Destruction in the southern suburbs of Beirut in August 2006 ... but how similar is the situation in the area today? Reuters
Destruction in the southern suburbs of Beirut in August 2006 ... but how similar is the situation in the area today? Reuters
Destruction in the southern suburbs of Beirut in August 2006 ... but how similar is the situation in the area today? Reuters
Destruction in the southern suburbs of Beirut in August 2006 ... but how similar is the situation in the area today? Reuters

Is Lebanon on the brink of a 2006 war scenario?


Nada Maucourant Atallah
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As tensions mount at the Israel-Lebanon border, where Hezbollah, closely linked to Hamas, has exchanged fire with Israel, many Lebanese are remembering the 2006 war that pitted the two sides against each other.

The current exchanges, which followed a significant escalation of violence in Gaza after Hamas's incursion into Israel, are confined to a few frontier towns and military positions on both sides.

This is the bloodiest escalation since the month-long war in 2006, which claimed the lives of 1,200 people in Lebanon, mostly civilians, and 157 Israelis, primarily soldiers.

While concerns arise about a scenario similar to 2006, when the fighting also caused extensive damage to Lebanon’s infrastructure, these skirmishes have, as of yet, not led to a second front against Israel.

The National reviews what happened in the 2006 and outlines the significant differences, as analysed by experts, with the continuing border violence.

34-day war

The 2006 conflict was triggered when on July 12 Hezbollah militants kidnapped two soldiers patrolling northern Israel.

Hezbollah demanded the release of Lebanese prisoners being held in Israel in return for the two soldiers – a motive that has driven Hezbollah's repeated efforts to capture Israelis for use as bargaining chips.

But Israel refused and launched a large-scale military campaign in Lebanon, starting what was later called the “July war”, which lasted for 34 days.

Israeli air strikes struck not only Hezbollah military positions but also vital infrastructure, including Beirut airport, roads, factories and hospitals, as well as TV and radio stations. Areas heavily affected included Beirut's southern suburbs, towns and villages in the south and parts of the eastern Bekaa Valley.

Hezbollah in turn launched thousands of rockets into Israel, resulting in civilian casualties and damage to infrastructure.

A Lebanese Hezbollah fighter in the midst of the war zone in July 2006. Reuters
A Lebanese Hezbollah fighter in the midst of the war zone in July 2006. Reuters

The conflict ended with a ceasefire agreement brokered by the UN Security Council on August 14, which aimed to strip all entities, except the Lebanese army and other state security forces, of their weapons in southern Lebanon.

Lebanon took years to rebuild from the 2006 war. The government estimated direct war damage at $2.8 billion, which triggered a 5 per cent contraction in the economy.

The 2006 war did not result in a conclusive victory for either side. Despite the damage, Hezbollah's leader Hassan Nasrallah said the militia had achieved a “divine, historic and strategic victory” over the US as well as Israel, and that “no army in the world is strong enough to disarm us”.

Soon after, the Hezbollah leader has said he would not have ordered the soldiers' capture if he had known it would trigger the war.

For some observers, Hezbollah's resilience against the Israeli assault, along with its inability to destroy the group despite the power imbalance, was a PR victory.

Hezbollah, established in 1982 with under the guidance of Iran's Islamic Revolutionary Guard Corps after the Israeli invasion of Lebanon, garnered acclaim in Lebanon and the region after 2006, making resistance against Israel as cornerstone of its identity.

'Two different political moments'

While the Israeli shelling in the south of the country reminds many Lebanese of the 2006 conflict, political analyst Joseph Daher stressed that the Lebanon of today is a “different political environment”.

In 2006, Hezbollah enjoyed rare “cross-sectarian popular support”, Mr Daher said, in a country usually extremely polarised, citing an agreement signed in February 2006 between Lebanese Christian party, the Free Patriotic Movement, and Hezbollah.

On the Israeli side, Mr Daher said there was a growing momentum at the time for Israel to launch an attack.

The war was framed within “the context of the post-9/11 era, the war in Iraq and the broader fight against terrorism that characterised that period”.

Mr Daher argued that Israel's response, a full-scale offensive, was disproportionate to the kidnapping of the two soldiers. This served as “pretext to launch the attack, with the overarching objective of eliminating Iran's influence in the Middle East”, he said.

In 2023, the situation seems to have changed dramatically.

“Hezbollah no longer enjoys the same level of popular support,” Mr Daher said.

Since 2006, a series of events has left Hezbollah in Lebanon increasingly isolated outside of the Shiite population, he said. This includes Hezbollah's takeover of West Beirut in 2008, amid clashes related to the Lebanese government's attempt to shut down the group's private telecoms network.

More recent examples of Hezbollah’s involvement in sectarian conflicts in Lebanon include the Tayouneh clashes in October 2021, pitting supporters of Hezbollah and the Amal Movement reportedly against those of Christian forces and the army.

The devastating explosion at the Port of Beirut on August 4, 2020 has further isolated Hezbollah, with many Lebanese holding the militia, which is said to control the port, accountable for the tragedy.

Mr Daher said: “The struggle against Israel is no longer Hezbollah's top priority,” adding that its military involvement in Syria to support the regime of President Bashar Al Assad has revealed its subordination to other political objectives by the party's main funder, Iran.

Israel 'cannot afford new front'

From the Israeli perspective, things have also evolved.

“Israel cannot afford to open a new front with Lebanon, without risking a general conflagration in the whole region,” said Mr Daher.

Many fear this could more draw Iranian proxy groups in the Middle East into conflict with Israel. Last Thursday, the US military intercepted cruise missiles and several drones launched by the Iran-aligned Houthi movement from Yemen.

Yet there are still some similarities, Mr Daher said.

“Like in 2006, Israel believes it can destroy a party, Hamas or Hezbollah, through military means alone, ignoring that these are parties deeply entrenched in their society,” he said.

“The narrative is also the same. Israel claims to continue the war against terrorism, comparing yesterday Hezbollah to Al Qaeda, and today Hamas to ISIS.”

Nevertheless, as events unfold, the nature of a ground invasion and Hamas's capacity to preserve the gains it made on October 7 will be the decisive factors on whether Hezbollah will enter the war.

Nearly three weeks after the Hamas rampage into Israel, the promised ground invasion in Gaza has yet to happen.

On Thursday, Israel's military reported tanks entering the northern Gaza Strip in preparation for “the next stage of combat".

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The National in Davos

We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.

Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

US tops drug cost charts

The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.

Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.

In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.

Some of the costliest drugs worldwide include Lipitor for high cholesterol. 

The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.

High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.

Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

Other IPL batting records

Most sixes: 292 – Chris Gayle

Most fours: 491 – Gautam Gambhir

Highest individual score: 175 not out – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Highest strike-rate: 177.29 – Andre Russell

Highest strike-rate in an innings: 422.22 – Chris Morris (for Delhi Daredevils against Rising Pune Supergiant in 2017)

Highest average: 52.16 – Vijay Shankar

Most centuries: 6 – Chris Gayle

Most fifties: 36 – Gautam Gambhir

Fastest hundred (balls faced): 30 – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Fastest fifty (balls faced): 14 – Lokesh Rahul (for Kings XI Punjab against Delhi Daredevils in 2018)

 

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UAE currency: the story behind the money in your pockets
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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.”

Updated: October 26, 2023, 6:14 PM