Iran will defend itself against any military or economic aggression, Foreign Minister Javad Zarif said on Sunday, calling on European states to do more to preserve a nuclear pact with his country.
Speaking in Baghdad with Iraqi Foreign Minister Mohammed Al Hakim, Mr Zarif said Iran wanted to build balanced relations with its Arabian Gulf neighbours and had proposed a non-aggression pact with them.
"We will defend against any war efforts against Iran, whether it be an economic war or a military one, and we will face these efforts with strength," he said.
Strains have increased between Iran and the US after this month's attack on oil tankers off the UAE coast and pumping stations in Saudi Arabia.
Washington, a firm backer of Saudi Arabia, has blamed the attacks on Iran.
Tehran has distanced itself from the bombings, but the US has sent an aircraft carrier, B-52 bombers and an extra 1,500 troops to the Gulf, sparking concern over the risk of conflict.
Iraq stands with Iran and is willing to act as an intermediary between its neighbour and the US, Mr Al Hakim said.
Baghdad does not believe an "economic blockade" is fruitful, he said, referring to US sanctions.
"We are saying very clearly and honestly that we oppose the unilateral actions taken by the US," Mr Al Hakim said. "We stand with f Iran in its position."
The US and Iran are Iraq's two main allies.
Meanwhile, Iranian deputy foreign minister Abbas Araqchi arrived in Oman and discussed "regional developments" with Yousuf bin Alawi, the sultanate’s Minister of Foreign Affairs, Oman News Agency reported.
Mr Araqchi stressed the importance of peace and security in the Gulf region and rejected any direct or indirect talks with the US.
Mr bin Alawi last week said that his country was trying with other parties to calm US-Iranian tension.
Washington has been tightening sanctions against Iran as relations worsen under US President Donald Trump, who last year pulled out of a nuclear agreement signed by Iran and world powers in 2015.
In Tehran, President Hassan Rouhani floated the idea of holding a referendum over Iran's nuclear programme, which could give Iran's leaders space to manoeuvre and a chance to resolve the stand-off with the US.
Top Iranian leaders have said they are not seeking war with the US.
Mr Rouhani said that, when he was a top nuclear negotiator in 2004, he had proposed holding a referendum on the nuclear issue to supreme leader Ayatollah Ali Khamenei.
Iran has held only three referendums since its 1979 revolution -- to approve the establishment of a republic and to approve and amend the constitution.
Washington says it has built up its military presence in the region, accusing Tehran of threats to US troops and interests.
Iran has described US moves as “psychological warfare” and a “political game”.
Meanwhile, a deputy commander of Iran's elite Revolutionary Guards said the US military presence in the Middle East was at its "weakest in history", despite talk of a build-up.
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.”
