European diplomats have said the advanced centrifuges which Iran is using to enrich uranium are still a crucial sticking point at negotiations in Vienna that seek to resurrect the 2015 nuclear deal Iran agreed with world powers.
Officials from France, Germany and the UK, known as the E3, said they still did not know whether Tehran would resume the talks where they left off in June, when a draft accord was 70-80 per cent complete. Since then, Iran has elected a new president, Ebrahim Raisi, and it has a new delegation head at the Vienna talks.
The diplomats said at a briefing there was urgency to reach a conclusion on reviving the pact, but they did not want to impose artificial deadlines, Reuters reported.
The 2015 accord was signed by Iran, the E3, China, Russia and the US.
Iran's envoy Ali Bagheri Kani has taken an ambiguous stance, suggesting that everything negotiated during the six rounds of talks between April and June remained open for discussion.
“What was discussed at the six previous rounds of talks in Vienna resulted in a draft and not an agreement. And a draft is subject to negotiations,” Bagheri Kani told reporters.
“Nothing is agreed until everything is agreed. So all the issues concluded in the previous rounds of talks can be negotiated and it was agreed by all parties to the deal.”
In 2018, former president Donald Trump withdrew the US from the deal as part of his “maximum pressure” campaign against Iran, and he reintroduced heavy sanctions on the country.
Iran now enriches small amounts of uranium of up to 60 per cent purity — a short step from the weapons-grade level of 90 per cent. Iran also spins advanced centrifuges barred under the accord and its uranium stockpile now far exceeds formerly agreed limits.
US President Joe Biden has said America is willing to re-enter the deal, though the negotiations continue with US officials involved only remotely, as has been the case for previous rounds of talks since Washington’s withdrawal from the deal.
French President Emmanuel Macron has urged his Iranian counterpart Mr Raisi to ensure Iran respects its 2015 nuclear deal obligations, after Tehran made a series of bold demands only a day into the talks aimed at salvaging the accord.
Hours after sitting down with international representatives in Vienna, Iran’s lead nuclear negotiator made demands which could prevent the 2015 agreement from being restored. These included assurances of protection against further US sanctions.
In a call to Mr Raisi late on Monday night, Mr Macron said France wanted both Iran and the US to return to the commitments laid out in the deal.
He also “underscored the need for Iran to engage constructively in this direction so that the exchanges allow a swift return to the agreement”, the French presidency said.
“Iran must return without delay to compliance with all its commitments and obligations … and quickly resume co-operation that allows the [UN atomic] agency to fully carry out its mission.”
Mr Raisi's office said he urged Mr Macron “to strive with other parties in Vienna to conclude the negotiations and lift the sanctions against Iran”.
“Sending a full team to the talks shows Iran's serious will in these talks,” Mr Raisi said.
“Those who have started to violate the nuclear deal must gain the confidence of the other party for the negotiations to proceed in a real and fruitful manner,” he said.
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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.”