Mohamed ElBaradei has called for more power and funds for the IAEA.
Mohamed ElBaradei has called for more power and funds for the IAEA.
Mohamed ElBaradei has called for more power and funds for the IAEA.
Mohamed ElBaradei has called for more power and funds for the IAEA.

ElBaradei says all is not well with IAEA


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VIENNA // As Iran pledged to restart talks over its nuclear programme, the outgoing head of the International Atomic Energy Agency warned that international safeguards against the spread of nuclear weapons may be in jeopardy.

In what could be his last major speech as the director general of the agency, Mohamed ElBaradei said on Monday that insufficient funding and legal authority were undermining the IAEA's effectiveness as the world's nuclear monitor. He urged the UN Security Council to grant it more powers to prevent the spread of nuclear arms technology and to avoid relying on sanctions that he said were often ineffective and harmed the vulnerable and innocent.

Mr ElBaradei's remarks were a clear reference to Iran, which has failed to satisfy the IAEA that its uranium enrichment programme is not linked to nuclear weapons research, in part because it does not allow snap inspections that range beyond declared nuclear sites. The United States, among other world powers, suspects such a link, while Tehran insists its nuclear development activities are entirely peaceful.

"I should make it very clear that our ability to detect possible clandestine nuclear material and activity depends on the extent to which we are given the necessary legal authority, technology and resources. Regrettably, we face continuing major shortcomings in all three areas, which, if not addressed, could put the entire non-proliferation regime at risk," Mr ElBaradei said in his opening speech to the general conference of the 150-member IAEA.

He also said the agency was underfunded, and spelt out the potential consequences if that continued: "Our ability to maintain an independent and credible verification system will deteriorate; the world's vulnerability to a repeat of a disaster like Chernobyl will increase; the risk of terrorists obtaining nuclear or radioactive materials and using them will grow; our ability to meet the needs of developing countries facing growing hunger, poverty and disease will be eroded."

According to reports on Iranian state television, Tehran and six world powers seeking to resolve their stand-off over Iranian nuclear ambitions are to start talks early next month. "It's an important first step and we are hoping for the best," Steven Chu, the US secretary of energy, said on Monday in Vienna. "We are of the belief that dialogue and unconditional negotiation is the key to resolving disputes," Aliakbar Salehi, the vice president of Iran and president of the country's Atomic Energy Organisation, told the IAEA conference. But Iran would not accept any "discriminative agreement", he said. Mr ElBaradei said the UN Security Council needed to develop "a comprehensive compliance mechanism" for nuclear non-proliferation that did not rely on sanctions, such as those used against Iran. "It must focus more on conflict prevention, peacekeeping and peacemaking, and address the insecurities that lie behind many cases of proliferation." He praised new US and Russian initiatives to reduce nuclear arsenals.

Mr ElBaradei's successor, Yukiya Amano, 62, who describes himself as the IAEA's designated "chief administrative officer" and is currently Japanese ambassador to the agency, declined to discuss details of his intended operating strategy after he takes office on December 1. But he said the IAEA secretariat felt strongly that the nuclear safeguards agreement between Iran and the agency should be fully implemented.

"The IAEA has not yet come to the conclusion whether the activities of Iran have been exclusively for peaceful purposes or not," he told reporters. "I believe that the agency is doing its utmost. More co-operation is needed." Speaking English haltingly, the diminutive career diplomat largely failed to impress the international press representatives assembled in Vienna. But he fared better at a cocktail reception after Monday's conference session, where he spent more than an hour mingling with delegates, accepting a stream of greetings on the confirmation of his appointment, and nodding, smiling and listening more than talking.

Mr Amano's behaviour, even more than his words, suggests he views his future role at the IAEA as one of behind-the-scenes consensus building. Instead of publicly articulating the IAEA's agenda through headline-grabbing policy statements, he is likely to try to guide the agency's work by fostering respectful professional relationships with the people with whom he interacts. "The IAEA needs to take a balanced approach, or the potential of the IAEA will not be achieved," he told reporters. "The IAEA is an effective organisation with high authority. Still, we need to make improvements."

Mr ElBaradei's style during his 12 years at the IAEA's helm was less conciliatory. On Monday, he acknowledged the agency's objectives were not always met during his tenure. For instance, little progress was made over nuclear disarmament, and a war was fought in Iraq after the IAEA and UN found no evidence of weapons of mass destruction there. tcarlisle@thenational.ae

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Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

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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.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Results

6pm: Dubai Trophy – Conditions (TB) $100,000 (Turf) 1,200m 

Winner: Silent Speech, William Buick (jockey), Charlie Appleby
(trainer) 

6.35pm: Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m 

Winner: Island Falcon, Frankie Dettori, Saeed bin Suroor 

7.10pm: UAE 2000 Guineas Trial – Conditions (TB) $60,000 (Dirt)
1,400m 

Winner: Rawy, Mickael Barzalona, Salem bin Ghadayer 

7.45pm: Al Rashidiya – Group 2 (TB) $180,000 (T) 1,800m 

Winner: Desert Fire, Hector Crouch, Saeed bin Suroor 

8.20pm: Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

Winner: Naval Crown, William Buick, Charlie Appleby 

8.55pm: Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

Winner: Al Tariq, Pat Dobbs, Doug Watsons 

9.30pm: Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m 

Winner: Dubai Icon, Patrick Cosgrave, Saeed bin Suroor