Threat of war underlines divisions in Lebanese politics


Jamie Prentis
  • English
  • Arabic

Live updates: Follow the latest news on Israel-Gaza

Lebanon is at risk of being dragged into another conflict with neighbouring Israel, a situation condemned by many Lebanese politicians, as the country faces one of the worst economic crises in modern history.

The powerful Lebanese movement Hezbollah and its foe Israel have traded blows on the border in the past few days, although on Tuesday the front was quiet but tense.

The exchange came amid the latest war between Israeli forces and militants in Gaza that began again at the weekend.

A senior official of Hezbollah, an armed group and political party, said its “guns and rockets” were with the Palestinian people.

But while sympathising with the plight of the Palestinians, the appetite for a potential war was not evident in others.

"Lebanon failed to sustain its commitment towards the Eurobonds, how can it sustain conflicts?" said an official from Lebanese Forces, the largest party in parliament and one of the most strident critics of Hezbollah, referring to Beirut's default on its eurobond debt in 2020.

"What happened yesterday was not in the favour of any Lebanese," the official said of the incursion into Israel that led to retaliatory air strikes.

"Watching the cars on the highway trying to escape the south – who supports this?"

The government reaction in Lebanon has been decidedly muted, perhaps because some cabinet members are Hezbollah-backed politicians.

It was two days after the Israel-Gaza conflict reignited on Saturday before caretaker Prime Minister Najib Mikati spoke publicly on the matter, saying the priority was to "maintain security and stability in southern Lebanon".

After Mr Mikati met Foreign Minister Abdalla Bou Habib, the latter said "we do not want Lebanon to enter the ongoing war".

Those comments came hours before the air strikes that killed three Hezbollah members.

The strikes came after the Israeli military said it killed a number of militants who had crossed from Lebanon into Israel – an operation claimed by the armed wing of the Palestinian Islamic Jihad movement.

While they have not engaged in all-out war since 2006, skirmishes and disputes between Hezbollah and Israel are common under the terms of so-called informal rules of engagement.

A large UN peacekeeping force, Unifil, patrols the demarcation line between Israel and Lebanon – countries technically at war – along the Blue Line.

"We still think the exchanges are within Blue Line norms," a western diplomat told The National, referring to the Israel-Hezbollah violence of the past few days.

"But we're concerned about the risk of miscalculation."

The representative of the Lebanese Forces, a largely Christian-led party, insisted "what's happening in Gaza should remain in Gaza", pointing to Lebanon's dire economic situation.

"There should be an agreement between everybody that Lebanon does not need this. It's not for us to put the country on the top of a volcano created because we say we want to show solidarity with the Palestinians," the representative said.

"Tomorrow, if Gaza wins and Hamas comes out of this victorious, for some reason or another, but Lebanon is destroyed – what's the benefit of that?"

Scars of the month-long 2006 war between Israel and Hezbollah are still fresh in the mind of the Lebanese. Many hundreds were killed and large parts of the country levelled.

Now the country is in an even worse state, with depositors locked out of their savings, the currency at 98 per cent of its pre-crisis value and widespread shortages of basic essentials including clean water, medicine and electricity.

"I see some people screaming for war. I wonder if they will say the same if Israel destroys their home," said Mohammed, who is originally from the deep south of Lebanon, one of the worst-hit areas of the 2006 war.

Even for Lebanon's deeply polarised confessional political landscape, divisions are wider than ever. For nearly a year, parliament has failed to agree on the next president.

That situation has slipped its way into the discourse over the war next door and the potential for conflict in Lebanon.

Mr Mikati said the "developments requires speeding up the election of a new president and stopping the existing political tensions".

The presidential file was also alluded to by the Lebanese Forces official, who referred to the dialogue that some parties – including Hezbollah – have called for over the issue.

"Wasn't it Hezbollah who was calling for dialogue, dialogue, dialogue, because Lebanon should only be governed by dialogue?" the official said.

"Wasn't that the rhetoric of Hezbollah? Where is the dialogue now? How can you take Lebanon into a war without asking the people?

"Even the Israelis, with all their rifts, they are sitting together to form an emergency government to see together how they will confront this."

Voy!%20Voy!%20Voy!
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Omar%20Hilal%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Muhammad%20Farrag%2C%20Bayoumi%20Fouad%2C%20Nelly%20Karim%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
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

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

HAJJAN
%3Cp%3EDirector%3A%20Abu%20Bakr%20Shawky%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cbr%3EStarring%3A%20Omar%20Alatawi%2C%20Tulin%20Essam%2C%20Ibrahim%20Al-Hasawi%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cbr%3ERating%3A%204%2F5%3C%2Fp%3E%0A
Explainer: Tanween Design Programme

Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.

The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.

It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.

The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.

Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Twin-turbocharged%204-litre%20V8%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E542bhp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E770Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3EEight-speed%20automatic%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh1%2C450%2C000%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

The Two Popes

Director: Fernando Meirelles

Stars: Anthony Hopkins, Jonathan Pryce 

Four out of five stars

Charlotte Gainsbourg

Rest

(Because Music)

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

South Africa's T20 squad

Duminy (c), Behardien, Dala, De Villiers, Hendricks, Jonker, Klaasen (wkt), Miller, Morris, Paterson, Phangiso, Phehlukwayo, Shamsi, Smuts.

ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
The specs

Engine: 3.8-litre twin-turbo V8

Power: 611bhp

Torque: 620Nm

Transmission: seven-speed automatic

Price: upon application

On sale: now

Updated: October 10, 2023, 4:11 PM