Iran-Brotherhood ties: rooted in history with eye on future



A salient feature of Iran's foreign policy is its ability to build influence where least expected. With the ascent to power of Sunni Islamists throughout the region, and Iran's support of the military campaign in Syria, many have argued that Iran's regional standing is in decline.

But the opposite assessment needs to be taken seriously. Iran has been upbeat about the popular revolts, dubbing them an "Islamic Awakening" and confident it can build strong ties with the people of the region after the demise of dictatorial rule in the Arab republics.

That prospect is particularly true with the Muslim Brotherhood and its offshoots throughout the region - including even those that currently perceive Iran as an enemy, such as the Syrian Muslim Brotherhood.

A closer look at the historical links and ideological similarities between Tehran's mullahs and Arab Islamists shows that not only could Iran build ties with the emerging political forces in the region, but that it could develop a sustainable special relationship.

One of the first encounters between the Muslim Brotherhood and Iranian figures who later helped to bring about Iran's current regime was in Cairo, in 1954. Sayyid Navvab Safavi, an Iranian leader of the anti-Shah Fadayan-e Islam, met with senior Brotherhood members to bolster ties. Salim Al Bahnsawi, a Brotherhood intellectual who died in 2006, said of the meeting: "It's not surprising that the similarities in approach between the two groups led to this cooperation". And Rashid Ghannouchi, leader of the Ennahda Movement in Tunisia, has even described Fadayan-e Islam as an offshoot of the Brotherhood.

Before that, the Brotherhood's founder, Hassan Al Banna, had frequently met with Iranian clerics. During one Haj visit to Mecca, he agreed with ayatollahs to establish ties with the Shia clerical establishment in Tehran. But that effort was soon disrupted by Al Banna's assassination in 1949. Senior Brotherhood figures continued to meet Iranian clerics, including Ayatollah Mohammed Taqi Al Qummi and Ayatollah Khomeini while he was in exile in Paris before the revolution.

The Brotherhood welcomed the 1979 Islamic Revolution, although members later expressed disappointment that Ayatollah Khomeini established a sectarian state, rather than an inclusive Islamic state that respected the rights of Sunni adherents in Iran. Relations with Tehran faltered during the Iraq-Iran war (1980-1988), but were not severed.

Iran's current Supreme Leader, Ayatollah Ali Khamenei, has repeatedly praised the organisation and translated some of Brotherhood ideologue Sayyid Qutb's books into Farsi. After the Egyptian uprising that toppled Hosni Mubarak, more Brotherhood books have been translated into Farsi, including one about the history of the organisation, translated by Ayatollah Hadi Khosrowshahi, the former adviser to Iran's foreign minister.

The Brotherhood and adherents of Khomeinism share common Islamic views that make them closer to each other than to their fellow Sunnis or Shiites. The Brotherhood deems rulership a religious "asel", meaning that one's faith is not complete without pledging allegiance to an imam - unlike the consensus in mainstream Sunni Islam. This is similar to the concept of velayat-e faqih, which holds that a religious jurist has custodianship over the people.

Other similarities include the institution of the "general guide", and the ability to exercise taqiyya, a form of religious dissimulation to avoid persecution or harm. Both ideologies approve of election as a political mechanism but require the rule of Sharia and oversight by religious people of the population's choice - which can be described as a clergy-supervised democracy, or constitutional theocracy. Also, the two groups tend to be expansionist.

Indeed, there is a growing current within the Muslim Brotherhood in Egypt that is pushing for stronger ties with Iran. This current is represented by Kamal Al Halbawi, a former Brotherhood spokesman, who said in July the status of Shiites in the region would be "better" with the rise of the Brotherhood and moderate Islam. Others, like Doha-based Youssef Al Qardawi, approve of stronger relations with Iran but oppose any Shia influence within Sunni communities.

It is important to distinguish between the Brotherhood as an organisation and as an ideology. The former is coherent but the latter is loose. The Brotherhood includes Sunni adherents from a wider religious spectrum, from extreme Salafis to moderate clerics, with conflicting views on sectarian issues. According to people I've spoken to, the Brotherhood leadership therefore treads carefully in terms of rapprochement with Iran to avoid alienating sectarian forces inside and outside the organisation, but at the same time quietly promotes it.

The rapprochement is of course not without risks. Salafists, now major players in Egyptian politics, are vehemently opposed to any Iranian influence or spread of Shia Islam, which many consider "enemy No 1". The Gulf states and their regional and international allies also oppose such rapprochement and consider it a direct threat to their security. Yet ties, even intelligence ties, are strengthening.

Major Genera Qassem Suleimani, a spy chief and commander of Iran's Quds Force, reportedly visited Cairo last month for talks with senior officials close to President Mohammed Morsi. Almost at the same time, Egypt's ambassador to Lebanon, Ashraf Hamdy, told Lebanese newspaper The Daily Star that Egypt would pursue a relationship with Hizbollah as a "real political and military force".

The onus is on regional countries to initiate measures to prevent the most populous Arab country from drifting towards the Iranian orbit, as happened with Iraq. Any alliance between the Iranian regime and the Brotherhood is likely to be more enduring and sustainable than Iran's alliance with Baathist Syria, for example.

For this reason, regional Arab states looking to rebuild ties with Cairo must recognise that the new Egypt is more complex and many actors are vying for its attention. A process of deeper engagement with Egypt as a country is essential.

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Name: Yousef Al Bahar

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Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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.”