• Lebanon's Prime Minister Najib Mikati gestures as he speaks to the press after meeting President Michel Aoun at the presidential palace in Baabda. Reuters
    Lebanon's Prime Minister Najib Mikati gestures as he speaks to the press after meeting President Michel Aoun at the presidential palace in Baabda. Reuters
  • President Michel Aoun meets Parliament Speaker Nabih Berri and Prime Minister-designate Najib Mikati at the presidential palace in Baabda before the announcement of the formation of a new government under Mr Mikati. Dalati and Nohra / AFP
    President Michel Aoun meets Parliament Speaker Nabih Berri and Prime Minister-designate Najib Mikati at the presidential palace in Baabda before the announcement of the formation of a new government under Mr Mikati. Dalati and Nohra / AFP
  • Mr Aoun (L) and Mr Mikati before the announcement of the formation of a new Lebanese government ending a 13-month vacancy. Dalati and Nohra / AFP
    Mr Aoun (L) and Mr Mikati before the announcement of the formation of a new Lebanese government ending a 13-month vacancy. Dalati and Nohra / AFP
  • Lebanese Prime Minister Najib Mikat attends Friday prayers at a mosque in downtown Beirut. AP
    Lebanese Prime Minister Najib Mikat attends Friday prayers at a mosque in downtown Beirut. AP
  • Najib Mikati arriving at the presidential palace in Baabda, Lebanon. Reuters
    Najib Mikati arriving at the presidential palace in Baabda, Lebanon. Reuters
  • Lebanese Speaker of the Parliament Nabih Berri arrives at the presidential palace in Baabda. Reuters
    Lebanese Speaker of the Parliament Nabih Berri arrives at the presidential palace in Baabda. Reuters
  • The government palace in Beirut, Lebanon. Reuters
    The government palace in Beirut, Lebanon. Reuters
  • Protesters in Beirut.
    Protesters in Beirut.
  • Anti-government protesters during a demonstration outside the French embassy in Beirut, Lebanon. EPA
    Anti-government protesters during a demonstration outside the French embassy in Beirut, Lebanon. EPA
  • Demonstrators with placards appealing to French President Emmanuel Macron. EPA
    Demonstrators with placards appealing to French President Emmanuel Macron. EPA
  • Protesters outside the French embassy in Beirut, Lebanon. EPA
    Protesters outside the French embassy in Beirut, Lebanon. EPA

Doubt over diaspora vote for Lebanon’s 2022 election


Sunniva Rose
  • English
  • Arabic

Lebanon’s Hezbollah says the country’s large diaspora should not vote in the country’s elections next year because sanctions would hinder its ability to campaign abroad.

But analysts accuse the Iran-backed group and allies of fearing that voters would massively reject traditional parties.

The vote of the Lebanese diaspora, which voted for the first time in 2018, is under tight scrutiny owing to the high number of citizens who have left the country in the past two years.

Its worst economic crisis caused nation-wide protests for several months when it began in 2019.

There are no precise figures regarding the number of emigrants, but MPs The National spoke to said they believe that between 200,000 and 300,000 people had left the country in the past two years.

They are widely believed to be dissatisfied with the country’s ruling political class, which is blamed for causing the crisis after decades of corruption.

“At this point, I’d vote for anyone except for those who are in power,” said Cesar Kastoun, a finance professional in New York.

Most established parties with representation in Parliament fear the free, liberal and uncontrolled vote of expatriates
Ghassan Moukheiber,
a former independent MP

Despite the controversy regarding the diaspora’s vote, the 2017 electoral law has yet to be amended.

It calls for the non-resident Lebanese citizens to vote for six additional MPs next year, and the Foreign Affairs Ministry has issued a circular allowing them to register between October 1 and November 20 to vote.

The elections, initially scheduled for May, are expected to be moved to March 27 following statements by Prime Minister Najib Mikati last week.

Parliament’s vice-president, Elie Ferzli, said this was to avoid the need for campaigning during Ramadan, which will fall in April, and that while technical amendments to the law to change the elections’ date would be straightforward, the diaspora’s participation posed a “serious problem”.

Negotiations among members of an informal parliamentary committee indicate they want to change the law so the diaspora does not vote for six MPs next year. The debate within the committee is focused on whether Lebanese living abroad will vote for politicians representing their district of origin in Lebanon – as happened in 2018 – or not vote at all.

  • A view of Lebanon's capital, Beirut, with the lights on only in some buildings. Lebanese rely on highly polluting diesel generators run by private neighbourhood operators to make up for shortfalls in electricity supply from the state utility. EPA
    A view of Lebanon's capital, Beirut, with the lights on only in some buildings. Lebanese rely on highly polluting diesel generators run by private neighbourhood operators to make up for shortfalls in electricity supply from the state utility. EPA
  • A fisherman uses a headlamp at the seaside corniche in Beirut, Lebanon. EPA
    A fisherman uses a headlamp at the seaside corniche in Beirut, Lebanon. EPA
  • A vendor sells LED balloons in full darkness at the corniche in Beirut. EPA
    A vendor sells LED balloons in full darkness at the corniche in Beirut. EPA
  • The near collapse of the national grid has increased the duration of power cuts across Lebanon. EPA
    The near collapse of the national grid has increased the duration of power cuts across Lebanon. EPA
  • Residents of Beirut are experiencing power cuts of up to 20 hours a day. EPA
    Residents of Beirut are experiencing power cuts of up to 20 hours a day. EPA

Four members of the committee The National spoke to said that while they support the diaspora voting, Hezbollah and its ally, the Amal Movement, did not. Hezbollah’s representative in the committee, Ali Fayad, did not respond to requests for comment.

