US Secretary of State Mike Pompeo warns Iran could buy jets if the UN arms embargo is not extended in October. EPA/SHAWN THEW
US Secretary of State Mike Pompeo warns Iran could buy jets if the UN arms embargo is not extended in October. EPA/SHAWN THEW
US Secretary of State Mike Pompeo warns Iran could buy jets if the UN arms embargo is not extended in October. EPA/SHAWN THEW
US Secretary of State Mike Pompeo warns Iran could buy jets if the UN arms embargo is not extended in October. EPA/SHAWN THEW

Pompeo says Iran could buy 'Chinese and Russian jets' if UN embargo is not extended


Joyce Karam
  • English
  • Arabic

US Secretary of State Mike Pompeo sounded the alarm on Thursday about the possibility of Iran acquiring Chinese and Russian jets if the current arms embargo imposed by the UN security council is not renewed in October.

Speaking via a video conference organised by the German Marshall Fund think tank, Mr Pompeo warned the Europeans about the prospect of the embargo expiring in less than four months.

“In October of this year, the arms embargo will expire. That can’t happen, or the Iranians will be permitted to buy weapons systems," he said.

"They’ll become one of the largest sellers of weapons systems around the world. They’ll be able to buy Chinese jets and Russian jets.

“I can’t imagine that a citizen of Slovenia or Germany or Greece or any other European country would conclude that it was wise to allow the Iranians to have that capability…the United States is going to make sure that doesn’t happen.”

But Mr Pompeo expressed hope that the UN security council, despite current opposition from Russia and reluctance from China, would extend the embargo.

“We have a UN Security Council resolution that we’ll present in the coming weeks. We are hopeful that we will convince all of the partners on the UN Security Council that extending the arms embargo on Iran makes sense,” he said.

On Wednesday, Mr Pompeo threatened to impose multilateral sanctions if the embargo is not renewed.

“If at any time the United States believes Iran has failed to meet its commitments, no other state can block our ability to snap back those multilateral sanctions,” he said from the State Department.

But that would require the Trump administration to return to the Iran nuclear deal that it abandoned in 2018, in order to activate such sanctions.

“Our great preference is to have a Council resolution that would extend the arms embargo, but we are determined to ensure that that arms embargo continues."

US ambassador to the UN Kelly Craft, and US Special Representative for Iran Brian Hook, briefed the Security Council on the proposed resolution.

The Security Council is set to meet again and debate it in full on Tuesday.

Mr Hook referenced Iran’s September 2019 attack on Saudi Arabia as evidence that “Iran has neither abided by current restrictions nor demonstrated a change in its threatening behaviour.”

How to join and use Abu Dhabi’s public libraries

• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.

• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.

• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.

• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.

• For more information visit the library network's website.

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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.”

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