British MPs have questioned why state-backed Iran Air operates flights out of Heathrow despite its support for Russia.
British MPs have questioned why state-backed Iran Air operates flights out of Heathrow despite its support for Russia.
British MPs have questioned why state-backed Iran Air operates flights out of Heathrow despite its support for Russia.
British MPs have questioned why state-backed Iran Air operates flights out of Heathrow despite its support for Russia.

Calls increase to ban Iran Air from Heathrow over drone support for Russia


Neil Murphy
  • English
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Iran’s national airline should be banned from Heathrow Airport due to Tehran’s support for Russia, British MPs have heard.

Conservative former cabinet minister Liam Fox asked why Iran Air is still operating regular flights from the west London hub, with Foreign Office minister David Rutley replying that he would raise the issue within the department.

Thousands of Iranians have taken to the streets in recent weeks over the death of 22-year-old Mahsa Amini, who had been detained by police in Tehran for allegedly not adhering to Iran’s strict dress code for women.

Iran has also acknowledged it supplied Russia with drones, but claimed the transfer came before Moscow’s war on Ukraine, during which a number of Iranian-made drones have hit Kyiv.

Dr Fox told the Commons that what we are seeing is “further savage behaviour from a toxic regime against its own people”.

He said that British society should be “united in giving moral support to the Iranian people as they try to seek basic human rights”.

It was well established, he added, that Iran Air was used to transport drones to Russia — which has used them to “oppress the people of Ukraine” — and asked why it was still operating daily flights out of Heathrow.

Mr Rutley replied that the government had already taken urgent steps in response to Iranian activity in support of the Russian military action in Ukraine.

He also said the UK government “utterly condemns” the Iranian government’s decision to resort to “barbaric methods” to clamp down on protesters — but fears the number of death sentences handed down by the country's courts will rise.

“The UK opposes the death penalty in all circumstances,” he said. “It’s all the more abhorrent when those sentenced have been arrested whilst standing up for their rights.”

The minister also faced calls to ensure Britain declares its support for regime change in Iran and to add the Islamic Revolutionary Guard Corps (IRGC) to a list of banned terrorist organisations in the UK.

Mr Rutley said: “The destabilising activity of the IRGC — whether it’s in Yemen, Iraq, Lebanon or Syria — are very, very concerning in the region and beyond.

“We’re constantly keeping that proscription under review but I can’t comment at this stage.”

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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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Updated: November 16, 2022, 8:43 PM