Mohammed ElBaradei, the head of the UN's nuclear watchdog, arrived in Tehran last night to arrange swift access for his inspectors to a recently disclosed uranium enrichment site after unexpectedly productive talks between Iran and six world powers.
Iran's agreement to allow scrutiny of the facility was reached at Thursday's landmark meeting in Geneva. The international community has called for inspections within two weeks of the site, which is deeply etched into a heavily fortified Revolutionary Guards mountainside complex near Qom, a Shia holy city.
Thursday's meeting also resulted in a tentative but vital confidence-building measure under which Tehran would give up most of its declared stockpile of low-enriched uranium to Russia to be converted into material for a medical research reactor in Tehran, rendering the material unavailable for any bomb-making.
Barack Obama, the US president, won more concessions from Iran in "72 hours than the former administration [of his predecessor, George W Bush] got in eight years of sabre-rattling", wrote Juan Cole, a Middle East expert and professor of history at the University of Michigan, on his blog, www.juancole.com. Thursday's meeting included the highest-level direct talks between the United States and Iran in nearly three decades.
In his first comments since the Geneva talks, Mahmoud Ahmadinejad, Iran's president, yesterday defended his country's "honesty" in its recent disclosure of the new nuclear plant, which pre-empted by just days revelations of its existence by western powers.
Tehran's surprisingly sudden show of co-operation on the nuclear front eases tensions that had been mounting steadily between Iran and the West. The threat of further sanctions against the Islamic republic has receded, allowing time for more intensive talks to resolve the nuclear dispute through negotiations.
Yet mutual mistrust and suspicion remains. Even if inspectors visit the Qom site within two weeks, Iran will have had nearly a month since declaring the new facility on September 21 to conceal any possibly damaging evidence, analysts in the US media said yesterday.
Many western officials also question whether Iran is playing for time and if it will follow through on tantalising promises it made "in principle" in Geneva.
Remarks by Mr Obama articulated Washington's mood of cautious optimism. "Taking the step of transferring its [Iran's] low-enriched uranium to a third country would be a step towards building confidence that Iran's programme is in fact peaceful," he said. Iran now has a "path towards a better relationship" with the United States. But Mr Obama warned that the United States would not continue to negotiate indefinitely and that Iranian "pledges of co-operation must be fulfilled".
Iran's stockpile of 1.5 tonnes of low-enriched uranium is potentially enough to make one bomb if it is enriched to much higher levels. The removal of most of that stockpile from Iranian soil reduces Iran's ability to develop a weapon quickly, and should ease concerns, particularly in Israel, that time is running out for a diplomatic solution.
US officials say experts will meet in Vienna, where the IAEA is headquartered, on October 18 to work out the details of transferring most of Iran's low-enriched uranium to Russia for further processing.
In another positive sign, Iran will meet again before the end of the month with the five permanent members of the UN Security Council- US, Russia, China, Britain, France - and Germany, the so-called P5-plus-one.
Russia is certain to have played a key role in cajoling Iran to be co-operative. Moscow signalled last week that it might back new sanctions against Iran if Tehran failed to budge on its nuclear programme in coming months. Vladimir Putin, the Russian prime minister, has on several occasions attempted to resolve the nuclear dispute by offering to provide enriched uranium to Iran, or to jointly enrich it in Iran under Russian supervision. Tehran in turn acknowledged it would be willing to acquire some enriched uranium this way, but has always insisted on its right to enrich some of its own uranium. It was when Iran rejected Mr Putin's proposals in the past that Moscow supported UN Security Council sanctions against the Islamic republic, albeit after helping to dilute them.
US officials insist that the tentative deal to send much of Iran's enriched uranium stockpile is not intended as a template for a future solution: Washington's goal is for Iran to suspend uranium enrichment activities altogether, which Tehran insists will never happen.
But, according to Gary Sick, a pre-eminent Iran scholar at Columbia University, the Geneva agreement establishes "the principle that Iranian enrichment could be conducted outside the country" while tacitly acknowledging "Iran's right to produce enriched uranium".
Writing in his blog (http://garysick.tumblr.com), Prof Sick said it would be a "mistake to think that the results of the Geneva talks were anything more than baby steps along a perilous and unpredictable path". But the process is "the only game in town. And it is off to a better start than any of us had the right to expect."
mtheodoulou@thenational.ae
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.”
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
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