On Sunday and Monday, the Lebanese army fought against followers of the Salafist sheikh Ahmad Al Assir near the city of Sidon. This combat, the most serious challenge to civil peace in Lebanon since the war in Syria began, shone a light on some of the problems Lebanon faces as it seeks to avoid collapsing into civil war.
Mr Al Assir's decision to attack the army on Sunday - leading to the death of two officers - reflected the mistrust that many in the Sunni community feel towards the military. There is a perception among Sunnis that the army is an instrument of Hizbollah. This goes back to May 2008, when the party overran predominantly Sunni neighbourhoods in western Beirut, and the army allowed it to happen.
Sunnis in the Sidon suburb of Abra, where Mr Al Assir was based, were particularly angry that the army had taken no measures to oppose Shia militias that fired dozens of rockets into Abra during an armed confrontation early last week. When, on Sunday, two people close to Mr Al Assir were mistreated at an army checkpoint, he ordered his men to fire on the soldiers and called on Sunnis in the armed forces to desert, which the army could not let pass.
The army has indeed been close to Hizbollah, but this is not surprising. For 20 years now the senior officer corps has been made up largely of men promoted by pro-Syrian Lebanese politicians and parties including Hizbollah. Christian officers close to Michel Aoun did not fit into this category, but since he returned to Lebanon in 2005, Mr Aoun has sided with Syria and Hizbollah, so that his officers too now lean towards Hizbollah.
However, it is equally true that the army today is the prime defender of civil peace in Lebanon, and that it reflects the country's communal mosaic. The army command is careful not to take positions that might alienate its substantial Sunni rank and file. Efforts to cast doubt on the military's allegiances risk implicitly legitimising actions such as those of Mr Al Assir and his sympathisers, who regard the army as an enemy - "an Iranian army," Mr Al Assir has called it.
This points to another reality highlighted by Mr Al Assir's action: a sense that the agenda of Lebanon's Sunni community has been hijacked by its extremists. After the fighting near Sidon, mainstream Sunni politicians expressed support for the army, but avoided condemning Mr Al Assir. That was not because they agreed with him - indeed many saw him as a menace - but because they did not want to alienate the Sunni street, where Mr Al Assir's hostility to Hizbollah is popular.
The influence of Sunni Salafist groups has often been exaggerated. However, it's also true that at a time when the principal Sunni organisation, the Future Movement, is in a state of relative disarray, with its leader Saad Hariri having been absent from Lebanon since 2011, smaller, Islamist groups have gradually filled the vacuum. That is why moderate Sunni politicians must not allow the Abra incident to lead to their marginalisation among Sunnis, or permit other communities to portray them as being anti-state.
To clear up any ambiguities, Mr Hariri took to the airwaves on Monday to affirm support for the army. He remarked: "Perhaps the method [of dealing with Mr Al Assir] was harsh, but anything against the state must be dealt with in the same manner and no one is bigger than [the] country … if anyone believes the opposite, a day will come and they will ask the state for help and protection."
While this may not have pleased some Sunnis, Mr Hariri was plainly referring to Hizbollah when he stated "We will continue to say that arms are the main problem in the country."
Mr Al Assir picked a fight with Hizbollah and the state that he had little chance of winning. Sidon is a strategic passageway for Hizbollah, linking the predominantly Shia southern suburbs of Beirut to the party's stronghold in southern Lebanon. Mr Al Assir's warnings that he would close the road became intolerable to Hizbollah, all the more so as the cleric might have benefitted, in the event of broader fighting, from the assistance of Salafist groups in the Ain Al Hilweh Palestinian refugee camp in Sidon.
Ultimately, the army defeated Mr Al Assir, who fled to an unknown location. Hizbollah can be happy with this, but so can the Lebanese in general. While Hizbollah undoubtedly is to blame for the rising tensions in Lebanon, due to its military interference in the Syrian conflict on the side of the Al Assad regime, inside Lebanon the party is keen to preserve civil peace, to protect its rear.
Mr Al Assir's abrupt departure may momentarily calm what had been a dangerous sectarian flashpoint in Sidon. While Salafist groups took to the streets in several places in support of the sheikh, they did so in a disorganised way that by one day later seemed largely to have been contained.
The best option for those Lebanese opposed to Hizbollah is to stabilise Lebanon politically, and allow the party to be drawn deeper into the Syrian quagmire. Improved arms supplies to the Syrian rebels will make them a far tougher opponent, and Syria's conflict will drag on, with Hizbollah losing more and more men.
Hizbollah's leader, Hassan Nasrallah, recently invited those who opposed the party to fight against it in Syria, not in Lebanon. The party's foes should take him up on the offer. Most Lebanese don't want and cannot afford a devastating sectarian war. Mr Al Assir failed to grasp this, which explains why few people regret his setback.
Michael Young is opinion editor of The Daily Star newspaper in Beirut.
On Twitter @BeirutCalling
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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.
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“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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