The Covid-19 outbreak and the collapsing economy are making life more difficult than when Lebanon was at war, citizens of the country say. AFP
The Covid-19 outbreak and the collapsing economy are making life more difficult than when Lebanon was at war, citizens of the country say. AFP
The Covid-19 outbreak and the collapsing economy are making life more difficult than when Lebanon was at war, citizens of the country say. AFP
The Covid-19 outbreak and the collapsing economy are making life more difficult than when Lebanon was at war, citizens of the country say. AFP

Lebanon’s civil war survivors say conflict the ‘lesser of two evils’ compared with today’s economic crisis


Fatima Al Mahmoud
  • English
  • Arabic

Residents of Beirut who remember the country’s bloody civil war in the 1970s and 1980s say Lebanon, now gripped by soaring poverty and inflation, faces a worse crisis.

Chehade Hatoum recalls standing in line to buy bread during the 15-year conflict, which broke out on April 13, 1975.

The war was very difficult, but at least people could still feed themselves

Now 67, he shakes his head and tells The National that history repeats itself as he drives by familiar queues outside bakeries in Beirut, where he works as a public taxi driver.

“The only difference is that back then, people actually had money to buy bread,” he said. “They could still afford it.”

Mr Hatoum’s income was hit hard in 2019 when Lebanon plunged into one of the worst economic and financial crises since the end of the civil war.

Lebanese citizens were denied access to the bulk of their savings when banks imposed informal capital controls and the Lebanese pound lost over 85 per cent of its value.

The outbreak of the Covid-19 pandemic compounded Mr Hatoum’s economic woes, as it did with other daily-wage earners. He has relied on his children to make ends meet.

"Can you imagine how awful the situation is today that it makes people see the civil war as the lesser of two evils?" Mr Hatoum told The National. "They're making us choose between war and hunger."

Estimates of the number of deaths during the civil war vary, from 100,000 to double that toll. The whereabouts of many more remain unknown.

Yet despite the atrocities of that time, survivors say it was Lebanon’s recent crises that broke the camel’s back.

“We’ve never been this humiliated,” said Mohammad Ballout, 53. “We never had to worry about affording basics like we do today or wait in turn for food rations.”

Mr Ballout was in his teens when the war broke out. Employed in the cement industry at the time, he would work for several weeks in Beirut then head back to his home town in south Lebanon to seek refuge when the fighting escalated.

The trips were always daunting for Mr Ballout, who had to pass through several checkpoints set up across the country by armed militias to reach his home.

"The whole country was divided, your sect would determine where you can and can't go," Mr Ballout told The National.

Although Lebanon’s civil war ended in 1990, sectarian tension among the country’s major political leaders and religious factions still simmers.

“People are still divided today, and maybe even more than before,” Mr Ballout said. “Political leaders paved the way for this divide since the war and now, almost 50 years later, they’re still holding on to power like octopuses.”

Nationwide protests erupted in Lebanon in October 2019, calling for the downfall of the ruling class. But months later, the movement lost momentum.

The country remains without a fully functioning government since the massive explosion that shook Beirut last August, killing more than 200 people and destroying much of the capital.

Since then, officials have bickered over the government’s make-up and reform agenda. This is despite repeated calls from the international community to form a Cabinet that fights endemic corruption and undertakes reforms, in exchange for financial support.

Politicians “have blood on their hands from the war, and now they’re responsible for this crisis,” Mr Ballout says.

UN figures show food prices in Lebanon have risen 402 per cent year on year, becoming the most expensive in the Mena region.

Sawsan bore witness to the harrowing clashes that pitted warring militias against one another, having lived near an area that separated the western and eastern parts of Beirut. Yet, she thinks today’s crisis is more painful.

“The war was very difficult, but at least people could still feed themselves,” she said.

“It hurts that the Lebanese waged a war among themselves, and it hurts even more that all Lebanese regardless of sect are in the same boat today. Meanwhile, politicians don’t care.”

Sawsan recalls volunteering with humanitarian organisations during the war to support the vulnerable.

“People could still afford basics back then – they could support themselves if they had to escape for short periods of time. Now it’s completely different,” she said.

A recent report by the UN placed Lebanon on the global “hunger hotspot” list. Humanitarian organisations said people in the country were at risk of acute hunger and food insecurity owing to “multiple political and economic shocks”.

With no genuine attempt at the reform needed to unlock international aid, homemaker Aaliya Salame, 64, fears the situation will only worsen.

"During the war, we watched our neighbour die with a bullet to his head. Soon, we'll be watching people die of hunger and poverty," she told The National. "What are they waiting for?"

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PROFILE

Name: Enhance Fitness 

Year started: 2018 

Based: UAE 

Employees: 200 

Amount raised: $3m 

Investors: Global Ventures and angel investors 

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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.”

Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

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What is graphene?

Graphene is extracted from graphite and is made up of pure carbon.

It is 200 times more resistant than steel and five times lighter than aluminum.

It conducts electricity better than any other material at room temperature.

It is thought that graphene could boost the useful life of batteries by 10 per cent.

Graphene can also detect cancer cells in the early stages of the disease.

The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.

Greatest Royal Rumble results

John Cena pinned Triple H in a singles match

Cedric Alexander retained the WWE Cruiserweight title against Kalisto

Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus

Jeff Hardy retained the United States title against Jinder Mahal

Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos

Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe

AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out

The Undertaker beats Rusev in a casket match

Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match

Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last

'Nope'
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Specs
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What is Genes in Space?

Genes in Space is an annual competition first launched by the UAE Space Agency, The National and Boeing in 2015.

It challenges school pupils to design experiments to be conducted in space and it aims to encourage future talent for the UAE’s fledgling space industry. It is the first of its kind in the UAE and, as well as encouraging talent, it also aims to raise interest and awareness among the general population about space exploration. 

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RESULTS
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My Country: A Syrian Memoir

Kassem Eid, Bloomsbury

Biography

Her family: She has four sons, aged 29, 27, 25 and 24 and is a grandmother-of-nine

Favourite book: Flashes of Thought by Sheikh Mohammed bin Rashid

Favourite drink: Water

Her hobbies: Reading and volunteer work

Favourite music: Classical music

Her motto: I don't wait, I initiate

 

 

 

 

 

Kandahar%20
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Call of Duty: Black Ops 6

Developer: Treyarch, Raven Software
Publisher:  Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

COMPANY%20PROFILE
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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

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

Company%20profile
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The specs: 2018 Jeep Compass

Price, base: Dh100,000 (estimate)

Engine: 2.4L four-cylinder

Transmission: Nine-speed automatic

Power: 184bhp at 6,400rpm

Torque: 237Nm at 3,900rpm

Fuel economy, combined: 9.4L / 100km

Wayne Rooney's career

Everton (2002-2004)

  • Appearances: 48
  • Goals: 17
     

Manchester United (2004-2017)

  • Appearances: 496
  • Goals: 253
     

England (2003-)

  • Appearances: 119
  • Goals: 53
German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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
Itcan profile

Founders: Mansour Althani and Abdullah Althani

Based: Business Bay, with offices in Saudi Arabia, Egypt and India

Sector: Technology, digital marketing and e-commerce

Size: 70 employees 

Revenue: On track to make Dh100 million in revenue this year since its 2015 launch

Funding: Self-funded to date

 

How to help

Donate towards food and a flight by transferring money to this registered charity's account.

Account name: Dar Al Ber Society

Account Number: 11 530 734

IBAN: AE 9805 000 000 000 11 530 734

Bank Name: Abu Dhabi Islamic Bank

To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae

BUNDESLIGA FIXTURES

Saturday (UAE kick-off times)

Cologne v Union Berlin (5.30pm)

Fortuna Dusseldorf v Borussia Dortmund (5.30pm)

Hertha Berlin v Eintracht Frankfurt (5.30pm)

Paderborn v Werder Bremen (5.30pm)

Wolfsburg v Freiburg (5.30pm)

Bayern Munich v Borussia Monchengladbach (8.30pm)

Sunday

Mainz v Augsburg (5.30pm)

Schalke v Bayer Leverkusen (8pm)

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UAE currency: the story behind the money in your pockets