• Syrian refugees sit with their belongings on a pickup truck as they prepare to return to Syria from Wadi Hmayyed, on the outskirts of the Lebanese border town of Arsal. All photos: Reuters
    Syrian refugees sit with their belongings on a pickup truck as they prepare to return to Syria from Wadi Hmayyed, on the outskirts of the Lebanese border town of Arsal. All photos: Reuters
  • Hundreds of Syrian refugees living in Lebanon returned home on Wednesday, the first day of repatriations organised by Beirut, amid rights groups' concerns that the scheme may involve elements of coercion.
    Hundreds of Syrian refugees living in Lebanon returned home on Wednesday, the first day of repatriations organised by Beirut, amid rights groups' concerns that the scheme may involve elements of coercion.
  • Lugging suitcases, power generators, fridges and even chickens, about 700 Syrians who had agreed to cross over gathered from early morning in a desolate north-eastern border zone.
    Lugging suitcases, power generators, fridges and even chickens, about 700 Syrians who had agreed to cross over gathered from early morning in a desolate north-eastern border zone.
  • Lebanese authorities said the repatriations, under a revived programme run co-ordinated by the country's General Security agency, are voluntary.
    Lebanese authorities said the repatriations, under a revived programme run co-ordinated by the country's General Security agency, are voluntary.
  • The United Nations says flare-ups in violence and the risk of detention make it still unsafe for large-scale returns.
    The United Nations says flare-ups in violence and the risk of detention make it still unsafe for large-scale returns.
  • Lebanon is home to more than 800,000 Syrians registered with the UN refugee agency. At its peak, Lebanon hosted around 1.2 million.
    Lebanon is home to more than 800,000 Syrians registered with the UN refugee agency. At its peak, Lebanon hosted around 1.2 million.
  • They fled the violence in the aftermath of protests against Syrian President Bashar Al Assad in 2011.
    They fled the violence in the aftermath of protests against Syrian President Bashar Al Assad in 2011.
  • In 2018, the General Security agency launched a mechanism through which any Syrian refugee could signal a desire to return home.
    In 2018, the General Security agency launched a mechanism through which any Syrian refugee could signal a desire to return home.
  • That pathway saw about 400,000 Syrians return home but was put on hold with the outbreak of Covid-19.
    That pathway saw about 400,000 Syrians return home but was put on hold with the outbreak of Covid-19.
  • Outgoing Lebanese President Michel Aoun revived it this month and it resumed on Wednesday.
    Outgoing Lebanese President Michel Aoun revived it this month and it resumed on Wednesday.

Lebanon's children face growing hunger crisis


Jamie Prentis
  • English
  • Arabic

The dire situation in Lebanon means the number of children dealing with “crisis” levels of hunger could surge by 14 per cent if rapid action is not taken, Save the Children said.

Already four out of 10 Lebanese and Syrian refugee children are living with “high acute food insecurity,” defined as level three or above in the IPC Acute Food Insecurity index.

Stage three is deemed “crisis,” stage four “emergency” and stage five “catastrophe/famine”. Research in the last quarter of 2022 showed that 37 per cent of Lebanon’s population faced level three or above food insecurity on the IPC classification.

But that will rise to 42 per cent without action in the first quarter of 2023, while the number of people living in “emergency” food insecurity will rise by nearly 50,000 people to 354,000.

“The crisis in Lebanon is increasingly a children’s crisis. The first five years of a child’s life are critical, and we fear that without enough nutritious food to eat, an increasing number of children will become malnourished, or even face starvation,” said Save the Children’s country director Jennifer Moorehead.

“Families are telling us they’re forced to skip meals or reduce the number of nutritious meals for their children. More needs to be done to prevent Lebanon from becoming the next tragic hunger emergency.”

The situation is in part due to a crippling financial crisis that has plunged much of the population into poverty and led to widespread shortages in medicines, clean water and electricity.

Lebanon is host to more than one million Syrian refugees fleeing the 12-year conflict in neighbouring Syria.

The local currency has also plummeted in value to the US dollar on the parallel market by more than 95 per cent and salaries have not kept up with the rampant inflation.

According to Save the Children, Lebanon has the sixth worst food crisis for the share of population that is insecure, after South Sudan, Yemen, Haiti, Afghanistan and Central African Republic.

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.”

ETFs explained

Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.

ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.

There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

Bundesliga fixtures

Saturday, May 16 (kick-offs UAE time)

Borussia Dortmund v Schalke (4.30pm) 

RB Leipzig v Freiburg (4.30pm) 

Hoffenheim v Hertha Berlin (4.30pm) 

Fortuna Dusseldorf v Paderborn  (4.30pm) 

Augsburg v Wolfsburg (4.30pm) 

Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)

Sunday, May 17

Cologne v Mainz (4.30pm),

Union Berlin v Bayern Munich (7pm)

Monday, May 18

Werder Bremen v Bayer Leverkusen (9.30pm)

Arabian Gulf Cup FINAL

Al Nasr 2

(Negredo 1, Tozo 50)

Shabab Al Ahli 1

(Jaber 13)

Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)

Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
Sarina Wiegman (England)

Updated: January 04, 2023, 1:56 PM