Israel strikes Beirut for third time since ceasefire


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Israel's military struck Beirut’s southern suburbs on Sunday after issuing a warning about an hour earlier, marking the third strike on the area since a ceasefire took effect in late November.

Smoke was billowing from the targeted area in the Hadath neighbourhood, with rescuers tackling a fire on the ground after ambulances rushed to the scene. There were no immediate reports of casualties.

Israel said it had attacked a Hezbollah site where precision missiles were stored, posing a "significant threat". It said it would "not allow Hezbollah to grow stronger and pose any threat to it – anywhere in Lebanon".

The attack was carried out by Israeli fighter jets and was preceded by three smaller drone strikes. Gunfire warning people to leave could be heard in the Lebanese capital after the Israeli military's Arabic spokesman Lt Col Avichay Adraee claimed, without providing any evidence, that a building in the neighbourhood was home to Hezbollah facilities.

He had ordered people to stay at least 300 metres from the building. An Israeli drone could be heard flying above Beirut.

Lebanese President Joseph Aoun condemned the strike on Beirut's southern suburbs, known as Dahieh, the presidency said in a statement. He called on the US and France to help maintain the ceasefire.

"Israel's continuity in undermining stability will exacerbate tensions and pose a real threat to the region's security and stability," Mr Aoun said in a statement.

"The United States and France, as guarantors of the cessation of hostilities understanding, must assume their responsibilities and compel Israel to immediately cease its attacks," he said.

The top UN official in Lebanon, Jeanine Hennis-Plasschaert, said the strike had "generated panic and fear of renewed violence" among people desperate to return to normal. She called for "all sides" to avoid undermining the ceasefire.

Following Israel's warning, residents of Beirut’s southern suburbs fled the area on Sunday afternoon.

Beirut’s southern suburbs are a densely populated residential neighbourhood that were devastated by Israel’s war on Lebanon last year.

Flames rise between two buildings after an Israeli airstrike on Dahiyeh in the southern suburb of Beirut, Lebanon, Sunday, April 27, 2025. (AP Photo / Hussein Malla)
Flames rise between two buildings after an Israeli airstrike on Dahiyeh in the southern suburb of Beirut, Lebanon, Sunday, April 27, 2025. (AP Photo / Hussein Malla)

Sunday’s strike follows two earlier attacks on the capital’s southern suburbs, the first taking place on March 28, when Israel also issued a warning, and the second on April 1, when an unannounced strike killed four people, including a Hezbollah official.

Under the ceasefire, Israeli forces were supposed to withdraw from all Lebanese territory by late January, but maintains five positions there. Hezbollah was to end its armed presence south of the Litani River along the border with Israel.

Lebanon in February formed its first functioning government since 2022 under Prime Minister Nawaf Salam, raising hopes of restoring calm. But Hezbollah chief Naim Qassem said this month that the group “will not allow anyone to disarm” it and that no dialogue over a broader defence strategy in Lebanon will take place until Israel fully withdraws from the country.

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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: April 28, 2025, 6:11 AM