With parliamentary elections over, Lebanon must designate a prime minister to form a new government, but analysts say political divisions could get in the way.
President Michel Aoun is expected to call for consultations in the coming days, when representatives from the blocs in Parliament will put forward their candidates.
Choosing the right prime minister could be vital to reforms designed to pull Lebanon out of one of the worst economic crises in its history.
Under the state's confessional political convention, the president must be a Maronite Christian, the speaker a Shiite and the prime minister a Sunni.
Analysts said political divisions across a polarised new Parliament and a void in Sunni leadership could threaten the process.
Saad Hariri, leader of the Future Movemen, the biggest Sunni party in Lebanon, announced his withdrawal from political life on January 22 and declined to run in May’s parliamentary elections, instructing his party to boycott them.
Hariri's departure created a vacuum in the Sunni political sphere, analysts said, leaving opportunity for new leadership.
Sami Nader, director of the Levant Institute for Strategic Affairs, has observed that no one leader represents Sunnis, while voices in the community have become more diverse.
“The new Sunni leadership, those who won the election, have one thread in common, which is that they are refusing the domination of Hezbollah and the influence of Iran,” Mr Nader said.
Lebanon’s Parliament is split. Unlike the previous assembly, in which the pro-Hezbollah bloc had an absolute majority, no bloc has a clear majority this time.
The hung parliament has led analysts to predict a prolonged deadlock in the upcoming government formation process.
Joseph Bahout, the director of the Issam Fares Institute for Public Policy and International Affairs in Beirut, said that one of the major considerations in designating a prime minister would be whether they would be able to balance regional interests.
It is not yet clear what the regional backers of the Sunni community will do, he said.
While the influence of Iran-backed Hezbollah has grown in Lebanon, including in formal government institutions, the country’s relations with Gulf states have deteriorated.
A diplomatic row with the Gulf began in October 2021 when a Lebanese minister made comments about the Saudi-led coalition’s intervention in Yemen.
The incident led Saudi Arabia to expel the Lebanese ambassador and recall its envoy from Beirut. The UAE, Bahrain and Kuwait followed suit.
Riyadh also ordered an immediate ban of all Lebanese imports and barred its citizens from travelling to the country.
Although Saudi Arabia reinstated its ambassador in Lebanon in April, Mr Bahout said it was unclear the extent of the influence the kingdom would have in the country at this stage.
Any contender for prime minister, Mr Bahout said, would need be accepted by the pro-Hezbollah bloc and the Sunni bloc.
Why is Lebanon experiencing a vacuum in Sunni leadership?
Lebanon’s Sunni power vacuum has its origins in October 2019, when the first signs of the country’s financial trouble began to show.
It led to a mass uprising that forced prime minister Mr Hariri’s government to resign.
Since then, Lebanon has slid deeper into instability. An economic collapse marked by shortages of fuel, electricity and medicine took hold as the value of the Lebanese pound plummeted and about 80 per cent of the population was driven into poverty.
In August 2020, an explosion of thousands of tonnes of ammonium nitrate stored for years at Beirut Port destroyed large parts of the capital and killed more than 215 people.
Prime minister Hassan Diab resigned, and although there were attempts to form successive governments by Mr Hariri and relative newcomer Mustapha Adib, Mr Diab’s government remained in a caretaker capacity for 13 months owing to prolonged deadlocks.
In July 2021, Najib Mikati was appointed prime minister. His government has remained in a caretaker role since last month's parliamentary elections.
Given the void in Sunni leadership in Lebanon and the difficulties involved in designating a prime minister who is acceptable to a majority, Mr Bahout predicts Mr Mikati will be chosen to lead the government once again.
Mr Mikati last month said he was reluctant to take on the job, telling media in Lebanon that the task would be “difficult … because most of the political discourse revolves around who has a stronger backing than who”.
He said he would support any candidate designated for the job and suggested MPs Ashraf Rifi and Abdul Rahman Bizri could take the post, as well as the former IMF economist Amer Bisat.
'Hard time' finding global acceptance
Mr Bahout said anyone chosen as prime minister needed popular legitimacy and a diplomatic finesse to rally parliamentary blocs and regional powers.
