German Foreign Minister Annalena Baerbock met US Secretary of State Antony Blinken in Washington. AP
German Foreign Minister Annalena Baerbock met US Secretary of State Antony Blinken in Washington. AP
German Foreign Minister Annalena Baerbock met US Secretary of State Antony Blinken in Washington. AP
German Foreign Minister Annalena Baerbock met US Secretary of State Antony Blinken in Washington. AP

German foreign minister says Iran 'squandered a lot of trust' in nuclear talks


Joyce Karam
  • English
  • Arabic

German Foreign Minister Annalena Baerbock said on Wednesday that Iran has "squandered a lot of trust" in the nuclear talks in Vienna and that the window is closing to revive the 2015 agreement.

Marking her visit to Washington, Ms Baerbock met with Secretary of State Antony Blinken and took the opportunity to reiterate goals shared by the US and Germany regarding Iran and its efforts to restore a nuclear deal.

“We are pulling in the same direction when it comes to Iran and the discussions and negotiations are entering a crucial phase,” Ms Baerbock said.

“Iran has squandered a lot of trust and there is not much time."

The State Department noted on Tuesday, however, that there has been "progress" in the eighth round of talks happening in Vienna.

The US and Germany also struck a mutually censorious tone on Russia’s military build-up near Ukraine.

Ms Baerbock called Moscow's actions an "immediate and urgent challenge" while warning Russia that it would incur a "high political and economic price” if it invades Ukraine.

Germany’s chief diplomat refrained, however, from committing to ending the Nord Stream 2 gas pipeline project with partner Russia if an invasion should occur, instead simply threatening “effective measures".

“We [US and Germany] agreed on this, together with our European partners, that we take effective measures … should Russia use energy as a weapon or should it continue its aggressive acts against Ukraine,” she said.

Known for her more hawkish stance on Beijing, China, the German foreign minister called on the US and the EU to speak with “one voice” in regards to the humanitarian situation in Xinjiang.

“It is crucial that we speak with one one voice here and clearly call human rights violations by their name and [insure] that these violations are investigated,” she said.

She repeated Germany’s support for a European import ban on “products hailing from forced labour [or] resulting from grievous human rights violations”.

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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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Updated: January 05, 2022, 8:43 PM`