Beirut's Rafic Hariri International Airport will get a second terminal. Photo: AFP
Beirut's Rafic Hariri International Airport will get a second terminal. Photo: AFP
Beirut's Rafic Hariri International Airport will get a second terminal. Photo: AFP
Beirut's Rafic Hariri International Airport will get a second terminal. Photo: AFP

New $122 million Beirut airport terminal planned amid economic crisis


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Lebanon's only international airport will build a $122 million new terminal, officials said on Monday, as economic crisis grips the nation.

Once completed, Beirut’s Rafik Hariri International Airport will be operated by Irish airport company daa International, which will also manage Saudi Arabia's Red Sea Development Project. The airport has not undergone an expansion since 1998.

Caretaker minister of public works and transport Ali Hamie said Terminal 2 will bring in private sector investments worth $122 million and handle 3.5 million passengers annually when operations begin in 2027. It will add six docking stands as well as remote ones, he said, at a ceremony at government headquarters to announce the launch of the new terminal.

Terminal 2 will be built where the airport's old cargo building used to stand, Mr Hamie said.

The airport sustained damage in the 2020 Beirut port blast, including broken windows and collapsed ceilings, but flights continued.

Lebanon is going through a protracted economic crisis which has led its currency to lose more than 95 per cent of its value, leaving millions facing a cost-of-living crisis. The government has failed to alleviate issues that have pushed three quarters of the country’s population of 6 million, including 1 million Syrian refugees, into poverty.

“The project opens more horizons for air aviation between Lebanon and the world” and will help to solve several problems, including overcrowding at the current terminal, caretaker Prime Minister Najib Mikati said.

Mr Hamie said the project will create 500 direct jobs and 2,000 related jobs, and that Terminal 2 would be for charter and low-cost flights.

Ireland’s Minister of State James Browne attended Monday’s ceremony in Beirut and was quoted in a statement as saying that the contract signed will deepen business relations between the two countries.

The airport currently handles 8 million passengers a year, and plans to handle 20 million in 2030, according to the website of national carrier Middle East Airlines.

AP contributed to this report

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New Zealand 57-0 South Africa

Tries: Rieko Ioane, Nehe Milner-Skudder (2), Scott Barrett, Brodie Retallick, Ofa Tu'ungfasi, Lima Sopoaga, Codie Taylor. Conversions: Beauden Barrett (7). Penalty: Beauden Barrett

MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

A Prayer Before Dawn

Director: Jean-Stephane Sauvaire

Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai

Three stars

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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.”

MATCH INFO

Austria 2
Hinteregger (53'), Schopf (69')

Germany 1
Ozil (11')

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

Warlight,
Michael Ondaatje, Knopf 

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Updated: March 20, 2023, 4:46 PM