A destroyed vehicle at the site of an Israeli strike that killed top Hezbollah commander Fuad Shukr on July 30, is seen in the Dahiyeh suburb August 09, 2024 in Beirut, Lebanon. Getty Images
A destroyed vehicle at the site of an Israeli strike that killed top Hezbollah commander Fuad Shukr on July 30, is seen in the Dahiyeh suburb August 09, 2024 in Beirut, Lebanon. Getty Images
A destroyed vehicle at the site of an Israeli strike that killed top Hezbollah commander Fuad Shukr on July 30, is seen in the Dahiyeh suburb August 09, 2024 in Beirut, Lebanon. Getty Images
A destroyed vehicle at the site of an Israeli strike that killed top Hezbollah commander Fuad Shukr on July 30, is seen in the Dahiyeh suburb August 09, 2024 in Beirut, Lebanon. Getty Images

Full-scale war could displace one million in Lebanon, warns government contingency plan


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A full-scale war could internally displace one million people in Lebanon and require over $300 million in funding over a three-month period, according to the country’s contingency plan, dated August 7, seen by The National.

The conflict between Iran-backed Lebanese militia Hezbollah and Israel, which started last October in parallel to the war in Gaza, has already displaced about 100,000 people in Lebanon.

Fears of an all-out regional war have intensified over the past week in the region, as Hezbollah and Iran have vowed to retaliate against Israel following the killing of Hamas leader Ismail Haniyeh in Tehran, blamed on Israel, and the Israeli air strike on a southern suburb of Beirut that killed senior Hezbollah commander Fouad Shukr.

Even a “controlled conflict” – considered “the most likely scenario”, according to the plan – would still displace 250,000 people and require $146 million over three months to keep critical sectors running.

In "worst-case" scenario, one million people could be displaced, and $307 million would be needed for the same timeframe.

Lebanon's Economy Minister Amin Salam told The National on Thursday that the country will “absolutely” need the help of the international community if the situation escalates.

Lebanon, which has been grappling with an economic crisis since 2019, after decades of public funds being squandered, has struggled to provide basic services to those displaced by the border conflict.

The smoke trail from missiles fired by the Israeli Iron Dome air defense system intercepting projectiles fired from southern Lebanon over the upper Galilee, northern Israel, 09 August 2024. EPA
The smoke trail from missiles fired by the Israeli Iron Dome air defense system intercepting projectiles fired from southern Lebanon over the upper Galilee, northern Israel, 09 August 2024. EPA

Mr Salam told The National that the recent escalation has further worsened the already dire economic situation, affecting tourism and agriculture and slashing expected growth margins.

The Lebanese cabinet convened on Wednesday for an emergency meeting to assess the country's readiness for a full-scale escalation, focusing on food security, energy, health care and education.

The contingency plan identifies key challenges and gaps.

It says that in almost all critical sectors – shelter, fuel, food and water – there is “a shortage of dedicated funding for emergency preparedness”.

Warehouse capacity for stockpiling supplies and the number of shelters for the population in case of major escalation and displacement “are far from adequate”, while critical humanitarian supply gaps needs “addressing immediately”, says the report.

Mr Salam said that current diesel supplies would last for only a month to six weeks in the case of a siege similar in scale to the 2006 war. Lebanon is heavily reliant on diesel generators for electricity production.

The country's food supply would last four to five months under an Israeli blockade, while medical supplies are not at risk at this stage, he said.

F1 drivers' standings

1. Lewis Hamilton, Mercedes 281

2. Sebastian Vettel, Ferrari 247

3. Valtteri Bottas, Mercedes 222

4. Daniel Ricciardo, Red Bull 177

5. Kimi Raikkonen, Ferrari 138

6. Max Verstappen, Red Bull 93

7. Sergio Perez, Force India 86

8. Esteban Ocon, Force India 56

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 Sky is Everywhere'

Director:Josephine Decker

Stars:Grace Kaufman, Pico Alexander, Jacques Colimon

Rating:2/5

TOUCH RULES

Touch is derived from rugby league. Teams consist of up to 14 players with a maximum of six on the field at any time.

Teams can make as many substitutions as they want during the 40 minute matches.

Similar to rugby league, the attacking team has six attempts - or touches - before possession changes over.

A touch is any contact between the player with the ball and a defender, and must be with minimum force.

After a touch the player performs a “roll-ball” - similar to the play-the-ball in league - stepping over or rolling the ball between the feet.

At the roll-ball, the defenders have to retreat a minimum of five metres.

A touchdown is scored when an attacking player places the ball on or over the score-line.

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German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

GAC GS8 Specs

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Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

The Lowdown

Us

Director: Jordan Peele

Starring: Lupita Nyong'o, Winston Duke, Shahadi Wright Joseqph, Evan Alex and Elisabeth Moss

Rating: 4/5

Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding

Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.

Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.

Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.

For more details, email openminds@cultures.ae or visit www.cultures.ae

 

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Updated: August 09, 2024, 2:31 PM