Nearly one week into one of Lebanon’s worst diplomatic crises with the Gulf in years, a leaked audio recording of Foreign Affairs Minister Abdallah Bou Habib has bluntly exposed Lebanon’s most pressing question: what can it do to satisfy Saudi Arabia?
The crisis has been blamed on pro-Houthi statements made by Information Minister George Kordahi.
“If we sack Kordahi, what will we get from the kingdom? Nothing … they’ll ask for more,” Mr Bou Habib said, quoted by Saudi Arabian newspaper Okaz. He played down the kingdom’s significant history of providing aid to Lebanon and described Iran-backed Hezbollah as "a disease.”
The daily wrote that Mr Bou Habib’s words, which were recorded during a meeting with Lebanese journalists, revealed his “hatred” towards Saudi Arabia. Mr Bou Habib responded in a statement that Okaz had published “fragmented and erroneous quotes”.
The diplomatic crisis puts in jeopardy the government of Najib Mikati, which is less than two months old and already grappling with political tension and the country’s worsening economic crisis.
Aired on October 25, Mr Kordahi’s comments prompted Saudi Arabia to ban imports from Lebanon and withdraw its diplomatic staff from the country. The UAE, Bahrain and Kuwait are making similar moves.
Lebanese officials fear that Saudi Arabia might introduce more punitive measures by preventing the large Lebanese community living in the kingdom from sending remittances to their families back home, where nearly 80 per cent of the population is poor.
Mr Kordahi, who is supported by Lebanon’s pro-Iran camp, is refusing to quit, putting the Prime Minister, Mr Mikati, under intense pressure. If Mr Kordahi keeps his job, the prime minister’s Sunni Muslim base will widely regard him as a hostage of Hezbollah and call on him to resign, said Joseph Bahout, director of the Issam Fares Institute at the American University of Beirut.
It’s a very dire situation
Joseph Bahout,
director of the Issam Fares Institute at the American University of Beirut
Lebanese officials are intensely debating what to do and most of them refrain from speaking to the press out of fear of worsening the crisis. “The situation is quite critical,” said one high-ranking civil servant before Mr Bou Habib’s leaks were published. “I think those who are supporting Kordahi want something in exchange for his resignation,” he said, without clarifying further.
For Saudi Arabia, Mr Kordahi’s departure would make no difference, said Saudi Arabia analyst Ali Shihabi. “The kingdom will not take any active measures to harm Lebanon, like taking any action against its Lebanese residents. It has made that very clear,” said Mr Shihabi, who sits on the advisory board of the Neom city megaproject.
“At the same time, it will not support in any manner a state captured by Hezbollah that is actively participating against the kingdom in Yemen war,” he told The National, echoing often-heard accusations by Riyadh that Hezbollah supports the Houthi militant group.
The Houthis this week erected billboards depicting Mr Kordahi in Sanaa, Yemen's capital.
Mr Mikati’s options are limited, said Mr Bahout. “Saudi Arabia does not want Hezbollah to have influence in Lebanon, but realistically, you can’t have a Lebanon without Hezbollah. So what is exactly the midway that they are ready to accept? If we offer Kordahi’s head, will it be enough to go back to the situation that was prevalent before?”
Created in 1982 by Iran’s Revolutionary Guards, Hezbollah operates both as a normal political party in Lebanon and as a powerful regional militia. Because it is the only local political party to be legally armed, officially to fight Israel, Hezbollah’s clout in Lebanon extends further than others. In 2008, attempts at dismantling its telecoms networks resulted in days-long street clashes in Beirut.
Saudi Arabia poured money into Lebanon for decades, but relations turned sour in the past years as Riyadh viewed Iran’s expanding influence in the country with hostility. Regional tension flared in late 2017 when departing prime minister Saad Hariri made a surprise resignation in Saudi Arabia. It prompted accusations from Lebanese officials that his resignation was forced, which the kingdom denied.
Should Lebanon now succeed in defusing tension, the most realistic scenario would be a return to the previous standoffish diplomatic relations between Saudi Arabia and Lebanon, Mr Bahout said.
“I don’t think that Mikati will take the risk of resigning because the US and France are probably advising him not to,” he said. French diplomatic sources previously told The National that French President Emmanuel Macron will send a “message of appeasement” to Gulf countries regarding Lebanon.
“But at the same time he won’t be able to work as long as the crisis is there because he doesn’t want to antagonise what remains of his personal ties with the Gulf. It’s a very dire situation,” said Mr Bahout.
Brief scores:
Toss: Nepal, chose to field
UAE 153-6: Shaiman (59), Usman (30); Regmi 2-23
Nepal 132-7: Jora 53 not out; Zahoor 2-17
Result: UAE won by 21 runs
Series: UAE lead 1-0
Bundesliga fixtures
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
First Person
Richard Flanagan
Chatto & Windus
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Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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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.
UAE currency: the story behind the money in your pockets
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
Killing of Qassem Suleimani
KILLING OF QASSEM SULEIMANI
More coverage from the Future Forum
Fund-raising tips for start-ups
Develop an innovative business concept
Have the ability to differentiate yourself from competitors
Put in place a business continuity plan after Covid-19
Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.)
Have enough cash to stay afloat for the next 12 to 18 months
Be creative and innovative to reduce expenses
Be prepared to use Covid-19 as an opportunity for your business
* Tips from Jassim Al Marzooqi and Walid Hanna
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
More from Neighbourhood Watch
The low down
Producers: Uniglobe Entertainment & Vision Films
Director: Namrata Singh Gujral
Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark
Rating: 2/5
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Bundesliga fixtures
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)