People protest in front of Lebanese army soldiers after being barred from returning to Meiss Al Jabal in southern Lebanon on Monday. EPA
People protest in front of Lebanese army soldiers after being barred from returning to Meiss Al Jabal in southern Lebanon on Monday. EPA
People protest in front of Lebanese army soldiers after being barred from returning to Meiss Al Jabal in southern Lebanon on Monday. EPA
People protest in front of Lebanese army soldiers after being barred from returning to Meiss Al Jabal in southern Lebanon on Monday. EPA

Lebanon ‘had no choice but to accept’ Israeli truce extension


Mohamad Ali Harisi
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The extension of the initial truce phase between Lebanon and Israel was prompted by an Israeli request and reluctantly accepted by Lebanon in exchange for the release of Hezbollah war prisoners and others, sources familiar with the talks revealed on Monday.

The 60-day truce, which ended a devastating war between Israel and the Iran-backed Hezbollah, was originally expected to lead to a permanent ceasefire and a full Israeli withdrawal from southern Lebanon. However, the truce expired on Sunday, with Israeli troops still stationed in southern villages.

The Israeli army, which killed 22 Lebanese civilians attempting to return to their homes in the occupied territories, told mediators it needed more time to dismantle Hezbollah’s infrastructure. But Lebanese sources claimed that Israel also aimed to test Hezbollah’s reaction while continuing to render the border villages “uninhabitable”.

“Lebanon had no choice but to accept. The only way to save face was to demand negotiations and the release of Hezbollah and other prisoners,” a senior Lebanese security source told The National.

Lebanon, grappling with destruction, and Hezbollah, which suffered significant losses in its war with Israel, agreed to extend the truce phase until February 18 after negotiations with the US, which had initially pushed for a full Israeli withdrawal.

“For Lebanon to accept the truce extension, it secured a promise regarding prisoners, including Lebanese individuals and Hezbollah members detained by Israel,” a political source within the caretaker government said.

A mannequin in military clothing used as a decoy stands in northern Israel on the border with Lebanon. AP
A mannequin in military clothing used as a decoy stands in northern Israel on the border with Lebanon. AP

“The number of Lebanese prisoners remains unknown, as Israel has not disclosed their numbers, nor have Lebanon or Hezbollah, given the large number of missing persons in destroyed villages. It remains unclear how many are dead or captured."

On Monday, the Lebanese government confirmed its agreement to a three-week extension of the ceasefire between Israel and Hezbollah after consultations with the US.

“The Israelis, of course, prefer additional time to continue destroying what they claim are Hezbollah’s tunnels and infrastructure. In reality, they are turning border towns into uninhabitable places by depriving them of water and farmland,” the security source said. “Even our olive trees were taken by them."

Testing Hezbollah

According to the security official, Israel’s request for an extension was also intended to test Hezbollah’s response. “Hezbollah understood what needed to be done and remained behind the scenes, encouraging unarmed civilians to go back to their lands. This appears to be part of a broader strategy to return to its 1980s approach: pushing people to fight for their lands through lone attacks while supporting them discreetly, avoiding direct claims or public acknowledgement of the attacks.”

Israel has already indicated that its forces will remain in southern Lebanon for a longer period, accusing Beirut of failing to implement the terms of the ceasefire agreement, which includes dismantling Hezbollah’s infrastructure and relocating its fighters north of the Litani River. While Israeli forces have withdrawn from coastal areas in southern Lebanon, they remain stationed further east.

A political source in Beirut said the agreement to extend the truce “was not reached at the last moment”, adding that Lebanese officials had been “conducting talks days before the deadline”.

“Lebanese communications were carried out through the truce oversight committee led by the US,” the source said. “Talks were also held with officials from the US National Security Council, which has the capacity to effectively communicate with and influence Israel.”

An Israeli tank in Meiss Al Jabal, southern Lebanon. EPA
An Israeli tank in Meiss Al Jabal, southern Lebanon. EPA

The source also noted that US President Donald Trump’s envoy to the Middle East, Steve Witkoff, oversaw the negotiations. “Witkoff preferred that all parties adhere to the original deadline but later acquiesced to Israel’s request for an extension,” the source said. “The Americans accepted Israel’s justification that additional time was required to complete procedures in areas south of the Litani River.”

US and Israeli officials did not comment beyond the announcement of the extension of the truce.

On Sunday, the Israeli army claimed it fired warning shots in multiple areas of southern Lebanon after detecting threats from approaching individuals. The military said several suspects posing imminent threats to its troops were detained and are now being questioned.

Dramatic footage from local media showed Israeli soldiers dragging a man out of a building and detaining him. Other videos depicted civilians standing face-to-face with an Israeli tank as displaced locals, who had been unable to return home for over a year, attempted to reclaim their villages.

“What happened in the south on Sunday is a natural form of resistance as long as the occupation seeks to extend its presence,” a Hezbollah source commented. “The agreement has expired, and the Lebanese government is responsible for making decisions. The Lebanese authorities bear the responsibility of putting pressure on the enemy."

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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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Gearbox: Eight-speed automatic

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1.

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2.

China

3.

UAE

4.

Japan

5

Norway

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Canada

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Singapore

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Australia

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5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

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Building boom turning to bust as Turkey's economy slows

Deep in a provincial region of northwestern Turkey, it looks like a mirage - hundreds of luxury houses built in neat rows, their pointed towers somewhere between French chateau and Disney castle.

Meant to provide luxurious accommodations for foreign buyers, the houses are however standing empty in what is anything but a fairytale for their investors.

The ambitious development has been hit by regional turmoil as well as the slump in the Turkish construction industry - a key sector - as the country's economy heads towards what could be a hard landing in an intensifying downturn.

After a long period of solid growth, Turkey's economy contracted 1.1 per cent in the third quarter, and many economists expect it will enter into recession this year.

The country has been hit by high inflation and a currency crisis in August. The lira lost 28 per cent of its value against the dollar in 2018 and markets are still unconvinced by the readiness of the government under President Recep Tayyip Erdogan to tackle underlying economic issues.

The villas close to the town centre of Mudurnu in the Bolu region are intended to resemble European architecture and are part of the Sarot Group's Burj Al Babas project.

But the development of 732 villas and a shopping centre - which began in 2014 - is now in limbo as Sarot Group has sought bankruptcy protection.

It is one of hundreds of Turkish companies that have done so as they seek cover from creditors and to restructure their debts.

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Date of birth: April 18, 1998

Playing position: Winger

Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda

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Updated: January 28, 2025, 9:18 AM