The Lebanese Army sent armoured vehicles to the streets of Tripoli on Wednesday after men shot live ammunition in the air and forced shops to shut in response to the country's worsening economic crisis.
What began as an armed dispute turned into protests against power cuts and inflation in Lebanon’s second largest city, which is one of the poorest on the Mediterranean.
“I was on my way home when I heard shots fired around me,” Tripoli resident and analyst Chadi Nachabe said.
“People are on edge; the situation is unlivable.”
Calm was restored to the city early in the evening, an army representative told The National.
The streets of Tripoli are a barometer of popular unrest in Lebanon because it is one of the poorest cities in the country. When living conditions deteriorate, clashes and protests often break out.
Wednesday's clashes were the second outbreak of violent demonstrations in the northern city this week.
A man was stabbed to death on the outskirts of Tripoli after a dispute between protesters who were blocking the road and drivers, according to Lebanon's national news agency.
Tripoli was known as the “bride of the revolution” for the prominent role it played in the mass anti-government protests of late 2019. But the city has also been associated with extremist groups, like the Al Nusra front, which briefly took root after the outbreak of the Syrian civil war in 2011.
A severe economic crisis has engulfed Lebanon since late 2019, with blame placed on decades of corruption within Lebanon’s entrenched political class.
The financial meltdown has pushed more than half of the population below the poverty line, according to the UN, and foreign currency shortages have put even basic necessities like fuel, baby formula and medicines out of the reach of many.
“People are angry, there is nothing left in this country: no baby formula, no medications, no fuel … If this continues, the security situation in Tripoli can only deteriorate,” Mr Nachabe said.
Frequent power cuts have plunged Lebanon into darkness in recent months, with particularly severe blackouts in the north.
Tripolitans have told The National that state electricity is only available for one to one and a half hours per day. Private generator owners have been rationing electricity for four to five hours per day to remedy shortages in fuel.
Lebanon has been without a fully functioning government for the past nine months as politicians bicker over their share of ministerial portfolios. The Lebanese pound has lost more than 90 per cent of its value since 2019, causing rampant inflation and crushing the purchasing power of residents.
Tripoli's mayor, Riad Yamak, has said that if the state does not intervene to help Tripolitans, the worsening economic crisis will cause more violence in the streets.
Some people are trying to take advantage of the situation and cause chaos
Riad Yamak
The Lebanese Parliament on Wednesday approved a new law to allocate $557 million to the needy through a system of ration cards. But the caretaker government has yet to secure these funds and the law does not specify through which criteria the applicants will be selected.
“Since the onset of the economic crisis we’ve been begging the state to look after Tripoli,” Mr Yamak said.
“Even as a municipality, we are not doing enough. When state officials overlook Tripoli, they have to take responsibility for what happens next.”
Large protests erupted in Tripoli in February against deteriorating living conditions that were worsened by an unpopular nationwide curfew. One protester was shot dead after the International Security forces said they used live ammunition in self-defence.
For decades, the city has been neglected by the central government. While the national poverty rate is at roughly 50 per cent, experts estimate that 70 per cent of Tripoli's residents are living below the bread line.
“We have been seeing increased acts of vandalism in the evenings," Mr Yamak said.
“Some people are trying to take advantage of the situation and cause chaos."
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Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
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Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
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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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Dubai World Cup factbox
Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)