• Rweida Mohammed stands next to her almost empty fridge that is warm inside due to prolonged power cuts. Elizabeth Fitt for The National
    Rweida Mohammed stands next to her almost empty fridge that is warm inside due to prolonged power cuts. Elizabeth Fitt for The National
  • Hamid Khodor sits despondently in the kitchen. There is no electricity to keep food fresh in the fridge and freezer, no cooking gas for the stove and not much to eat except what the family can grow in the garden. Elizabeth Fitt for The National
    Hamid Khodor sits despondently in the kitchen. There is no electricity to keep food fresh in the fridge and freezer, no cooking gas for the stove and not much to eat except what the family can grow in the garden. Elizabeth Fitt for The National
  • The Khodor family is relying on homegrown vegetables. Elizabeth Fitt for The National
    The Khodor family is relying on homegrown vegetables. Elizabeth Fitt for The National
  • Talal Khodor with his son, Omar, in their vegetable garden. The family is relying on homegrown vegetables to feed themselves during Lebanon's economic collapse. Elizabeth Fitt for The National
    Talal Khodor with his son, Omar, in their vegetable garden. The family is relying on homegrown vegetables to feed themselves during Lebanon's economic collapse. Elizabeth Fitt for The National
  • Rweida Mohammed uses a makeshift grill to cook for the family. Since gas for the kitchen stove became so scarce in Lebanon, the family can't get hold of any. Elizabeth Fitt for The National
    Rweida Mohammed uses a makeshift grill to cook for the family. Since gas for the kitchen stove became so scarce in Lebanon, the family can't get hold of any. Elizabeth Fitt for The National
  • Talal Khodor's mother is frustrated by the ongoing situation. Elizabeth Fitt for The National
    Talal Khodor's mother is frustrated by the ongoing situation. Elizabeth Fitt for The National
  • There are few options left to help Mohammed Hazim provide for his family. Elizabeth Fitt for The National
    There are few options left to help Mohammed Hazim provide for his family. Elizabeth Fitt for The National
  • Shelves that usually display bread have been empty for days in the village store. Elizabeth Fitt for The National
    Shelves that usually display bread have been empty for days in the village store. Elizabeth Fitt for The National
  • Mohammed Hazim's son, Ziad, waits for his exam results. He had to study using his father's mobile phone. Elizabeth Fitt for The National
    Mohammed Hazim's son, Ziad, waits for his exam results. He had to study using his father's mobile phone. Elizabeth Fitt for The National
  • People queue for bread as shortages continue. Elizabeth Fitt for The National
    People queue for bread as shortages continue. Elizabeth Fitt for The National
  • The manager at Tarik Al Ridani bakery says it is one of only two producers still operational in the city and with two tonnes of flour left, it will soon run out of bread. Elizabeth Fitt for The National
    The manager at Tarik Al Ridani bakery says it is one of only two producers still operational in the city and with two tonnes of flour left, it will soon run out of bread. Elizabeth Fitt for The National
  • These boys are among the lucky few that have found bread before stocks run out. Elizabeth Fitt for The National
    These boys are among the lucky few that have found bread before stocks run out. Elizabeth Fitt for The National
  • Ogero, Lebanon's state-run telecoms provider, has a mast in Hrar, but connection speeds are often very slow. Elizabeth Fitt for The National
    Ogero, Lebanon's state-run telecoms provider, has a mast in Hrar, but connection speeds are often very slow. Elizabeth Fitt for The National

No bread, no fuel, no gas: economic crisis hits impoverished north Lebanon harder


Sunniva Rose
  • English
  • Arabic

In a small village in the isolated rural region of Akkar, north Lebanon, Rweida Mohammed, 36, cooks for her family on an open fire outside and heats water to wash their clothes by hand.

Sales of gas cylinders stopped last month and bread disappeared off supermarket shelves five days ago, she said.

The small amount of bread on the kitchen table was salvaged from relatives. The fridge is turned off and empty, save for a few tomatoes.

The mother of young triplets is close to despair. She regularly walks to a nearby town to ask the Ministry of Social Affairs for help, but has received no response. “I must have been 100 times by now,” she said.

Akkar resident Rweida Mohammed uses a makeshift outdoor grill to cook food for her family because she cannot obtain gas for the stove. Elizabeth Fitt for The National
Akkar resident Rweida Mohammed uses a makeshift outdoor grill to cook food for her family because she cannot obtain gas for the stove. Elizabeth Fitt for The National


Lebanon’s protracted financial crisis, which started in 2019, took a turn for the worse this week. The country’s electricity is produced by burning fuel that it can barely afford to import any more. Without electricity, companies, including bakeries, cannot operate normally.

North Lebanon, where poverty is most prevalent, has been hit especially hard.

Look at the people outside, they’re like hungry dogs
Mohammed Danaj,
bakery worker in Tripoli

In Tripoli, Lebanon’s second biggest city, customers waited for hours in the sun on Thursday to buy a maximum of four packs of bread outside Tarek Al Ridani bakery.

Four packs of bread will last two days for Mohammed Melhem’s family of eight. They cost Mr Melhem, 55, a Syrian refugee, a fifth of the monthly allowance he receives from the UN.

