A bill requiring Iran's government to increase uranium enrichment closer to the level needed for a nuclear weapon cleared its first hurdle in Parliament on Tuesday.
The proposed law could also deport UN inspectors from the country.
Inspections by international monitors would be restricted if US oil and banking sanctions were not lifted within three months of the bill’s approval.
The proposal still requires final approval by Parliament and the Guardian Council that vets laws.
But the government said the move, proposed in response to the assassination of a top nuclear scientist on Friday, could not change Iran's nuclear policy, which falls under authority of the Supreme National Security Council.
"Death to America. Death to Israel," some legislators chanted after the hardline-dominated Parliament cleared the draft at its first reading in a session broadcast live on state radio.
Parliament has often demanded a hardening of Iran's position on the nuclear issue in recent years, without much success.
The government must now decide whether a sharp response to Friday's killing of nuclear scientist Mohsen Fakhrizadeh might jeopardise the chance of an improvement in ties with the US when Joe Biden takes over from Donald Trump as president.
"The government believes that, under the constitution, the nuclear accord and the nuclear programme are under the jurisdiction of the Supreme National Security Council," government spokesman Ali Rabiei told state media.
"Parliament cannot deal with this by itself."
The draft legislation would also revive the core of a contentious nuclear reactor and enrich Iran’s stockpile of uranium to 20 per cent, which could then be purified to weapons grade at short notice.
That reactor could be brought online within two months, state-run Irib News quoted Behrouz Kamalvandi, a spokesman for the Atomic Energy Organisation of Iran, as saying on Tuesday.
The maximum fissile purity to which Iran has enriched uranium has remained around 4.5 per cent, above the 3.67 per cent cap agreed to in the 2015 nuclear deal with world powers but below the 20 per cent Iran had achieved before.
A senior Iranian official said on Monday that Tehran suspected a foreign-based opposition group of complicity with Israel in the killing of Fakhrizadeh, who western powers regard as the architect of an Iranian nuclear weapons programme. The group rejected the accusation.
Israeli Prime Minister Benjamin Netanyahu's office has declined to comment on the killing.
Israeli Cabinet minister Tzachi Hanegbi said on Saturday that he did not know who had carried it out.
Mr Biden has said he will return the US to the 2015 nuclear deal if Iran resumed compliance.
Tehran has always denied pursuing nuclear weapons.
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The Written World: How Literature Shaped History
Martin Puchner
Granta
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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.”
Vikram%20Vedha
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
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The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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