Week in review: Iran's conflicted republic



A month after Iran's contested presidential election, the forceful use of state power had shut down the most visible expressions of opposition, yet opposition leaders Mir Hossein Mousavi, Mehdi Karroubi and former president Mohammad Khatami remained defiant and on Thursday protesters once again took to the streets in their thousands. "Ayatollah Khamenei, Mr Ahmadinejad and their allies still have a monopoly over the most powerful levers of state," The New York Times said. "They control the police, the courts and the prosecutor's office. They control the military and the militia forces. And they retain the loyalty of a core group of powerful clerics and their conservative followers: for example, a hard-line cleric who heads the Qum Seminary, Ayatollah Morteza Moghtadai, said on Tuesday that 'the case is closed.' No one, not even restive clerics, is in a position to strip this group of its power in the short term. "But the long term is what is in play as this conflict evolves. " 'In the short term, the dictatorial aspect of the regime is going to have the upper hand,' said Muhammad Sahimi, a professor at the University of Southern California who has a network of contacts in Iran to keep him up to date. 'If there is a next election, I don't believe a lot of people will vote, simply because they don't trust the system. But at the same time, this reinforced the reform movement and democratic movement, which already existed, and really made them stronger, in my view, in the long term.' "For now, Iran's most hard-line forces have been emboldened. Mr Ahmadinejad's spiritual adviser, Ayatollah Muhammad Taghi Mesbah Yazdi, has said elected institutions are anathema to a religious government and should be no more than window dressing." The Washington Post reported that in a televised national address "President Mahmoud Ahmadinejad pledged continued defiance of Western powers Tuesday and blamed foreigners for unrest following his disputed reelection, as opposition leaders demanded an end to a government crackdown and the release of detained protesters. " 'Our arrogant enemies tried to interfere in our domestic affairs in order to undermine these great elections,' Ahmadinejad said in a speech broadcast live on state television. 'What they did was very wrong, and some of our people were, unfortunately, hurt.' He was referring to post-election violence in which at least 20 protesters were reported killed and more than 100 injured by security forces.[...] "Ahmadinejad struck a conciliatory tone on domestic issues, saying that everyone is allowed to voice criticism in Iran. But he made no mention of the political opponents arrested over the past three weeks. And he said his challengers lacked proof for their allegations that the election was rigged. " 'The people who claimed there was fraud didn't even have one document' to prove it, he said, sitting in the garden of his presidential palace. 'We have no expectations from normal people, but we didn't expect politicians to question this great epic.' " The Wall Street Journal said: "Ahmadinejad pledged Tuesday to make changes to his team and 'respect' young people when his new government takes office after his disputed re-election. " 'The structure of government should change. The changes in the government will be considerable,' Ahmadinejad said in a televised address to the Iranian people. "He said his new government will put 'housing, employment and economic reform' on its agenda. " 'I am against police confrontation with people... We must respect people's tastes, especially the youth,' said Ahmadinejad." The Los Angeles Times reported: "A day after commanders of the Revolutionary Guard warned there was no middle ground in the dispute over the reelection of President Mahmoud Ahmadinejad, the political party of one of Iran's most powerful clerics Monday defiantly issued a statement dismissing the vote. "The statement by the Kargozaran party all but cleared away weeks of ambiguity about the stance of the cleric, Ayatollah Ali Akbar Hashemi Rafsanjani. "Rafsanjani, who heads two government councils that oversee the supreme leader and mediate disputes between branches, openly backed presidential candidate Mir-Hossein Mousavi. "But he has not spoken definitively about the June 12 vote, which was validated after a partial recount by the powerful Guardian Council. " 'We declare that the result is unacceptable due to the unhealthy voting process, massive electoral fraud and the siding of the majority of the Guardian Council with a specific candidate,' the party's statement said. "It followed a declaration by a senior Revolutionary Guard commander that 'no one is impartial' in the dispute. " 'There are two currents - those who defend and support the revolution and the establishment, and those who are trying to topple it,' Gen Yadollah Javani said at a Sunday news conference, according to the official Islamic Republic News Agency." The Washington Post said: "Mir Hossein Mousavi, the leading opposition candidate in last month's disputed election, released documents Saturday detailing a campaign of alleged fraud by supporters of President Mahmoud Ahmadinejad that assured his reelection, while an adviser to Iran's supreme leader accused Mousavi of treason.