Canadian Pime Minister Justin Trudeau greets Iranian Foreign Minister Mohammad Javad Zarif at the 56th Munich Security Conference (MSC) on February February 14, 2020. EPA
Canadian Pime Minister Justin Trudeau greets Iranian Foreign Minister Mohammad Javad Zarif at the 56th Munich Security Conference (MSC) on February February 14, 2020. EPA
Canadian Pime Minister Justin Trudeau greets Iranian Foreign Minister Mohammad Javad Zarif at the 56th Munich Security Conference (MSC) on February February 14, 2020. EPA
Canadian Pime Minister Justin Trudeau greets Iranian Foreign Minister Mohammad Javad Zarif at the 56th Munich Security Conference (MSC) on February February 14, 2020. EPA

Canadian PM Justin Trudeau under fire for warm greeting of Iran's Mohammad Javad Zarif


Damien McElroy
  • English
  • Arabic

Canada’s Justin Trudeau was under fire on Saturday for his warm embrace of Iranian Foreign Minister Mohammad Javad Zarif despite the deaths of dozens of Canadian citizens when Iran shot down a passenger plane after it took off from Tehran’s airport last month.

Iranian officials were jubilant when the Canadian prime minister grasped Mr Zarif with both hands and exchanged greetings with a broad smile at the Munich Security Conference. Canada has no relations with Tehran and has been under pressure to push Iran for accountability and compensation for shooting down the Ukrainian passenger jet, killing all 176 people on board.

Tehran admitted its military shot down the jet but has so far refused to hand over the black box flight recorders to retrieve the data detailing the incident.

Conservative Canadian MP Peter Kent said Mr Trudeau had shaken hands “with Iran’s chief propagandist” and the families of victims expressed their dismay.

Responding to the backlash, which threatened to overshadow his visit to Munich, Mr Trudeau said he was working to secure a deal with the Iranians to send the black boxes to France.

“I made a promise to families in Canada to do everything I could to make sure that they get answers, that we have a full and complete investigation, that we understand exactly what happened,” he said. “I went by to impress upon the foreign minister of Iran how important it is that we work together.”

Iranian Canadians said they felt let down by the prime minister. “Our PM is now a prop for Zarif to boost his standing,” said Kaveh Shahrooz, a senior fellow at the Macdonald-Laurier Institute, a think tank.

Meanwhile Canada’s Foreign Minister Francois-Philippe Champagne said Iran’s failure to turn over the plane's black boxes risked undermining the international rules of aviation.

Francois-Philippe Champagne, Canada's foreign affairs minister, speaks to journalists as he arrives for the Munich Security Conference, at the Bayerischer Hof hotel in Munich, Germany, on Friday, February 14, 2020. Bloomberg
Francois-Philippe Champagne, Canada's foreign affairs minister, speaks to journalists as he arrives for the Munich Security Conference, at the Bayerischer Hof hotel in Munich, Germany, on Friday, February 14, 2020. Bloomberg

Mr Champagne said that although Iran had admitted responsibility for shooting down Ukrainian International Airlines Flight PS752, pressure had to be kept up on Tehran to co-operate with the investigation.

Canada and other countries of the victims presented Mr Zarif with a letter on Saturday demanding transfer of the black boxes and compensation in a meeting on the sidelines of the conference.

“We have moved from the why to the how,” Mr Champagne said. “We will continue to press the Iranian foreign minister and Iranian government.”

He said Canada was willing to help Iran to ensure full transparency in the process and would pursue discussions with France, which has the laboratory facilities to complete the task.

He also said there must be a complete, transparent investigation and prosecution of those responsible for downing the jet.

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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Winner: M'A Yaromoon, Jesus Rosales (jockey), Khalifa Al Neydai (trainer)

5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
Winner: No Riesgo Al Maury, Antonio Fresu, Ibrahim Al Hadhrami

6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
Winner: JAP Almahfuz, Royston Ffrench, Irfan Ellahi

6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: Mahmouda, Pat Cosgrave, Abdallah Al Hammadi

7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: AS Jezan, George Buckell, Ahmed Al Mehairbi

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Winner: Dolman, Antonio Fresu, Bhupath Seemar

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What is the definition of an SME?

SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.

A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors. 

Checks continue

A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.

Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.

Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.

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Earth under attack: Cosmic impacts throughout history

4.5 billion years ago: Mars-sized object smashes into the newly-formed Earth, creating debris that coalesces to form the Moon

- 66 million years ago: 10km-wide asteroid crashes into the Gulf of Mexico, wiping out over 70 per cent of living species – including the dinosaurs.

50,000 years ago: 50m-wide iron meteor crashes in Arizona with the violence of 10 megatonne hydrogen bomb, creating the famous 1.2km-wide Barringer Crater

1490: Meteor storm over Shansi Province, north-east China when large stones “fell like rain”, reportedly leading to thousands of deaths.  

1908: 100-metre meteor from the Taurid Complex explodes near the Tunguska river in Siberia with the force of 1,000 Hiroshima-type bombs, devastating 2,000 square kilometres of forest.

1998: Comet Shoemaker-Levy 9 breaks apart and crashes into Jupiter in series of impacts that would have annihilated life on Earth.

-2013: 10,000-tonne meteor burns up over the southern Urals region of Russia, releasing a pressure blast and flash that left over 1600 people injured.