Lebanese President Joseph Aoun delivers a speech after his election in Beirut. AFP
Lebanese President Joseph Aoun delivers a speech after his election in Beirut. AFP
Lebanese President Joseph Aoun delivers a speech after his election in Beirut. AFP
Lebanese President Joseph Aoun delivers a speech after his election in Beirut. AFP

Lebanon's President Joseph Aoun to visit Saudi Arabia in first foreign trip


Amr Mostafa
  • English
  • Arabic

Lebanon's newly elected President Joseph Aoun will visit Saudi Arabia at the invitation of Crown Prince Mohammed bin Salman, the Lebanese Presidency said on Saturday.

The Saudi crown prince invited Mr Aoun to visit the kingdom during a phone call with the new president, the Lebanese Presidency said on X. No date was given for the visit.

Lebanese lawmakers elected Mr Aoun as head of state on Thursday, ending more than two years of deadlock resulting from deep political divisions. Lebanon needs foreign assistance to help it rebuild after the war between Israel and Hezbollah destroyed large parts of the country. The conflict killed about 4,000 people and inflicted significant damage on the Iran-backed armed group.

Saudi Arabia has been the biggest provider of financial assistance to Lebanon, with ties between the countries dating back to the 1980s. However, relations have been on shaky ground in recent years, primarily over Hezbollah's influence on Lebanese politics, with Riyadh calling for reforms to the political process.

Hezbollah was weakened by its conflict with Israel, with its leader Hassan Nasrallah and several commanders being killed and the group's infrastructure damaged. Riyadh stepped up as a strong backer of a process to steer Lebanon away from Hezbollah's grip.

Israel and Hezbollah agreed in November to a ceasefire under which Israel would withdraw its troops from southern Lebanon within 60 days. Sources told The National at the time that the terms of the deal included the election of a Lebanese president within the 60-day time frame, which expires on January 26.

The crucial discussions that led to Mr Aoun's election lasted for days this week and involved US envoy Amos Hochstein, French envoy Jean-Yves Le Drian and Saudi Arabia's Prince Yazid bin Mohammed.

“External forces wished for a purely Lebanese agreement but Lebanese MPs failed for two years to elect a president, which necessitated foreign intervention,” a political source told The National. “Foreign powers directly intervened through envoys. They possess various pressure tools, such as aid, sanctions and the reconstruction file. And they used them all."

The new president's first task is to appoint a prime minister. He is scheduled to begin consultations on Monday with all political groups in Parliament, as well as independent lawmakers "towards naming a head of government", his office said on Friday.

Mr Aoun has pledged to work towards naming a prime minister who would be "a partner and not an opponent" as soon as possible.

He noted the importance of choosing a prime minister who can gain the confidence of the international community and carry out urgently needed reforms to relaunch the economy.

The process of selecting a prime minister and forming a government is often drawn out, as the president must receive approval from a majority of lawmakers before he can name the head of government.

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.”

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What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
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What are the penalties? 
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Bio

Age: 25

Town: Al Diqdaqah – Ras Al Khaimah

Education: Bachelors degree in mechanical engineering

Favourite colour: White

Favourite place in the UAE: Downtown Dubai

Favourite book: A Life in Administration by Ghazi Al Gosaibi.

First owned baking book: How to Be a Domestic Goddess by Nigella Lawson.

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

The biog

Name: Dhabia Khalifa AlQubaisi

Age: 23

How she spends spare time: Playing with cats at the clinic and feeding them

Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need

Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman

Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs 

Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing

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Tightening the screw on rogue recruiters

The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.

 Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.

A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.

The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.

The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.

Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.

Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment

But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

Updated: January 11, 2025, 12:27 PM