• A crowded petrol station on the main road that links Beirut to south Lebanon. AP
    A crowded petrol station on the main road that links Beirut to south Lebanon. AP
  • Drivers come from every direction to fill their tanks with fuel. AP
    Drivers come from every direction to fill their tanks with fuel. AP
  • Chronic fuel shortages have plagued the country in recent months, with long queues at petrol stations a common sight. AP
    Chronic fuel shortages have plagued the country in recent months, with long queues at petrol stations a common sight. AP
  • Last month, central bank governor Riad Salameh announced that fuel imports would no longer be subsidised. AP
    Last month, central bank governor Riad Salameh announced that fuel imports would no longer be subsidised. AP
  • Worshippers listen as cleric Ali Al Hussein delivers a sermon during Friday prayers at a fuel station to protest against the severe shortages. AP
    Worshippers listen as cleric Ali Al Hussein delivers a sermon during Friday prayers at a fuel station to protest against the severe shortages. AP
  • People listen to Al Hussein's sermon in the coastal town of Jiyeh, south of Beirut. AP
    People listen to Al Hussein's sermon in the coastal town of Jiyeh, south of Beirut. AP

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


Aya Iskandarani
  • English
  • Arabic

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.”

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Tuesday's fixtures
Group A
Kyrgyzstan v Qatar, 5.45pm
Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm
Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Sucker%20Punch%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%202%20to%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
The specs: 2018 BMW X2 and X3

Price, as tested: Dh255,150 (X2); Dh383,250 (X3)

Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)

Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)

Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)

Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)

Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)

Super Bowl LIII schedule

What Super Bowl LIII

Who is playing New England Patriots v Los Angeles Rams

Where Mercedes-Benz Stadium in Atlanta, United States

When Sunday (start time is 3.30am on Monday UAE time)

 

HAJJAN
%3Cp%3EDirector%3A%20Abu%20Bakr%20Shawky%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cbr%3EStarring%3A%20Omar%20Alatawi%2C%20Tulin%20Essam%2C%20Ibrahim%20Al-Hasawi%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cbr%3ERating%3A%204%2F5%3C%2Fp%3E%0A
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20synchronous%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E660hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C100Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E488km-560km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh850%2C000%20(estimate)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EOctober%3C%2Fp%3E%0A
Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.

Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.

Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.

Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI. 

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%204.0-litre%20twin-turbo%20V8%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E680hp%20at%206%2C000rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E800Nm%20at%202%2C750-6%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ERear-mounted%20eight-speed%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E13.6L%2F100km%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Orderbook%20open%3B%20deliveries%20start%20end%20of%20year%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh970%2C000%3C%2Fp%3E%0A
Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Inside%20Out%202
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EKelsey%20Mann%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%C2%A0Amy%20Poehler%2C%20Maya%20Hawke%2C%20Ayo%20Edebiri%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4.5%2F5%3C%2Fp%3E%0A
Star%20Wars%3A%20Ahsoka%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Various%20%3Cbr%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Rosario%20Dawson%2C%20Natasha%20Liu%20Bordizzo%2C%20Lars%20Mikkelsen%20%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%0D%3Cbr%3E%3C%2Fp%3E%0A
Sun jukebox

Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)

This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.

Elvis Presley, Mystery Train (1955)

The B-side of Presley’s final single for Sun bops with a drummer-less groove.

Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)

Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.

Carl Perkins, Blue Suede Shoes (1956)

Within a month of Sun’s February release Elvis had his version out on RCA.

Roy Orbison, Ooby Dooby (1956)

An essential piece of irreverent juvenilia from Orbison.

Jerry Lee Lewis, Great Balls of Fire (1957)

Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.

The specs

Price, base: Dh228,000 / Dh232,000 (est)
Engine: 5.7-litre Hemi V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 552Nm
Fuel economy, combined: 12.5L / 100km

The specs: 2018 Bentley Bentayga V8

Price, base: Dh853,226

Engine: 4.0-litre twin-turbo V8

Transmission: Eight-speed automatic

Power: 550hp @ 6,000pm

Torque: 770Nm @ 1,960rpm

Fuel economy, combined: 11.4L / 100km

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

While you're here
Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Women%E2%80%99s%20T20%20World%20Cup%20Qualifier
%3Cp%3E%3Cstrong%3EUAE%20results%3C%2Fstrong%3E%0D%3Cbr%3EIreland%20beat%20UAE%20by%20six%20wickets%0D%3Cbr%3EZimbabwe%20beat%20UAE%20by%20eight%20wickets%0D%3Cbr%3EUAE%20beat%20Netherlands%20by%2010%20wickets%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFixtures%3C%2Fstrong%3E%0D%3Cbr%3EUAE%20v%20Vanuatu%2C%20Thursday%2C%203pm%2C%20Zayed%20Cricket%20Stadium%0D%3Cbr%3EIreland%20v%20Netherlands%2C%207.30pm%2C%20Zayed%20Cricket%20Stadium%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EGroup%20B%20table%3C%2Fstrong%3E%0D%3Cbr%3E1)%20Ireland%203%203%200%206%20%2B2.407%0D%3Cbr%3E2.%20Netherlands%203%202%201%204%20%2B1.117%0D%3Cbr%3E3)%20UAE%203%201%202%202%200.000%0D%3Cbr%3E4)%20Zimbabwe%204%201%203%202%20-0.844%0D%3Cbr%3E5)%20Vanuatu%203%201%202%202%20-2.180%3C%2Fp%3E%0A
Updated: September 04, 2021, 8:35 AM