Lebanon's caretaker Finance Minister, Youssef Khalil, has cautioned that the impact of the recently announced financial package of €1 billion ($1.07 billion) to the cash-strapped country could be undermined by corruption unless accompanied by reforms.
“This is a risk,” Mr Khalil said. “The modalities to prevent this will be discussed in the coming weeks.”
Five years into an economic crisis labelled by the World Bank as one of the worst since 1850, vested interests in Lebanon's ruling elite have been accused of obstructing the much-needed financial reforms necessary to secure the country's access to a $3 billion aid package from the International Monetary Fund (IMF).
Despite pressure to make aid conditional on reforms, the European Union nonetheless this week pledged a financial package of €1 billion euros to prop up Lebanon's faltering economy.
In an interview with The National, Mr Khalil said that only substantial reforms could lift the country out of its deep crisis, despite a slowing economic contraction since 2022.
“We've succeeded in boosting state revenues this year, but this will only provide a respite of two or three years unless structural reforms are implemented,” he said.
These much-needed reforms have been prevented by “the economic and political structure of the country”, he said.
After a severe financial crisis shook the country in 2019, Lebanon reached what the World Bank described as a “temporary bottom” in 2022, allowing the volatile exchange rate to temporarily stabilise, due to tourism and significant remittances from the Lebanese diaspora.
However, the spillover of the Gaza war into Lebanon has curbed initial predictions of growth for the country's economy, which had been projected to expand in 2023 for the first time since 2018, by 0.2 per cent.
A protester displays her phone with a sticker saying 'we want our money back' at a demonstration outside a Beirut bank in May 2023. AP Photo
Finding a way out
Mr Khalil said one of the main reforms that helped bolster state revenues was the increase in the exchange rate used to calculate customs duties on imports. This, he said, enabled the government to increase public service workers' salaries.
The 2024 budget proposal put forward significant tax and VAT increases, but was criticised by some observers for its lack of long-term vision.
“We cannot live like this on customs revenues eternally,” Mr Khalil admitted.
International donors have demanded structural reforms of Lebanon's public sector, with a focus on revamping the dilapidated electricity sector and its public utility, Electricite du Liban (EDL).
These reforms have yet to be initiated.
Nonetheless, Mr Khalil said he remains optimistic about Lebanon's ability to emerge from the crisis.
He see hope in tourism revenues and the potential for investments through public-private partnerships, which allow large-scale government projects to be completed with private funding, thereby alleviating pressure on public finances.
“Confidence is key and can be restored,” he said.
Many experts believe that restoring confidence hinges on the adoption of an economic recovery plan, one of the prerequisites outlined by the IMF, which Lebanon's elite has displayed minimal interest in implementing.
Three different plans have already been jeopardised because of the lack of consensus on how to allocate Lebanon's massive financial losses.
The IMF, with whom Lebanon signed a staff-level agreement yet to be implemented, has consistently criticised, in unusually strong terms, the country's elite for its inaction.
“The IMF plan is there to be proposed but not imposed,” Mr Khalil said, claiming the plan's failure came from a lack of flexibility on how to adopt the required reforms within the Lebanese context.
He added that the broader political context is key to Lebanon' economic recovery.
South Lebanon, which is being pounded on a daily basis by the Israeli army amid the continuing border conflict, has endured “significant destruction”. No estimates have yet been made of how much it could cost Lebanon to rebuild.
“Who will foot the bill, what the cost will be, poses a significant challenge,” Mr Khalil said.
A house destroyed by Israeli air strikes in Hanine, south Lebanon. Rebuilding the country is a significant financial challenge. AP Photo
Crisis responsibility
Lebanon's 2019 economic crisis, which came after decades of public funds being squandered, plunged more than 80 per cent of the population into poverty, destroyed the value of the local currency and pushed the banking sector to insolvency.
The government estimates that about $70 billion was lost, with many ordinary Lebanese citizens losing their entire savings which were stuck in banks.