The four MPs said it was difficult, if not impossible, to organise elections for six MPs abroad as specified in the law, which respects the country’s sectarian-sharing power agreement. Assumptions regarding the distribution of Lebanese citizens around the world have coloured discussions, with some suggesting that the Maronite seat should go to the US MP, the Shiite Muslim seat to the Africa MP and the Sunni Muslim seat to the Middle East MP.

But the idea of arbitrarily appointing a continent to a sect is unpopular. Mr Ferzli, the committee’s head, described this system as “illogical”; MP Samir Jisr, from the Sunni Muslim Future Movement, called it “anti-constitutional”; and Mr Aoun, from the Christian Free Patriotic Movement, said it was “silly”.

“I think that we have to do everything so that expatriates can vote for all members of Parliament, not just six MPs,” said MP Bilal Abdallah, from the Druze Progressive Socialist Party.

On Friday, Mr Fayad told Lebanese TV station Al Jadeed that while the party had not adopted a definite position, the diaspora’s vote was “sensitive” and his party had asked for its postponement because of “difficulties” “in some essential countries, like America, European countries and Canada”.

Mr Fayad referenced the large Shiite Muslim community in Michigan, an example echoed among his colleagues.

“They say, there’s a lot of Shiites in Michigan. How are we going to communicate? Suppose our supporters vote for our candidate. They’ll be exposed to the American government,” Mr Ferzli said.

Mr Jizr said: “They are reasonable arguments, but we [the Future Movement)] are for the expatriate vote.”

Hezbollah in the spotlight

Hezbollah supporters rally as a convoy of tanker trucks carrying Iranian fuel oil arrive in Baalbeck. Reuters
Hezbollah supporters rally as a convoy of tanker trucks carrying Iranian fuel oil arrive in Baalbeck. Reuters

The US designated Hezbollah a terrorist organisation in 1997 but this did not stop many Lebanese from voting for the group three years ago. One of the MPs to receive the most votes among non-resident Lebanese in 2018 was Hezbollah member Amin Sherri, who was personally blacklisted by the US the following year.

Voting for Hezbollah in Lebanese elections in the US is illegal yet it was not criminalised in 2018. David Daoud, a lawyer by training and a research analyst on Hezbollah at United against a Nuclear Iran, an advocacy group in New York, expects Washington to turn a blind eye once again next year.

“It seems that we have placed not harming Lebanon’s very fragile stability as our number one priority ahead of taking action against Hezbollah,” he said.

Hezbollah’s recent imports of US sanctioned Iranian fuel, which it says it has donated in part to hospitals, bakeries and water organisations, has triggered no legal backlash.

Mr Daoud said party supporters were allowed to ostensibly show their affiliation by carrying Hezbollah flags in the US. Independent advocacy, as long as it is done without party authorisation or payment, is not criminalised, according to him.

“What the US criminalises is material support, which is defined as training, expert advice or assistance, services and provision of personnel to a designated Foreign Terrorist Organisation,” he said.

Last year, Hezbollah was banned by Germany. Some European countries and the EU make a distinction between its political and armed activities.

Lebanese electoral experts argue that the real reason Hezbollah is against the diaspora vote is because it fears expatriates will massively reject traditional political parties because of the crash of the Lebanese economy. It is a worry that unites all parties, despite their assertions to the contrary.

“They are putting the blame on Hezbollah. But I believe there is no political will,” said Aly Sleem, executive director of the Lebanese Association for Democratic Elections.

“Most established parties with representation in Parliament fear the free, liberal and uncontrolled vote of expatriates,” agreed Ghassan Moukheiber, a former independent MP who has been involved in electoral reform since 1995.

While expatriate turnout in 2018 was low, at close to 47,000, Mr Sleem said this number was expected to at least double in 2022.

“It’s a real threat,” he said. “Some candidates win seats with as little as 77 votes.” At 56.4 per cent, expatriate turnout was slightly higher in 2018 than for in-country residents, 49.2 per cent.

At the time, only one member of civil society was elected to Parliament. More independents in 2022 would represent a headache for Hezbollah, said Mr Daoud.

“They’d rather not deal with more opposing voices as Lebanon’s fragility increases,” he said. “Even so-called pro-western traditional political parties like the Future Movement and the PSP [Progressive Socialist Party] talk a big game but have to play ball.”

Cancelling the vote altogether would come as a disappointment for expatriates, both young and old, said John Zabbal, 25, a law student in Canada. His father, who left Lebanon decades ago and voted in 2018 for a traditional party, plans to back reformists this time around.

“For sure, he’ll give the youth a chance. You’re not going to vote for the same people again and again and expect different results, right?”

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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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31% in UK say BBC is biased to left-wing views

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Updated: October 05, 2021, 2:02 AM