A protest on Tuesday against Hezbollah in front of the Justice Palace in Beirut. EPA
A protest on Tuesday against Hezbollah in front of the Justice Palace in Beirut. EPA
A protest on Tuesday against Hezbollah in front of the Justice Palace in Beirut. EPA
A protest on Tuesday against Hezbollah in front of the Justice Palace in Beirut. EPA

Lebanon violence is a dangerous distraction from reform, experts say


Elias Sakr
  • English
  • Arabic

One of Lebanon’s worst episodes of violence since the end of the civil war is unlikely to topple the government or even stoke wide-scale civil unrest, analysts have told The National.

Seven people were killed in fighting fuelled by rising tension over the Beirut blast probe.

The Iran-backed Hezbollah has accused its political rival, the Christian Lebanese Forces (LF) party, of firing at “peaceful demonstrators” who took to the streets last week to demand the dismissal of the judge leading the investigation into the port explosion.

The LF denies the accusations, arguing that fighting broke out between Hezbollah loyalists and residents after protesters stormed the area that separated Muslim and Christian neighbourhoods during Lebanon’s 15-year civil war.

Hezbollah leader Hassan Nasrallah gave a warning on Monday that the country was facing a “dangerous and critical new stage” while boasting that his party commanded a strong force of 100,000 fighters.

“Don't miscalculate. Sit quietly and get your act together,” Nasrallah said in a fiery speech, addressing LF chief Samir Geagea. But Mr Nasrallah said Hezbollah would not be lured into a domestic conflict.

His message, analysts say, is multifaceted.

“Hezbollah is saying 'we don’t want to be involved in a domestic conflict but we’re strong and ready',” Ibrahim Bayram, an expert in the party’s affairs, told The National.

That said, Hezbollah and its Shiite ally, the Amal movement led by parliamentary Speaker Nabih Berri, are unlikely to concede when it comes to replacing Judge Tarek Bitar, Mr Bayram said.

Nasrallah has accused Mr Bitar and the US of politicising the probe after the judge issued arrest warrants for former public works minister Youssef Finanous, a Hezbollah ally, and ex-finance minister Ali Hassan Khalil, a member of Mr Berri’s parliamentary bloc and the target of US sanctions.

Both Mr Hassan Khalil and Mr Finanous, along with ex-prime minister Hassan Diab and two former ministers, have snubbed Mr Bitar’s summons, arguing he had no constitutional authority to prosecute them.

Protestors from the Lebanese opposition front carry placards shout slogan against Hezbollah during a protest in front of the Justice Palace in Beirut, Lebanon, 19 October 2021. EPA
Protestors from the Lebanese opposition front carry placards shout slogan against Hezbollah during a protest in front of the Justice Palace in Beirut, Lebanon, 19 October 2021. EPA

Historic economic crisis

All five officials have been charged with criminal negligence in connection with the blast that killed more than 214 people and forced Mr Diab’s resignation, leaving the country without a functioning government for more than a year. The political vacuum accelerated Lebanon's financial meltdown, which the World Bank says ranks in the top three economic crises since the 1850s.

Mr Bayram said the latest tension over the probe was unlikely to topple the government of prime minister Najib Mikati given the country’s economic and financial woes.

“The risk of miscalculation, however, is real against the backdrop of tensions between Tehran and the US over Iran’s nuclear programme," he said.

Mr Mikati has yet to schedule a Cabinet meeting. Ministers affiliated with Hezbollah and Amal have threatened to boycott coming sessions if the Cabinet fails to block Mr Bitar from prosecuting senior officials. Hezbollah and its allies say political officials should be tried before a special body that comprises senior judges and politicians.

Lebanese Prime Minister Najib Mikati speaks during an interview with Reuters at the government palace in Beirut, Lebanon October 14, 2021. REUTERS
Lebanese Prime Minister Najib Mikati speaks during an interview with Reuters at the government palace in Beirut, Lebanon October 14, 2021. REUTERS

Mr Bayram said the Cabinet was unlikely to meet before a compromise deal was reached.

As of Tuesday morning, Mr Mikati had yet to decide on the timing of the Cabinet’s coming session, a source close to the prime minister told The National. Such a meeting would take place when political tension subsides, the source said.

Reforms stall

Though tension is likely to be wholly contained in the near future, the renewed political bickering deals a major blow for the government’s credibility and its commitment to enacting reforms, Mr Mohanad Hage Ali of the Carnegie Middle East Centre said.

