Israeli Prime Minister Benjamin Netanyahu preparing to speak at the UN General Assembly on September 27. Justin Lane / EPA
Israeli Prime Minister Benjamin Netanyahu preparing to speak at the UN General Assembly on September 27. Justin Lane / EPA

The real forces behind Lebanon’s travails



“When elephants fight, it is the grass that suffers.” The proverb might have originated in East Africa, but it can be seamlessly applied to Lebanon. Again and again, the people of this small nation have fallen prey to the exploits of regional powers. And today it is the rivalry between the most destabilising powers in the Middle East, Israel and Iran, which has spilled onto the streets of Lebanon.

Meanwhile, garbage is piling up, efforts to formulate a government lie in tatters and even middle-class families go without power for long stretches of the day.

Israeli Prime Minister Benjamin Netanyahu used his platform at the United Nations General Assembly last week to accuse Iran-backed Hezbollah of building secret sites to store missiles “that can target deep inside Israel within an accuracy of 10 metres”.

In his now habitual style, Mr Netanyahu held large visual cues aloft as he addressed delegates. The accusations led Lebanese Foreign Minister Gebran Bassil to parade international diplomats around the suspected sites.

If confirmed, missile sites would endorse the reigning view of Hezbollah in this region. The group sought political legitimacy following a strong electoral performance in May, but it is, in fact, a violent militia determined to hold Lebanon hostage at the behest of Tehran. It is symbolic that alleged missile sites are said to lie near Beirut airport, which the Israelis bombed in 2006 to diminish support for Hezbollah and which is named after Rafik Hariri, the former president Hezbollah is accused of killing. Because behind this issue is an intractable dispute between Israel and Iran.

Twenty-eight years on from its civil war, Lebanon is in disarray, blighted by the complete paralysis of state institutions. Chaos rules in Lebanese politics, which are riddled with crony capitalism, propelling unscrupulous third parties to fill vacuums in governance. It is a powerful indicator of Lebanon’s malaise, for instance, that the so-called “generator mafias” have threatened to cut power to millions of Lebanese households if the electricity industry is regulated. Meanwhile, the country that once lumbered on for 29 months without a government is no closer to forming one today, six months after national elections. Of equal, if more distant, concern is the prospect of a banking crisis in Lebanon, which is today the world’s third most indebted nation. Its budget deficit is greater than that of Greece before its bailout and its banks can only keep the country afloat for so long. Add to that the burden of a million Syrian refugees and the true scale of the crisis becomes clear.

And yet at this critical moment, the Lebanese people are again reminded of the irrelevance of their plight to those holding real power. Until Israel and Iran stop using the fragile state as an arena for their proxy war, any hopes of a functioning Lebanon will be non-existent.

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About Housecall

Date started: July 2020

Founders: Omar and Humaid Alzaabi

Based: Abu Dhabi

Sector: HealthTech

# of staff: 10

Funding to date: Self-funded

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
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 specs: Macan Turbo

Engine: Dual synchronous electric motors
Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
Touring range: 591km
Price: From Dh412,500
On sale: Deliveries start in October

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 
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RACE CARD

4.30pm: Maiden Dh80,000 1,400m
5pm: Conditions Dh80,000 1,400m
5.30pm: Liwa Oasis Group 3 Dh300,000 1,400m
6pm: The President’s Cup Listed Dh380,000 1,400m
6.30pm: Arabian Triple Crown Group 2 Dh300,000 2,200m
7pm: Wathba Stallions Cup Handicap (30-60) Dh80,000 1,600m
7.30pm: Handicap (40-70) Dh80,000 1,600m.

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

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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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Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

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