Lebanon's former central bank governor, Riad Salameh, long lauded as the “financial wizard” who kept the banking sector flourishing, is now wanted by the European judiciary on accusations of corruption and is widely viewed as the culprit for the economic collapse.
As the director of the financial operations department at BDL (Banque du Liban), from 1994 until he became a government minister in 2021, he oversaw the financial engineering strategy implemented from 2016, in which the dollar-starved BDL offered lavish interest rates to banks in exchange for their dollars.
This policy resulted in massive losses at the central bank, which were not publicly disclosed at the time. Ithas since been blamed as one of the causes of the economic crisis.
Its critics have labelled it a “Ponzi scheme”, where fresh borrowing is used to pay back debt.
In hindsight, Mr Khalil acknowledged the excesses of this policy.
“It was originally designed to buy time until we could establish more robust monetary and economic strategies, but everyone got carried away and overdid it.”
Banks have been the target of protests across Lebanon since 2019, with depositors angry that they have been unable to access their savings.
BDL and some other banks in Lebanon have tried to deflect responsibility for the losses from the period on to public policies, claiming that the financial sector had lent money to the government, which they accuse of misusing funds.
In early 2023, Lebanon's central bank said it had been owed $16.6 billion from the state since 2007.
But Mr Khalil insisted that there is a shared responsibility in the crisis. “BDL was part of all political and economic decision-making.”
“The state, the central bank and the banks – all have made mistakes.”
FIXTURES
All times UAE ( 4 GMT)
Saturday
Fiorentina v Torino (8pm)
Hellas Verona v Roma (10.45pm)
Sunday
Parma v Napoli (2.30pm)
Genoa v Crotone (5pm)
Sassuolo v Cagliari (8pm)
Juventus v Sampdoria (10.45pm)
Monday
AC Milan v Bologna (10.45om)
Playing September 30
Benevento v Inter Milan (8pm)
Udinese v Spezia (8pm)
Lazio v Atalanta (10.45pm)
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
World Cup final
Who: France v Croatia When: Sunday, July 15, 7pm (UAE) TV: Game will be shown live on BeIN Sports for viewers in the Mena region
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
South Africa:
Faf du Plessis (capt), Hashim Amla, Temba Bavuma, Farhaan Behardien, Quinton de Kock (wkt), AB de Villiers, JP Duminy, Imran Tahir, David Miller, Wayne Parnell, Dane Paterson, Andile Phehlukwayo, Dwaine Pretorius, Kagiso Rabada
Coach: Ottis Gibson
Bangladesh:
Mashrafe Mortaza (capt), Imrul Kayes, Liton Das (wkt), Mahmudullah, Mehidy Hasan, Mohammad Saifuddin, Mominul Haque, Mushfiqur Rahim (wkt), Mustafizur Rahman, Nasir Hossain, Rubel Hossain, Sabbir Rahman, Shakib Al Hasan, Soumya Sarkar, Tamim Iqbal, Taskin Ahmed.
Coach: Chandika Hathurusingha
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
The specs
Engine: 3.9-litre twin-turbo V8
Power: 640hp
Torque: 760nm
On sale: 2026
Price: Not announced yet
RESULT
Leeds United 1 Manchester City 1
Leeds: Rodrigo (59') Man City: Sterling (17')
Man of the Match: Rodrigo Moreno (Leeds)
Hunger and Fury: The Crisis of Democracy in the Balkans
Jasmin Mujanović, Hurst Publishers
David Haye record
Total fights: 32 Wins: 28 Wins by KO: 26 Losses: 4
v West Indies which starts Thursday: Rory Burns, Joe Denly, Jonny Bairstow, Joe Root (captain), Jos Buttler, Ben Stokes, Moeen Ali, Ben Foakes, Sam Curran, Stuart Broad, Jimmy Anderson, Jack Leach
How it works
Booklava works on a subscription model. On signing up you receive a free book as part of a 30-day-trial period, after which you pay US$9.99 (Dh36.70) per month to gain access to a library of books and discounts of up to 30 per cent on selected titles. You can cancel your subscription at any time. For more details go to www.booklava.com
Priority access to new homes from participating developers
Discounts on sales price of off-plan units
Flexible payment plans from developers
Mortgages with better interest rates, faster approval times and reduced fees
DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Price: From Dh801,800
Schedule for Asia Cup
Sept 15: Bangladesh v Sri Lanka (Dubai)
Sept 16: Pakistan v Qualifier (Dubai)
Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)
Sept 18: India v Qualifier (Dubai)
Sept 19: India v Pakistan (Dubai)
Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four
Sept 21: Group A Winner v Group B Runner-up (Dubai)
Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)
Sept 23: Group A Winner v Group A Runner-up (Dubai)
Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)
Sept 25: Group A Winner v Group B Winner (Dubai)
Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)
Sept 28: Final (Dubai)
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
The Uefa Awards winners
Uefa Men's Player of the Year: Virgil van Dijk (Liverpool)
Uefa Women's Player of the Year: Lucy Bronze (Lyon)
Countries have been coming up with ways to restrict and monitor the use of non-commercial drones to keep them from trespassing on controlled areas such as airports.
