Macron insists on urgent reforms after meeting Lebanese PM Mikati


Gareth Browne
  • English
  • Arabic

French President Emmanuel Macron has insisted the new government of Lebanese Prime Minister Najib Mikati must take urgent reform measures.

But the French leader also offered assurances that Lebanon could still “count on France”.

Mr Macron said Mr Mikati’s Cabinet offered a new opening and called on the government to move quickly.

“With you and your ministers, we have an opportunity to really push ahead on the reforms path,” Mr Macron said at a joint press conference after the leaders met for a working lunch in Paris on Friday.

The meeting came as part of Mr Mikati’s first foreign trip since being confirmed as prime minister earlier this month.

Mr Macron urged the Lebanese leader to tackle the country's economic crisis. Government had been paralysed for more than a year amid arguments among politicians over its composition.

“Lebanon should also start the vital negotiations with the International Monetary Fund, that should be completed quite quickly,” Mr Macron said.

“We will help with infrastructure, energy and aid for the Lebanese people, but Lebanon must begin the necessary negotiations with the IMF and advance the fight against corruption and governance.”

But he warned that there would be punishment for those who had blocked government formation.

“It's a secret to nobody that the negotiations took too long while the living conditions of Lebanese people were getting worse,” he said.

“We promise to punish and condemn those responsible for delaying the formation of the government.”

Mr Mikati insisted that Lebanon’s parliamentary elections, scheduled for next May would be held on time.

The billionaire telecoms magnate insisted he was serious about the desperately needed reforms.

“I expressed my determination to implement the necessary reforms as soon as possible in order to restore confidence, to give hope and reduce the suffering of the Lebanese population,” he said outside the Elysee Palace.

Mr Macron has led a renewed French interest in Lebanon in recent years.

Following the Beirut port explosion of August 2020, that killed at least 218 people, injured thousands and devastated much of the capital, he was on a flight to Beirut within hours.

Mr Macron walking through wrecked neighbourhoods listening to the grievances of furious residents.

Yet his efforts have wielded little more than disappointment in the past year, leading to France ramping up the pressure on the Lebanese political elite.

Political inertia and intransigence saw the country stuck with a caretaker government for 13 months as the country convulsed in an economic crisis.

This frustration has led to Paris spearheading a drive for sanctions against the Lebanese political elite responsible for blocking reforms and government formation.

At the end of July, the EU published a sanctions regime, though has yet to designate any individuals.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Tips to avoid getting scammed

1) Beware of cheques presented late on Thursday

2) Visit an RTA centre to change registration only after receiving payment

3) Be aware of people asking to test drive the car alone

4) Try not to close the sale at night

5) Don't be rushed into a sale 

6) Call 901 if you see any suspicious behaviour

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

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.”

Meydan race card

6pm Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m 

6.35Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m
1,800m 

7.10pm Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m ,400m 

7.45pm Al Rashidiya – Group 2 (TB)  $180,000  (T) 1,800m 

8.20pm Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

8.55pm Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

9.30pm Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m  

The specs: 2019 Haval H6

Price, base: Dh69,900

Engine: 2.0-litre turbocharged four-cylinder

Transmission: Seven-speed automatic

Power: 197hp @ 5,500rpm

Torque: 315Nm @ 2,000rpm

Fuel economy, combined: 7.0L / 100km

Manchester United v Liverpool

Premier League, kick off 7.30pm (UAE)

Updated: September 27, 2021, 5:52 AM