Lebanon: Economic collapse fuels sectarian tension and 'total chaos'


Aya Iskandarani
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Lebanon’s economic collapse is driving criminality, with armed disputes taking an increasingly sectarian tone and sparking fears of civil strife, experts and politicians have told The National.

Sectarian tensions have always existed in Lebanon, ravaged by 15 years of civil war until 1990, but such incidents have multiplied in the past months in a country awash with weapons.

The latest sectarian flare-up happened in Maghdoushe, south Lebanon, where desperate people fought over scarce fuel last week. The violence exposed the fragility of civic peace that rests upon sect-based political alliances.

Maghdoushe holds special significance to Christians because the village is home to a cave where the virgin Mary allegedly spent a night waiting for Jesus to return from the nearby city of Sidon.

A large bronze statue of the virgin Mary, mounted on top of a 34-metre tower, watches over the small village, nestled in the foothills of south Lebanon.

“We have been living here for hundreds of years, nothing like this has ever happened before,” Raif Younan, who heads Maghdoushe’s municipality said over the phone.

“We need calm, no one wants a war here,” he said, adding that the situation was now under control.

Sect leaders and local representatives have, in many cases, worked to de-escalate the violence, yet such incidents are expected to increase as people fight over scarce resources.

The violence started when villagers from the Shiite town of Anqoun, desperate for fuel, tried to force a petrol station in Maghdoushe to open on Friday. The clashes left six people injured, thrusting the village into the public eye.

In retaliation, men from Anquon, a stronghold for the Hezbollah-allied Amal movement, vandalised cars and a small icon on Sunday. An image of broken glass surrounding a small figure of the virgin Mary went viral on social media, with many users on Twitter reacting to the incident by using inflammatory sectarian rhetoric.

Fights over fuel at petrol stations have become commonplace in Lebanon as motorists queue for hours amid severe shortages.

“We let it pass,” Mr Younan said of the vandalised icon. “We don’t want this to escalate. This cannot be allowed to turn sectarian."

The incident between the two villages sparked concern at the very top of the Lebanese political system, prompting Shiite and Christian leaders to react quickly to de-escalate the violence.

A delegation of the Iran-backed Hezbollah, the dominant Shiite political force in Lebanon, met representatives of Maghdoushe in Sidon to calm the situation on Tuesday, and in previous days.

“We discussed means of enhancing stability between the two towns after the recent events in the region,” a Hezbollah statement read.

The group said that parliament Speaker Nabih Berri, whose Shiite movement Amal wields great influence in Anqoun, had also intervened to halt the violence. In the days that followed, men from Anqoun went to Maghdoushe to repair the broken box in which the icon was encased, as a gesture of goodwill.

The tensions in Maghdoushe are the latest sign that economic collapse is reviving old schisms as desperate residents fight over scarce resources and territorial control, says Imad Salamey, an associate professor at the Lebanese American University.

“This is what a total collapse of institutions and state functions looks like,” he said.

“We are drifting towards a moment where no one can really control peace on the same street, in the same neighbourhood.”

The crime rate has shot up in Lebanon since the onset of a severe financial crisis in 2019. The Internal Security Forces reported that in 2020, car robberies increased by 146 per cent, car thefts skyrocketed by more than 100 per cent and murders rose by 38 per cent compared with the previous year.

But criminality is taking an increasingly sectarian turn.

In the past month alone at least three high-profile incidents of violence between Lebanon’s different communities have been recorded, one of them fatal.

Early last month Sunni clansmen in Khalde, south of Beirut, shot a Hezbollah member in a revenge killing. At least two other Hezbollah members were killed in clashes during Ali Chebli’s funeral procession.

The next week, Druze villagers clashed with Hezbollah members when they caught an operative passing through their town with a rocket launcher, after having fired towards Israel. In retaliation, videos emerged of Hezbollah supporters harassing fruit and vegetable vendors in Druze, which prompted members of the Druze Progressive Socialist Party to assault a Shiite van driver, sharing footage of the bloodied man online.

The situation today is, however, not a return to the civil war era, because there is no interest from regional powers to fund sectarian parties, Mr Salamey says. During Lebanon’s civil war from 1975 to 1990, regional powers funded and armed Lebanon’s many militias.

“At the moment we haven’t seen a backer for any of these groups other than Iran, which arms Hezbollah,” he says.

“What we have at the moment is personal confrontations, often sectarian, that are spread out across the country.”

Armed disputes over fuel and incidents of sectarian violence have multiplied in the past year as strained security forces struggle to contain them.

The Lebanese Armed Forces chief gave a warning this year that soldiers may go hungry lest the military received international aid due to economic hardship. The Lebanese pound lost 90 per cent of its value in two years, slashing the salaries of policemen and soldiers and affecting morale.

Sidon MP Ousama Saad says that desperate residents are now taking matters into their own hands instead of relying on fragile state institutions. Security in the southern city and its surroundings has declined sharply since the onset of the crisis, he says.

“People are left to fend for themselves and this abandonment is creating total chaos. Chaos is everywhere,” he said over the phone.

“Where are the security forces? Where is the energy ministry? Where is justice? They all seem to be on holiday.”

Mr Saad is aligned with Hezbollah but he came under fire by the group recently after condemning the assassination of intellectual and activist Lokman Slim.

His father was a leftist politician assassinated at the onset of the civil war in 1975.

He expects clashes between different sects, localities and even within the same community to intensify “because there is no rule of law”.

“Maybe it’s in the political elite’s interests to drive the country to chaos,” the long-time politician said of Lebanon’s entrenched ruling class, blamed widely for fomenting the economic crisis.

“They are telling people: it’s either us or chaos.”

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The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

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UAE currency: the story behind the money in your pockets
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UAE cricketers abroad

Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.

Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.

Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.

UAE currency: the story behind the money in your pockets
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MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)

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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.”

ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

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Updated: September 04, 2021, 8:35 AM