Winter Has Come On US-Iran Ties

Winter is historically an ominous time for relations between the world’s only remaining super power and the world’s biggest Shia republic. The remaining days of 2020 and the snowy months of early 2021 are turning out to be no different.

The assassination of Iran’s nuclear scientist Mohsen Fakhrizadeh on November 27, ensured that the chill winds blowing between Tehran and Washington will not abate. It has hindered the status quo ante in the Joint Comprehensive Plan of Action (JCPOA), better known as the Iran nuclear deal. Fakhrizadeh’s murder has set back a return by the United States to the nuclear deal even before President-elect Joe Biden has had time to seriously consider it.

The repeated winter chill in Iran-United States relations goes back to November 1952 when Dwight D Eisenhower was elected US President and British Prime Minister Winston Churchill persuaded the incoming US administration to collaborate in overthrowing Iran’s populist, anti-colonial Prime Minister Mohammad Mosaddegh.

That disastrous mistake led to a succession of events which culminated in the triumphant return from exile of Ayatollah Khomeini to Tehran in wintry February 1979 and the establishment of the Islamic Republic shortly thereafter. In the late winter of 1979, US diplomats in Tehran were seized as hostages and in the cold January of 1981, after a US election in which Islamic Iran was a central issue, Ronald Reagan was sworn in as the 40th US President. Iran released the hostages 20 minutes after Reagan’s inauguration.

There are many more winters’ tales about Iran and the US, but unlike William Shakespeare’s romantic comedy, none of them are either comic or romantic.

Tehran will be equally unforgiving with some European countries which joined Trump’s coalition of the willing to act against Iran in the last nearly three years. Greatly complicating any Biden effort to give new life to the nuclear deal will be an unknown in Iranian politics five months after Biden assumes office.

President Hassan Rouhani is term-limited and cannot run for re-election. Many names are speculated in Tehran as his successor, but if a hardliner is elected, the result will throw up more questions than answers about the future of Iran’s nuclear programme. That has the potential to be Biden’s biggest foreign policy challenge in his first year.

The other challenge Biden will face is a new arrangement against Tehran, which has emerged at Iran’s doorstep, even if it may be informal as a coalition for now: Israel, Saudi Arabia, the United Arab Emirates and Bahrain, with the potential of an expanded bloc. In any future US dealings with Iran, this is a formidable group of friends, whom no one in Washington can ignore — neither the White House nor the US Congress.

If the US political map, now split down the middle, throws up a fragile Biden presidency, West Asia may well see the tail wagging the dog.

Source:https://www.moneycontrol.com/news/opinion/foreign-affairs-winter-has-come-on-us-iran-ties-6190431.html

Mubadala’s Strata, Leonardo extend partnership

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Strata Manufacturing, the advanced composite aero-structures manufacturing company wholly owned by Mubadala Investment Company, and Leonardo have extended their 10-year association by signing a memorandum of understanding to collaborate on the development and fabrication of composite aero-structure components for major OEM programmes.

The agreement will see Strata and Leonardo work to expand their presence in the global aero-structures sector by leveraging their collective engineering experience and production capabilities to spearhead new technology development.

The MoU covers the provision of technical support services and knowledge exchange from Leonardo, a global high-technology leader ranking among the world’s top 10 aerospace, defence and security players.

“Strata’s main goal is to ensure that the company delivers high-quality components to the world, reflecting the value of the ‘Made with Pride in UAE’ brand,” said Ismail Ali Abdulla, CEO of Strata.

“The core objective of the MoU is to grow our mutual business in global OEM programmes. This will be achieved by fostering strategic new opportunities to enhance Strata’s technological knowledge and capabilities – both key factors in driving the UAE’s knowledge-based economy and empowering the next generation of Emirati engineering pioneers,” he continued.

“After more than 10 year of Strata’s contribution to the ATR program, Leonardo is committed to its strategic ongoing collaborations with Strata,” said Giancarlo Schisano, Leonardo’s aero-structures division managing director.

