Beware the Iranian tiger, warns Benjamin Netanyahu REUTERS/Lucas Jackson
Beware the Iranian tiger, warns Benjamin Netanyahu REUTERS/Lucas Jackson
Beware the Iranian tiger, warns Benjamin Netanyahu REUTERS/Lucas Jackson
Beware the Iranian tiger, warns Benjamin Netanyahu REUTERS/Lucas Jackson

Netanyahu: Iran is like a 'hungry tiger unleashed'


Damien McElroy
  • English
  • Arabic

Benjamin Netanyahu warned the world to “fix it or nix it” as he sought support to overturn the Iran nuclear agreement, which he said had unleashed a hungry tiger.

Speaking at the UN General Assembly, Mr Netanyahu said the “sunset clause” in the 2015 deal would pave the way for an Iranian bomb, not halt progress as the proponents of the deal claim.

“It means that in a few years, those restrictions will be automatically removed, not by a change in Iran's behaviour, not by a lessening of its terror or its aggression: they'll just be removed by a mere change in the calendar,” he said.

The Israeli leader said Iran’s regional behaviour ever since the agreement came into effect had borne out his warnings that Tehran would be emboldened by the lifting of sanctions.

“Iran would behave like a hungry tiger unleashed, not joining the community of nations, but devouring nations one after the other. And that's precisely what Iran is doing today,” he said.

Echoing Winston Churchill, he said Iran was on the march all around its borders. “From the Caspian Sea to the Mediterranean, from Tehran to Tartus, an Iranian curtain is descending across the Middle East. Iran spreads this curtain of tyranny and terror over Iraq, Syria, Lebanon and elsewhere,” he said.

Addressing Ayatollah Ali Khamenei, the Iranian supreme leader, directly, he said Iranian aggression would backfire.  “Those who threaten us with annihilation put themselves in mortal peril”.

A warning that the Iranian nuclear deal was boosting Iran’s agenda was heard on the sidelines of the UNGA meeting from Prince Turki Al Faisal, the former Saudi Arabia ambassador to Washington.

“The Iranians are boasting about their ambitions and their activities,” he told a summit convened by United against a Nuclear Iran. “They are telling us exactly what they want to do and we are helping them do it.”

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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.”