Latest updates: Saad Hariri steps down
Three-time Lebanese prime minister Saad Hariri is expected to announce on Monday that he will not stand for parliament in elections later this year, a member of his Future Movement told The National, leaving the Sunni Muslim community without a clear political leadership during the worsening economic crisis.
“It is likely that Mr Hariri will announce that he will not present himself at the elections; neither will his parliamentary block,” MP Mohammad Hajjar told The National.
Two other Future Movement sources, who asked to remain anonymous, said the party was debating whether to participate at all in the elections, scheduled for May 15.
“Mr Hariri will resign temporarily from politics and he will support individuals as representatives of the Future Movement,” a source said.
Mr Hariri, who returned on Wednesday from a several-month stay in the UAE, is expected to give a speech at 4pm Beirut time detailing his political future.
“It seems he's withdrawing from politics but at the same time there's a possibility that he'll make a political statement in which he hints that participating in elections or in the political process altogether is not useful given Hezbollah's arsenal,” said Mohannad Hage Ali, a research fellow at the Carnegie Middle East Centre.
Mr Hariri is traditionally aligned with Gulf states and Western countries and politically opposed to Iran-backed Hezbollah, though the two parties have compromised multiple times in the past in Parliament.
Hezbollah is the only Lebanese political party that kept its weapons at the end of the 1975-1990 civil war.
Mr Hariri served as prime minister from November 2009 to June 2011 and a second time from December 2016 to January 2020.
He was appointed for a third time as prime minister in October 2020 but announced in July that he had failed to form a Cabinet because of political bickering.
“May God help the country,” he said as he ended his attempt to form an administration.
Lebanon is suffering from its worst economic crisis to date, which has pushed almost three-quarters of the population into poverty.
On Monday, the cabinet met for the first time in more than three months to discuss a range of stalled urgent economic and financial issues, including the 2022 state budget.
Ministers representing Iran-backed and heavily militarised Hezbollah and its ally Amal movement have boycotted cabinet meetings since October to protest against what they described as a “biased” probe into the devastating explosion at Beirut's port in August 2020, paralysing the executive arm of the Lebanese political system.
Speculation about the future role of Mr Hariri in Lebanese politics was rife in Lebanese media on Monday, with daily Annahar writing that while the Cabinet meets for the first time in months, “all eyes are on Hariri".
The newspaper claimed that Mr Hariri had had multiple secret meetings with the country's top political leaders since his return last week, including Parliament Speaker Nabih Berri and Prime Minister Najib Mikati.
A potential withdrawal of Mr Hariri from elections caused worry and confusion at the weekend among Lebanon's Sunni Muslim community.
Local media reported on Sunday that dozens of his supporters drove from all over the country to Mr Hariri's house in Beirut, waving his party's blue flag and asking him to participate in the electoral process.
Mr Hariri responded by saying that his home would “remain open to all".
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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Hachette Books
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Abu Dhabi World Pro 2019 remaining schedule:
Wednesday April 24: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-6pm
Thursday April 25: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-5pm
Friday April 26: Finals, 3-6pm
Saturday April 27: Awards ceremony, 4pm and 8pm
The years Ramadan fell in May
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
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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.”
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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- Over a period of seven years, a team of scientists analysed dietary data from 50,000 North American adults.
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
The specs
Engine: 6.2-litre V8
Transmission: seven-speed auto
Power: 420 bhp
Torque: 624Nm
Price: from Dh293,200
On sale: now
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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