[...] "In a 24-page document posted on his Web site, Mousavi's special committee studying election fraud accused influential Ahmadinejad supporters of handing out cash bonuses and food, increasing wages, printing millions of extra ballots and other acts in the run-up to the vote." The New York Times said: "An important group of religious leaders in Iran called the disputed presidential election and the new government illegitimate on Saturday, an act of defiance against the country's supreme leader and the most public sign of a major split in the country's clerical establishment. "A statement by the group, the Association of Researchers and Teachers of Qum, represents a significant, if so far symbolic, setback for the government and especially the authority of the supreme leader, Ayatollah Ali Khamenei, whose word is supposed to be final. The government has tried to paint the opposition and its top presidential candidate, Mir Hussein Moussavi, as criminals and traitors, a strategy that now becomes more difficult. " 'This crack in the clerical establishment, and the fact they are siding with the people and Moussavi, in my view is the most historic crack in the 30 years of the Islamic republic,' said Abbas Milani, director of the Iranian Studies Program at Stanford University. 'Remember, they are going against an election verified and sanctified by Khamenei.' " Meanwhile, remarks by the US vice president were interpreted by some as sending a signal to Israel that the US would not object to an attack on Iran. Reporting from Washington Foreign Policy said: "As White House and Office of the Vice President aides formed a united front against widespread media speculation about a change in policy signaled by Vice President Joseph Biden's statement on a Sunday news show that Israel is a 'sovereign nation' that could 'determine for itself' how to deal with threats from Iran, analysts said that Israel may be wary of any such green light in any case. "In e-mails and phone calls today, administration officials insisted that Biden's comments were neither a signal of any change in policy, nor any sort of freelancing. Asked if Biden's remarks might have been part of an intentional messaging campaign to step up pressure on Iran to negotiate over its nuclear program, officials gave an emphatic 'no.' But for all that, the remarks were widely seen both in Washington and abroad as a message intended less for Jerusalem than for Tehran. "Israel's 'biggest nightmare' is that one day the US government 'would call it and say "OK guys, take care of it,"' said Tel Aviv University Iran expert David Menashri in a call Monday arranged by the Israeli Policy Forum, a US nonprofit organisation that supports a two-state solution to the Israeli-Palestinian conflict." In a commentary for The Financial Times, Gideon Rachman considered the combined foreign policy challenges posed to the US by Russia and Iran and wrote: "Just a few months into his presidency, Mr Obama's policy of engagement with Iran has also been all but wrecked by the violent crackdown in that country. His advisers once day-dreamed about a dramatic presidential trip to Tehran, a speech before cheering students, a disarming smile for Mr Ahmadinejad. All of that is unthinkable now. Instead, Mr Obama is left having to cope with a wounded and aggressive Iranian government, intent on pressing ahead with its nuclear programme. The US president will now have to fend off the 'bomb Iran' lobby - but without being able to point to a plausible diplomatic alternative. [...] "[Faced with critics who see him as weak, naive and pushed around by foreigners,] the president will be under pressure to prove that he can be tough. But that can be a dangerous trap for a young, liberal president: similar pressures led John F Kennedy to take the first steps into Vietnam and President Carter to launch the disastrous effort to rescue the American hostages in Iran. "The Bush administration tested to destruction the idea that American foreign policy should be based on confronting 'evil'. So this is indeed a moment for Mr Obama to be tough on foreign policy. He needs to be tough enough not to be panicked into macho gestures by the setbacks he has suffered in Russia and Iran."

pwoodward@thenational.ae

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

The biog

First Job: Abu Dhabi Department of Petroleum in 1974  
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work

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.”

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
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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)
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

Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million