“Our engineering capabilities and advanced technology processes will be a key success factor to capture new business opportunities in a win-win cooperation scheme.

Building on the strategic partnership between Leonardo and Mubadala, the Abu Dhabi-based global investor, established in 2009. Supported by the Tawazun Economic Council under the Tawazun Economic programme, both Strata and Leonardo are advancing the commercial aviation industry in the UAE, in line with promoting Abu Dhabi as a global aerospace hub to diversify its economy. Strata is the first composite aero-structures supplier to Leonardo in the Arab world.

In addition to Leonardo, Strata serves other leading aircraft manufacturers, such as Airbus, Boeing and Pilatus. Based at Nibras Al Ain Aerospace Park, Strata supports the development of a leading aerospace hub in Abu Dhabi as part of the emirate’s economic diversification plan.

Source:https://www.manufacturingtrade.com/news-detail:ae6c0f15-5408-cf88-000f-5e11d5cb5b4c.html

UAE approves policy for advanced industry

It will be built around six guiding principles and raise profile of industrial sector

Abu Dhabi: The UAE Cabinet has approved the policy for advanced industries to spread the “Fourth Industrial Revolution” across sectors. The policy was approved by the Cabinet chaired by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The policy is based on six main themes – Balanced development in various areas of the country; flexibility in plans and policies; integration between the seven emirates in industrial and logistical capabilities and services; commitment to improving the quality of life; leadership in innovation to raise efficiency and productivity and reduce cost; and increase dependence on industries with skilled labour.

The policy aims to stimulate the business sector to adopt and develop future-oriented industries, and enhance their capability to compete in global markets. There will also be a simultaneous shift towards sustainable industry and creating job opportunities for Emiratis.

The policy focus will be on technological development, digital manufacturing, and developing a knowledge–based economy with high value addition. On the labour front, the policy will integrate more Emiratis into the industrial workforce and reduce the gender gap within it.

The contribution of the industrial sector to GDP reached 8.9 per cent in 2018, while the exports attained by the sector accounted for 20 per cent. In 2017, the sector provided more than 460,000 jobs in the various emirates, making it the third largest in terms of employment.

Agthia shareholders approve merger plan with dates giant Al Foah

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Shareholders of UAE-based food major Agthia Group have approved a proposed merger with Al Foah Company, the world’s largest date processing and packaging company.

The backing was given at Agthia’s 15th general assembly meeting, a statement said.

Agthia said the combined group will have the “scale, ambition, and strong capabilities across the value chain to support its future expansion plans as one of the top ten consumer food and beverage groups in the Middle East”.

Khalifa Sultan Al Suwaidi, chairman, Agthia Group and chief investment officer of parent company ADQ, said: “The shareholders’ approval of the combination with Al Foah supports Agthia’s vision and our plans to expand the offering of premium quality products in our portfolio. We embrace opportunities that allow us to strengthen the food and beverage sector in the UAE and wider region, and also emphasise our commitment to an outstanding customer experience.”

Alan Smith, CEO of Agthia Group, added: “The strategic combinations with Al Foah and Al Faysal are two of our key achievements of the current financial year, reinforcing Agthia’s vital role in the region’s food and beverages sector. Upon completion of the transaction with Al Foah, the group will immediately rise to become a regional champion in the date market with substantial global prospects, diversifying its product portfolio and expanding its international footprint.”

Under the terms of the agreement received on October 6 from General Holding Corporation (Senaat), Senaat will transfer the entire issued share capital of its wholly-owned subsidiary Al Foah to Agthia, in exchange for the issuance of mandatory convertible instruments with a nominal value of AED1 each in an aggregate principal amount of AED450 million. These shall be convertible, immediately following completion of the transaction, into 120,000,000 ordinary shares of par value AED1 each in the capital of Agthia.

