expert at the International Institute for Strategic Studies in London. “This is ironic because this time, it seems the Iranians will show up and negotiate in good faith because Rouhani has Khamenei’s blessing.”
Mr Araqchi, the Iranian deputy foreign ministry, said Iran will present a “specific” new plan at the two-day talks in Geneva. But Tehran also expects the world powers to make new proposals.
Still on the table is a P5+1 offer to lift some economic sanctions in exchange for Iran’s suspension of its most pure uranium enrichment. According to Mr Zarif, however, that offer “belongs to history, and they must enter talks with a new point of view.”
Any interim deal is likely to focus on Iran’s halting enrichment of uranium to 20 per cent purity — a short technological leap from the 90 per cent purity of bomb-grade fissile material — and limiting the number of centrifuges it operates. Iran may also be prepared to allow access to a military site where it allegedly tested triggers for a nuclear warhead 10 years ago.
But Tehran wants guarantees before taking these steps. That means an explicit Western commitment to accept Iran’s right to a domestic nuclear fuel cycle at up to 5 per cent enrichment, which is sufficient for power generation. This would take place under strict international supervision. All sanctions would eventually be lifted in sequenced and reciprocal steps.
Hardliners in Tehran are ready to pounce if Mr Zarif offers too much in return for too little in Geneva, or if diplomacy fails to bring relief from sanctions soon.
Mistrust runs deep. Mr Khamenei last week branded the US government “untrustworthy, supercilious and unreasonable”, while Wendy Sherman, the US’s P5+1 negotiator with Iran, said of Tehran: “We know that deception is part of the [Iran’s] DNA.”
The US Congress and Israel are vehemently opposed to Iran’s enriching uranium at any level, saying that would still leave Tehran with the ability to produce weapons-grade material. Iran insists its nuclear programme is peaceful in nature and aimed at power generation and the production of medical isotopes for treating cancer patients.
The ability to enrich and maintain a uranium stockpile is crucial to Iran’s leaders. They have invested national prestige in a programme they champion as central to Iran’s scientific prowess and independence.
Ms Sherman urged Congress last week to wait until after the Geneva meeting before deciding whether to pass tough new sanctions against Tehran. The proposed new penalties include a total ban on Iranian oil exports and would further block Tehran’s ability to conduct international trade.
John Kerry, the US secretary of state, suggested last week that Washington and its allies would reward Iran if it curbs its nuclear programme and offers more transparency on its atomic activities.
That will require the US to invest as “much ingenuity” in relieving sanctions against Iran as it has done in imposing them, Suzanne Maloney, an Iran expert at the Saban Centre at the Brookings Institution in Washington, wrote on her blog. “Because we are witnessing a real and significant effort by Tehran to dial back its confrontation with the world over the nuclear issue.”
mtheodoulou@thenational.ae
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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.”
Look%20Both%20Ways
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UAE%20SQUAD
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
The%20Mother%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Niki%20Caro%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Jennifer%20Lopez%2C%20Joseph%20Fiennes%2C%20Gael%20Garcia%20Bernal%2C%20Omari%20Hardwick%20and%20Lucy%20Paez%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
UAE v Ireland
1st ODI, UAE win by 6 wickets
2nd ODI, January 12
3rd ODI, January 14
4th ODI, January 16
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56