This year in Lebanon, hope and perseverance are symbolised by a Christmas tree.
The holidays in Byblos are a dazzling sight, despite the country entering the fourth year of a financial crisis that has paralysed state institutions, caused basic services to collapse and impoverished most of the population.
For the second year in a row, the ancient city of Byblos — known for its extravagant Christmas festivities — inaugurated the holiday season with its famous tree-lighting ceremony.
Christmas tree lifts Lebanese spirits in Byblos - video
“It’s always a magnificent sight,” said Namir Abdel Qader, a university student and resident of Byblos.
Although they are not Christian, Namir and her family attend the lighting ceremony every year.
“It’s famous. People from all over the country wait for it.”
A marching band in red suits and Santa hats opened the ceremony, playing a mix of Christmas music accompanied by the traditional derbake, or Arabic drum. A dance performance followed.
When the Christmas tree was lit following a countdown, fireworks erupted overhead.
For most, the lighting ceremony was a comforting break from the worries of daily life amid political and economic instability, and a signal of better times ahead.
In 2020, the city could not afford to display a Christmas tree due to the prolonged economic crisis, compounded by the Covid-19 pandemic.
The next year saw its return, but this year — with political paralysis preventing even the most basic of economic reforms and the trajectory of Lebanon’s future uncertain — many residents worried the tree would not make an appearance.
The tree’s resurrection on Friday assuaged those concerns.
“It’s smaller than previous years,” said Mariam, who attended the tree-lighting ceremony with her husband and four children. “But its presence here … it tells us everything will be OK.”
But she added: “If you came to Byblos four or five years ago, before the economic crisis — the tree was even better.”
Her son Joseph chimed in, saying: “I’m glad they put it up this year during such a difficult situation, even though it’s small.”
The lighting ceremony was accompanied by a Christmas market, similar to others set up throughout the country. Stalls brimmed with food and crafts, toy salesmen distributed balloon animals, and dancers performed on stage.
For the average person, the event was an inexpensive, wholesome family-friendly activity in a country where care-free fun has become a rarity.
But authorities hope to leverage the holiday season to draw tourism to the struggling country, which relies on remittances and tourism income from its extensive diaspora.
Byblos has always attracted visitors during the holidays, but the tourism sector was hit hard by Lebanon’s financial collapse and by successive lockdowns during the Covid-19 pandemic.
“The prospect of tourism during these difficult days ahead will give us so much hope,” Lebanon’s caretaker tourism minister Walid Nassar told the crowd of hundreds gathered for the ceremony.
Wissam Zaarour, mayor of the Byblos municipality, told those assembled that he wanted the city to focus on better days.
“We hope to shed light on the positive things in Lebanon, because that will reflect positively on our tourism.”
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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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