‘There is nothing we can’t sell’: smugglers siphon off scarce Lebanese goods to Syria


Aya Iskandarani
  • English
  • Arabic

Once night falls on the village of Al Qasr in north-east Lebanon, smugglers lay makeshift steel bridges across the small stream separating it from Homs province in Syria and take across everything from flour to aspirin and fuel in lorries and four-wheel drives.

“There is nothing we cannot sell to Syrians. They are starved of everything,” says Ahmed, 25, one of hundreds of Lebanese living on the border who make a living ferrying goods into Syria.

Ahmed supports his three children by carrying flour and fuel into Syria every week in his pickup truck.

"At one crossing in Al Qasr the smuggler chief can carry up to 100 tonnes of flour and a thousand gas containers per night," he told The National by phone from his village near Al Qasr deep in the Hermel district.

People queue to buy bread in the city of Aleppo in Syria, where a shortage of basic goods has created demand for products smuggled from Lebanon. Anadolu Agency via Getty Images
People queue to buy bread in the city of Aleppo in Syria, where a shortage of basic goods has created demand for products smuggled from Lebanon. Anadolu Agency via Getty Images

Before Syria's civil war began in 2011, cheap Syrian clothing, fuel and produce were smuggled from Syria into Lebanon. Now, fuel, flour and other subsidised goods flow the other way from areas controlled by Hezbollah, the Lebanese party and militia that is allied to the Syrian regime.

But Lebanon itself is struggling to subsidise basic goods in the face of the country's worst economic crisis, the coronavirus pandemic and a plunge in the value of the local currency.

Ordinary Lebanese say the increased smuggling into Syria is depleting scarce foreign currency reserves and creating shortages and the hoarding of subsidised products in Lebanon.

Demand for smuggled fuel in Syria increased after a container ship ran aground in the Suez canal on March 23 and blocked the channel for nearly a week. Last week the Syrian government began rationing fuel, limiting sales to taxis in Damascus to just 20 litres every four days.

Milad Matar, 62, who operates a small generator business in the Lebanese Christian border town of Al Qaa, said shortages spurred by smuggling and the depreciating local currency had forced him to to pay more for fuel on the black market.

“Instead of making a 1,000 Lebanese pound profit on each gallon by selling fuel oil to Lebanese, smugglers can make a 5,000 pound profit if they sell it in Syria,” he said.

“So of course when Lebanese citizens go to the gas station they find there is no more fuel.”

A photo provided by the Lebanese aarmy shows a tank used by fuel smugglers on the Lebanon-Syria border. Courtesy Lebanese Armed Forces
A photo provided by the Lebanese aarmy shows a tank used by fuel smugglers on the Lebanon-Syria border. Courtesy Lebanese Armed Forces

One tonne of high-quality Lebanese flour costs about 1.5 million pounds in Lebanon but can be sold on the other side of the border for more than 2 million pounds.

Lebanese villagers living along the border constitute a large part of the smuggling trade but say the large-scale movement of contraband is the preserve of well-connected and politically backed clans.

“I have to beg the chief smuggler to get a few tonnes of flour across to Syria,” Ahmed said. “It’s humiliating, but the crossing is his territory.”

The Hezbollah-controlled Baalbek-Hermel region where Ahmed lives is home to ancient ruins, rich agricultural lands and trout fisheries, but is most widely known for its lawlessness. Powerful clans backed by Hezbollah and its Shiite ally, the Amal Movement, whose green flags fly on houses, streets and bridges in the Bekaa Valley, have long engaged in criminal activity. Their record ranges from car theft and personal vendettas to the production and traffic of narcotics — and of course, smuggling.

Damascus considers Lebanon an extension of its territory and has consistently refused to demarcate the borders that bound its smaller neighbour to the north and east, stretching along 369 kilometres of dry and mostly mountainous terrain.

As a result, contraband has for decades sustained the economy of the Baalbek-Hermel district. It has also provided the Syrian regime, propped up by Hezbollah fighters and foreign governments since the early years of the war, with precious supplies at a time when international sanctions, war and economic strife have limited imports.

A Syrian businessman, who spoke on condition of anonymity, explained that a collapse of the Syrian pound over the past year, which intensified last month, and severe shortages of basic goods have raised demand for subsidised products from Lebanon.

These goods can be sold at higher prices in regime-held areas, where people queue for hours for a bag of subsidised bread or a container of fuel.

"Everything from French butter that is subsidised in Lebanon to bread made of smuggled flour has appeared on the shelves," he said.

A customer walks past nearly empty shelves at a supermarket in Beirut amid shortages and high prices created by Lebanon's economic crisis. EPA
A customer walks past nearly empty shelves at a supermarket in Beirut amid shortages and high prices created by Lebanon's economic crisis. EPA

Meanwhile, Lebanon faces price hikes driven by the freefall of its currency, making affordable, subsidised goods all the more coveted.

To counter smuggling and prevent militants from entering, the Lebanese army has deployed 24-hour patrols, aided by radar and watchtowers flanking the Anti-Lebanon mountains that overlook Syria.