The issued share capital of Agthia will increase from AED600 million to AED720 million as a result.

The transaction is expected to be completed by the end of 2020, after which Agthia Group will be 59.17 percent owned by Senaat, part of ADQ.

Source:https://www.arabianbusiness.com/retail/455292-agthia-shareholders-approve-merger-plan-with-dates-giant-al-foah

Arabtec shareholders launch last-ditch bid to save construction giant

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A group of Arabtec shareholders are making a last-ditch attempt to save the construction giant from liquidation and have added new items to the agenda of the company’s general assembly meeting to be held later on Monday.

According to a filing on the Dubai Financial Market, shareholders representing more than 5 percent of the capital of Arabtec Holding want the meeting to vote on a resolution to cancel a decision made by shareholders on September 30 to dissolve the company due to its untenable financial situation.

The resolution of the shareholders granted the Arabtec board a maximum period of two months to allow for discussions with the main stakeholders before submitting the liquidation application.

But now, some shareholders are urging a different approach and have asked for the meeting to consider a special resolution for the “continuity and restructuring” of the company instead of dissolving it.

A second added agenda item also suggests disatisfaction over the way the decision to liquidate Arabtec was taken, with three shareholders seeking approval to file a claim of liability against board members and auditors.

Experts say the impact of the liquidation of Arabtec will send “reverberations” throughout the region’s construction industry, with the repercussions felt on a much wider scale than simply those who are directly involved with the company and its current pipeline of projects.

Arabtec Holding was valued at about AED30bn ($8.17bn) at its peak in 2014 and is now worth AED795m, with the stock down 60 percent this year alone.

SOurce:https://www.arabianbusiness.com/construction/455289-arabtec-shareholders-launch-last-ditch-bid-to-save-construction-giant

Boursa Kuwait sees $3.1bn inflows after MSCI upgrade

Boursa Kuwait on Monday hailed an “important” step onto the global investment map with its inclusion inclusion into the MSCI Emerging Markets Indices.

A total of seven listed companies – the National Bank of Kuwait (NBK), Kuwait Finance House (KFH), Zain, Agility, Boubyan Bank, Mabanee and Gulf Bank – were included.

The inclusion brought in huge inflows to the market, as the total traded value during the inclusion was over KD961.6 million, most of which came from foreign inflows.

Boursa Kuwait’s CEO, Mohammad Saud Al-Osaimi, said: “We saw values of over KD961.6 million traded today, which is proof of the Kuwaiti capital market apparatus’s success in absorbing these unprecedented foreign inflows.

“Kuwait’s inclusion in the MSCI Emerging Market Index represents an important milestone in advancing the Kuwaiti capital market and putting Kuwait on the worldwide investment map, as well as a recognition of Boursa Kuwait’s instrumental role in improving market access and efficiency, enhancing transparency and governance, increasing liquidity and strengthening investor confidence.”

In cooperation with the Capital Markets Authority, the Kuwait Clearing Company and Kuwaiti brokerage firms, Boursa Kuwait conducted a series of stress tests to enable Kuwait’s trading systems to absorb the amount of orders and trades that would be conducted during the inclusion.

MSCI announced the reclassification of Kuwait to Emerging Market status in December 2019. The landmark development comes as global recognition of the sweeping market development efforts undertaken by Boursa Kuwait, a statement said.

Boursa Kuwait said over the past three years, the company has rolled out numerous market reforms and new initiatives as part of its comprehensive multi-phase market development plans.

Source:https://www.arabianbusiness.com/markets/455359-boursa-kuwait-sees-31bn-inflows-after-msci-upgrade

UAE, Saudi Arabia progress with common digital currency for central banks

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The central banks of the UAE (CBUAE) and Saudi Arabia (SAMA) have officially launched a project for a common digital currency.

A final report on the Aber project follows ongoing experiments and research into the initiative which is considered one of the first of its kind internationally at the level of central banks.

