AMSTERDAM // Days after crowds in Tehran attacked two British diplomatic compounds, the European Union yesterday slapped further sanctions on Iran over its nuclear programme.
The body also issued a sharply worded statement condemning the embassy attack.
The council meeting of EU foreign ministers in Brussels agreed on measures against an additional 180 Iranian individuals and entities but stopped short of banning the import of Iranian oil, a step advocated by Germany and France.
"Given the EU's increasing concerns over the Iranian nuclear programme and the lack of progress in diplomatic efforts, the council has today strengthened the EU restrictive measures against that country," a statement from Brussels said.
The new sanctions are in response to a report earlier this month by the International Atomic Energy Agency (IAEA), which renewed international concerns that Iran was developing the capacity to build nuclear weapons.
British measures against Iran, on the basis of the report, led to crowds breaking into the country's two diplomatic compounds in Tehran on Tuesday.
In return, and because of Iran's expulsion of the UK's ambassador, London expelled Iran's diplomats and several European countries also recalled their ambassadors for consultations.
The EU foreign ministers reserved their sharpest language for the attack on Britain's embassy and said they were "outraged".
But Iran yesterday freed 11 protesters, described as students, who were arrested for the attacks on the embassy compounds, while the powerful parliamentary speaker, Ali Larijani, called London's robust response "unjustifiable".
Radical student groups in Iran said they would hold a "ceremony to thank God for the breakdown of ties between Tehran and London".
The ransacking of the downtown embassy and a nearby residential compound for British staff has exposed divisions within Iran's leadership with the foreign ministry, thought to reflect the line of the president, Mahmoud Ahmedinejad.
On Wednesday it expressed regret for the embassy assault, deeming it "unacceptable".
But Mr Larijani, the speaker of parliament, who is said to be close to Iran's supreme leader, Ayatollah Ali Khamenei, told state television yesterday: "How long must we endure the presence of the British in Iran … when they commit treachery against the Iranian people?"
The increase in international tensions over Iran comes as diplomatic efforts to gain more oversight of their nuclear programme are stuck and a series of sanctions and restrictive measures go unheeded.
In some countries, such as Israel and the US, there is a continuing debate over possible military strikes to stop the programme.
Iran has denied pursuing nuclear weapons but the IAEA has pointed at several signs it may be, including improved uranium enrichment capacities and the installation of more enrichment centrifuges.
The debate over how to best handle Iran extends throughout the international community, the EU and within the UK. Fundamental differences have emerged both between British ministers and between their advisers over the wisdom of trying to impose an EU oil embargo on Iran.
"Those supporting an import ban argue Tehran would then have little option but to rely on China taking up the slack, and that the Chinese would only buy the extra oil if it got it at a hefty discount, leaving the Iranian regime with insufficient income to pay its bills," said a diplomatic source in London.
"On the other side of the coin is the risk that an EU boycott would send world oil prices soaring, doing great damage to economies that are already in a fragile state."
The British foreign secretary, William Hague, insisted yesterday that new EU measures against Iran should be directed against Tehran's nuclear programme and not as a retaliation to the storming of the UK embassy.
"These are not measures that are in reaction to our embassy. There has been a range of other reactions to that," he told the BBC immediately before the start of the Brussels meeting. The EU steps are unlikely to be the last word on measures against Iran, said Daniel Korski of the European Council on Foreign Relations.
"There will be another round of sanctions, presumably in the future," he added. "The bottom line is those arguing for a tougher line can live to fight another day. If they don't get it this time, they can argue for it at a future time."
The EU stressed at several points in its statements that it preferred a negotiated, diplomatic solution to the Iranian issue. Mr Korski said this is where Europe may be able to play a role, especially at a time when the US is focusing on its presidential elections next year.
"It is hard to see the US playing any kind of meaningful role beyond carrying a large stick and I think Europe is the only power that retains the ability to wield both a stick and a carrot credibly."
* Additional reporting by David Sapsted in London and Michael Theodoulou in Nicosia
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.”
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
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.
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
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UAE currency: the story behind the money in your pockets
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
The distance learning plan
Spring break will be from March 8 - 19
Public school pupils will undergo distance learning from March 22 - April 2. School hours will be 8.30am to 1.30pm
Staff will be trained in distance learning programmes from March 15 - 19
Teaching hours will be 8am to 2pm during distance learning
Pupils will return to school for normal lessons from April 5
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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MATCH INFO
Uefa Champions League semi-final:
First leg: Liverpool 5 Roma 2
Second leg: Wednesday, May 2, Stadio Olimpico, Rome
TV: BeIN Sports, 10.45pm (UAE)
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
360Vuz PROFILE
Date started: January 2017
Founder: Khaled Zaatarah
Based: Dubai and Los Angeles
Sector: Technology
Size: 21 employees
Funding: $7 million
Investors: Shorooq Partners, KBW Ventures, Vision Ventures, Hala Ventures, 500Startups, Plug and Play, Magnus Olsson, Samih Toukan, Jonathan Labin