In his neighbourhood, El Qobbeh, bakeries do not sell more than one pack of bread to each client, he said.

Boys carry packs of bread past people queuing at a bakery in Tripoli as shortages continue to worsen. Elizabeth Fitt for The National
Boys carry packs of bread past people queuing at a bakery in Tripoli as shortages continue to worsen. Elizabeth Fitt for The National

The price of bread, which is fixed by the government, has more than tripled since the beginning of the financial crisis, as the value of the local currency tumbled. Each bag weighs close to a kilogram and is stacked with round, white traditional Arabic flatbread.

The shortage of bread is acutely felt in a country where it is ritually served with each meal.

“Bread is a medium – if you don’t have a spoon, you eat with bread. It is part of people’s lives,” said Mohammad Hazim, a retired mechanical engineer and former mayor of the town of Hrar in Akkar. “If there is no bread, there is no life."

Hrar, nestled in the mountains above Tripoli, relies on bread produced along the coast and brought by lorry, Mr Hazim said. But with little or no fuel, deliveries stopped.

Mr Hazim calls this “the fuel war”.

Ogero, Lebanon's state-run telecoms provider, has a mast in Hrar, but connection speeds mean the service is often unusable. Elizabeth Fitt for The National
Ogero, Lebanon's state-run telecoms provider, has a mast in Hrar, but connection speeds mean the service is often unusable. Elizabeth Fitt for The National

It has spread across the country. In the town of Sawfar, about 140 kilometres south, residents recently broke into a bakery to steal bread.

“They were afraid it would close because it didn’t have enough fuel to operate 24/7 like before,” said Sawfar’s Mayor Kamal Shaya.

In Akkar, vigilante groups have been stopping vehicles carrying fuel they suspect is being smuggled to neighbouring Syria.

Imad Kreidieh, chairman of state telecoms company Ogero, said people attacked tankers bringing fuel to run its private generators, causing cuts to the internet in the region.

"I have been forced to cut services due to a lack of fuel," he told The National.

But he hopes the situation is temporary. "It’s inconceivable [to think] that we are heading towards a total blackout. Considering a Lebanon without power is surreal," he said.

In Tripoli, bakers do not know when they will be able to work again.

Mohammed Danaj, an employee at Tarek Al Ridani bakery, said on Thursday they bought flour on the black market at nearly four times the official price.

Several bags weighing close to two tonnes were stacked in a back room. That was all that was left at the time, just enough to make bread until 4pm that day. Then they would close indefinitely.

“Look at the people outside, they’re like hungry dogs,” Mr Danaj said.

“People line up at the petrol station to be humiliated. Here they are humiliated too. They want more bread for their families.”

The bakery is opposite a closed petrol station. A queue of cars snaked around the block as motorists waited for it to open again. Drivers can wait an entire day for fuel, causing traffic jams.

Freshly baked bread cools on a conveyor belt at Tarik Al Ridani bakery, which was expected to close on Thursday afternoon owing to a lack of supplies. Elizabeth Fitt for The National
Freshly baked bread cools on a conveyor belt at Tarik Al Ridani bakery, which was expected to close on Thursday afternoon owing to a lack of supplies. Elizabeth Fitt for The National

Although Lebanon is at the peak of its summer season, many already worry about next winter. Every year, snow falls on Lebanese mountains and locals rely on fuel for heat.

“See those oak trees?” Mr Hazim asked, pointing at a cluster of trees close to his house on top of a hill near a shrine. “Nobody cuts them because they’re afraid of God. But they will if their survival depends on it.”

The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
The specs: 2018 Opel Mokka X

Price, as tested: Dh84,000

Engine: 1.4L, four-cylinder turbo

Transmission: Six-speed auto

Power: 142hp at 4,900rpm

Torque: 200Nm at 1,850rpm

Fuel economy, combined: 6.5L / 100km

if you go

The flights

Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.

The hotel

Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850

 Events and tours

There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com

For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art. 

More information

For ideas on planning a trip to Scotland, visit www.visitscotland.com

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%3Cp%3EAverage%20amount%20of%20biofuel%20produced%20at%20DIC%20factory%20every%20month%3A%20%3Cstrong%3EApproximately%20106%2C000%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EAmount%20of%20biofuel%20produced%20from%201%20litre%20of%20used%20cooking%20oil%3A%20%3Cstrong%3E920ml%20(92%25)%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ETime%20required%20for%20one%20full%20cycle%20of%20production%20from%20used%20cooking%20oil%20to%20biofuel%3A%20%3Cstrong%3EOne%20day%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EEnergy%20requirements%20for%20one%20cycle%20of%20production%20from%201%2C000%20litres%20of%20used%20cooking%20oil%3A%3Cbr%3E%3Cstrong%3E%E2%96%AA%20Electricity%20-%201.1904%20units%3Cbr%3E%E2%96%AA%20Water-%2031%20litres%3Cbr%3E%E2%96%AA%20Diesel%20%E2%80%93%2026.275%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A
Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.

Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.

Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.

Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI. 

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

Updated: August 18, 2021, 1:56 PM