Gebran Bassil, leader of the Free Patriotic Movement said agreement had been reached but did not confirm the name of the candidate. Matt Kynaston/ The National
Gebran Bassil, leader of the Free Patriotic Movement said agreement had been reached but did not confirm the name of the candidate. Matt Kynaston/ The National
Gebran Bassil, leader of the Free Patriotic Movement said agreement had been reached but did not confirm the name of the candidate. Matt Kynaston/ The National
Gebran Bassil, leader of the Free Patriotic Movement said agreement had been reached but did not confirm the name of the candidate. Matt Kynaston/ The National

Rival Lebanese Christian parties reach agreement on presidential candidate


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The major Christian blocs in the Lebanese parliament said on Tuesday that they have reached an agreement on a presidential nominee.

Lebanon has had a presidential vacuum since the departure of the former head of state, Michel Aoun, from office last October and the country’s polarised parliament was unable to reach a consensus on his successor.

“Now there is an agreement around a candidate … between the FPM and the opposition,” said Free Patriotic Movement leader Gebran Bassil in an interview with the Kuwaiti press on Tuesday.

The opposition camp includes the Lebanese Forces, the Kataeb party and a coalition of independent members of parliament characterised by their opposition to Hezbollah.

Mr Bassil did not reveal the name of the candidate, but reports suggest that Jihad Azour, a former finance minister and director of the Middle East and Central Asia Department at the International Monetary Fund, has emerged as the leader.

The Free Patriotic Movement, with its long-standing alliance with Hezbollah, has been the traditional rival of the Lebanese Forces.

Jihad Azour is rumoured to be the choice of Christian parties for the role of president. Reuters
Jihad Azour is rumoured to be the choice of Christian parties for the role of president. Reuters

But it has recently distanced itself from the Iran-backed party and its ally the Amal Movement, which support another candidate, Sleiman Frangieh, for the presidency.

Mr Frangieh's Marada Party has been described as a close friend of Syrian President Bashar Al Assad.

“The communication with Hezbollah is not severed, but there is no meeting soon,” Mr Bassil said.

Hezbollah spokesman Mohammad Afif told The National: “We have described the candidacy of Mr Azour as a manoeuvre … for the Christian parties to agree among themselves to nominate a person for the presidency.

“This is their right and among the principles of the democratic game … we do not believe that their manoeuvre with the nomination of Mr Azour will compromise Mr Frangieh's candidacy, and it will not affect our firm position in supporting him.”

France has long supported a formula that involves Mr Frangieh assuming the role of head of state, with someone from the opposing camp as the prime minister, aiming for a power-sharing arrangement.

Paris has been actively trying to get Saudi Arabia to endorse this option.

France has yet to declare its stance on Mr Azour and whether it will affect its support for Mr Frangieh.

An 'ideal candidate'

Mr Bassil said a “basic agreement has become possible” with the opposition regarding the naming of a candidate, but that they “are still lacking the election mechanism and programmes, which are more important to us than the president himself”.

“Mr Azour would be a good candidate due to his clean record, free from any corruption allegations as he as extensive experience working in internationally recognised organisations – he has also statesmanship experience and capabilities,” a Lebanese Forces source told The National.

“We have been told that we didn't have a viable option, we have been pushed to align on a name, so here we are.

“Mr Azour will be the name on which several groups have converged.”

The source added that “it has become evident that Hezbollah is the one party blocking everything”, and that the Iran-backed party has its “own agenda” far from “Lebanon's interests”.

Back-room talks have been taking place for several weeks between the Lebanese Forces-led bloc and the Free Patriotic Movement over the selection of a presidential candidate.

In Lebanon's sectarian political landscape, these negotiations play a pivotal role in the election of a president, with political parties engaging in intricate bargaining processes with both allies and rivals to determine the candidates.

The prospect of significant breakthroughs remained uncertain for a while, after Mr Bassil rejected the previous candidate from the opposition, Michel Moawad, and a consensus on a suitable candidate was nowhere in sight.

The announcement is an important development, as it suggests the ability of the two rivals to collaborate.

However, it remains unclear when the next parliamentary session to elect the president will take place.

Parliament Speaker and Amal leader Nabih Berri has decided against convening a session, as he said it would probably result in failure for the 12th consecutive time to elect a president.

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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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Updated: May 30, 2023, 4:42 PM