The wave of protests sweeping Iran is complicating the Biden administration’s calculus as it pushes to revive a nuclear deal with the country right as its leaders are being accused of oppressing and brutalising their own people.
Washington is facing a dilemma as it monitors the widespread demonstrations that have continued gaining momentum in the biggest show of popular unrest in Iran since 2009, when hundreds of thousands took to the streets to protest against what they said was the rigged election of Mahmoud Ahmadinejad.
If President Joe Biden's administration continues to push for a deal aimed at constraining Iran's nuclear programme, critics will say the White House is failing the protesters and potentially freeing up billions of dollars in sanctions relief for the very regime repressing them.
But if it abandons the nuclear talks, Tehran could do the same and be months from building a nuclear bomb.
Now in their third week, the current protests erupted over the death of a young Iranian-Kurdish woman, Mahsa Amini, in police custody.
US National Security Adviser Jake Sullivan insisted Washington could both revive the nuclear deal and back the protests.
“If we can succeed in that effort [to restore the deal, and we are determined to succeed in that effort, the world, America and our allies will be safer … that will not stop us in any way from pushing back and speaking out on Iran’s brutal repression of its citizens and its women. We can and will do both,” Mr Sullivan told CBS News last week.
Mr Sullivan stressed that negotiations with Iran over its nuclear programme have no impact on US willingness to address the protests.
Eighteen months of negotiations with Iran are currently at an impasse as Tehran continually shifts demands on what it wants to see in an accord.
The Biden administration has already sanctioned Iran's notorious morality police over Amini's killing and taken a more vocal line than Barack Obama did in 2009 during what became known as the Green Movement.
Iran watchers faulted Mr Obama for his softly-softly approach that came as his administration focused on diplomacy and set the stage for the nuclear talks that eventually led to the 2015 Joint Comprehensive Plan of Action (JCPOA).
In another sign of a more aggressive approach towards Iran under Mr Biden, CIA Director William Burns told CBS News on Tuesday that the US government is “very committed” to helping protesters get access to the internet, in a possible hint that the US will help deliver Starlink terminals to Iran.
Kelsey Davenport, the director of non-proliferation policy at the Arms Control Association, credited the Biden administration’s approach of continuing to support a deal, while also backing demonstrators.
“Tehran's destabilising regional activity and its repression domestically will be all the more challenging to confront under the threat of a nuclear-armed Iran,” Ms Davenport told The National.
She said support for diplomacy and the protests “are not mutually exclusive”, and that the bigger problem hindering a deal is Iran’s lack of co-operation with the International Atomic Energy Agency (IAEA) and demand that it close its investigation into the country's nuclear inventory.
“Iran is legally bound to co-operate with the agency and provide an accounting of its nuclear material inventory. That cannot be negotiated away,” she said.
The US should not agree to “anything less than Iran's full, credible co-operation with the agency”, the expert added.
But returning to a the deal while Iran is killing its own citizens could prove to be a tough pill to swallow for the Biden team, argued Jason Brodsky, policy director at United Against Nuclear Iran.
“Politically the JCPOA is a more difficult sell now because reviving it entails significant sanctions relief, which will resource the very entities and individuals that are oppressing and abusing the Iranian people,” Mr Brodsky told The National.
A return to the JCPOA could lead to sanctions being lifted on industries and commercial entities tied to Iran's Islamic Revolutionary Guard Corps, whose security arm the Basij is attempting to quell the protests.
And Mr Brodsky noted that Trump-era executive sanctions against Iran's supreme leader Ayatollah Ali Khamenei and President Ebrahim Raisi will reportedly be revoked as a part of a deal.
“That's a non-nuclear executive order, and if it's rescinded, it will be rewarding the faces committing crimes against the Iranian people,” he said.
Even for Iran, the protests will increase its tendency towards intransigence in talks, he argued.
“In the short term, it [the leadership in Iran] wants to telegraph strength to the international community. It will hunker down, repress the protests, while staying optimistic publicly on the JCPOA,” Mr Brodsky added.
The mood inside the US negotiating team on Iran had soured even before the protests. A US official told The National on condition of anonymity that the odds of reaching a deal before the end of the year are “lower than 2 per cent”.
Ali Vaez, director of the Iran Project at the International Crisis Group, said the US has “no good options”.
“If it decides not to do a deal with Iran because of the brutal crackdown on the protesters, it might soon have to either bomb Iran or adjust to Iran with a [nuclear] bomb. If it decides to pursue a deal with Iran, many protesters will perceive it as a stab in the back,” Mr Vaez told The National.
He added, however, that the “only thing worse than an Iranian leadership that represses and kills its own people is a nuclear-armed Iranian leadership that does so”.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Gulf rugby
Who’s won what so far in 2018/19
Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain
What’s left
UAE Conference
March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers
March 29, final
UAE Premiership
March 22, play-offs:
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes
March 29, final
MAIN CARD
Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari
Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam
Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai
Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni
Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir
Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka
MATCH INFO
Champions League quarter-final, first leg
Ajax v Juventus, Wednesday, 11pm (UAE)
Match on BeIN Sports
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More from Aya Iskandarani
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.”
Killing of Qassem Suleimani
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How to become a Boglehead
Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.
• Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.
• Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.
• Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.
• Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.
• Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.
• Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.
• Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.
• Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.
RESULTS
Cagliari 5-2 Fiorentina
Udinese 0-0 SPAL
Sampdoria 0-0 Atalanta
Lazio 4-2 Lecce
Parma 2-0 Roma
Juventus 1-0 AC Milan