The car park of a monastery on the slopes of Mount Lebanon has been turned into a temporary reservoir. Every few minutes, a helicopter swoops in, filling a tank dangling below it from a large pool fed by firefighters’ hosepipes.
The aircraft’s updraft soaks a dozen onlooking soldiers, and in an instant, it is sauntering off into the distant mountains to drop water on the smouldering ruins of Lebanon’s natural landscape — or what remains of it.
We have equipment that is stuck at the port or in other storage places, and not distributed to the Civil Defence because the politicians don't know to which area they want to give them
Samer El Khoury,
political activist
Wildfires have been ravaging Mount Lebanon and areas in the country’s south for three days but are largely under control now, say those responsible for leading the response. Yet those caught in the heat are exhausted and despondent. It is just the latest in a series of crises to hit the Lebanese people.
“We still had the beauty of this country. Now, it's gone,” says Fady Youssef who runs a tennis academy nestled among the cedars of Mount Lebanon outside the town of Monteverde.
“This is the only place where you could get away from it, in the mountains, now everything is gone,” he says.
Economic catastrophe
Mr Youssef was one of an ever-shrinking number of Lebanese business owners attempting to outlast a political and economic crisis that has bought the country to its knees.
A captain of the Davis Cup Team and former national champion, he opened up his tennis academy three years ago to nurture some of the country’s top talent.
On Monday afternoon, a young girl works on her backhand, patiently encouraged by her coach. In the background, the ash black carcasses of the country’s famous cedar trees continue to smoke — it is a vivid metaphor for a country where a disastrous economic collapse has increasingly taken on environmental dynamics.
Yet while play goes on today, it seems this weekend’s fires were a final straw for Youssef. He says he will leave Lebanon in the next two months.
“They don't want us to stay in this country. They want all of us to leave.”
The scorched earth, still smoking in some areas, runs right up to the academy’s car park. Metres away from the building’s generator a pile of leaves continues to smoke. If the generator had gone, so too would his business — he needs the spotlights to coach at night — there simply aren’t enough hours in the day for him to make a living.
Many The National spoke to said they worked through the weekend extinguishing flames creeping towards their homes and business, only for the fires to start up again after a few hours. Firefighting is a science, and done incorrectly, will only see the flames start up again.
Many are convinced that arson is behind the fires — they blame scavengers who have been illegally felling trees, an increasingly common practice amid the economic crisis.
Environment Minister Nasser Yassin also cried foul. “We can say that all these fires are of human origin,” he said on Monday afternoon.
“There is an intentional act and the Interior Ministry is working to determine who is responsible for this.”
Whether it was a natural disaster or something more malign, it is the state’s inability to respond that has angered people already battered by economic and political problems.
Divisive politics
Decades of grift have hollowed out the ability of the country’s Civil Defence and Army to respond to outbreaks of wildfires — for years three firefighting helicopters have sat grounded due to a lack of spare parts. In August, it was reported that the cash-strapped army was looking to sell them to raise funds.
“The environmental problems in Lebanon are political problems,” says Samer El Khoury, environmental spokesperson for Minteshreen, an opposition group born out of the country’s 2019 protests.
“We have equipment that is stuck at the port or in other storage places, and not distributed to the Civil Defence because the politicians don't know to which area they want to give them.
“The things they [Civil Defence] are asking for are very basic — they literally don't cost a lot. But you know how it goes; every bit of money that comes in for the aid of the country just stays in the politicians’ pockets.”
At the academy, Mr Youssef must continue with his day’s lessons. He is also preparing for a tournament in Kuwait in December.
“Who knows if they’ll even give us visas”, he says.
Nothing in Lebanon is straightforward, not even tennis.
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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.”
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
Our legal columnist
Name: Yousef Al Bahar
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Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
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ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
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More from Rashmee Roshan Lall
Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Match info
Uefa Champions League Group C
Liverpool v Napoli, midnight