On Saturday, while Lebanon fell apart, I relaxed by the swimming pool of Beirut's celebrated Phoenicia InterContinental. It was the first time I had done so in 39 years, the last time being in the summer of 1973 when, as an 8-year-old, I whiled away the summer at the seafront hotel while my parents got divorced.
Two years later the Phoenicia would become the front line in the first round of fighting in Lebanon's civil war and would remain a bullet-riddled hulk until 1999 when, amid much fanfare, optimism and not a bit of nostalgia, it reopened. Lebanon was gearing up to receive the first wave of high net worth Arab tourists and the Phoenicia was ready to receive them.
But in the years before that, I would drive by wishing I could peer into the deserted pool area, filled with what I imagined were the ghosts of well-heeled Lebanese and the militiamen who usurped them to fight and die in what became known as the battle of the hotel district, a time when gunmen in 1970s disco gear would ostentatiously celebrate any "military" gains with bottles of champagne looted from hotel cellars.
Across the road from the Phoenicia is the St Georges. Arguably a more historic hotel - its bar was a magnet for the spies, bankers, diplomats and journalists we all now love to believe shaped the Middle East over dry Martinis and endless cigarettes - to my 8-year-old eyes it lacked the Phoenicia's pizzazz.
Today the St Georges is still a shell, creaking first from the effects of war and then the huge blast that killed the former prime minister Rafik Hariri in 2005.
The hotel's owner, Fadi Khoury, does, however, run a successful beach club adjacent to the old building, even if, for nearly 20 years, he has been locked in a high-profile legal battle over expropriation rights with Solidere, the property development company that rebuilt the centre of Beirut.
For the past decade a huge "Stop Solidere" banner has been draped over the east-facing façade of the building.
Mr Khoury recently added another sign, in English, French and Arabic, reminding people they are in St George Bay and not Zeytouni Bay, the neighbouring development that has, in the past six months, become the epicentre for Beirut dining and leisure.
The name does have some relevance. Zeytouni was the name of the nearby prewar red-light area, which has been transformed into an upmarket residential district. It is appropriate that Zeytouni Bay is named after an area that represented the seedier side of Beirut's supposed golden age.
In many ways the Lebanese capital is still an ageing, but much loved, hooker whose clients visit more out of affection than anything else.
But this year their patience is wearing thin. With Ramadan looming and a veto slapped on Lebanon by many of the GCC nations, the country's tourist season is over before it has begun.
On Sunday evening, the Beirut Central District, the jewel in Solidere's crown, was almost deserted at a time of year when finding a table would normally be something of an ordeal.
And who can blame the absent visitors? This week, we were warned that the country's electricity grid is heading towards meltdown and more roads have been blocked in what has become a national expression of dissent.
Lebanon used to be the Arabs' home from home, a country that offered something a bit different and a bit racier but which spoke their language and understood their habits.
But what with Syria next door and the country's glaring inability to pull itself together and deliver the basics, this year the Arabs have chosen to holiday in Turkey, a Muslim country that knows what it has to do on all levels to be a regional player.
The Phoenicia and the St Georges will carry on doing what they do best - and hope for the best.
They should know. They've seen it all before.
A Michael Karam is the associate editor-in-chief of Executive, a regional business magazine based in Lebanon
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FIGHT%20CARD
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Company%20profile
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French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Your rights as an employee
The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.
The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.
If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.
Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.
The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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.”
The five pillars of Islam
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less