Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP
Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP
Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP
Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP

Almost 80% of Lebanese living in poverty, UN study reveals


Gareth Browne
  • English
  • Arabic

Seventy-eight per cent of Lebanon’s population is now living in poverty, according to a new report by the UN that spells out the urgent humanitarian crisis facing the country.

The study, published by the UN Office for the Co-ordination of Humanitarian Affairs (OCHA), puts Lebanon’s rate of extreme poverty on a par with Cameroon and Haiti.

It highlights a stark rise in both poverty and extreme poverty – two of the most prevalent measures of deprivation – since 2020 and calls for $378.5 million in funding for an emergency response plan to help alleviate the crisis.

“In March 2021, 78 per cent of the Lebanese population (three million people) was estimated to be in poverty,” the report said.

This is a significant increase on the 55 per cent reported to be living below the poverty line in a similar report published last year.

“The multiple crises afflicting Lebanon have led to a severe deterioration in people’s standard of living," it said.

"Basic rights are being denied as people are unable to afford or access basic goods and services including health, food, education, electricity, water and wastewater management.”

The report also notes a drastic rise in extreme poverty, which the World Bank defines as people who are “severely deprived of basic human needs” – the most severe type of poverty.

“Extreme poverty – also known as 'food poverty' – increased threefold from 2019 to 2020, rising from 8 per cent to 23 per cent,” said the report.

Millions of Lebanese, plus Palestinian and Syrian refugee communities, have been affected by an economic crisis the World Bank has described as one of the worst in 150 years.

The Lebanese lira has lost more than 90 per cent of its value since October 2019, leaving essentials such as food, fuel, and water unaffordable to many.

Electricity has become scarce, unemployment is soaring and long, meandering queues at petrol stations have become a common sight across the country.

Compiled by OCHA with the help of NGOs working in the country, the report spells out an emergency plan to deal with those suffering most from the crisis, while also warning of the worsening social consequences of the country’s dire humanitarian situation.

“Intra-communal tensions within Lebanese communities have worsened due to the shortage of basic essential goods and services," the report said.

"Tensions between host communities and refugees have similarly increased.

"Reports indicate growing forced evictions and occurrences of refugees being denied access to shops selling subsidised goods or having to pay for basic goods at increased prices.”

Last week, international donors, including France and the US, pledged $370 million in aid at a donor conference organised by French President Emmanuel Macron.

The country’s humanitarian crisis has been exacerbated by political stalemate, following the government’s resignation after the huge explosion at Beirut port last year. The blast killed 218 people, injured thousands and devastated the capital.

Lebanon could potentially unlock billions in international aid and support if it agrees to much-needed political and banking reforms.

However, this has been stymied by the stalemate among the country's politicians, leading to an impasse in creating a new government.

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet

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.”

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

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 

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Updated: August 08, 2021, 12:20 PM