Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori smile as they sit in a plane flying over London. Reuters
Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori smile as they sit in a plane flying over London. Reuters
Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori smile as they sit in a plane flying over London. Reuters
Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori smile as they sit in a plane flying over London. Reuters

UK denies paying 'blood money' for Nazanin Zaghari-Ratcliffe release


Tim Stickings
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The UK on Thursday defended the payment of almost £400 million ($525m) to Iran after former US secretary of state Mike Pompeo accused Britain of paying “blood money” to secure the release of two detainees.

Prime Minister Boris Johnson’s office insisted the payment to settle an outstanding military debt was “not contingent” on the release of British-Iranian dual citizens Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori.

It came after Mr Pompeo, who served under former president Donald Trump and is a long-standing critic of Iran, accused Britain of “rewarding hostage-takers” and said the money would be used to terrorise the UK, US and Israel.

“The UK priced taking and holding its citizens hostage at $530 million,” he said.

Mr Johnson’s spokesman said the payments were made “in parallel” with the release of the two detainees, to cover an order for Chieftain tanks that was cancelled following the Iranian revolution in 1979.

“We have resolved that debt as we always said we would. The UK has never accepted our nationals being used as political leverage for any purpose,” the spokesman said.

Ms Zaghari-Ratcliffe and Mr Ashoori have returned to the UK after spending years in Iranian prisons on charges of espionage, which Britain described as unjustified.

A third detainee, Morad Tahbaz, was released from prison on furlough and Foreign Secretary Liz Truss said diplomatic efforts to secure his departure from Iran should continue.

She attributed the release of the three prisoners to “tenacious and creative British diplomacy” and said the money paid to Iran would be ring-fenced solely for the purchase of humanitarian goods.

Another minister in the Foreign Office, James Cleverly, said officials had to work around international and British sanctions against Iran to come up with a deal to solve the dispute.

The debt was owed by the Ministry of Defence-owned company International Military Services Limited, which had signed a contract with the shah of Iran’s government before he was overthrown.

Iran had made initial payments to Britain but the contract was not fulfilled once the shah was toppled and the revolutionary government took power.

  • Nazanin Zaghari-Ratcliffe reunited with her husband, Richard Ratcliffe, and their daughter, Gabriella, after being held for six years in Iran. Photo: @TulipSiddiq via Twitter
    Nazanin Zaghari-Ratcliffe reunited with her husband, Richard Ratcliffe, and their daughter, Gabriella, after being held for six years in Iran. Photo: @TulipSiddiq via Twitter
  • Ms Zaghari-Ratcliffe and Anoosheh Ashoori, centre, with their families. Photo: @lilika49 via Twitter
    Ms Zaghari-Ratcliffe and Anoosheh Ashoori, centre, with their families. Photo: @lilika49 via Twitter
  • Nazanin Zaghari-Ratcliffe with her daughter at RAF Brize Norton airbase. EPA
    Nazanin Zaghari-Ratcliffe with her daughter at RAF Brize Norton airbase. EPA
  • Nazanin Zaghari-Ratcliffe with her daughter Gabriella, husband Richard and British Foreign Secretary Liz Truss at RAF Brize Norton. EPA
    Nazanin Zaghari-Ratcliffe with her daughter Gabriella, husband Richard and British Foreign Secretary Liz Truss at RAF Brize Norton. EPA
  • Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori were released in March 2022. Reuters
    Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori were released in March 2022. Reuters
  • Ms Zaghari-Ratcliffe and Mr Ashoori with the cabin crew in Brize Norton. Reuters
    Ms Zaghari-Ratcliffe and Mr Ashoori with the cabin crew in Brize Norton. Reuters
  • Ms Zaghari-Ratcliffe and Mr Ashoori as their plane flies over London. Reuters
    Ms Zaghari-Ratcliffe and Mr Ashoori as their plane flies over London. Reuters
  • Ms Zaghari-Ratcliffe sits in a plane en route to London after taking off from Teheran. Reuters
    Ms Zaghari-Ratcliffe sits in a plane en route to London after taking off from Teheran. Reuters
  • Mr Ashoori gestures as he sits in the plane heading to London. Reuters
    Mr Ashoori gestures as he sits in the plane heading to London. Reuters
  • Ms Zaghari-Ratcliffe was arrested in Tehran in April 2016 as she prepared to fly back to the UK, having taken her daughter Gabriella to see relatives. AFP
    Ms Zaghari-Ratcliffe was arrested in Tehran in April 2016 as she prepared to fly back to the UK, having taken her daughter Gabriella to see relatives. AFP
  • She was accused of plotting to overthrow the Iranian government and sentenced to five years in jail, spending four years in Tehran’s Evin Prison and one under house arrest. Photo: Tulip Siddiq / Twitter
    She was accused of plotting to overthrow the Iranian government and sentenced to five years in jail, spending four years in Tehran’s Evin Prison and one under house arrest. Photo: Tulip Siddiq / Twitter
  • Richard Ratcliffe with daughter Gabriella outside their house in London on Wednesday. AFP
    Richard Ratcliffe with daughter Gabriella outside their house in London on Wednesday. AFP
  • Ms Zaghari-Ratcliffe and Mr Ashoori arrive in Oman en route to the UK. Photo: @badralbusaidi / Twitter
    Ms Zaghari-Ratcliffe and Mr Ashoori arrive in Oman en route to the UK. Photo: @badralbusaidi / Twitter
  • Mr Ratcliffe went on a hunger strike in October 2021 in protest at the UK government’s failure to secure his wife's release. AFP
    Mr Ratcliffe went on a hunger strike in October 2021 in protest at the UK government’s failure to secure his wife's release. AFP
  • Ms Zaghari-Ratcliffe boards a plane as she prepares to leave Tehran. Reuters
    Ms Zaghari-Ratcliffe boards a plane as she prepares to leave Tehran. Reuters
  • Mr Ratcliffe told the media that the family plan to find solace elsewhere for a few days. Reuters
    Mr Ratcliffe told the media that the family plan to find solace elsewhere for a few days. Reuters
  • Gabriella was not yet two when her mother was arrested. Photo: Tulip Siddiq / Twitter
    Gabriella was not yet two when her mother was arrested. Photo: Tulip Siddiq / Twitter
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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.”

The stats

Ship name: MSC Bellissima

Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

Crew members: 1,536

Number of cabins: 2,217

Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

ESSENTIALS

The flights 

Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes. 

Where to stay 

The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.

Most sought after workplace benefits in the UAE
  • Flexible work arrangements
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  • Insurance coverage for optical, dental, alternative medicine, cancer screening
  • Financial well-being incentives 
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Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

Updated: March 18, 2022, 9:32 AM