An Iranian army technician pilots during a military exercise. Photo: Iranian Army Office via AFP
An Iranian army technician pilots during a military exercise. Photo: Iranian Army Office via AFP
An Iranian army technician pilots during a military exercise. Photo: Iranian Army Office via AFP
An Iranian army technician pilots during a military exercise. Photo: Iranian Army Office via AFP

Iran drone programme target of latest US sanctions


Joyce Karam
  • English
  • Arabic

The US took aim at Tehran's drone programme on Friday by slapping new sanctions on four people and two entities linked to Iran's Islamic Revolutionary Guard Corps.

In a statement, the Treasury Department said the IRGC has been providing Unmanned Aerial Vehicles (UAVs), or drones, to Iran-backed groups, including Lebanese militant group Hezbollah, and to crisis-hit Ethiopia, “where the escalating crisis threatens to destabilise the broader region".

Iranian drone strikes have been directed against multiple tankers in the Arabian Gulf in recent years, including the May 2019 Fujairah attack off the UAE coast that damaged Saudi, Emirati and Norwegian vessels.

“Iran’s proliferation of UAVs across the region threatens international peace and stability. Iran and its proxy militants have used UAVs to attack US forces, our partners and international shipping,” Deputy Secretary of the Treasury Wally Adeyemo said.

“Treasury will continue to hold Iran accountable for its irresponsible and violent acts.”

Friday's sanctions were placed on the commander of the IRGC's Aerospace Force, Saeed Aghajani, who is accused of ordering several drone attacks in Gulf waters over the past two years.

His unit orchestrated the July 29 attack on the commercial shipping vessel Mercer Street off the coast of Oman, which resulted in the deaths of two crewmen, the Treasury Department said.

“Aghajani also was behind a UAV attack against a Saudi Arabian oil refinery in 2019,” the statement read.

Also named in the sanctions was the IRGC's Gen Abdollah Mehrabi.

Two Iran-based drone companies, Kimia Part Sivan and Oje Parvaz Mado Nafar, along with two people affiliated with them, were added to the sanctions list for helping the IRGC modernise its drone programme.

The Treasury said the IRGC's Quds Force has used and distributed lethal drones throughout the region, noting that Iranian-funded groups including Hezbollah, Hamas in Gaza, Kata’ib Hezbollah in Iraq and the Houthi rebels in Yemen have received Iranian UAVs.

The statement said the Ethiopian government has also used Iranian UAVs against rebels in the northern Tigray region.

Open-source intelligence website Oryx reported in August that Ethiopia had secured a contract with Iran for the delivery of Mohajer-6 unmanned combat aerial vehicles.

“After seemingly having arrived at Ethiopia's Semara airport in north-eastern Ethiopia on the 1st of August, the drones' Ground Control Station (GCS) was then pictured as Prime Minister Abiy Ahmed visited the base not more than two days later,” the intelligence website said.

The Ethiopian embassy in Washington was not immediately available for comment.

Agencies contributed to this report

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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

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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: October 29, 2021, 4:28 PM