"Drones vary in size and some can be as big as a small city car - so imagine the impact of one hitting an airplane. It's a huge risk, especially when commercial airliners are not designed to make or take sudden evasive manoeuvres like drones can" says Saj Ahmed, chief analyst at London-based StrategicAero Research.
New measures have now been taken to monitor drone activity, Geo-fencing technology is one.
It's a method designed to prevent drones from drifting into banned areas. The technology uses GPS location signals to stop its machines flying close to airports and other restricted zones.
The European commission has recently announced a blueprint to make drone use in low-level airspace safe, secure and environmentally friendly. This process is called “U-Space” – it covers altitudes of up to 150 metres. It is also noteworthy that that UK Civil Aviation Authority recommends drones to be flown at no higher than 400ft. “U-Space” technology will be governed by a system similar to air traffic control management, which will be automated using tools like geo-fencing.
The UAE has drawn serious measures to ensure users register their devices under strict new laws. Authorities have urged that users must obtain approval in advance before flying the drones, non registered drone use in Dubai will result in a fine of up to twenty thousand dirhams under a new resolution approved by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.
Mr Ahmad suggest that "Hefty fines running into hundreds of thousands of dollars need to compensate for the cost of airport disruption and flight diversions to lengthy jail spells, confiscation of travel rights and use of drones for a lengthy period" must be enforced in order to reduce airport intrusion.
Starring: Bryan Cranston, Liev Schreiber, Ed Norton, Greta Gerwig, Bill Murray, Jeff Goldblum, Scarlett Johansson
Three stars
2025 Fifa Club World Cup groups
GroupA: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
PAKISTAN SQUAD
Pakistan - Sarfraz Ahmed (captain), Azhar Ali, Fakhar Zaman, Imam-ul-Haq, Babar Azam, Shoaib Malik, Mohammad Hafeez, Haris Sohail, Faheem Ashraf, Shadab Khan, Mohammad Nawaz, Mohammad Amir, Hasan Ali, Aamer Yamin, Rumman Raees.
UAE currency: the story behind the money in your pockets
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
Allardyce's management career
Clubs (10) - Limerick (1991-1992), Perston North End (1992), Blackpool (1994-1996), Notts County (1997-1999), Bolton Wanderers (1999-2007), Newcastle United (2007-2008), Blackburn Rovers (2008-2010), West Ham United (2011-2015), Sunderland (2016), Crystal Palace (2016-2017)
Countries (1) - England (2016)
6 UNDERGROUND
Director: Michael Bay
Stars: Ryan Reynolds, Adria Arjona, Dave Franco
2.5 / 5 stars
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Manchester City v Hoffenheim, midnight (Wednesday, UAE)
Profile
Company: Libra Project
Based: Masdar City, ADGM, London and Delaware
Launch year: 2017
Size: A team of 12 with six employed full-time
Sector: Renewable energy
Funding: $500,000 in Series A funding from family and friends in 2018. A Series B round looking to raise $1.5m is now live.
What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