The international community has been pressuring the government into enacting reforms in exchange for financial aid and demanding open elections in the spring, as well as an independent investigation in the port blast.

“The spotlight is now back on Hezbollah and its arsenal of weapons rather than the government’s reform programme and the investigation into the Beirut blast,” Mr Hage Ali said.

The confrontation was no longer between the ruling class and opposition groups but rather between Hezbollah and the LF, he said.

“It remains to be seen whether the LF gains from this confrontation by polarising Christian voters ahead of the upcoming elections,” he said.

The spotlight is now back on Hezbollah and its arsenal of weapons
Mohanad Haj Ali

Mr Bayram said continuing tension between the LF and Hezbollah was likely to weigh on President Michel Aoun, Hezbollah’s Christian ally.

Mr Aoun’s son-in-law Gebran Bassil, the leader of largest Christian parliamentary bloc and a staunch Hezbollah ally, has accused his Mr Geagea of stoking civil strife.

Brief scores:

Pakistan (1st innings) 181: Babar 71; Olivier 6-37

South Africa (1st innings) 223: Bavuma 53; Amir 4-62

Pakistan (2nd innings) 190: Masood 65, Imam 57; Olivier 5-59

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

Ponti

Sharlene Teo, Pan Macmillan

THE SPECS

BMW X7 xDrive 50i

Engine: 4.4-litre V8

Transmission: Eight-speed Steptronic transmission

Power: 462hp

Torque: 650Nm

Price: Dh600,000

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

Afghanistan Premier League - at a glance

Venue: Sharjah Cricket Stadium

Fixtures:

Tue, Oct 16, 8pm: Kandahar Knights v Kabul Zwanan; Wed, Oct 17, 4pm: Balkh Legends v Nangarhar Leopards; 8pm: Kandahar Knights v Paktia Panthers; Thu, Oct 18, 4pm: Balkh Legends v Kandahar Knights; 8pm: Kabul Zwanan v Paktia Panthers; Fri, Oct 19, 8pm: First semi-final; Sat, Oct 20, 8pm: Second semi-final; Sun, Oct 21, 8pm: final

Table:

1. Balkh Legends 6 5 1 10

2. Paktia Panthers 6 4 2 8

3. Kabul Zwanan 6 3 3 6

4. Nagarhar Leopards 7 2 5 4

5. Kandahar Knights 5 1 4 2

THE BIO

Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13 

Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier

Favourite place to travel to: Any walkable city. I also love nature and wildlife 

What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents. 

Favorite place to go in the UAE: A quiet beach.

Profile of Bitex UAE

Date of launch: November 2018

Founder: Monark Modi

Based: Business Bay, Dubai

Sector: Financial services

Size: Eight employees

Investors: Self-funded to date with $1m of personal savings

Company profile

Name: Steppi

Founders: Joe Franklin and Milos Savic

Launched: February 2020

Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year

Employees: Five

Based: Jumeirah Lakes Towers, Dubai

Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings

Second round raised Dh720,000 from silent investors in June this year

COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
​​​​​​​Princeton

WOMAN AND CHILD

Director: Saeed Roustaee

Starring: Parinaz Izadyar, Payman Maadi

Rating: 4/5

Mercedes V250 Avantgarde specs

Engine: 2.0-litre in-line four-cylinder turbo

Gearbox: 7-speed automatic

Power: 211hp at 5,500rpm

Torque: 350Nm

Fuel economy, combined: 6.0 l/100 km

Price: Dh235,000

Long read

Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204-cyl%20turbo%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C600rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C500-4%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.9L%2F100km%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh119%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
RESULTS

6.30pm Handicap (TB) $68,000 (Dirt) 1,200m

Winner Canvassed, Par Dobbs (jockey), Doug Watson (trainer)

7.05pm Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m

Winner Dubai Future, Frankie Dettori, Saeed bin Suroor

7.40pm UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m

Winner Mouheeb, Ryan Curatolo, Nicholas Bachalard

8.15pm Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m

Winner Secret Ambition, Tadhg O’Shea, Satish Seemar

9.50pm Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m

Winner Topper Bill, Richard Mullen, Satish Seemar

9.25pm Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m

Winner Man Of Promise, William Buick, Charlie Appleby

Sri Lanka-India Test series schedule
  • 1st Test India won by 304 runs at Galle
  • 2nd Test India won by innings and 53 runs at Colombo
  • 3rd Test August 12-16 at Pallekele
Updated: October 20, 2021, 11:08 AM