Russia and China take hard line with Iran over uranium enrichment


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Russia and China, Iran's nominal allies, yesterday supported the West in demanding that Tehran immediately mothball a recently revealed nuclear facility and comply with United Nations Security Council resolutions to halt its enrichment of uranium. The motion, overwhelmingly passed by the governing body of the UN's nuclear watchdog, was the starkest of warnings to the Islamic republic of its increasing international isolation.

The censure came in the first resolution against Iran in nearly four years by the 35-nation board of the International Atomic Energy Agency (IAEA). The rare endorsements by Moscow and Beijing reflected their growing impatience with Iran's procrastination over a two-month-old UN-brokered deal that would allay fears the Islamic republic's nuclear programme is aimed at weapons development. To Washington's delight, Russia said it expected Tehran to heed the IAEA decision.

"This is a signal that patience is running out. We can't continue talks for talks' sake," said Glyn Davies, the US envoy to the IAEA. Iran, which insists its nuclear ambitions are solely peaceful in nature, responded with characteristic defiance. Ali Asghar Soltanieh, its IAEA representative proclaimed that his country would resist "pressure, resolutions, sanctions and the threat of military attack".

He branded the resolution "hostile" and "confrontational" and warned it would damage Iran's "voluntary gestures" of co-operation with the IAEA. He was, however, quick to stress that Iran would not withdraw from the nuclear Non-Proliferation Treaty. Tehran is under growing pressure to accept a uranium fuel exchange deal it agreed to in principle early last month. It requires Tehran to send abroad most of its stockpile of low-enriched uranium abroad in one batch by the end of the year to be further refined for use in an Iranian medical reactor. The vital confidence-building measure would delay Iran's potential to build a nuclear bomb by a year, experts say.

Mahmoud Ahmadinejad, the Iranian president, had initially appeared to welcome the proposal, but it has come under attack from his opponents across Iran's political spectrum. Leading Iranian figures have rejected the deal, although Tehran has yet to respond formally to the IAEA. The West has also kept the door ajar, sensitive to the unprecedented divisions within Tehran's leadership ignited by Mr Ahmadinejad's disputed re-election in June.

"The United States remains firmly committed to a peaceful resolution to international concerns over Iran's nuclear programme," Mr Davies said. "But our patience and that of the international community is limited." Britain was more explicit in spelling out the possible ramifications. "I believe the next stage will have to be sanctions if Iran does not respond to what is a very clear vote," Gordon Brown, the British prime minister, said.

Yesterday's IAEA resolution makes it more likely - but not guaranteed - that Russia and China will approve new UN Security Council sanctions against Iran. The IAEA measure was passed by a 25-3 margin. The resolution demanded that Iran freeze activities at its hitherto secret uranium enrichment plant near the holy city of Qom, and to confirm that it has no more hidden atomic facilities or clandestine plans for any. Tehran, however, may take more heed of a plaintive plea from the IAEA's outgoing chief, Mohammad ElBaradei. This week he said his inspectors had made no progress in their attempts to verify the peaceful nature of Iran's nuclear programme.

He urged Iran to take advantage of his uranium exchange: "This is a unique and fleeting opportunity to reverse course from confrontation to co-operation and should not be missed." @Email:mtheodoulou@thenational.ae

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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Fixtures

Tuesday - 5.15pm: Team Lebanon v Alger Corsaires; 8.30pm: Abu Dhabi Storms v Pharaohs

Wednesday - 5.15pm: Pharaohs v Carthage Eagles; 8.30pm: Alger Corsaires v Abu Dhabi Storms

Thursday - 4.30pm: Team Lebanon v Pharaohs; 7.30pm: Abu Dhabi Storms v Carthage Eagles

Friday - 4.30pm: Pharaohs v Alger Corsaires; 7.30pm: Carthage Eagles v Team Lebanon

Saturday - 4.30pm: Carthage Eagles v Alger Corsaires; 7.30pm: Abu Dhabi Storms v Team Lebanon

MATCH INFO

Euro 2020 qualifier

Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)

TV: Match is shown on BeIN Sports

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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.”