It aims to provide proof of concept for the feasibility of issuing a digital currency for central banks called the Wholesale CBDC, with a view of developing cross-border payment systems and reducing transfer times and costs between banks, CBUAE and SAMA said in a joint statement.

It will also experiment with the direct use and application of technologies such as distributed ledgers.

During the trial period, the Wholesale CBDC was only used by the central banks and banks participating in the initiative as a settlement unit for domestic as well as cross-border commercial bank transactions between the UAE and Saudi Arabia, the statement added.

Over the course of one year, usage solutions were designed, implemented, and managed… These results showed that the distributed ledger technology would enable central banks to develop payment systems at both local and cross-border levels,” the statement said.

CBUAE and SAMA both expressed satisfaction with the achieved results, which they described as being “beneficial to the central bank community and the financial system in general”.

“The project results are expected to contribute to developing clear perceptions of the potential of this technology and its applications on the financial sector,” they added.

Plans to develop the Aber project were first announced in early 2019 to transact financial settlements between Saudi Arabia and the UAE through Blockchain and distributed ledgers technologies.

It was devised as one of seven initiatives agreed by the Executive Committee of the Saudi-Emirati Coordination Council at its first meeting in Abu Dhabi last year.

Source:https://www.arabianbusiness.com/banking-finance/455283-uae-saudi-arabia-cenbanks-satisfied-with-results-of-common-digital-currency-plan

Heart of Europe developer says property handovers to start in December

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The Heart of Europe, the $5 billion (Dh18.3 billion) luxury tourism destination off the Dubai coastline, will start handing over private villas and beach palaces to investors in December, it was announced on Monday.

Developer Kleindienst said the handovers will be part of its phased delivery of about 2,000 residential and hospitality units in phase one of the project.

The announcement comes as construction of St Tropez, the fifth hotel of phase one, is nearing completion and will recreate the famous French Riviera town with a private long beach, restaurants, promenade and luxury yachts and boats.

Overall, the ultra-luxury island will host around 4,000 units spread across 15 hotels and resorts in a cluster of inter-connected six islands and a floating Lido Island about 4km off the Jumeirah coast of Dubai.

Phase one components will commercially open once the situation normalises after the Covid-19 pandemic, Kleindienst said.

It added that construction of the project’s landmarks, including the Floating Seahorse Villas, Sweden Beach Palaces, Germany Island Villas, Honeymoon Island, Portofino Hotel and Côte d’Azur Resort, are “progressing in full speed”.

“At the beginning of the year, we made a commitment to deliver part of the phase 1 of the Heart of Europe to the owners by the end of 2020,” said Josef Kleindienst, chairman of Kleindienst Group, said. “At that time, we were not fully aware of the devastating effects of the coronavirus pandemic and its magnitude.

“However, despite the challenges posed by the Covid-19 pandemic, we were determined to go ahead with our planned development and as the lockdown was announced in March, we shifted our entire team to the Heart of Europe islands and continued to construct. During the lockdown, we were isolated from the mainland and confined to the island and focused on construction.

“Now, I am pleased to announce that, we are ready to hand-over residential units to home-owners so that they can fit out the interiors. This reflects our strong commitment to the investors and as they start taking over, I am also excited to announce that we have started construction of the phase two of the project – and plan to complete the development of the island by 2022.”

Since about 90 percent of the developments of the island are hospitality units, hotels and resorts will be opened when large-scale tourism traffic starts to pick up, he added.

Kleindienst said construction of St Tropez is on a “fast track” and has already topped out, and will be connected to the UAE’s largest unbroken private pristine beaches stretching up to 700 metres. It is one of the 15 hotels that are being built on the Heart of Europe.

St Tropez will offer seven cultural festivals annually.

Source:https://www.arabianbusiness.com/property/455306-heart-of-europe-developer-says-property-handovers-to-start-in-december