Donald Trump must soon decide whether to decertify or not. Yuri Gripas / Reuters
Donald Trump must soon decide whether to decertify or not. Yuri Gripas / Reuters

Why Donald Trump is prepared to ditch the Iran nuclear deal



Iran’s commitment to causing destabilisation throughout the Arab world is the key to understanding why Donald Trump’s White House has opted to escalate tensions with Tehran.

Mr Trump has provoked considerable controversy on both sides of the Atlantic by seeking to make political capital from the certification process, whereby the White House conducts regular assessments on whether Tehran is complying fully with the terms of the nuclear deal it struck in 2015 with the US and five other world powers.

Mr Trump's decision to focus on the certification issue has provoked criticism both at home and abroad, not least because the International Atomic Energy Agency, the US-sponsored organisation charged with monitoring the nuclear deal, says that, in strictly technical terms, Iran is in compliance. This has led a number of prominent Democrats and Republicans in Washington to question Mr Trump's wisdom in focusing on certification, while Theresa May, Britain's prime minister, earlier this week phoned Mr Trump to make a personal plea not to end the nuclear deal.

But while the arguments on the certification issue are dominating the headlines, the real reason the Trump administration is spoiling for a fight with Tehran is its insistence on continuing with their efforts to spread political instability throughout the region.

When Barack Obama led the diplomatic charge to secure the agreement, which put constraints on Tehran’s attempts to develop a nuclear weapons arsenal, the clear expectation in Washington and other world capitals was that this would result in Tehran adopting a more responsible approach to the outside world.

_______________

Read more from Opinion

_______________

Instead, the opposite has been the case, with the Islamic Revolutionary Guards Corps, which remains the country's most dominant political force, using the tens of billions of dollars Iran has received as a result of the sanctions being lifted to intensify its efforts to increase Iranian influence throughout the region.

The conflict in Yemen is a case in point. The Saudi-led coalition has suffered much criticism over the humanitarian crisis now developing in that benighted country, not least because too many western media organisations seem to be conveniently overlooking the role of Iranian-backed Houthi militias in the conflict. A recent report on BBC World on the crisis, for example, went to great lengths to criticise the role of the Saudi-led coalition without once making mention of the contribution of the Iranian-backed Houthis.

The White House and other Western powers like Britain, on the other hand, have not succumbed to such a glaringly biased view of the conflict. They are well aware of Iran's malign contribution to the conflict, with the IRGC regularly sending shipments of weapons and ammunition to the Houthis for use against the Saudi-led coalition. These are thought to include some of the surface-to-surface missiles that the Houthis have used to attack targets within Saudi Arabia itself, including at least one missile attack that was directed against the holy city of Mecca.

The dispute between Qatar and the quartet of Arab states over Doha's support for terrorism is another example of how Iran seizes on any opportunity to meddle in the affairs of the Arab world. No sooner had the Arab coalition decided to take measures against Qatar to persuade it to end its support for Islamist militants than Tehran had offered its support to Qatar.

Iraq, Syria, Lebanon and Bahrain are among the many Arab countries that have been on the receiving end of unwarranted and unwelcome interference on the part of Iran in their affairs.

And if that was not enough, Iran has also continued investing in its ballistic missile programme which many intelligence experts believe is intimately connected with the nuclear programme, and represents a clear violation of the spirit of the nuclear deal.

_______________

Read more from Con Coughlin

_______________

If Iran was really serious about giving up its aspirations to develop nuclear weapons, intelligence officials ask, then why is it still investing heavily in its missile programme?

It is no secret that, in the past, Iran has worked closely with North Korea on the development of sophisticated missile technology, and the concern now in Washington security circles is that the recent improvements in North Korea's missile systems, which are now believed to have the range to target America and Europe, could soon be passed to Tehran.

These, then, are the real reasons why the Trump administration appears so determined to initiate a new era of confrontation with Iran, and why there is much more to the row over decertification than meets the eye.

Mr Trump made it abundantly clear where his regional priorities lie in the Arab world when he visited Saudi Arabia this year, and pledged a new era of close cooperation with Riyadh. And by doing so, it follows that the president is going to take a dim view of a country like Iran whose entire raison d'etre seems to be to undermine Saudi interests and influence at every turn.

And if this means that, in order to hold Iran to account for its actions, Mr Trump is prepared to ditch the nuclear deal, then so be it. For when it comes to dealing with Iran’s nuclear ambitions, Mr Trump would not be the first person to conclude that no deal is better than a bad deal.

Con Coughlin is the Telegraph’s Defence and Foreign Affairs Editor and author of Khomeini’s Ghost: The Iranian Revolution and the Rise of Militant Islam

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.”

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)

At Eternity’s Gate

Director: Julian Schnabel

Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen

Three stars

The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

UAE currency: the story behind the money in your pockets
Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.

The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
​​​​​​​Princeton

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
UAE currency: the story behind the money in your pockets