But although figures such as Mr Rifi will try to “maximise their space in the Sunni arena” now that Mr Hariri is out of it, Mr Bahout said, his designation for the post is unlikely given his outspoken opposition to Hezbollah.
Despite this, Mr Bahout said, former members of Mr Hariri's Future Movement such as Mr Rifi will be worth watching because they are well-suited to seeking support from Saudi Arabia.
But Mr Nader said the formation of a government by any figure close to Hezbollah and its allies would have a hard time with the reforms necessary to take Lebanon towards an economy revival or strike a deal for an IMF bailout.
“They would have a hard time finding acceptance in the international community,” he said.
Whomever Mr Aoun chooses, analysts are not upbeat about the political future.
Mr Nader said that “this does not bode well for the comeback of proper functioning of institutions”.
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FIGHT CARD
From 5.30pm in the following order:
Featherweight
Marcelo Pontes (BRA) v Azouz Anwar (EGY)
Catchweight 90kg
Moustafa Rashid Nada (KSA) v Imad Al Howayeck (LEB)
Welterweight
Mohammed Al Khatib (JOR) v Gimbat Ismailov (RUS)
Flyweight (women)
Lucie Bertaud (FRA) v Kelig Pinson (BEL)
Lightweight
Alexandru Chitoran (BEL) v Regelo Enumerables Jr (PHI)
Catchweight 100kg
Mohamed Ali (EGY) v Marc Vleiger (NED)
Featherweight
James Bishop (AUS) v Mark Valerio (PHI)
Welterweight
Gerson Carvalho (BRA) v Abdelghani Saber (EGY)
Middleweight
Bakhtiyar Abbasov (AZE) v Igor Litoshik (BLR)
Bantamweight:
Fabio Mello (BRA) v Mark Alcoba (PHI)
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magemedsultanov (RUS)
Bantamweight
Trent Girdham (AUS) v Jayson Margallo (PHI)
Lightweight
Usman Nurmagomedov (RUS) v Roman Golovinov (UKR)
Middleweight
Tarek Suleiman (SYR) v Steve Kennedy (AUS)
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
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”.
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
THE SPECS
Engine: 1.6-litre turbo
Transmission: six-speed automatic
Power: 165hp
Torque: 240Nm
Price: From Dh89,000 (Enjoy), Dh99,900 (Innovation)
On sale: Now
Final round
25 under - Antoine Rozner (FRA)
23 - Francesco Laporta (ITA), Mike Lorenzo-Vera (FRA), Andy Sullivan (ENG), Matt Wallace (ENG)
21 - Grant Forrest (SCO)
20 - Ross Fisher (ENG)
19 - Steven Brown (ENG), Joakim Lagergren (SWE), Niklas Lemke (SWE), Marc Warren (SCO), Bernd Wiesberger (AUT)
India team for Sri Lanka series
Test squad: Rohit Sharma (captain), Priyank Panchal, Mayank Agarwal, Virat Kohli, Shreyas Iyer, Hanuma Vihari, Shubhman Gill, Rishabh Pant (wk), KS Bharath (wk), Ravindra Jadeja, Jayant Yadav, Ravichandran Ashwin, Kuldeep Yadav, Sourabh Kumar, Mohammed Siraj, Umesh Yadav, Mohammed Shami, Jasprit Bumrah.
T20 squad: Rohit Sharma (captain), Ruturaj Gaikwad, Shreyas Iyer, Surya Kumar Yadav, Sanju Samson, Ishan Kishan (wk), Venkatesh Iyer, Deepak Chahar, Deepak Hooda, Ravindra Jadeja, Yuzvendra Chahal, Ravi Bishnoi, Kuldeep Yadav, Mohammed Siraj, Bhuvneshwar Kumar, Harshal Patel, Jasprit Bumrah, Avesh Khan
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
IF YOU GO
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info
Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.
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.”
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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MATCH INFO
Uefa Champions League quarter-final, second leg (first-leg score)
Porto (0) v Liverpool (2), Wednesday, 11pm UAE
Match is on BeIN Sports
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
Engine: 3.5-litre twin-turbo V6
Power: 380hp at 5,800rpm
Torque: 530Nm at 1,300-4,500rpm
Transmission: Eight-speed auto
Price: From Dh299,000 ($81,415)
On sale: Now
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra