Hezbollah leader Hassan Nasrallah warned that his movement would respond to the Trump administration designating Iran's Revolutionary Guard Corps (IRGC) as a terrorist group earlier this week, a move which will weaken Iran's position in Syria to Russia's advantage, analysts say.
“At the right moment there will be an appropriate reaction," Mr Nasrallah said on Wednesday night, quoted by the Lebanese state-run National News Agency (NNA).
“It our right and moral duty to face all those that, by their actions, threaten our people, our country, and our resistance.”
Mr Nasrallah said the Iran-backed Lebanese group might be “patient” today, but that did not mean that it cannot “play strong cards” in the future.
Analysts fear that the designation of the IRGC as a terrorist organisation will push Hezbollah and its allies to increase violence in the region.
“I believe some form of violence is to come," said a Lebanese analyst who requested anonymity because of the sensitivity of the subject. “Not reactionary violence, but may be attacks on US interests in the region through proxy groups. Hezbollah won’t claim them, but it will be clear they are behind them."
In his speech, Mr Nasrallah castigated the US for classifying the IRGC as a terrorist organisation, which he described as an “official military institution of a state recognised by the whole world”.
“This is a natural step for the Great Satan," he continued. “They want to re-design the Middle East”.
Mr Nasrallah also defended Hezbollah's Lebanese political ally Amal, which may be facing sanctions in the near future, US officials told The National last week.
“There are Lebanese in Washington working towards putting friends and allies of Hezbollah on a terror list," he acknowledged, saying he supported Amal leader Nabih Berri when he said in Doha earlier this week that the only “path to salvation” is “unity and resistance”.
Despite Hezbollah’s rhetoric, analysts say that Iran’s regional position will be significantly weakened by America’s move against the IRGC, especially in Syria, where it supports Bashar Al Assad’s regime.
"Their support in Iraq, Syria and Lebanon will dramatically decrease as people fear being targeted by Israeli air strikes," Abdullah Al Mousa, a researcher specialised in Syrian military affairs, told The National.
Israel has repeatedly targeted Iranian interests in Syria, although it rarely admits doing so.
Mr Al Mousa said the IRGC wields significant power in Syria, with “members in all vital facilities and military bodies”.
But its strength and efficiency in Syria will decrease as external funding dries up.
Ahmad Rahal, a Turkey-based military analyst, said the IRGC’s ally Hezbollah, which has sent thousands of fighters over the border to support the Damascus regime, will also see its vehicle movements, fuel and food expenses limited. “This will manifest itself in the months to come."
The fuel crisis, which has hit regime-controlled regions hard this winter, will increase this year, according to Mr Rahal. Syrian companies dealing with the IRGC or Iran will probably limit their activities out of fear of being exposed to US sanctions.
Even though the Assad regime now controls two-thirds of Syria, the country's main oil and gas fields remain out of government control in the Kurdish-held north-east of the country, and western nations are working to restrict oil-related imports.
In November, the US Treasury issued a new advisory threatening penalties against those "involved in petroleum-related shipping transactions with the g
overnment of Syria".
However, the US designation of the IRGC as a terrorist organisation will not push Iran out of Syria entirely, despite reducing its influence.
"Assad's regime and the IRGC will not be affected much as Iran is relying on low-cost followers recruited in the early years of the war," said Syrian researcher Ahmad Abazaid, who focuses on ISIS and other extremist groups in the country.
The biggest winner from US sanctions against the IRGC will be Russia, which changed the trajectory of the Syrian conflict in favour of Mr Al Assad in 2015, analysts say.
Iran's already struggling economy is currently grappling with the reimposition of full US sanctions last November.
“Russia will take over smoothly, taking advantage of the besieged Iranian economy," said Mr Al Mousa. “Russia will be able to invest more alongside its local partners to strengthen its position in Syria."
Competition for control of Syrian assets has recently increased between Russia and Iran, with Iran set to take over Syria’s main commercial port, Latakia, in October.
“There is a hidden war between Russia and Iran, who are competing to take over oil and industrial investments," said Mr Rahal.
The two countries also support local armed groups and weakening Iran will hurt its military operations on the ground, probably shifting the power balance to the advantage of Syria's elite Russian-backed Tiger Forces.
“The Tiger Forces will be able to lay their conditions which will strengthen Russian popularity among locals eager to apply their propaganda on the ground," Mr Rahal said.
However, Russia and Iran will still need to capitalise on their alliance in the region despite their differences, says Philip Smyth, a fellow at the Washington Institute. “One must still keep in mind that Tehran and Moscow are strategic partners in the region," he said.
“There may be competition between the two countries in terms of backing [armed] groups and creating overlapping patronage networks," Mr Smyth said, but Moscow still needs Iranian-backed boots on the ground to secure its gains in Syria.
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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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Jewel of the Expo 2020
252 projectors installed on Al Wasl dome
13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas
550 tonnes of moulded steel were raised last year to cap the dome
724,000 cubic metres is the space it encloses
Stands taller than the leaning tower of Pisa
Steel trellis dome is one of the largest single structures on site
The size of 16 tennis courts and weighs as much as 500 elephants
Al Wasl means connection in Arabic
World’s largest 360-degree projection surface
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
COMPANY%20PROFILE
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Brief scoreline:
Crystal Palace 2
Milivojevic 76' (pen), Van Aanholt 88'
Huddersfield Town 0
The studios taking part (so far)
- Punch
- Vogue Fitness
- Sweat
- Bodytree Studio
- The Hot House
- The Room
- Inspire Sports (Ladies Only)
- Cryo
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Neil Thomson – THE BIO
Family: I am happily married to my wife Liz and we have two children together.
Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.
Favourite book: I constantly find myself reading The Bible.
Favourite film: The Greatest Showman.
Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.
Favourite food: I went to boarding school so I like any cuisine really.
Scoreline:
Barcelona 2
Suarez 85', Messi 86'
Atletico Madrid 0
Red card: Diego Costa 28' (Atletico)
Results
ATP Dubai Championships on Monday (x indicates seed):
First round
Roger Federer (SUI x2) bt Philipp Kohlschreiber (GER) 6-4, 3-6, 6-1
Fernando Verdasco (ESP) bt Thomas Fabbiano (ITA) 3-6, 6-3, 6-2
Marton Fucsovics (HUN) bt Damir Dzumhur (BIH) 6-1, 7-6 (7/5)
Nikoloz Basilashvili (GEO) bt Karen Khachanov (RUS x4) 6-4, 6-1
Jan-Lennard Struff (GER) bt Milos Raonic (CAN x7) 6-4, 5-7, 6-4
UAE currency: the story behind the money in your pockets
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
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