Some of Lebanon's residents, caught between two time zones, struggled on Monday morning to attend school, make it to appointments or get to work on time.
Suddenly, entire families found themselves divided by time following a decision by Lebanon's caretaker Prime Minister Najib Mikati to postpone daylight savings time by one month, which took effect on Sunday morning.
Since then, after number of institutions refused to apply the decision, Lebanon has operated under two time zones.
But by Monday afternoon, after a morning of turbulence, Mr Mikati reversed his decision to keep clocks back. Following a hastily called emergency cabinet meeting, it was decided that the logistical chaos caused by living under two simultaneous timings would end on Wednesday.
Clocks will go forward by one hour overnight from Wednesday to Thursday, Mr Mikati announced.
Upon hearing the news, Shady Hazem Bedda, a computer science student at the American University of Beirut, shrugged and threw his hands in the air to signify powerlessness.
“This is why people shouldn't play with time,” he told The National in frustration.
When Lebanon’s caretaker Prime Minister and head of Parliament — both Muslims — agreed last-minute to an exceptional month-long postponement of daylight savings, it seemed like a gesture of goodwill.
The decision coincided with the start of Ramadan, when Muslims fast from sunrise to sunset, and was seen as a concession to allow those observing the holiday to break their fasts at around 6pm rather than 7pm.
But the result was confusion, political displeasure, sectarian turbulence and logistical chaos. Churches, some private establishments and a number of media outlets refused to comply. The Minister of Justice denounced the measure, calling it illegal.
The education minister refused to comply with Mr Mikati's decision — then, on the same day, changed his mind.
Government institutions and public schools kept clocks back, while a number of private schools, churches, and media outlets advanced into summer time by one hour.
Lebanon's only international airport remained on government time, while its national carrier, Middle East Airlines, said all flights would be advanced by one hour, in line with daylight saving time.
The American University of Beirut, one of Lebanon's leading universities, was also caught in the fray. In a press statement released on Sunday evening, the educational institution announced it would abide by both time zones: summer time for classes, or one hour forward. Its medical centre, meanwhile, would remain on winter time — popularly referred to as government time or Muslim time — for the time being, “until our IT teams can reconfigure the systems to follow daylight savings hours”.
Mohammad Madarani, a student, 21, was stuck in between. Emerging from the American University of Beirut's Medical Centre (AUBMC), he told The National that he'd just made an appointment for Friday at 8.30am — or, as his phone had automatically jumped forward an hour, 9.30.
That confusion was the tip of the iceberg for him.
“My cousin” — who is on government time — “drove me to university today,” he explained. “I woke him up on my 7am. It was 6am for him. For him it was way too early. For me, it was late.”
Mr Madarani's sister and mother woke up an hour ahead of the rest of the household, he added, because most schools were still operating on the government-approved time. But to get to work on time his father advanced his clock to summer time.
Members of the Madarani household exist on different timelines.
But come evening, the family will be reunited.
“When the sun sets, we will all have our meal,” Mr Madarani said. “Maybe our clocks will have different times … but the sun will have set.”
Lama Berro, a substitute teacher and part-time AUB student, has remained on winter time.
“It's easier to operate on winter time for me as a Muslim, because I'm fasting. It means we work less and fast less,” she said.
Ms Berro acknowledged that the clock controversy had caused some minor issues, as her classes and work are on the other timezone, but, like many interviewed by The National said she'd already adapted to the time difference.
“We should invest in our time, instead of having conflicts over it,” she added.
A delicate sectarian balance
Lebanon has been without a president, a post assigned to a Maronite Christian, since November due to political disagreement. The timezone discrepancy has caused many to question the nature of the arbitrary decision, perceived by the country's Christian leadership as an exploitation of the presidential vacuum by two Muslim leaders.
The time difference immediately ignited heated political and sectarian arguments in the confessional country, where positions of power are delicately shared by Lebanon's 18 religious sects.
Ms Berro told The National she was sad to see time itself become so politicised.
“I wish that this hadn't happened,” she said, referring to the initial decision to postpone daylight savings. “It would have been so normal to establish the summer time and fast normally.”
“I wish everyone, Muslims and Christians, a Ramadan Kareem. Hopefully we can end this month peacefully, without any conflict.”
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
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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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