Note of caution as IAEA report stokes war fears



The nine-year drama to defuse Iran's nuclear programme has produced its share of "smoking guns". Anecdotal evidence, hidden facilities, a captured laptop - all have pointed to Iran's interest in being able to build nuclear weapons.

Yet nothing uncovered so far would justify the use of military action to force Iran's hand. The UN nuclear watchdog's latest report - certain to be held up as another smoking gun - must be seen for the intelligence document that it is, and not as an excuse for war.

To be sure, allegations made by the International Atomic Energy Agency are alarming. The idea that Iran colluded with Russian, Pakistani and North Korean scientists to build detonators capable of triggering nuclear chain reactions makes it plain where Tehran is heading.

But caution is in order. Intelligence on Iran is notoriously difficult to verify, and no one will soon forget the failings of western intelligence agencies during the run up to war in Iraq. Most importantly, few if any know the true intentions of Iran's leaders - whether they actually want a weapon or simply want the world think they do.

"What is not clear is how far Iran intends to proceed down this path," John Carlson, a former IAEA nuclear weapons expert, noted in an online assessment on Friday. "Will it cross the nuclear weapon threshold, or if not, how far short will it stop?"

Iran is clearly to blame for nearly a decade of obfuscation and misdirection. But others are inching dangerously close to compounding that mistake. Israel, which has made no secret of its desire to crush Iran's nuclear programme, is ratcheting up an irresponsible level of belligerent posturing.

There is no advantageous military option. Instead of crippling Iran's efforts, military strikes would only prompt a crisis. In this Iran has many levers to pull - from proxy forces in Lebanon to oil and gas shipping lanes in the Strait of Hormuz.

The best option, indeed the only one, is to redouble old strategies of diplomatic persuasion, possibly even in returning to a possible agreement that allows for some type of enrichment activity to continue on Iranian soil. Add to this effort economic pressure. Sanctions could especially benefit with increased coordination among responsible governments and regional traders.

All of these measures require slow, hard work. But after years of keeping the trigger lock on, diplomacy still remains the preferable option.

RESULT

Manchester United 1 Brighton and Hove Albion 0
Man United: Dunk (66' og)

Man of the Match: Shane Duffy (Brighton)

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.”

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How green is the expo nursery?

Some 400,000 shrubs and 13,000 trees in the on-site nursery

An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo

Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery

Approximately 340 species of shrubs and trees selected for diverse landscape

The nursery team works exclusively with organic fertilisers and pesticides

All shrubs and trees supplied by Dubai Municipality

Most sourced from farms, nurseries across the country

Plants and trees are re-potted when they arrive at nursery to give them room to grow

Some mature trees are in open areas or planted within the expo site

Green waste is recycled as compost

Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs

Construction workforce peaked at 40,000 workers

About 65,000 people have signed up to volunteer

Main themes of expo is  ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.

Expo 2020 Dubai to open in October 2020 and run for six months

Nayanthara: Beyond The Fairy Tale

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Director: Amith Krishnan

Rating: 3.5/5

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Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind

Fire and Fury
By Michael Wolff,
Henry Holt