Acute hunger is set to soar in Lebanon amid runaway inflation and currency depreciation, the United Nations said.
Factors like conflict, Covid19, and constrained access to humanitarian aid are key behind the projected rise in acute food insecurity in 20 countries between March and July 2021, a new report by the UN Food and Agriculture Organisation and World Food Programme found.
Declared a hunger “hotspot”, Lebanon is at risk of steep hunger levels following rapid currency depreciation and skyrocketing inflation in the country.
“The capacity of Lebanon to cope with, and reverse, the effects of multiple political and economic shocks since the end of 2019 has been dwindling,” read the report released on Tuesday.
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An anti-government protester shouts slogans as other demonstrators burn tyres to block the road during a rally against the power cuts, the high cost of living and the low purchasing power of the Lebanese pound, in front of Lebanese Central Bank at Hamra street in Beirut, Lebanon. EPA -

Riot police stands guard in front of Lebanese Central Bank during a rally against the power cuts, the high cost of living and the low purchasing power of the Lebanese pound, at Hamra street in Beirut. EPA -

Riot police stands guard in front of Lebanese Central Bank during a rally against the power cuts, the high cost of living and the low purchasing power of the Lebanese pound, at Hamra street in Beirut. EPA -

Anti-government protesters burn tyres and rubbish bins to block the road during a rally against the power cuts, the high cost of living and the low purchasing power of the Lebanese pound, in front of Lebanese Central Bank at Hamra street in Beirut. EPA -

Anti-government protesters burn tyres and rubbish bins to block the main road leading to Hamra street during a rally against the power cuts the high cost of living and the low purchasing power of the Lebanese pound, in Beirut. EPA -

Riot police stands guard in front of Lebanese Central Bank during a rally against the power cuts, the high cost of living and the low purchasing power of the Lebanese pound, at Hamra street in Beirut. EPA -

Riot police stands guard in front of Lebanese Central Bank during a rally against the power cuts, the high cost of living and the low purchasing power of the Lebanese pound, at Hamra street in Beirut. EPA
The deterioration of food security in Lebanon has been prompted by one of the worst economic crises in its history.
Over the past year, the Lebanese pound lost more than 85 per cent of its value at the market exchange rate. Although officially pegged at 1,500 pounds to the US dollar, the currency has reached a record 15,000 pounds on the parallel market. This has eroded people’s ability to access basic goods, including food, shelter, and healthcare.
The enforcement of nationwide Covid-19 measures in Lebanon without providing a safety net for the poor has further worsened the crisis.
More than half of the Lebanese population is trapped in poverty and struggling for necessities, according to the United Nations Economic and Social Commission for West Asia.
The monthly minimum wage shrunk from $450 to less than $50 in recent weeks, leaving residents with insufficient wages to cover rising living costs.
According to the ‘Hunger Hotspots’ report, Lebanon witnessed a 146-per cent year-on-year increase of the inflation rate, with food inflation recorded at a staggering 402 per cent.
Under the weight of Lebanon’s compounding crises, vulnerable groups were left to weather the storm on their own.
Marwan Al Houssami, a middle-aged Lebanese public taxi driver, told The National that the crisis has taken a massive toll on him and his family.
With three mouths to feed at home, Mr Al Houssami relies on a daily income that is often interrupted during lockdown.
“I didn’t work for more than a month during lockdown, I couldn’t bring any money home,” he said. “If it wasn’t for good people pitching in to help us, my family and I would have starved.”
Political deadlock has stalled the formation of a Lebanese government needed to implement political, social, and financial reforms that would unlock millions of dollars in international aid.
Lebanon has been without a functioning government for seven months when Prime Minister Hassan Diab resigned on August 10, following the August 4 Beirut port explosion.
Prime Minister designate Saad Hariri was elected back into power on October 22nd and has yet to form a government that would begin to resolve Lebanon’s hardships.
“Time is our worst enemy. Every passing day counts against Lebanon’s residents,” said Mohammad Ibrahim Fheili, risk strategist and capacity building expert.
In the absence of an effective government and urgent structural reforms, poverty and misery are all expected to rise.
"Political parties are adding to people's misery," Mr. Fheli told The National. "We need change now."
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Champions parade (UAE timings)
7pm Gates open
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9pm Parade starts at Manchester Cathedral
9.45pm Parade ends at Peter Street
10pm City players on stage
11pm event ends
Farasan Boat: 128km Away from Anchorage
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Rating: 4/5
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Tributes from the UAE's personal finance community
• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style
“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.
Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term.
From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”
• Sam Instone, director of financial advisory firm AES International
"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed. Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."
• Demos Kyprianou, a board member of SimplyFI.org
"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."
• Steve Cronin, founder of DeadSimpleSaving.com
"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.
His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.
Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."
• Zach Holz, who blogs about financial independence at The Happiest Teacher
"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen. He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”
• Tuan Phan, a board member of SimplyFI.org
"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
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Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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Profile of VoucherSkout
Date of launch: November 2016
Founder: David Tobias
Based: Jumeirah Lake Towers
Sector: Technology
Size: 18 employees
Stage: Embarking on a Series A round to raise $5 million in the first quarter of 2019 with a 20 per cent stake
Investors: Seed round was self-funded with “millions of dollars”
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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
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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
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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
How to become a Boglehead
Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.
• Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.
• Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.
• Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.
• Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.
• Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.
• Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.
• Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.
• Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.
Polarised public
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Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.
His advice to anyone starting out in business is to have no fear as life is about taking on challenges.
“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.
"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”
Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.
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Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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