Lebanon will be facing food shortages in as little as a month if the Ukraine crisis continues, a high-ranking Lebanese official said on Friday.
Lebanon’s heavy reliance on imported food, particularly sunflower oil and wheat from Ukraine, has jeopardised food security.
The war could lead to prices soaring even higher in Lebanon, where the costs of food increased by 2,076 per cent between 2018 and 2021.
“The production season in Ukraine is destroyed," Dany Gedeon, director general of Lebanon’s Industry Ministry, told The National. "We’ll be facing real food security problems within a month or two in Lebanon and in the rest of the world.”
Customs figures show that in 2020, Lebanon imported 81 per cent of its wheat from Ukraine and 15 per cent from Russia. The two countries were also Lebanon’s main suppliers of sunflower seed oil.
Lebanon has been totally irresponsible towards its food security for the past 30 years
Riad Saade,
Lebanese Centre of Agricultural Research and Studies director
Imported wheat is transformed locally to produce bags of round, flat bread. Lebanon only produces small amounts of durum wheat, which cannot be used for this kind of “Arabic” bread, experts say.
The Lebanese are hugely reliant on bread for their daily calorie intake. Bakers previously told The National that the country’s protracted economic crisis had increased the local population’s purchases of bread. Bread prices have remained relatively cheap thanks to subsidies from Lebanon’s cash-strapped central bank.
But further price rises on food could lead to social unrest, say analysts. “The Ukraine invasion is an additional disaster,” said one Lebanese diplomat, who asked to remain anonymous.
Mr Gedeon said Lebanese businesses were searching for alternative sources of wheat. “We’ll see if it will be possible,” he said.
The alarmism expressed by Lebanese officials is to be expected, said Riad Saade, director of the Lebanese Centre of Agricultural Research and Studies. “Prices of wheat are skyrocketing around the world,” he said.
Lebanon is particularly vulnerable to sudden market shocks because of its low stocks of wheat. They can last for only a month and a half since a massive blast at Beirut’s port in August 2020 destroyed the country’s giant grain silos.
“Lebanon has been totally irresponsible towards its food security for the past 30 years,” said Mr Saade. “They were trading with money they did not have. Now that they have reached bankruptcy, they are starting to realise how terrible it is to not have a food security policy.”
Mr Saade was referring to the collapse of Lebanon’s economy, which started in 2019, causing rapid inflation and unprecedented poverty.
'Exceptional measures'
Lebanon is also struggling to find enough sugar. Its main supplier, Algeria, stopped exporting sugar and other products to the world in 2020 after the coronavirus outbreak.
Lebanese customs figures show about a quarter of its sugar imports came from Algeria in 2020. More recent figures are unavailable because the customs website stopped working in August 2021 after a corruption scandal.
Local media reported this week that Prime Minister Najib Mikati asked Algeria’s Foreign Minister Ramtane Lamamra whether Algeria could start re-exporting sugar to Lebanon. There were no reports of any response from the Algerians.
Lebanese businessmen are seeking to buy sugar from Brazil, Peru and Cuba, Mr Gedeon said. “We have a problem,” he said.
Lebanon’s Industry Minister George Boujikian gave a warning on Thursday that Russia’s invasion of Ukraine would “inevitably lead to an increase in demand in view of the shortage of goods and the possibility of a dangerous inflation in prices".
Mr Boujikian made those comments on the same day that he decided to restrict Lebanese food exports. In a letter addressed to the higher customs council, he said he was taking “exceptional measures to protect food security and secure necessary stocks for the Lebanese people”.
Consequently, food exports are now subject to a licence from the Industry Ministry.
“It is essential to stop exports of all foodstuffs that are necessary for people’s every day consumption, such as wheat and oils,” Mr Gedeon said.
He said that he expected the ministry to halt exports of milk-based products, including cheese and labne, a local strained yoghurt.
Among Lebanon’s top performing products is olive oil, of which the small Mediterranean country exported about 7,000 tonnes in 2020.
“We’ll see if [olive oil] production is enough to continue exports, otherwise we’ll stop,” said Mr Gedeon.
Racecard:
6.30pm: Mazrat Al Ruwayah (PA) | Group 2 | US$55,000 (Dirt) | 1,600 metres
7.05pm: Meydan Sprint (TB) | Group 2 | $250,000 (Turf) | 1,000m
7.40pm: Firebreak Stakes | Group 3 | $200,000 (D) | 1,600m
8.15pm: Meydan Trophy | Conditions (TB) | $100,000 (T) | 1,900m
8.50pm: Balanchine | Group 2 (TB) | $250,000 (T) | 1,800m
9.25pm: Handicap (TB) | $135,000 (D) | 1,200m
10pm: Handicap (TB) | $175,000 (T) | 2,410m.
AIR
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The view from The National
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
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
A cryptocurrency primer for beginners
Cryptocurrency Investing for Dummies – by Kiana Danial
There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine.
Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.
Although cryptocurrencies are a fast evolving world, this book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.
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Travis Scott
Grand Hustle/Epic/Cactus Jack
Lexus LX700h specs
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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.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs: 2019 Infiniti QX50
Price, base: Dh138,000 (estimate)
Engine: 2.0L, turbocharged, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 268hp @ 5,600rpm
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Fuel economy: 6.7L / 100km (estimate)
Mobile phone packages comparison
MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
Games on BeIN Sports
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
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Fourth-round clashes for British players
- Andy Murray (1) v Benoit Paire, Centre Court (not before 4pm)
- Johanna Konta (6) v Caroline Garcia (21), Court 1 (4pm)
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.