Mohsen Mirdamadi, leader of the Islamic Iran Participation Front, front row with glasses, was among defendants in a Tehran court last year.
Mohsen Mirdamadi, leader of the Islamic Iran Participation Front, front row with glasses, was among defendants in a Tehran court last year.

Iran bans two leading reformist political parties



The banning of two leading reformist political parties is another attempt by the establishment to stifle voices of the beleaguered reformist movement and keep it fragmented, according to analysts.

The dissolution of the Islamic Iran Participation Front (IIPF) and the Islamic Revolution Mujaheddin Organisation (IRMO) both of which backed the country's main opposition leader, Mir Hossein Mousavi, was announced on Monday.

It came after an attack this month by vigilantes, backed by plainclothes security men, on the home of the other main opposition leader, Mehdi Karrubi. Mr Mousavi's office was also raided, while security forces kept visitors from his home on several occasions. Both men, branded "leaders of sedition" by the regime, challenged Mahmoud Ahmadinejad in last year's presidential elections, which they insist he won by fraud.

Judicial and other measures used to pressure the reformists are evidence that the system has no intention of making an opening them, despite grappling at the same with a highly public rift in the ruling conservative establishment, Iran experts said. A court ordered the ban at the request of the interior ministry, which oversaw last year's presidential election, the judiciary's hard-line spokesman and prosecutor general, Gholam Hossein Mohseni Eje'i, said on Monday. "They are not allowed to have any activities."

The IIPF, however, denied it had been banned. Ali Shakouri-rad, its spokesman, said the party had received no notification of any such court verdict, which he said could not be enforced "because the IIPF must be given a chance to appeal". He told the BBC's Persian television channel: "Mr Eje'i is either misinformed or he is lying." The verbal announcement of the ban was "psychological warfare", an IIPF statement said yesterday.

Observers believe the confusion stemmed from legal technicalities: the court process banning the two parties may not have been completed, but the judiciary has made clear neither will be allowed to operate in any circumstances. Scott Lucas, an Iran expert at Birmingham University in England said: "That's significant because my information is that at least one conservative, Mohsen Rezaie, had sounded out the supreme leader [Ayatollah Ali Khamenei] about bringing reformists into some kind of national unity government. The information was that the supreme leader basically said, 'no opening to them'."

Mr Rezaie, a former Revolutionary Guards commander, was the only conservative candidate in last year's presidential elections. He is an ally of the former president Hashemi Rafsanjani and a bitter opponent of Mr Ahmadinejad. There is also suspicion that the two parties were banned because seven of their members who are serving long prison terms filed a complaint to the judiciary in July that Revolutionary Guard commanders at a Tehran base had actively orchestrated plans to ensure Mr Ahmadinejad's re-election.

The ban on the two reformist parties, which are closely tied, means they can no longer issue statements legally, further undermining the opposition movement's ability to address its followers. The ability of the reformists to operate within the system now rests mainly with individual MPs in the conservative-dominated parliament. Most reformist newspapers have been closed since the disputed election last year and scores of journalists have been jailed.

Harsh repression by security forces has kept opposition protesters off the streets since the beginning of the year, although Mr Mousavi and Mr Karrubi have remained defiantly outspoken, despite persistent calls from leading hardliners for them to be arrested and tried for sedition. The regime has ignored such calls, apparently loath to make them martyrs or spark fresh unrest. But members of the two seemingly banned reformist parties were jailed during last year's post-election unrest, in which thousands of opposition supporters were detained. The IIPF's secretary general, Mohsen Mirdamadi, remains in jail, along with 15 other members of his party, which is viewed as the first modern Iranian political party after the Islamic Revolution in 1979.

Apart from blogs and social networking websites, the opposition has few channels to reach its followers. The ban on the two parties came from the judiciary, a bastion of conservative opposition to Mr Ahmadinejad, which is headed by Ayatollah Sadegh Larijani. His brother, Ali Larijani, the parliamentary speaker, is another key rival of the president. Mr Ahmadinejad's influential conservative opponents accuse him of economic mismanagement, adventurous foreign policy and, most significantly, of trying to monopolise power in the presidency at the expense of other institutions such as the parliament.

Mr Mousavi and Mr Karrubi have levelled similar accusations, but the conservative elite has made clear it has no interest in accommodation with the reformists, despite common antipathy to the president. "The conservatives are going to keep them well boxed out," Prof Lucas said.

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
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She Graduated from the American University of Sharjah in 2015 and is currently working on her Masters in Communication from the University of Sharjah.
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From Conquest to Deportation

Jeronim Perovic, Hurst

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.”

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5