After the beginning of the Syrian civil war, militant incursions wreaked havoc along the porous border. ISIS briefly overtook the northern town of Arsal in 2014 and attacked Al Qaa a few years later, forcing the Lebanese army to redouble its presence on the border.

The US and European countries granted the Lebanese army hundreds of millions of dollars in financial and material aid. Despite this, the army remains caught in a game of cat and mouse with local smugglers.

Capt Mohamed Barraj of Lebanon’s land border army division spends his days patrolling the border with his men. They have closed down smuggling routes, confiscated merchandise and even engaged in armed encounters with local clans.

A narrow water channel forms the border with Syria in Lebanon's Baalbek-Hermel region. Aya Iskandarani / The National
A narrow water channel forms the border with Syria in Lebanon's Baalbek-Hermel region. Aya Iskandarani / The National

The National accompanied Capt Barraj on a routine border patrol last month.

“The army is working hard to stop the smuggling,” he said, pointing at a recently closed smuggling route ending metres from a Syrian checkpoint.

As he commanded his soldiers across the border town of Hawch El Sayyed Ali near Al Qasr, a man jumped into a river to evade them while another ran away, leaving behind a bag filled with two dozen cans of beer that the soldiers said was about to be smuggled.

A woman also followed the patrol in a car, speaking into a telephone. Soldiers suspected that she was spying on them for a local clan.

"This is what we deal with every day from the local community," one soldier told The National.

“They even have WhatsApp groups to keep track of the patrols. We have to keep changing our routes to stay one step ahead.”

Solidarity among residents, many of whom belong to local clans involved in organised crime, has impeded the army’s work.

Ali, a 22-year-old clan member in Hermel, said his peers have a deep sense of loyalty to one another.

“Whenever the army catches someone involved in criminal activity, clan members block roads so that they let him go,” Ali said.

He said the crossings are operated by the clans on a rotating basis, with separate families responsible for them at specific times.

Some of the crossings are simply dirt roads leading to Syria, others are the steel bridges laid over streams.

The uniformed Lebanese soldiers patrolling the border in armoured vehicles stand in sharp contrast to their Syrian counterparts.

A Syrian border post seen from the Lebanon side. Aya Iskandarani / The National
A Syrian border post seen from the Lebanon side. Aya Iskandarani / The National

Concrete barracks with scrap metal and rock roofs dot the border on the Syrian side, along with checkpoints manned by dishevelled soldiers, dressed in sneakers and keffiyehs — the traditional headdress of shepherds.

Bashir Matar, the head of Al Qaa municipality, said he does not trust the Syrian army to halt the smuggling.

“Syria benefits from smuggling, but why should Lebanese have to pay so that a well-connected Lebanese-Syrian mafia continues to profit on our backs?” he asked.

A regional security source and a smuggler both told The National that local clans use their connections with Syria's elite Fourth Armoured Division and the regime's Lebanese allies to smuggle large quantities of goods.

“The Fourth Division has a monopoly over bribes and taxes at the borders of region-held areas,” the source said, referring to the elite army division commanded by Maher Al Assad, Syrian President Bashar Al Assad's brother.

"There is a clear policy on the Syrian side: smuggling is allowed because of the economic situation," he said.

"There is even a term for it. Smugglers 'buy the road' for a few hours, or overnight. The arrangement is that the border guards look the other way during that time," he added, noting that Hezbollah controlled the borders on the Lebanese side.

Vehicles queue for fuel in the town of Hama in western Syria. Anadolu Agency via Getty Images
Vehicles queue for fuel in the town of Hama in western Syria. Anadolu Agency via Getty Images

Three Lebanese army sources denied that there was a similar arrangement on their side of the border. The National could not independently verify these claims.

Former Lebanese defence minister Elias Bou Saab said in 2019 that “smuggling up to $2.5 billion does not take place through illegal crossings”, hinting at severe shortcoming on the Lebanese army’s side.

A senior army source who denied the military’s involvement in the smuggling, said the armed forces face an impossible task as long as there is no incentive in Beirut and Damascus to delineate the border.

“Every time the army closes a crossing, smugglers open another one,” he said.

“Even if you put a soldier on every inch of the border, it will never be enough. On the ground, there are no borders.”

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Racecard

2pm Handicap Dh 90,000 1,800m

2.30pm Handicap Dh120,000 1,950m

3pm Handicap Dh105,000 1,600m

3.30pm Jebel Ali Classic Conditions Dh300,000 1,400m

4pm Maiden Dh75,000 1,600m

4.30pm Conditions Dh250,000 1,400m

5pm Maiden Dh75,000 1,600m

5.30pm Handicap Dh85,000 1,000m

 

The National selections:

2pm Arch Gold

2.30pm Conclusion

3pm Al Battar

3.30pm Golden Jaguar

4pm Al Motayar

4.30pm Tapi Sioux

5pm Leadership

5.30pm Dahawi

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

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.”

'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

Gulf Under 19s final

Dubai College A 50-12 Dubai College B

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

The biog

Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball

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

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Messi at the Copa America

2007 – lost 3-0 to Brazil in the final

2011 – lost to Uruguay on penalties in the quarter-finals

2015 – lost to Chile on penalties in the final

2016 – lost to Chile on penalties in the final