Lebanon wants ‘full withdrawal’ of Israeli forces, says Foreign Minister


Sunniva Rose
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Lebanon wants a "full, total and unconditional withdrawal" of Israeli forces, Youssef Rajji told The National in his first trip abroad since he was nominated as foreign minister last week.

Speaking on the margin of a conference in Paris to support Syria's political transition, Mr Rajji, a career diplomat, said on Thursday the cabinet was working to make sure that "the monopoly of force was in the hands of the legal government" – an expression used to call for the disarmament of Iran-backed Lebanese militia Hezbollah, the only paramilitary group to keep its weapons at the end of the 1975-1990 civil war.

Hezbollah was significantly weakened in the latest war against Israel, paving the way for the election last month of President Joseph Aoun who, in his inaugural speech, called for the group's weapons to be handed to the state, in a major shift in Lebanese policy.

The choice of Mr Rajji, a former ambassador to Jordan who is backed by an anti-Hezbollah Christian political party, also reflects this change in Lebanon's political scene. The Foreign Ministry had been dominated for decades by pro-Hezbollah figures.

There are fears that a US and French-brokered ceasefire between Israel and Hezbollah may be endangered by Israel's repeated requests to delay its withdrawal from Lebanon. Israel was due to pull out next week but has reportedly sought an extension for a second time, until February 28.

"We are doing our best," Mr Rajji said, when asked about Lebanese efforts to ensure the ceasefire agreement is respected. "We are working on re-establishing the full sovereignty of the Lebanese government on all the Lebanese territory."

Lebanese soldiers watch as a military bulldozer reopens a road as residents of the southern village of Rabb Thlathin to return to their town. AFP
Lebanese soldiers watch as a military bulldozer reopens a road as residents of the southern village of Rabb Thlathin to return to their town. AFP

French replacement

At a press conference at the end of the meeting on Syria, French Foreign Minister Jean-Noel Barrot, acknowledged Israel's request to stay longer than expected on "certain points of the Blue Line" – the border between Lebanon and Israel, which has been patrolled by the UN's interim force in Lebanon since 1978. The two countries never signed a peace agreement after the 1948 Arab-Israeli war.

"We have suggested that certain contingents of Unifil, including the most experienced ones such as the French, replace the Lebanese Armed Forces at these observation points," Mr Barrot said. "The UN Secretary General [Antonio Guterres] told me on Tuesday morning that he agreed … we now must convince the Israelis that this solution would enable a full and definitive withdrawal."

French support for the Lebanese army was "very important" for Lebanon, Mr Rajji said. French President Emmanuel Macron in October hosted a conference to support Lebanon, which raised more than $1 billion in humanitarian aid as well as support for the Lebanese army.

Speaking after the Syria conference on Thursday, Mr Macron told ministers attending the meeting, including Syria's Foreign Minister Asaad Al Shibani, that stability for Lebanon was closely linked to Syria. The Assad regime, which ended with a rebel take-over of Damascus in December, had been closely allied to Hezbollah and Iran. Syria has historically exercised strong influence in Lebanon, which it occupied militarily from 1976 to 2005.

Participants at the International Conference on Syria in Paris on February 13. EPA
Participants at the International Conference on Syria in Paris on February 13. EPA

"All these years, Syria has been the rear base for the destabilisation of Lebanon," Mr Macron said. "The priority objective … is to ensure that Syria does not become again a logistical platform for militias linked to Iran and which take part in its agenda of regional destabilisation."

Mr Rajji said that the Lebanese and Syrian people had "suffered a lot from the previous regime" and were "looking forward to collaborating with the new power in Damascus".

Refugee return

Those attending the conference, which is the third of its kind in past weeks after similar meetings in Jordan and Saudi Arabia, included foreign ministers from Arab countries. About 20 nations, in addition to the UN, the Arab League and the GCC, signed a statement supporting Syria's political transition.

France pledged €50 million ($52.3 million) in humanitarian aid for Syria. Syrian President Ahmad Al Shara is expected in Paris in the coming weeks at the invitation of Mr Macron.

The statement was not signed by the US, which was represented at the conference by deputy assistant secretary of state, Tim Lenderking. The new US administration has not yet clarified its policy on Syria, which is why it did not send a representative at ministerial level to the Paris conference, The National understands.

For Mr Rajji, the priority now is to push for a rapid return of Syrian refugees. More than 750,000 Syrians in Lebanon are registered with the UN but local authorities believe the number is higher. Their presence in a country of about 5 million people has burdened Lebanon's already crumbling infrastructure. The country has also been suffering from an unprecedented financial crisis since 2019 and politicians have increasingly turned on Syrian refugees, who traditionally occupy low-paying jobs in construction and agriculture.

"Lebanon cannot handle this problem," Mr Rajji said. "We want a voluntary and safe return of the displaced in Syria. We are calling on the international community and the UN organisation to stop funding the displaced in Lebanon, but to fund development projects in Syria like homes, hospitals, schools in order to permit the Syrian population to go back to their villages and to their cities."

About 200,000 Syrians are believed to have gone back to Syria through Turkey and Lebanon since the fall of the regime of former president Bashar Al Assad. Mr Rajji said those staying in Lebanon were now "economic refugees" and had no reason to stay.

Some European countries have started to review their policies towards Syrian refugees. Germany, which hosts close to one million Syrians, last month unveiled a four-point plan that includes the possibility of revoking protection.

In an exceptional move, France, which has granted asylum to 30,000 Syrians, on Thursday said it would allow them to return home for short-term visits without losing their status. Some refugees have already applied for safe conduits but have also expressed doubt at whether they would move back on the long-term due to continuing security problems.

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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.”

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Updated: February 14, 2025, 6:35 AM