The business of firearms dealer Abdullah has been booming since Lebanon's economy collapsed.
He sells at least three rifles a day – Kalashnikovs are popular among households in fear for their safety as crime rates soar. He also sells boxes of ammunition and grenades.
An automatic rifle or machinegun costs between $400 and $1,400.
His sales have risen threefold since the financial crisis began in 2019, even though the dollar value of the minimum wage has dropped to just $25 per month.
People have been rushing to buy weapons on the black market in the past year as the struggling state fails to prevent rising crime and political violence.
'There is no state'
Abdullah makes $2,000 per month selling arms. “That's more than a doctor’s salary nowadays,” he says, taking a puff from his cigarette as he hunches over a pile of grenades on the floor of an abandoned house.
The gaunt 30-year-old is a member of an arms smuggling ring with connections in Syria. He says 90 per cent of his clients are ordinary people from Beirut. He also sells weapons to smaller dealers in the capital.
The state, which provided a semblance of protection before the crisis, is withering away in the eyes of many Lebanese, and sectarian clashes are more common.
Banks have frozen savings and restricted withdrawals. Residents began keeping their money and valuables at home.
“There is no state in Lebanon. My clients just want to protect their houses, their families, their money,” Abdullah says.
The Russian-made Kalashnikov is a national favourite, he says, and rocket-propelled grenade launchers, RPGs, are also in high demand.
Handguns command high prices. An Austrian Glock 17 Gen5, which sells for $500 in the US – could fetch up to $5,000 on the Lebanese black market.
Abdullah is wanted by the authorities. He drives a car without a number plate around the quiet streets of Hermel, a town in the north-east Bekaa Valley. The mostly Shiite area largely controlled by clans and the Iran-backed Hezbollah movement.
The Bekaa Valley is known for illegal activities including smuggling, car theft and drug production.
It is not just the economic crisis that has sent Abdullah's sales skyrocketing; recent political instability led to a rush for weapons, he tells The National.
In October, Hezbollah supporters fought gun battles with unknown rivals on the streets of Beirut, leaving seven people dead.
Abdullah says many Lebanese fear the violence means a return to civil war, so they stocked up on arms and ammunition.
“The whole Hermel region was out of stock after the clashes. I sent more than 300 boxes of ammunition to Beirut in one day.”
Each box contains between 700 and 1,000 rounds.
Weapons for whisky
Abdullah says that before economic collapse, which pushed more than 80 per cent of the population into poverty, it would take months to sell his stock. Now, his shipments from Syria sell out in weeks.
He brings more than 150 “items” at a time every few weeks, at least 70 of which will be guns, ammunition and grenades.
There has always been smuggling along Lebanon's border with Syria, but a decade of war and economic crises on both sides have made illegal trade easier.
Smugglers typically use back routes and smaller roads to get from Syria into Lebanon and then from the border to Beirut, avoiding checkpoints and the army.
Abdullah boasts about bribing officials to let his merchandise through checkpoints, a practice traffickers call “buying the road”.
“I can buy the highest-ranking Syrian officer with a bottle of whisky or a $50 tip if I’m feeling very, very generous,” he says.
“The problem is that it’s easier to smuggle arms from Syria to Lebanon than to move them from Hermel to Beirut.”
Smugglers only “buy the road” in Lebanon when they need to take a large shipment that requires lorries, he says.
A representative of Lebanon’s Internal Security Forces says the proliferation of light weapons has been a problem since the start of the civil war in 1975. But he says authorities are still in control of the situation.
"In general, we have a hold on security. Criminals know that we will look for them," the representative says.
"The problem in Lebanon is not about loose security, it’s the political and economic situation."
He denies that so many Lebanese people were stocking up on arms now.
"I don’t think people can afford it any more," he says.
But that is not the case for people like Majed, a father of two. He says he never would have imagined that owning a gun would be a part of his life – even when his friend gave him a handgun as a gift in February.
“The market for guns is booming for people like me: regular folks with a little bit of money who want to keep their family safe,” Majed, 40, says from his home in the well-to-do Antelias suburb of Beirut.
Majed started going to the shooting range with his wife every week since he became a gun owner. Although he doesn’t store the weapon at home, he is thinking about doing so “for emergencies”.
"People are carrying guns for self-protection more – respectable and educated people you wouldn’t expect to be carrying guns," he says.
Crime rates have soared since the start of the crisis.
The ISF did not respond to a request for crime statistics. A report by the Beirut-based consultancy Information International showed a 212 per cent increase in car thefts, 265 per cent increase in robbery and a 101 per cent increase in homicide in the first 10 months of 2021.
What is left of Lebanon’s shrinking middle class is driving the demand for arms, says Edwin Haddad, who launched a holster company, Doubletap Concealment, in April.
“I was afraid it would fail, but sales have exceeded all my expectations,” he says.
He has more 60 clients every month for shooting paraphernalia and instruction.
“Most of them are not training because they are passionate about firearms, but because they are concerned for their safety,” he says.
'A man's pride is his rifle'
Malek Abi Nader, an expert on arms laws, says ordinary citizens can own only licensed hunting weapons in Lebanon; anything else is illegal. Security forces personnel may carry weapons on duty, and municipal police can carry firearms after getting a licence from the Ministry of Interior.
Yet, in 2018 Lebanon ranked second in the Middle East for civilian gun ownership per capita, according to the Graduate Institute of International and Development Studies in Geneva.
“It’s an old Lebanese tradition,” Mr Abi Nader says of owning weapons.
In his home town of Bsharre, a Christian town in north Lebanon, he believes there is a gun in every house.
“A rifle is considered a man’s pride, but the trend is new among city folks.”
While many ordinary gun buyers get unlicensed weapons from the likes of Abdullah, Lebanon’s VIPs who need protection can get weapon licences for their bodyguards from the Ministry of Defence, Mr Abi Nader says.
Many MPs, senior officials, businessmen and others have personal protection in a country where political assassinations and kidnappings were common during the civil war and after.
Although most armed groups laid down their weapons after war ended in 1990, Hezbollah did not. Today, it is by far the most well-armed and supplied non-military force in the region.
Dozens of smaller paramilitary groups as well as Palestinian factions also carry weapons.
Mr Abi Nader says MPs and ministers can buy firearms from security forces for personal protection and those are registered in their records. They are prohibited from selling or giving them as gifts.
But VIP firearms licences are only for the transfer of weapons and do not include the number or the type of weapon, which makes it difficult to track arms in circulation.
Mr Abi Nader says most people with a weapons licence are politically connected.
“Can you really blame people? This country has gone through tumultuous times, this is why people feel they need weapons," he says.
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.”
Fireball
Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.
A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.
"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.
Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.
If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
First Person
Richard Flanagan
Chatto & Windus
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
UNSC Elections 2022-23
Seats open:
- Two for Africa Group
- One for Asia-Pacific Group (traditionally Arab state or Tunisia)
- One for Latin America and Caribbean Group
- One for Eastern Europe Group
Countries so far running:
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
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs: 2018 Audi R8 V10 RWS
Price: base / as tested: From Dh632,225
Engine: 5.2-litre V10
Gearbox: Seven-speed automatic
Power: 540hp @ 8,250rpm
Torque: 540Nm @ 6,500rpm
Fuel economy, combined: 12.4L / 100km
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.