Iran is facing increasing global scrutiny over its nuclear programme, with the threat of additional western sanctions, as the country struggles to boost its economy and deal with a power crisis.
Tehran is to resume talks with the International Atomic Energy Agency on restarting site inspections, the UN nuclear watchdog said this week. An IAEA report on Wednesday gave details of the discussions between the agency and Iran over the past 45 days about resuming inspections.
Last week, France, Germany and the UK triggered a UN procedure to reinstate six sanctions on Iran, saying Tehran has not stuck to a 2015 deal that eased the restrictions.
Iran's stockpile of uranium enriched close to weapons-grade has reportedly been increasing steadily and reached 440kg in June before the war with Israel.
The US also conducted strikes on Iranian nuclear sites at the same time as the Israeli offensive. The attacks were described by Washington as a knockout blow to Tehran's years-long covert effort to develop nuclear weapons.
Iran denies it wants to build a bomb and claims to be pursuing nuclear technology for peaceful purposes.
Energy diversification
Iran set a target of 20 gigawatts of nuclear power generation by 2041, but it is now expected to produce only about 8 gigawatts by that time, analysts said.
The US strikes on its nuclear sites, as well as sanctions and a lack of investment, have "actually affected, or it's going to be affecting, the nuclear ambition of the country", with delays to projects, Nishant Kumar, renewable and power analyst at Rystad Energy, told The National.
The US focused its attacks on the Fordow, Natanz and Isfahan nuclear sites, which President Donald Trump said “were all obliterated”. But Bushehr, Iran's only operational nuclear plant, was not struck during the 12-day conflict.
Iran currently produces about 1 gigawatt of nuclear power at the nuclear plant. Two more units, each with 1-gigawatt capacity, are being built at the site. Both are expected to be delayed by at least three years.
Construction of Unit 1 of the Bushehr plant began in 1975 and it was connected to the grid in 2011. Russia played a key part in completing the project.
Tehran is also building its Hormozgan nuclear plant, with a total capacity of 5 gigawatts, and the Darkhovin plant, with 300 megawatts, in Khuzestan. The Hormozgan project is to be built in four phases of 1,250 megawatts each. Construction of Unit 1 began last year, while the other three units are still in early development.
“Given the ongoing conflict, delays in these projects are highly probable,” Mr Kumar said. “Economic constraints like lack of private investment and fresh sanctions on Iranian oil exports will impact the country's overall economic health."
Struggling in the dark
Iran's economy has suffered under the sanctions reimposed by the US in 2018, when Mr Trump withdrew the country from the nuclear deal. The country is also on the Financial Action Task Force's black list.
The war with Israel in June devastated Iran's economy. Its growth is forecast to flatline at 0.3 per cent this year, down from 3.5 per cent in 2024, the International Monetary Fund said. It is forecast to expand 1.1 per cent next year, the fund said in April.
The IMF also expects Iran’s inflation rate to rise to 43.3 per cent this year, from 32.6 per cent in 2024, before slightly easing to 42.5 per cent next year.
The country has faced severe power cuts during the summer. They have caused businesses to shut down and government offices to close to help conserve energy, stalling the country's economic activity.
Nuclear energy contributes about 2 per cent to the country’s overall power mix, with 80 per cent coming from natural gas, followed by oil at 14 per cent and hydro power at 3 per cent, World Nuclear Association data shows.
Is nuclear an option for power shortage?
Iran aims to develop the Bushehr, Hormozgan and Darkhovin plants. Russia and Iran also signed a deal in June for eight reactors – four at Bushehr, said Umud Shokri, energy strategist and senior visiting fellow at George Mason University.
“Russia’s Rosatom is the primary investor/builder, funding via $10 billion credit lines despite sanctions, with a 20-year partnership ratified in May 2025," he explained.
But nuclear energy is not expected to provide an “immediate solution to current power shortages, as it contributes only 1 to 2 per cent of Iran’s 90 gigawatts capacity, while shortages range from 14 to 25 gigawatts, causing year-round blackouts and $5 billion to $8 billion in industrial losses,” Mr Shokri said.
“Building 25 Bushehr-sized plants to close the gap would take decades and billions, delayed further by sanctions and the June 2025 strikes’ impact on fuel production. It offers long-term diversification, with gas dominating current needs.”
Boosting renewable capacity
Iran, Opec’s third largest oil producer, is also boosting its renewable capacity, with plans to achieve 30 gigawatts in renewable energy capacity by 2030. The country’s current renewable capacity stands at less than 1.5 gigawatts from solar and wind sources, Rystad Energy analysis shows.
"Iran has been installing incremental renewable mainly solar energy," said Iman Nasseri, managing director of Middle East at FGE Nexant. "They are way behind their target, but they have already started a kind of fast development, we think this year, they have done the highest amount of solar generation capacity instalments and solar generation capacity will exceed 2 gigawatts by the end of this year."
A 600MW concentrated solar power plant near Isfahan, launched in 2023, is among the biggest renewable projects under construction in Iran. The first phase of the project being built by Iran's Mapna Group and Mobarakeh Steel Company went online last year.
Countries around the world are boosting renewable capacity to support clean energy goals. Falling costs, especially for solar and wind installation, have encouraged governments to launch new projects.
"The government continues to invest in adding generation capacity, but it is not enough to cover peak loads," Mr Nasseri added. "Overall demand has been going up, [as a result of] more installation of ACs but also mining of the cryptocurrencies, data centres and everything else."
When Umm Kulthum performed in Abu Dhabi
Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.
More from Neighbourhood Watch:
Day 2, Abu Dhabi Test: At a glance
Moment of the day Dinesh Chandimal has inherited a challenging job, after being made Sri Lanka’s Test captain. He responded in perfect fashion, with an easy-natured century against Pakistan. He brought up three figures with a majestic cover drive, which he just stood and admired.
Stat of the day – 33 It took 33 balls for Dilruwan Perera to get off the mark. His time on zero was eventful enough. The Sri Lankan No 7 was given out LBW twice, but managed to have both decisions overturned on review. The TV replays showed both times that he had inside edged the ball onto his pad.
The verdict In the two previous times these two sides have met in Abu Dhabi, the Tests have been drawn. The docile nature of proceedings so far makes that the likely outcome again this time, but both sides will be harbouring thoughts that they can force their way into a winning position.
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
SPECS
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RACE CARD AND SELECTIONS
5pm: Maiden (PA) Dh80,000 1,200m
5,30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,200m
6pm: The President’s Cup Listed (TB) Dh380,000 1,400m
6.30pm: The President’s Cup Group One (PA) Dh2,500,000 2,200m
7pm: Arabian Triple Crown Listed (PA) Dh230,000 1,600m
7.30pm: Handicap (PA) Dh80,000 1,400m
The National selections
5pm: RB Hot Spot
5.30pm: Dahess D’Arabie
6pm: Taamol
6.30pm: Rmmas
7pm: RB Seqondtonone
7.30pm: AF Mouthirah
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Yuki Means Happiness
Alison Jean Lester
John Murray
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
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