Iran is facing potentially crippling restrictions if it does not end its nuclear programme after Britain’s Prime Minister disclosed that “snapback sanctions” against the regime are being considered.
During an appearance in parliament, Keir Starmer was asked by his immediate predecessor in Downing Street, Rishi Sunak, whether Iran should be punished if it did not admit International Atomic Energy Agency (IAEA) inspectors to fully verify that its efforts to enrich enhanced uranium had ceased.
“The prospect of a regime like this having nuclear weapons is unacceptable, and so I welcome the US and Israeli action,” Mr Sunak said. “Does the Prime Minister agree with me that we and our European allies should now trigger snapback sanctions?”
Mr Starmer responded that “on snapback” this was “a consideration that we are discussing with allies”, and that it would be part of the pressure applied to Iran during talks. Under the terms of the 2015 Joint Comprehensive Plan of Action (JCPOA) agreement, if it is felt that Iran is no longer in compliance then the treaty signatories, including the E3 countries of Britain, France and Germany, could initiate the snapback clause.
This would involve the reimposition of UN sanctions on exports as well as travel bans and asset freezes on people and entities, all of which could severely damage Iran’s economy. But the signatories only have until October this year, when, with 10 years having elapsed since the treaty’s signing, the snapback option will expire. That would mean the E3 countries would lose a substantial diplomatic lever against Tehran.
Acutely aware that this power might slip away, Mr Starmer said that “exactly when and how snapback is applied will obviously be a question of discussion”. He said the conversation should be held imminently.
Big Steps
Mr Starmer also went further than he has before in supporting Israel and the US's pre-emptive attack on Iran, which has been criticised by some as flouting international law. With its bunker buster strikes on the Fordow uranium enrichment plant, the “US took a big step towards resolving that threat”, he told MPs.
He later added that the global community agreed that Iran should not have nuclear weapons. He added that it was “about time we did something about it”, and said a deal should follow to “complete on that”.
Reporting back from Tuesday’s Nato leaders’ summit, he said the Middle East “was at the forefront of our minds” and that Iran must “never obtain a nuclear weapon”. He also said that now was a “window for peace” with Iran, and also for a deal to bring an end to the death and destruction in Gaza.
Out of step
If Mr Starmer appeared statesmanlike and serious, the leader of the opposition, Kemi Badenoch, looked badly out of step after she tore into the Prime Minister for missing the last two Prime Minister's Questions for the G7 and Nato summits. The implication that he should skip two vital geopolitical events demonstrated “exactly why their (Conservative) party is sliding into irrelevance”, Mr Starmer responded.
Even Ms Badenoch's backbenchers criticised her, with Tory MP Mark Pritchard condemning her criticism as “partisan politics” that should be kept out of national security issues. He then thanked Mr Starmer for “his hard work”.
That work will be required, the Prime Minister agreed, to use the current favourable circumstances to seal a broader Middle East peace. “This is the moment to press on from Iran to a ceasefire in Gaza, and I mean that that should happen in days, not weeks or months,” he stressed.
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.”
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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.
How Alia's experiment will help humans get to Mars
Alia’s winning experiment examined how genes might change under the stresses caused by being in space, such as cosmic radiation and microgravity.
Her samples were placed in a machine on board the International Space Station. called a miniPCR thermal cycler, which can copy DNA multiple times.
After the samples were examined on return to Earth, scientists were able to successfully detect changes caused by being in space in the way DNA transmits instructions through proteins and other molecules in living organisms.
Although Alia’s samples were taken from nematode worms, the results have much bigger long term applications, especially for human space flight and long term missions, such as to Mars.
It also means that the first DNA experiments using human genomes can now be carried out on the ISS.
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
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COMPANY%20PROFILE
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Profile of Whizkey
Date founded: 04 November 2017
Founders: Abdulaziz AlBlooshi and Harsh Hirani
Based: Dubai, UAE
Number of employees: 10
Sector: AI, software
Cashflow: Dh2.5 Million
Funding stage: Series A
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