TEHRAN // President Hassan Rouhani ordered his defence minister on Thursday to expand Iran’s missile programme, in response to a US threat to impose sanctions over a ballistic missile test Iran carried out in October.
“As the US government is clearly still pursuing its hostile policies and illegal meddling ... the armed forces need to quickly and significantly increase their missile capability,” Mr Rouhani wrote in a letter to defence minister Hossein Dehghan, published on the state news agency IRNA.
US president Barack Obama’s administration is preparing new sanctions against international companies and individuals over Iran’s ballistic missile programme, sources familiar with the situation said on Wednesday.
Meanwhile, an Revolutionary Guard commander on Thursday denied test-firing rockets close to a US aircraft carrier in the Strait of Hormuz.
The Guards’ naval unit is responsible for securing the country’s interests in the vital waterway, regularly patrolling the area and conducting exercises. “The Guards’ naval force had no exercise in the past week when the Americans claim that a missile or rocket was fired in the Hormuz Strait area,” said Gen Ramezan Sharif.
A US military official said on Wednesday that an Iranian vessel had test-fired several rockets near three western warships, including the USS Harry S Truman aircraft carrier last Saturday.
A French frigate and the USS Bulkeley destroyer were also in the area.
Although the rockets were not fired towards any warship, their proximity to the foreign vessels, along with several commercial ships, was “highly provocative”, the official said.
Gen Sharif, however, accused the United States of lying about the incident, which was reported to have occurred after Iranian naval forces announced via radio that the test-firing would occur.
“Publishing such lies in the current situation is more a psychological operation,” he said.
“The security and peace of the Gulf is of serious strategic importance to Iran. The Guard conduct exercises to increase our required preparedness at due times, based on our own schedule.”
Nearly a third of all oil sent by sea passes through the strait, which is located between the UAE, Oman and Iran. The waterway is crucial to vessels taking part in the fight against ISIL in Iraq and Syria.
The incident comes after Iran and US-led world powers agreed a landmark deal to limit Tehran’s nuclear programme in exchange for lifting economic sanctions. While heralded by moderates, such as Iranian president Hassan Rouhani, hardliners denounced the agreement as being against national interests.
Since the July 14 deal, Iran has conducted missile tests criticised by the US. They include a medium-range Emad rocket on October 10 and footage of an underground missile base that was aired on state TV.
On Wednesday, the Wall Street Journal reported that the US was preparing sanctions against about 12 companies and individuals in Iran, Hong Kong and the UAE over alleged links to Iran’s ballistic missile programme.
Such a move by the US treasury would be the first American sanctions against Iran since the nuclear agreement.
Although Iran’s supreme leader Ayatollah Ali Khamenei explicitly endorsed the nuclear accord in October he warned that new sanctions, under any pretext, would constitute a breach.
US officials have said the treasury department retains a right under the nuclear agreement to blacklist Iranian entities suspected of involvement in missile development, the newspaper said.
On Thursday, foreign ministry spokesman Hossein Jaber Ansari said Iran would “respond to any interventionist measure by the US against its defence”, which has no connection to the nuclear agreement.
“Such measures are unilateral, arbitrary and illegal and the Islamic Republic of Iran has warned the United States administration of this,” Mr Ansari said. “No measure can deprive Iran of its legal rights to strengthen its defence and security capability.”
A team of UN sanctions monitors said the medium-range Emad rocket that Iran tested in October was a ballistic missile capable of delivering a nuclear warhead, making it a violation of a UN Security Council resolution.
Ballistic missile tests by Iran are banned under resolution 1929, which dates from 2010 and remains valid until the July nuclear deal between Iran and world powers goes into effect.
Once the deal takes effect, Iran will still be “called upon” not to undertake any ballistic missiles work designed to deliver nuclear weapons for a period of up to eight years, according to a UN Security Council resolution adopted in July after the nuclear deal.
Iran said the resolution would only ban missiles designed to carry a nuclear warhead, not capable of, so it would not affect its military programme as Tehran does not pursue nuclear weapons. Iran has called Emad a conventional missile.
* Agencies
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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.”
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
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Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T
Price, base: Dh840,000; Dh120,000
Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo
Transmission: Eight-speed automatic; seven-speed automatic
Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm
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Fuel economy, combined: 9.9L / 100km; 11.6L / 100km
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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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