An Iraqi protester hits a poster showing the leader of the Iranian Revolutionary Guard's foreign wing, or Quds Force, Gen Qassim Soleimani with a shoe during ongoing anti-government protests in Baghdad, Iraq on November 3, 2019. AP
An Iraqi protester hits a poster showing the leader of the Iranian Revolutionary Guard's foreign wing, or Quds Force, Gen Qassim Soleimani with a shoe during ongoing anti-government protests in Baghdad, Iraq on November 3, 2019. AP
An Iraqi protester hits a poster showing the leader of the Iranian Revolutionary Guard's foreign wing, or Quds Force, Gen Qassim Soleimani with a shoe during ongoing anti-government protests in Baghdad, Iraq on November 3, 2019. AP
An Iraqi protester hits a poster showing the leader of the Iranian Revolutionary Guard's foreign wing, or Quds Force, Gen Qassim Soleimani with a shoe during ongoing anti-government protests in Baghda

Iranian regional intervention is regime's top priority, warns IISS strategic dossier


Damien McElroy
  • English
  • Arabic

Iran has secured unprecedented regional advantages from its strategy of promoting its influence through proxy forces in the absence of an effective international response, a leading security think tank has found.

A report from the International Institute for Strategic Studies has concluded that Iran’s cross-border policies have been vastly more important than the nuclear threat and missile development programme targeted by international sanctions.

The study traces the evolution of the policy to the establishment of the Islamic Revolutionary Guard Force in the early 1980s and in particular, to the establishment of its Quds Force to lead its external activity.

The policy of developing and strengthening militias was pioneered in Lebanon but has since been instrumental in conflicts in Iraq, Syria and Yemen.

In addition, the Quds Force has links to groups ranging from Hamas in Palestine to the IRA in the UK.

The report said the alliances sought or established by the IRGC were based on the establishment of four points of common interest: ideological affinity, strategic convergence, political expediency or transactional relationships.

"We wanted this acknowledged as a capability, not an accident," John Raine, an IISS director, told The National.

"The Iranians use this day in, day out. It is how they project their force. To them it is more useful than their conventional force."

While conventional thinking concentrates on the traditional balance of power standings in Middle East, the IISS dossier makes a distinction on the balance of effective force, which it says lies with the Iranians.

This gives Tehran an ability to pick its battles to its advantage.

“They are inside various states, they are inside the conflicts and they have these levers they can use to dictate pace of confrontation," Mr Raine said.

"They have been systematic about exploiting these advantages."

The dossier takes to task a failure to recognise the accumulation of power by Iran through its allies.

“”The strategic value to Iran of its networks is higher than that of its conventional forces, its ballistic missile capability and its nuclear programme,” it said.

“There has been an insufficient international response to deter Iran from developing and deploying this capability.

“By 2019 Iran’s influence in Iraq, Lebanon, Syria and Yemen had become the new normal in the region where once such a concept would have been unthinkable.”

The step-by-step methods employed by Iran can be identified across a range of countries and conflicts.

The vital tools for Tehran is the supply of advisers, funds, ballistic missile arsenals, armed drones and, in the case of strategic maritime straits, remote controlled speed boats.

The dossier said this begins with the deployment of the Quds Force followed by the direction of finance and materiel to emerging groups.

Training of militias locally and on Tehran controlled territory is then supplemented with provision of advanced weaponry.

The expeditionary Quds Force units are then bolstered by the arrival of the regular army, foreign ministry operatives and other officials.

In the public realm the pattern is that initial denials of involvement give way to admission of Iranian interest.

By this stage a Hizbollah-modelled structure of armed militia and its political wing starts to emerge.

Finally Iran uses its soft power tools, including propaganda, to entrench its allies.

One section of the dossier points out the complementary public statements and Twitter posts of the Quds Force leader Gen Qassem Soleimani and Javad Zarif, the Foreign Minister.

For Mr Raine, the point is that while Iran has not created the tension it seeks to use, it has a ready formula to exploit situations for its own agenda.

“There is a high degree opportunism but what they are not opportunistic about is the centrally held, curated effort to seize those opportunities,” he said.

The policy is not without costs for Iran, which has shown it will scale back if casualty numbers rise.

“Regional interventions have cost Iran hundreds of lives and billions of dollars when it is also facing unprecedented international sanctions pressure and mounting domestic pressure,” Mr Raine said.

The result is that Iran has been able to offset its international isolation and the economically devastating effect of sanctions by co-opting a strategic of “hybrid warfare” that marries a military and civilian intervention.

“Iran’s intervention have validated an external military doctrine, emphasising hybrid war techniques and co-operation with state and sub-state actors,” the dossier said.

It makes clear the recent expansion means the impact is not limited to land but also to the seas, a development with new international implications.

“Iran has been able to threaten international shipping and energy arteries,” the dossier warns.

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5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

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While you're here
Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

England v West Indies

England squad for the first Test Cook, Stoneman, Westley, Root (captain), Malan, Stokes, Bairstow, Moeen, Roland-Jones, Broad, Anderson, Woakes, Crane

Fixtures

1st Test Aug 17-21, Edgbaston

2nd Test Aug 25-29, Headingley

3rd Test Sep 7-11, Lord's

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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About Seez

Company name/date started: Seez, set up in September 2015 and the app was released in August 2017  

Founder/CEO name(s): Tarek Kabrit, co-founder and chief executive, and Andrew Kabrit, co-founder and chief operating officer

Based in: Dubai, with operations also in Kuwait, Saudi Arabia and Lebanon 

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Who's who in Yemen conflict

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