Mohammad Javad Zarif, forced to resign as Iran's vice president for strategic affairs this month, speaks at the World Economic Forum in Davos in January. AFP
Mohammad Javad Zarif, forced to resign as Iran's vice president for strategic affairs this month, speaks at the World Economic Forum in Davos in January. AFP
Mohammad Javad Zarif, forced to resign as Iran's vice president for strategic affairs this month, speaks at the World Economic Forum in Davos in January. AFP
Mohammad Javad Zarif, forced to resign as Iran's vice president for strategic affairs this month, speaks at the World Economic Forum in Davos in January. AFP


Iran’s reformists have a lot to feel despondent about


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March 20, 2025

With a reputation for making dramatic pronouncements, Mohammad Javad Zarif’s resignation as Iran’s vice president for strategic affairs earlier this month – his second in seven months – didn’t raise many eyebrows. One expert even joked about it, saying: “Life is what happens between two Zarif resignations.”

Many expected the veteran career diplomat to make a quick comeback, but three weeks have since passed. It seems this time, he is gone for real.

When an official resigns in Iran, it is customary for his or her superior to accept the resignation before it is considered a done deal. President Masoud Pezeshkian hasn’t confirmed whether or not he has accepted Mr Zarif’s resignation yet. But last week, Mohammad Jafar Qaempanah, the Vice-President for Executive Affairs, said Mr Zarif has left “regardless of whether his resignation is accepted [or not]”. He added that the Cabinet hasn’t discussed the issue since it is “considered final”.

Mr Zarif’s departure wasn’t voluntary. As he said in his announcement, he had been asked to resign by Gholamreza Mohseni Ezhei, the head of Iran’s judiciary. Mr Ezhei’s request came on the same day that the hardliner-dominated Parliament impeached finance minister Abdolnaser Hemmati. In other words, two branches of government drove out two of the most notable figures serving the third branch.

There was another high-profile resignation this week, with Ali Tayebnia leaving his position as Dr Pezeshkian’s senior adviser. There is speculation that he might replace Mr Hemmati as finance minister, but it’s not clear whether Parliament will vote to confirm him.

As Iran’s best-known western-facing diplomat, and the architect of the landmark 2015 nuclear deal, Mr Zarif has long been a bete noire for many hardliners who oppose any engagement with the US. Seeking his ouster, these hardliners invoked a law passed in 2022 that bars those whose relatives hold dual citizenship from assuming government positions. The former foreign minister’s two children were born in the US, and thus hold American citizenship, which provided the basis for them to demand his resignation.

The big question in Iranian politics right now is whether, and how, the government will respond to Donald Trump's letter

Dr Pezeshkian’s government tried to get the law amended to exempt those whose relatives get automatic birthright citizenship – and, therefore, theoretically have no choice in the matter – but Parliament refused to play ball. It took the judiciary’s intervention to eventually drive Mr Zarif out.

The recent ousters have further complicated matters for Dr Pezeshkian, whose sole focus has been on addressing Iran’s myriad domestic and foreign policy challenges.

Although from the reformist camp, the President has been running what he calls a “government of reconciliation” – one that is essentially a broad tent with enough room for reformists and conservatives to collaborate with one another. He has managed to avoid crossing any of the obvious red lines; has maintained positive relations with the supreme leader, Ayatollah Ali Khamenei; and has sought to avoid political strife. But the departure of three influential reformist figures from his administration has shown the limits of this approach.

All of this is happening at a time when Iran is experiencing turbulence within its borders. Much of the country has been reeling from power cuts for months. The constant threat of American and Israeli attacks has put the country on high alert and further destabilised the economy. At the time of writing, one US dollar was trading for 977,000 Iranian rials. It was almost half of this when Dr Pezeshkian took office last July.

Worse, there is little that Dr Pezeshkian can do about any of this. The country’s most critical decisions are made by Mr Khamenei and institutions such as the Islamic Revolutionary Guard Corps and the National Security Council.

