Lebanon was officially in another power vacuum on Sunday as Michel Aoun left the presidential palace but with parliament yet to decide on his successor.
The divisive 89-year-old leader signed a decree accepting the resignation of the government a day before the end of his term.
“This morning, I sent a letter to the House of Representatives in accordance with my constitutional powers and signed the government's resignation decree,” he wrote on Twitter.
His departure comes despite no agreement on his replacement, after MPs failed to elect a successor in four attempts in Lebanon's deeply divided parliament.
Lebanon is being run by a caretaker government as political divisions have prevented the creation of a new Cabinet since parliamentary elections this year.
In the event of a presidential vacuum, the government is supposed to take on presidential powers. But it will be the first time a caretaker government could be called upon to fill the vacuum since the end of Lebanon's civil war 32 years ago.
Lebanon has been in the grip of an economic crisis that has been described by the World Bank as one of the worst in modern history. There is spiralling national debt, a banking crisis and the impact of the coronavirus pandemic. All of these challenges have combined during political upheaval and nationwide protests.
The failure to find a successor to Mr Aoun was not unexpected and has precedent — it took 46 sessions and 29 months for parliament to elect him in 2016.
In the country's confessional system, the presidency is always reserved for a Maronite Christian.
A few thousand supports gathered outside the presidential palace in Baabda to send off the former army chief who founded the Free Patriotic Movement, the political party which is allied with Iran-backed Hezbollah.
His departure came as Lebanon's most senior Maronite Christian cleric on Sunday accused authorities of creating a political vacuum by leaving the presidency unfilled.
Mr Aoun's term officially ends on Monday.
Patriarch Beshara Al Rai said they had “left this supreme and essential presidency in a vacuum, either deliberately, or out of stupidity or selfishness”.
Political blame game
In a speech outside the palace, Mr Aoun told thousands of supporters that he has accepted the resignation of Mr Mikati's government.
Addressing crowds of supporters, Mr Aoun blasted his political opponents and said that they prevented him from bringing to justice central bank governor Riad Salameh, who is being investigated in several European countries for alleged money laundering and embezzlement.
"You all know the the conditions of the country and how its coffers were robbed, its central bank was robbed and how your pockets were robbed," Mr Aoun said, adding that all Lebanese were hurt by losing their life savings in local banks.
He added that some politicians prevented the investigation into the port blast.
Mr Aoun, who blamed his political rivals and others for the crisis except for members of his political party, later left the palace and headed to his residence in Beirut's northern suburb of Rabieh.
Lebanese are deeply divided over Mr Aoun, a former army commander, with some seeing him as a defender of the country's Christian community and a leading figure who tried to seriously fight corruption in Lebanon.
His opponents criticise him for his role in the 1975-90 civil war and for his shifting alliances, especially with the Iran-backed Hezbollah, the country's most powerful military and political force.
He has also come under fire for grooming his son-in-law to replace him, and many blame him for the economic crisis that is rooted in decades of corruption and mismanagement.
Mr Aoun told parliament in a letter that Mr Mikati was "uninterested" in forming a new government to deal with Lebanon's myriad problems and called on him to resign.
Mr Mikati retorted that Mr Aoun's decision had "no constitutional basis" and that his cabinet will "continue to carry out all its constitutional duties, including its caretaker functions".
Constitutional expert Wissam Lahham said that "what Aoun is doing is unprecedented" since Lebanon adopted its constitution in 1926.
Economic crisis continues
Mr Aoun leaves Lebanon facing an array of challenges, from collapsing services to rampant inflation.
Talks between Lebanon’s government and the IMF that began in May 2020 and reached a staff-level agreement in April have made very little progress.
The Lebanese government has implemented few of the IMF’s demands from the agreement, which are mandatory before finalising a bailout program. Among them are restructuring Lebanon’s ailing financial sector, implementing fiscal reforms, restructuring external public debt and putting in place strong anti-corruption and anti-money laundering measures.
“The prospects of an IMF deal were already dim before the upcoming power vacuum and departure of Aoun,” said Nasser Saidi, an economist and former Minister of Economy. “There is no political will or appetite for undertaking reforms.”
“Aoun’s departure is simply another nail in the coffin,” he said. “It does not change the fundamentals of a dysfunctional failed state and totally ineffective polity.”
First Person
Richard Flanagan
Chatto & Windus
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
COMPANY%20PROFILE
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MATCH INFO
Manchester City 3 (Silva 8' &15, Foden 33')
Birmginahm City 0
Man of the match Bernado Silva (Manchester City)
UAE%20SQUAD
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MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
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.”
UAE currency: the story behind the money in your pockets
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GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
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.
Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
The%20Iron%20Claw
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'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
MATCH INFO
Newcastle United 2 (Willems 25', Shelvey 88')
Manchester City 2 (Sterling 22', De Bruyne 82')
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
COMPANY%20PROFILE
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CHELSEA SQUAD
Arrizabalaga, Bettinelli, Rudiger, Christensen, Silva, Chalobah, Sarr, Azpilicueta, James, Kenedy, Alonso, Jorginho, Kante, Kovacic, Saul, Barkley, Ziyech, Pulisic, Mount, Hudson-Odoi, Werner, Havertz, Lukaku.
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THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Favourite place to Travel to: Vienna
Favourite cuisine: Italian food
Favourite Movie : Scent of a Woman
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort: