Nazanin Zaghari-Ratcliffe, jailed in Tehran since 2016, was transferred to a hospital ward this week. Reuters
Nazanin Zaghari-Ratcliffe, jailed in Tehran since 2016, was transferred to a hospital ward this week. Reuters

Tehran's domestic divisions are keeping Nazanin Zaghari-Ratcliffe in jail



Until two weeks ago, only a few people in the UK would have heard of Nazanin Zaghari-Ratcliffe, a dual citizen British-Iranian who has been detained in Iran for over a year. But after the British foreign secretary Boris Johnson mistakenly claimed at a parliamentary committee that she had been teaching journalists in the country when she was actually on holiday, her case became front page news.

Zaghari-Ratcliffe's family are unlikely to thank Mr Johnson for his error, especially after the remark was seized upon by Iranian media as a “confession” and she was hauled into court to be sentenced to a further five years in prison.

The media scramble that has since erupted has ensured that her case receives daily political attention – and yet, by placing the spotlight on it, her detention may have been extended.

The case sits at a peculiar nexus, caught between domestic British politics and internal Iranian divisions. Because without the fault lines so evident in British politics today, it is unlikely it would ever have received so much attention. And yet it is due to internal divisions within Iran itself that she was first arrested and continues to be held.

British politics is divided, at the highest level. After one cabinet minister resigned because of allegations of improper behaviour and another resigned for having secret meetings in Israel, the cabinet is delicately balanced. When Mr Johnson made his error, the media and the opposition scented blood and began baying for it. That extreme scrutiny had the welcome side effect of casting a spotlight on Zaghari-Ratcliffe's detention in Evin prison.

But it is due to divisions in Iranian politics that she is there in the first place. There are at least 10 dual nationals of western countries imprisoned in Iran; five are Americans, three are British. (The numbers sometimes vary because of permanent residency holders.) Most were arrested by the Islamic Revolutionary Guard Corps, a branch of the country's military, and at least half were arrested after a significant prisoner swap took place between the United States and Iran in January 2016. Indeed, last year saw a flurry of arrests by the IRGC of British, French, American, Canadian and Swedish nationals.

The common thread is the Revolutionary Guard, the locus of hardline power in the country and a group that often finds itself in tension with more moderate presidents, such as the current incumbent Hassan Rouhani. It is this internal division that so often colours what happens between Iran and the rest of the world.

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On Twitter, the former Washington Post Tehran correspondent Jason Rezaian, who has been following the case, emphasised that the prisoners were "hostages": "The Guards [are] using them as bargaining chips in international relations and to put off European firms that sought business in Iran."

Rezaian should know. He was one of four US dual citizens released in January last year as part of the prisoner swap negotiated in secret alongside the deal to curb Iran's nuclear programme. In return, seven Iranians in the US had charges against them dropped. He, along with his wife Yeganeh Salehi – a former correspondent for this newspaper – faced trumped-up charges and allegations.

At the time, the US was keen to portray the prisoner swap as a one-off – “a unique arrangement...a humanitarian gesture” as one US official put it at the time – but elements within Iran's intelligence services have recognised the power of prisoners to pressure western politicians, which explains why so many dual nationals were picked up later that same year.

These prisoners appear to be kept as bargaining chips, often used to send political messages. Zaghari-Ratcliffe, for instance, was sentenced to five years in prison on September 10 last year – exactly five days after the British government appointed an ambassador to the country for the first time in half a decade. As one part of the Iranian government pursues an opening, the IRGC seeks to shut it down.

The same thing also happened just days before the prisoner swap took place, when Iran detained 10 sailors who crossed into Iranian waters. They were swiftly released, but not before Iranian state TV had broadcast footage of the soldiers on their knees at gunpoint, apologising to the Iranian government, footage that caused outrage in the US. Analysts later noted that one of the reasons for the flurry of activity between Iran's foreign minister Mohammad Javad Zarif and America's then-secretary of state John Kerry was because Mr Zarif, a supporter of the nuclear deal, was concerned that the IRGC would use this to derail the deal. The longer the sailors were detained, the more likely they were to become political pawns.

This is now the danger and the opportunity of Zaghari-Ratcliffe's appearance on newspaper front pages. The British foreign secretary is due in Iran later this year on a previously scheduled trip to promote British business. Neither London nor Tehran wants this case to overshadow that. Yet they have no choice now and so both sides will be seeking an elegant way out.

The possibility therefore now exists that those elements inside Iran who wish for better relations with the West might persuade the IRGC that this would be a good moment for a gesture of goodwill. Equally, the IRGC might demand a high price for her release or use it as a chance to derail the visit.

While that diplomatic dance between the countries and within them is going on, it is better if Mr Johnson, who has proved himself to be rather bumbling in one of the country's most important political offices, remains in post. The British opposition – and some in his own party – would love nothing better than to use this moment to get rid of him. But with only weeks to go before a high-level visit to Tehran, his resignation would prove a distraction and end the media spotlight. For the sake of Zaghari-Ratcliffe and her family, it is better that the media bubble follows Mr Johnson all the way to Evin prison.

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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.”

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2025 Fifa Club World Cup groups

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