Customers will be banned from Lebanon’s restaurants, beaches and hotels from next week unless they prove they are either immunised or free of the coronavirus, the Tourism Ministry said.
People over 16 years of age must present proof of vaccination, evidence of a recent coronavirus infection or a negative Covid-19 test to be allowed into tourist spots.
“Tourist establishments, hotels, restaurants, cafes, amusement parks, sea resorts and all institutions under the authority of the ministry must work within a safe, coronavirus-free environment,” the statement said.
The circular, issued on Friday, follows a rise in Covid-19 cases at the height of the tourist season, when Lebanese citizens living abroad return home.
Doctors say the rise in cases could signal a new wave of infections, which cash-strapped authorities are ill-equipped to contain.
Dr Firass Abiad, who runs Lebanon’s largest public hospital, said last week on Twitter that “summer vacation in Lebanon is over. Covid is increasing at an exponential rate.”
Lebanon recorded 1,502 new coronavirus cases on Tuesday, the highest number of daily infections since April. One new Covid-19 death was announced.
Head of Lebanon’s Covid-19 vaccination committee, Doctor Abdulrahman Bizri, said that while the new decision was theoretically sound, it may be difficult to implement, as well as discriminatory.
“We cannot demand that everyone show proof of vaccination if there are not enough vaccines,” he said, pointing to the country’s slow inoculation campaign.
The government is using the measures as an alternative to lockdowns as cases rise, he said, but the new rules “do not take into consideration Lebanon’s difficult reality.”
Lebanon has been in economic freefall since late 2019 due to decades of corruption and a lack of foreign currency reserves. More than half of the population has become poor according to UN data as inflation slashes purchasing power.
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Public health officials attribute the sharp rise in coronavirus cases to the spread of the highly infectious Delta variant. They say it is responsible for up to 80 per cent of new cases.
Lebanon’s relatively low vaccination rate and the lack of border restrictions have fuelled rising infections.
The tourism ministry’s circular covers employees of the tourism sector, who “must receive the vaccine or present a negative PCR test every 72 hours” within two weeks, the circular said.
From Monday, the authorities will crack down on those who fail to abide by the rules.
A spokeswoman for the trade union representing restaurant, cafe and nightclub owners said its members were prepared to enforce the ministry’s decision but had received no specific instructions on how to do so.
“The circular was issued right before the weekend so we didn’t get any additional information. We are waiting to know more on Monday,” she said.
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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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