Iranian hardliner students light candles during a memorial ceremony for passengers of Ukraine airplane, at the Tehran university in Tehran, Iran. EPA
Iranian hardliner students light candles during a memorial ceremony for passengers of Ukraine airplane, at the Tehran university in Tehran, Iran. EPA
Iranian hardliner students light candles during a memorial ceremony for passengers of Ukraine airplane, at the Tehran university in Tehran, Iran. EPA
Iranian hardliner students light candles during a memorial ceremony for passengers of Ukraine airplane, at the Tehran university in Tehran, Iran. EPA

Iran makes arrests over downing of Ukrainian passenger flight


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Iran said on Tuesday that arrests have been made over the accidental shootdown of a Ukrainian passenger plane, which killed all 176 people on board and triggered protests.

Judiciary spokesman Gholamhossein Esmaili said “some individuals” were arrested after “extensive investigations”, but did not say how many people had been detained or the names of those arrested.

Iran at first dismissed allegations that a missile had brought down the plane, but in the face of mounting evidence officials acknowledged on Saturday — three days after the incident — that its Islamic Revolutionary Guards had shot down the plane by mistake as the force braced for a possible military confrontation with the US.

The plane, en route from Tehran to the Ukrainian capital of Keiv, was carrying 167 passengers and nine crew members from several countries, including 82 Iranians and 57 Canadians, many of whom were Iranians with dual citizenship. There were several children among the passengers, including an infant.

Iran’s president on Tuesday called for a special court with “a ranking judge and dozens of experts” to be set up to probe the incident.

“The responsibility falls on more than just one person,” President Hassan Rouhani said in a televised speech, adding that those found culpable “should be punished”.

“There are others, too, and I want that this issue is expressed honestly,” he said, without elaborating.

Mr Rouhani called the incident “a painful and unforgivable” mistake and promised that his administration would pursue the case “by all means”.

“This is not an ordinary case. The entire the world will be watching this court,” he said.

Tensions have been escalating since President Donald Trump pulled the US out of Iran’s 2015 nuclear deal with world powers, then reimposed sanctions that had been lifted under the accord.

The deal has quickly unravelled since then, with Iran steadily breaking away from limits on its nuclear programme and Europe unable to find ways to keep Tehran committed.

US sanctions have devastated Iran’s economy.

On Tuesday, the UK, France and Germany triggered the so-called “dispute mechanism” action that paves way for possible further sanctions in response to Iran’s moves.

Tensions sharply escalated further after on January 3, when a US airstrike killed Iran’s most powerful commander Gen Qassem Suleimani in Baghdad.

In response, Iran launched ballistic missiles on military bases housing US troops in Iraq to avenge Suleimani’s killing. The Ukrainian plane was shot down in Tehran as Iranian forces were on alert for possible US retaliation.

While Mr Rouhani pointed to mistakes and negligence, he also repeated the government’s line that the plane tragedy was ultimately rooted in US aggression.

“It was the US that made for an agitated environment. It was the US that created an unusual situation. It was the US that threatened and took our beloved (Suleimani),” he said.

Mr Rouhani called the government’s admission that Iranian forces shot down the plane a “first good step”.

He added that Iranian experts who retrieved the Ukrainian plane’s flight recorder, the so-called black box, have sent it to France for analysis.

Gen Amir Ali Hajizadeh, the head of the Guard’s aerospace division, said over the weekend his unit accepts full responsibility for the shootdown. He said when he learned about the downing of the plane, “I wished I was dead.”

The incident raised questions about why Iran did not shut down its international airport or airspace the day it was on alert for US military retaliation.

The shootdown and the lack of transparency around it has reignited anger in Iran at the country’s leadership. Online videos appeared to show security forces firing live ammunition and tear gas to disperse protests in the streets.

Also Tuesday, Iran’s judiciary said that 30 people had been detained in the protests, and that some were released, without elaborating further. An Iranian film director who’d called for protests in Tehran’s Azadi, or Freedom, Square is among those released.

Iranian authorities briefly arrested British Ambassador Rob Macaire on Saturday evening. He’s said he went to a candlelight vigil to pay his respects for the victims of the Ukrainian plane shootdown and left as soon as the chanting began and it turned into a protest.

Iran’s Foreign Ministry summoned the British ambassador on Sunday to protest what it said was his presence at an illegal protest. The UK, in turn, summoned Iran’s ambassador on Monday “to convey our strong objections” at the weekend arrest.

Iran’s top prosecutor, Mohammad Javad Montazeri, was quoted in local media Tuesday saying the British ambassador must be expelled from the country as soon as possible.

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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 was Alfred Nobel?

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  • 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.
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