Miliband calls for talks with Iran


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LONDON // David Miliband, the UK foreign secretary, was yesterday seeking urgent talks with his Iranian counterpart over the detention of British Embassy staff in Tehran. Mr Miliband, who is also pressing other European Union states to take far-reaching diplomatic action against Iran, is seeking verification from the Tehran regime of reports that at least one, locally recruited embassy staff member will be put on trial for alleged involvement in anti-government protests. The Associated Press reported yesterday that the embassy's chief political analyst, Hossein Rassam, a 44-year-old Iranian, has been charged at Tehran's Evin Prison with "acting against national security", according to his lawyer, Abolsamad Khorramshahi. Mr Khorramshahi has not yet been allowed to meet his client or see the official report of the incident. He said Mr Rassam would probably stand trial soon. At one stage, up to nine Iranian staff members at the embassy were detained after protests that followed the Iranian presidential election result, which returned Mahmoud Ahmadinejad with 63 per cent of the vote. By yesterday, the foreign office said that all but two had been released. In a sermon in Tehran after prayers on Friday, Ayatollah Ahmad Jannati, the head of Iran's Guardian Council, announced that some embassy staff would face trial and claimed that confessions had been obtained. "In these events, their embassy had a presence. Some people were arrested. Well, inevitably, they will be put on trial." Britain, even more than the United States, has been blamed by the Tehran regime for interfering in Iranian affairs after the election, fomenting the discontent that led to mass protests in several cities. Ayatollah Ali Khamenei, Iran's supreme leader, has described Britain, as the "most evil" of its enemies and Iran's semi-official Fars news agency reported last week that one of the embassy detainees had played a "remarkable role during the recent unrest in managing it behind the scenes". Britain's attempt to get all EU states to withdraw their ambassadors from Iran in protest was thwarted when Carl Bildt, the foreign minister of Sweden, which currently holds the EU presidency, urged a more cautious, wait-and-see approach. EU foreign ministers are not due to meet to discuss the issue until July 27 but, if confirmation is received that any staff have been charged, Mr Bildt is expected to bring the meeting forward. Meanwhile, Nicolas Sarkozy, the French president, has come out firmly in Britain's support, urging immediate sanctions against Iran "so that Iranian leaders will really understand that the path that they have chosen will be a dead end". Mr Miliband said yesterday: "We have noted the remarks by Ayatollah Jannati suggesting that some of our local staff in Iran may face trial. We are urgently seeking clarification from the appropriate Iranian authorities. "We are confident that our staff have not engaged in any improper or illegal behaviour. We remain deeply concerned about the two members of our staff who remain in detention in Iran." William Hague, the Conservative Party's shadow foreign secretary, added: "The harassment of the staff of any embassy is a violation of diplomatic norms and conventions. This is a matter of principle and we should be able to expect solidarity and a united response from other European countries if Iran continues down this unwise path." The West's approach to Iran will dominate the upcoming G8 summit of industrialised countries in Italy. Some EU countries are urging caution, arguing that Europe should engage with Iran, not isolate it. However, diplomatic sources in London said yesterday that, if embassy staff are put on trial, the EU will have no option but to take dramatic diplomatic action. There are historical reasons why Iranians are distrustful of the British, who have a lengthy record of meddling in their affairs, dating back to the 19th century. In 1941, when British and Russian forces occupied Iran and forced its ruler, Reza Shah, to abdicate. Then, throughout the 1960s and 1970s, the UK supported the increasingly corrupt and repressive regime of Mohammad Reza Pahlavi. Against the background of this historic distrust, the British angered the Tehran rulers at the start of the year with the launch of the BBC Persian service, which the government has branded a propaganda arm of the UK government and a reason why so many protesters took to the streets after the June 12 election results were declared. dsapsted@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.”

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