Once bustling with life, Beirut’s famed Gemmayze Street is now deserted.
Lined with damaged homes, collapsed buildings and closed businesses, the residential and commercial hub was one of the city’s most vibrant destinations – but not any more.
“It’s like a nightmare. We’ve never seen anything like this before,” said Charbel Bassil, owner of renowned Le Chef restaurant, on the first day of reopening after a nationwide lockdown.
One of Beirut’s oldest and most popular restaurants, Le Chef, in in Gemmayze, is one of many businesses struggling to stay afloat under the weight of Lebanon’s compounding crises.
The family business reopened its doors on March 22, as per the government’s lockdown strategy, but customers were hardly pouring in.
The modest space, which was often full to the brim for lunchtime, now welcomed only three tables after a full day of work, or about 10 customers.
The burst of vigor and energy that characterised the dining experience at Le Chef was replaced by a sense of moping and melancholy.
"We're doing our best to keep going, but everything is a mess," Mr Bassil told The National.
Le Chef , founded in 1967, weathered civil wars and crises, but none harmed trade like Lebanon’s current events.
“This is our family business. I’ve been working here since I was a child, but nothing we lived through was as bad as this,” Mr Bassil said.
After almost losing the restaurant in the Beirut blast, Le Chef was able to rebuild thanks to donations, $5,000 of which came from the actor Russell Crowe. But what the port explosion could not destroy, the economic crisis shattered.
"We can't work in this crisis. Suppliers won't give us goods because of the market rate and we don't know how to price our dishes," Mr Bassil told The National.
“We’re a restaurant for the people. We want to serve high-quality food for affordable prices.”
Lebanon’s currency lost more than 80 per cent of its value since the beginning of the economic crisis, declared one of the worst in the country’s history.
In one year, the Lebanese pound, which once traded at 1,500 to the US dollar, slumped to 15,000 on the parallel market. The minimum wage shrank from $450 to an average of $50, leaving people with insufficient salaries to cover rising living costs.
Political deadlock and the ruling class’s inability to form a government is stalling the introduction of essential reforms needed to unlock international aid.
Consequently, the rocketing currency exchange has hit sectors of all sorts.
“All our struggles are related to the dollar rate. We have to pay for most of our products depending on the black market’s prices,” said Huwaida Rajab, co-owner of Orenda, a vegan cafe in the Mar Mikhael district.
Also significantly hit by the Beirut blast, Orenda picked up the pieces and moved forward with business despite the challenges. It was forced to close again several times by lockdown measures and reopened for dine-in services on Tuesday, March 23.
"We don't know how this will go – we're waiting for customers," Ms Rajab told The National. "We're still pushing through and we have hope, which is why we keep fighting for this business."
But hope is not enough to sustain trade, which is why Ms Rajab and her founding partner muse the question: to close down or hang in there a little longer?
“We discuss this every day and every day we decide to keep going,” Ms Rajab said. “We’re waiting to see how long we can do this for.”
Despite the opportunity to be back in business, Lebanon’s hospitality sector is wary about reopening because operational costs now outweigh profits.
Fewer than 1,000 restaurants and cafes are expected to reopen this week, said Aref Saade, treasurer at the Syndicate of Owners of Restaurants, Cafes, Night-Clubs and Pastries.
Prior to the crisis, Lebanon had about 8,500 tourist institutions in business. The number decreased to 4,500 when Covid-19 struck, and is anticipated to sink below 1,000 due to the soaring and unstable currency exchange rate.
"Businesses are refraining from reopening – it's just not worth it," Mr Saade told The National.
Between the cost of supplies, maintenance, rent, salaries, Covid tests and more, it is now more expensive for Lebanon’s once-booming tourism sector to reopen than it is to shut down.
By the end of 2019, more than 465 restaurants and cafes had closed due to the economic crisis and decrease in the public’s purchasing power, the syndicate said.
Financial losses to the sector were estimated to be about $1 billion, said its president, Tony Ramy.
To support the hospitality sector, Lebanon’s caretaker government eased lockdown measures for Christmas and New Year. The decision backfired, with an overwhelming Covid-19 surge that brought health services to their knees.
A subsequent nationwide lockdown took effect on January 7. Restaurants and cafes have been closed since then.
Despite this much-needed window for hospitality, health experts are concerned about reopening the country.
The head of Lebanon’s parliamentary health committee, Dr Assem Araji, said Lebanon recorded 992 admissions to the intensive care unit on Monday, March 22, the highest figure since the start of the pandemic.
“This number is prone to increasing after the chaotic reopening of the country and lack of adherence to safety measures,” he said on Twitter. “Be careful, prevention is better than cure.”
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
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What is the Supreme Petroleum Council?
The Abu Dhabi Supreme Petroleum Council was established in 1988 and is the highest governing body in Abu Dhabi’s oil and gas industry. The council formulates, oversees and executes the emirate’s petroleum-related policies. It also approves the allocation of capital spending across state-owned Adnoc’s upstream, downstream and midstream operations and functions as the company’s board of directors. The SPC’s mandate is also required for auctioning oil and gas concessions in Abu Dhabi and for awarding blocks to international oil companies. The council is chaired by Sheikh Khalifa, the President and Ruler of Abu Dhabi while Sheikh Mohamed bin Zayed, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces, is the vice chairman.
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.”
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
The biog:
Languages: Arabic, Farsi, Hindi, basic Russian
Favourite food: Pizza
Best food on the road: rice
Favourite colour: silver
Favourite bike: Gold Wing, Honda
Favourite biking destination: Canada
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
Education reform in Abu Dhabi
The emirate’s public education system has been in a constant state of change since the New School Model was launched in 2010 by the Abu Dhabi Education Council. The NSM, which is also known as the Abu Dhabi School Model, transformed the public school curriculum by introducing bilingual education starting with students from grades one to five. Under this new curriculum, the children spend half the day learning in Arabic and half in English – being taught maths, science and English language by mostly Western educated, native English speakers. The NSM curriculum also moved away from rote learning and required teachers to develop a “child-centered learning environment” that promoted critical thinking and independent learning. The NSM expanded by one grade each year and by the 2017-2018 academic year, it will have reached the high school level. Major reforms to the high school curriculum were announced in 2015. The two-stream curriculum, which allowed pupils to elect to follow a science or humanities course of study, was eliminated. In its place was a singular curriculum in which stem -- science, technology, engineering and maths – accounted for at least 50 per cent of all subjects. In 2016, Adec announced additional changes, including the introduction of two levels of maths and physics – advanced or general – to pupils in Grade 10, and a new core subject, career guidance, for grades 10 to 12; and a digital technology and innovation course for Grade 9. Next year, the focus will be on launching a new moral education subject to teach pupils from grades 1 to 9 character and morality, civic studies, cultural studies and the individual and the community.
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
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The biog
Born: near Sialkot, Pakistan, 1981
Profession: Driver
Family: wife, son (11), daughter (8)
Favourite drink: chai karak
Favourite place in Dubai: The neighbourhood of Khawaneej. “When I see the old houses over there, near the date palms, I can be reminded of my old times. If I don’t go down I cannot recall my old times.”
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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