Lebanon elects Joseph Aoun as president in crucial political milestone


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Lebanon's Parliament elected army chief Joseph Aoun as president on Thursday. It ended a power vacuum that had persisted since 2022 and marked a significant political milestone before crucial developments, including the fate of a ceasefire with Israel and the start of postwar reconstruction efforts.

Mr Aoun secured 99 votes in the second round of voting to clinch the presidency after failing in the first session, in which he gathered 71 out of the 86 votes needed in the 128-member house. Shortly after the result was announced, Mr Aoun arrived at parliament, walking along a red carpet into the building, dressed in a suit rather than military fatigues.

“The authorities will have a monopoly on weapons,” he told MPs in his maiden speech, apparently in reference to the militant group Hezbollah's arsenal. The group is seen as more powerful and better armed than the country's army. “The state must invest in its army, to be able to protect its borders … [and fight against] smuggling and terrorism, and prevent Israeli aggression on the territory.”

UAE President Sheikh Mohamed congratulated Mr Aoun on his election victory and wished him "success in leading his country and its people to further stability, development and progress". He also said he looked forward to working with Mr Aoun to strengthen co-operation between the UAE and Lebanon.

US President Joe Biden also congratulated Mr Aoun, saying he would provide "critical leadership" for Lebanon at a crucial moment following the ceasefire with Israel.

"President Aoun has my confidence. I believe strongly he is the right leader for this time," said Mr Biden.

Under the terms of the ceasefire agreed to in November last year between Israel and Hezbollah after a devastating war that killed about 4,000 people, the Lebanese Armed Forces is one of the main parties entrusted with ensuring Hezbollah disarms south of the Litani River.

The parliamentary session served as a key test of Lebanon's shifting political landscape, with Hezbollah's influence weakened domestically and regionally after Israel's war – in which the group's leader Hassan Nasrallah was killed – and the fall of the regime of its Syrian ally Bashar Al Assad in December.

“Given the regional changes, we have a historic opportunity to discuss with Syria to solve all the problems, especially for respect for the sovereignty of the two countries and the file of the missing, as well as to deal with the refugee file,” he added, referring to the collapse of the Al Assad regime and the more than one million Syrian refugees living in Lebanon.

Mr Aoun became the 14th president after leading the Lebanese army since 2017. Under Lebanon's power-sharing system, established at the end of the civil war by the Taif Agreement, the presidency is reserved for a Maronite Christian, the role of prime minister for a Sunni Muslim and of parliamentary speaker for a Shiite Muslim. Twelve previous attempts to elect a president, the last in June 2023, failed to break the deadlock.

According to Lebanon’s constitution, a candidate must secure a two-thirds majority, or 86 votes, in the first round of parliamentary voting. If no candidate achieves this threshold, a simple majority of 65 votes is enough in subsequent rounds.

A significant hurdle to Mr Aoun’s candidacy was his status as a serving military officer. Article 49 of the Lebanese constitution prohibits public employees, including members of the armed forces, from running for the presidency while in active service. However, his backers successfully pushed for a constitutional amendment to address this.

“Today is what Lebanon should be. It's a democratic image. This democracy should be normal in Lebanon,” Melhem Khalaf, an MP and constitutional expert who took to sleeping in parliament in protest against his colleagues' failure to elect a new president, told The National outside parliament.

Electing a president during the 60-day truce with Israel that expires on January 26 was a key component of the agreement that ended the war with Hezbollah, official sources in Beirut told The National in November.

Politicians faced mounting pressure to avoid jeopardising vital reconstruction aid by failing to elect a head of state. Political sources in Beirut said financing the reconstruction efforts by Arab and western donors depended on electing a president and limiting Hezbollah's political influence.

Still struggling with the fallout from financial collapse in 2019, Lebanon is in dire need of foreign assistance to rebuild after the war. The World Bank estimates that about $8.5 billion in damages and losses resulted from the year-long conflict. Lebanon’s political stalemate had left the country without a head of state since October 2022.

Mr Aoun's election comes just 11 days before US president-elect Donald Trump is sworn into office for a second term.

Washington is likely to cheer the election of Mr Aoun, who is widely regarded as someone America can work with and a reflection of the country’s renewed influence on Lebanon, said Edward Gabriel, president of the American Task Force on Lebanon and a former US ambassador to Morocco.

Mr Gabriel said the Biden administration, led by special envoy Amos Hochstein, has helped to steer Lebanon from the grips of Iran-backed Hezbollah.

“The US has been extremely influential with Lebanon and I think the Lebanese are very grateful for what the Biden administration, Mr Hochstein and a bipartisan Congress have done to be very supportive of the Lebanese Armed Forces," he told The National.

Willy Lowry contributed to this report from Washington

What is Bitcoin?

Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.

The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers. 

Basquiat in Abu Dhabi

One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi. 

The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier. 

It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.  

“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi. 

Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October

Also on December 7 to 9, the third edition of the Gulf Car Festival (www.gulfcarfestival.com) will take over Dubai Festival City Mall, a new venue for the event. Last year's festival brought together about 900 cars worth more than Dh300 million from across the Emirates and wider Gulf region – and that first figure is set to swell by several hundred this time around, with between 1,000 and 1,200 cars expected. The first day is themed around American muscle; the second centres on supercars, exotics, European cars and classics; and the final day will major in JDM (Japanese domestic market) cars, tuned vehicles and trucks. Individuals and car clubs can register their vehicles, although the festival isn’t all static displays, with stunt drifting, a rev battle, car pulls and a burnout competition.

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

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

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Directed by: Ashwiny Iyer Tiwari
Starring: Kriti Sanon, Ayushmann Khurrana, Rajkummar Rao
Three and a half stars

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

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The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

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Updated: January 10, 2025, 7:29 AM