French ambassador to Lebanon Anne Grillo, left, and US envoy Dorothy Shea, centre, hold talks in Riyadh to discuss the situation in Lebanon. French Embassy Twitter account
French ambassador to Lebanon Anne Grillo, left, and US envoy Dorothy Shea, centre, hold talks in Riyadh to discuss the situation in Lebanon. French Embassy Twitter account
French ambassador to Lebanon Anne Grillo, left, and US envoy Dorothy Shea, centre, hold talks in Riyadh to discuss the situation in Lebanon. French Embassy Twitter account
French ambassador to Lebanon Anne Grillo, left, and US envoy Dorothy Shea, centre, hold talks in Riyadh to discuss the situation in Lebanon. French Embassy Twitter account

Pressure on Saudi Arabia unlikely to unlock aid to Lebanon


Sunniva Rose
  • English
  • Arabic

US and French diplomats have attempted to pressure a reluctant Saudi Arabia to increase its involvement in Lebanon in what analysts described as an unprecedented effort to save the crisis-hit country from itself.

But the outcome of their negotiations remains unclear apart from potentially delivering more in-kind humanitarian aid.

Ambassadors Anne Grillo of France and Dorothy Shea of the US visited Saudi Arabia on Thursday to discuss Lebanon's economic crisis and political paralysis.

They said in a joint statement afterwards that the country desperately needed a “fully empowered government”.

The international community has refused to bail out the cash-strapped state after decades of mismanagement and corruption, arguing that politicians should first bring in laws to increase transparency and accountability.

'If you don’t decide, we’ll step in and decide for you, and to hell with sovereignty'
Karim El Mufti,
Lebanese political analyst

The failure of Lebanese leaders to act has led to severe electricity, water and medical shortages amid rapidly increasing inflation and poverty. The local currency is trading at more than 19,000 Lebanese pounds to the dollar – less than a tenth of its official value.

Lebanon is without a fully functioning government and political bickering over the formation of a new one persists. The previous Cabinet resigned following the deadly blast that rocked Beirut’s port on August 4 last year.

  • A general view of demonstrators during an anti-government protest in central Beirut. Reuters
    A general view of demonstrators during an anti-government protest in central Beirut. Reuters
  • Protesters burn tyres and set up a roadblock on the Beirut-Saida motorway. William Lowry / The National
    Protesters burn tyres and set up a roadblock on the Beirut-Saida motorway. William Lowry / The National
  • Protesters in Nabatiyeh wave flags during an afternoon demonstration. William Lowry / The National
    Protesters in Nabatiyeh wave flags during an afternoon demonstration. William Lowry / The National
  • Protesters in Nabatiyeh wave flags. William Lowry / The National
    Protesters in Nabatiyeh wave flags. William Lowry / The National
  • A man holds a baby wrapped in the Lebanese flag high in the air during a protest in Sour. William Lowry / The National
    A man holds a baby wrapped in the Lebanese flag high in the air during a protest in Sour. William Lowry / The National
  • Demonstrators take part in an anti-government protest in Beirut. Reuters
    Demonstrators take part in an anti-government protest in Beirut. Reuters
  • Anti-government protesters shout slogans in Beirut. AP Photo
    Anti-government protesters shout slogans in Beirut. AP Photo
  • A general view of demonstrators during an anti-government protest in central Beirut. Reuters
    A general view of demonstrators during an anti-government protest in central Beirut. Reuters
  • An anti-government protester waves a flare during a street demonstration. AP Photo
    An anti-government protester waves a flare during a street demonstration. AP Photo
  • A man lifts a child as demonstrators chant and carry national flags during an anti-government protest in the southern city of Nabatiyeh.
    A man lifts a child as demonstrators chant and carry national flags during an anti-government protest in the southern city of Nabatiyeh.

“We are providing a lot of emergency and humanitarian aid to Lebanon but we could do much more if the Lebanese shouldered their responsibilities,” a French diplomatic source told The National. The US embassy in Beirut was not immediately available for comment.

Saudi Arabia has traditionally been financially supportive of Lebanon and aligned with its Sunni Muslim and pro-Western leaders. But it has distanced itself in recent years owing to increasing concerns about the power wielded by Hezbollah. The Shiite Muslim group is backed by Saudi Arabia’s regional archenemy, Iran.

Saudi analyst Ali Shihabi, who sits on the advisory board of the NEOM city megaproject, said it was unlikely that Saudi Arabia will deliver more than in-kind help.

“Saudi Arabia has been running a deficit for years and has its own requirements to restructure its economy. The days of the Saudi chequebook are over,” he said.

“I think this idea of getting on a plane to Saudi Arabia to ask them to write a cheque is ridiculous because that is not how such an issue would be approached by the kingdom any more.”

Mr Shihabi said the US and France should have put pressure on Lebanese leaders by freezing their overseas assets at the start of the economic crisis in 2019.

France, the former colonial power, warned in May that it would impose sanctions on politicians blocking government formation. However, the threat has fallen on deaf ears. The only top official being investigated for his wealth in France is Riad Salameh, head of the Lebanese central bank.

Yet Saudi Arabia is still open to providing in-kind support such as field hospitals, medicine and food, including to the Lebanese military, Mr Shihabi said.

The 80,000-strong army is the only state institution to continue receiving direct support and Turkey, Morocco, Iraq and France have all sent food packages to help it feed its soldiers. Diplomatic sources previously told The National that Ms Grillo and Ms Shea would ask Riyadh to step in, but Saudi Arabia had not officially commented on their visit at the time of writing.

Karim El Mufti, professor of political science at Saint Joseph University in Beirut, said that France and the US were more interested in Riyadh remaining diplomatically involved in Lebanon than in asking for cash assistance.

“They're saying: 'Even if you don’t care, let’s try to keep Lebanon afloat from a humanitarian and security perspective to not create a new Somalia on the borders with Israel which would give Hezbollah free range',” he said.

The fact that the two ambassadors represented the interest of their own countries as well as of the Lebanese people is widely viewed as a diplomatic first.

“It's an interesting gesture: foreign diplomats travelled from Beirut to Riyadh to provide for a population that is not theirs," Prof El Mufti said. "Yet from a protocol perspective, it has zero weight, because they are not foreign affairs ministers.”

Earlier this week, French MP Gwendal Rouillard suggested setting up an international task force in Lebanon, supervised by the UN and the World Bank. Its exact structure remains vague but his proposal is significant because of his proximity to French Foreign Affairs Minister Jean-Yves Le Drian who has repeatedly warned that Lebanon is on the verge of collapse.

Prof El Mufti said that the UN provides the strongest international legal mechanism to fill in the power vacuum left by Lebanon's elite. The UN's trusteeship council, which normally administrates countries without sovereignty, has been dormant since 1994, but can be reactivated, he said.

"Lebanon has no way of implementing its sovereignty today. It's in social, economic and financial chaos," he told The National

For Prof El Mufti, the Riyadh meeting was a “last warning to the Lebanese government: 'If you don’t decide, we’ll step in and decide for you, and to hell with sovereignty'”.




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Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.

UAE fixtures

Thursday, February 8 v Kenya; Friday, February v Canada; Sunday, February 11 v Nepal; Monday, February 12 v Oman; Wednesday, February 14 v Namibia; Thursday, February 15 final

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.

A clear distinction between the residences and the Raffles hotel with the amenities operated separately.

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MATCH INFO

Brescia 1 (Skrinia og, 76)

Inter Milan 2 (Martinez 33, Lukaku 63)

 

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Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
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.

Updated: July 11, 2021, 8:26 AM