The big question in Iranian politics right now is whether, and how, the government will respond to the letter US President Donald Trump wrote to Mr Khamenei in an attempt to start talks over Tehran’s nuclear weapons programme. It is notable that Dr Pezeshkian has little say over such an important matter, leaving many of his most ardent supporters despondent.

In an apparent dig at the President’s futile efforts to bring moderates and conservatives together, former Tehran mayor Gholamhossein Karbaschi said: “Hemmati and Zarif have left. If [Ahmad] Meydari and [Mohammad-Reza] Zafarqandi [two major reformist ministers] also leave, the reconciliation will be complete.”

An electricity transmission tower in Tehran last November. Iran has been facing power cuts in recent months. AFP
An electricity transmission tower in Tehran last November. Iran has been facing power cuts in recent months. AFP

The journalist and activist Abbas Abadi lamented that Dr Pezeshkian has made “no reconciliation with people”, and his initial base has been “almost halved”. In an editorial, the reformist daily Shargh warned that if the President continues in this vein, his government would lose all support. Ahmad Zeidabadi, another well-known journalist, said the only way forward for the country is for Parliament to be dissolved and fresh elections to be called, but no such provision exists in Iran’s Constitution.

It’s been noted that Mr Zarif resigned a week after Russian Foreign Minister Sergey Lavrov’s visit to Iran, with some reformists suggesting that his exit has to do with his well-known scepticism towards Moscow. The Trump administration has been engaging with Russia and, in particular, seeking its help to mediate with Iran. Perhaps, these reformists point out, a figure like Mr Zarif was seen as a possible obstacle to the process.

But Iran is likely to miss the former diplomat’s expertise and experience at a crucial time.

Mr Zarif has spent much of his adult life in the US, where he received a PhD from the University of Denver and worked for several years in Iran’s permanent representation office at the UN in New York. His public relations skills are unique among his peers. Few officials can hold one-on-one conversations with major western journalists at Davos, as Mr Zarif did in January, or publish video messages to the global Jewish community, as he did last November.

This is why some of his supporters claim that his departure only helps those who wish to isolate Iran internationally. Israeli Prime Minister Benjamin Netanyahu, for instance, can now point to Tehran’s hardliners in an attempt to show the rest of the world that it cannot be engaged with.

However, ever the political animal, Mr Zarif doesn’t appear to have any intention of leaving the limelight. A petition asking for Dr Pezeshkian to reinstate him has gathered more than 13,000 signatures. In the weeks since his resignation, he has appeared on popular podcasts and given long interviews. As I’ve previously written in these pages, he has a gift for making headlines.

Perhaps his resignation is an act of ambition. As Dr Pezeshkian’s government runs out of steam, he might benefit politically from not being associated with it. It is of course hard to say what he will do next, but one thing is clear: the world hasn’t heard the last of Mr Zarif.

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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.”

RESULTS

Catchweight 82kg
Piotr Kuberski (POL) beat Ahmed Saeb (IRQ) by decision.

Women’s bantamweight
Corinne Laframboise (CAN) beat Cornelia Holm (SWE) by unanimous decision.

Welterweight
Omar Hussein (PAL) beat Vitalii Stoian (UKR) by unanimous decision.

Welterweight
Josh Togo (LEB) beat Ali Dyusenov (UZB) by unanimous decision.

Flyweight
Isaac Pimentel (BRA) beat Delfin Nawen (PHI) TKO round-3.

Catchweight 80kg​​​​​​​
Seb Eubank (GBR) beat Emad Hanbali (SYR) KO round 1.

Lightweight
Mohammad Yahya (UAE) beat Ramadan Noaman (EGY) TKO round 2.

Lightweight
Alan Omer (GER) beat Reydon Romero (PHI) submission 1.

Welterweight
Juho Valamaa (FIN) beat Ahmed Labban (LEB) by unanimous decision.

Featherweight
Elias Boudegzdame (ALG) beat Austin Arnett (USA) by unanimous decision.

Super heavyweight
Maciej Sosnowski (POL) beat Ibrahim El Sawi (EGY) by submission round 1.

Updated: March 20, 2025, 7:56 AM