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.
“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'”.
Two products to make at home
Toilet cleaner
1 cup baking soda
1 cup castile soap
10-20 drops of lemon essential oil (or another oil of your choice)
Method:
1. Mix the baking soda and castile soap until you get a nice consistency.
2. Add the essential oil to the mix.
Air Freshener
100ml water
5 drops of the essential oil of your choice (note: lavender is a nice one for this)
Method:
1. Add water and oil to spray bottle to store.
2. Shake well before use.
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
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.
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
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
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Orlando Crowcroft
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Sarfira
Director: Sudha Kongara Prasad
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Rating: 2/5
THE SPECS
Engine: 1.6-litre turbo
Transmission: six-speed automatic
Power: 165hp
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UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
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The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
More from Neighbourhood Watch
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho