A glossy magazine lies on a wooden table in a fifth-floor office at Bank Melli Iran's regional headquarters in Deira, part of the bank's promotional material for trade with Iran that shipping companies say has declined sharply since US-led sanctions started in 2006.
Along with tracts about the country's economic promise from Ayatollah Ali Hoseyni Khamenei and articles about science and technology is a simple description of the bank's purpose in the UAE.
"Bank Melli Iran offers a range of banking products and services to its customers with a particular focus on trade finance," it says.
While estimates vary, trade between the UAE and Iran is thought to be worth between US$10 billion (Dh36.72bn) and $15bn a year. Iran still routinely shows up on government-issued lists of the top destinations for non-oil exports and re-exports, which is little surprise given the country's location and the cultural ties that date to a time when pearl diving and the textiles business were economic juggernauts. The men in the dhow yards on Dubai Creek say it takes just a week or so to get to Iran's southern ports on their rickety, brightly-painted ships, a much easier journey than the 21-day sail to Karachi or the month-long voyage to Mumbai.
Financing from Bank Melli Iran and Bank Saderat Iran, among other banks, has lubricated this trade for decades. To ensure that they get paid, exporters in Dubai typically demand a letter of credit, or a promise from the importer's bank to pay up when the shipment arrives. Without such short-term credit, many large international shipments would not happen.
A main thrust of US-led sanctions on Iran, which were stepped up after the UN Security Council last month approved fresh restrictions on financing and military goods, has been constraining banks and limiting letters of credit for shipments to the country.
The latest tightening, some traders in Dubai say, has crimped the flow of goods to Iran, even those not covered by sanctions.
Traders have been forced to resort to cash payments and deal only with customers they know and trust, says Morteza Masoumzadeh, the head of the Iranian Business Council in the UAE and the owner of a company that imports goods from Europe and re-exports them to Middle Eastern and African countries.
"Iranian banks have virtually been disabled for the Iranian traders in the UAE and I'm sure in other places in the world, anywhere Bank Melli and Bank Saderat have branches," he says in his office overlooking the Dubai Creek shipyards. "Our suppliers, whether they're in Europe or other countries, they do not accept a letter of credit issued by the Iranian banks. That's why at least 70 per cent of our business is reduced when you compare it to two years ago."
Officials at Bank Melli Iran and Bank Saderat Iran would not discuss how the sanctions have affected them. But the pressure has only increased in recent months. Stuart Levey, the under secretary for terrorism and financial intelligence at the US Treasury, visited the UAE in April to describe his country's sanctions efforts.
Earlier this week, the UAE Central Bank sent a message to banks asking that the accounts of 41 businesses be frozen because of their dealings with prohibited companies, most of which are connected with Iran's powerful Revolutionary Guard Corps.
Mr Masoumzadeh says none of those companies is among the 1,000 or so members of the Iranian Business Council, which comprise just a fraction of the estimated 8,000 Iranian companies in the UAE.
An Iranian diplomatic source says the country's embassy in Abu Dhabi is monitoring the situation but has not made diplomatic inroads with UAE officials.
"We see what's in the papers, but we have not seen anything formal, so we are just studying the matter at present," the source says. "Relations with the UAE are very progressive and you know we have a good economic relationship. We have more than $15bn [in trade] between the two countries."
Iranian traders have already tried to get around sanctions, with varying degrees of success. They approached local banks for help with financing shortly after sanctions began in 2006 but were given a cool reception. Insuring shipments to Iran is still possible, according to an Iranian insurance executive. But he says the policies underwritten by Iranian insurers had to be issued by third-party banks.
While the sanctions have hit some Iranian traders hard, others have been spared. Many small businesses have not been affected at all, simply because they have always paid in cash.
The re-exporters who ship American and European goods to Iran through Dubai have taken the biggest hit. Even for them, though, it is not impossible to get American goods into Iran. They do it openly, they say, because they know customs officials are far more concerned about goods with possible military or nuclear uses than common consumer items.
Yet even if sanctions continue for the foreseeable future, Mr Masoumzadeh says he does not expect many traders to leave Dubai. He likened the sanctions to the period during the Iran-Iraq war in the early 1980s, when trade with Iran slowed.
"After 30 years, where can we go? My children were born here. They live here. How can I change my life? How? It is like our home here now."
afitch@thenational.ae
Killing of Qassem Suleimani
Dengue%20fever%20symptoms
%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Clinicy%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Prince%20Mohammed%20Bin%20Abdulrahman%2C%20Abdullah%20bin%20Sulaiman%20Alobaid%20and%20Saud%20bin%20Sulaiman%20Alobaid%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Riyadh%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2025%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20HealthTech%3Cbr%3E%3Cstrong%3ETotal%20funding%20raised%3A%3C%2Fstrong%3E%20More%20than%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Middle%20East%20Venture%20Partners%2C%20Gate%20Capital%2C%20Kafou%20Group%20and%20Fadeed%20Investment%3C%2Fp%3E%0A
What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
JOKE'S%20ON%20YOU
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A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Company profile
Company: Verity
Date started: May 2021
Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif
Based: Dubai
Sector: FinTech
Size: four team members
Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors
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.”
Mane points for safe home colouring
- Natural and grey hair takes colour differently than chemically treated hair
- Taking hair from a dark to a light colour should involve a slow transition through warmer stages of colour
- When choosing a colour (especially a lighter tone), allow for a natural lift of warmth
- Most modern hair colours are technique-based, in that they require a confident hand and taught skills
- If you decide to be brave and go for it, seek professional advice and use a semi-permanent colour
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
Founder: Ayman Badawi
Date started: Test product September 2016, paid launch January 2017
Based: Dubai, UAE
Sector: Software
Size: Seven employees
Funding: $170,000 in angel investment
Funders: friends
Getting there
The flights
Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.
The stay
Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net
Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama
Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
