Fatima Al Mahmoud is a Foreign Affairs Reporter at The National and a fellow with the Rosalynn Carter Mental Health Journalism Programme.
August 20, 2023
Much like the rest of the country, Lebanon’s only international airport is an enigma. Its departure hall leaves a heaviness in my chest that I can’t shake off, while its arrival hall makes me feel as giddy as a child in a candy store.
Every few months, for the past two years now, I have flown to Beirut from Abu Dhabi for vacation. I already know standing up once the plane lands won’t get me there faster, but my restlessness takes over and all I want to do is make a beeline towards the crowd of beaming faces in the arrivals, where my family awaits.
When the holidays come to an end and it’s time to go back, I stall and stall before I leave the house. I second guess every decision that led me to moving away from my home and family, but deep down I know why I left. The airport is proof, and it exemplifies how pretty much everything else is run in the country.
It seems Lebanon is averting a crisis by mere chance, not due diligence
The Beirut Rafic Hariri International Airport may not be perfect but it’s functional, I would often think to myself. But not only is that insufficient, it is also very, very dangerous.
An inspection of Beirut's airport that The National reported on exclusively has shed light on inadequate safety measures that require urgent action.
Conducted by the International Civil Aviation Organisation, a UN agency whose remit is to promote the safe and orderly development of civil aviation around the world, the report flagged the lack of certified air-traffic controllers at the Beirut airport as a “serious safety issue, which could have critical repercussions for aviation in Lebanon”.
Air-traffic controllers (ATC) guide the plane from taxiing to take-off and landing, ensuring safe spacing and efficient routes by providing instructions to the aircraft – a crucial task in a country that prides itself in welcoming millions of travellers this summer, despite a financial crisis.
According to a source from the Lebanese civil aviation department, there are only 15 certified controllers employed at Beirut airport currently out of 87 as a standard requirement.
The arrival area of Rafic Hariri International Airport in Beirut. EPA
With the expats and tourists comes the money, in the eyes of authorities, but not enough to guarantee them a safe flight. And with the fully booked planes comes a certain sense of responsibility and a certain logistical standard that Lebanon’s airport has failed to reach, with delays and queues causing an outcry over the past months.
With less people on the job and more work to do, “there is a higher risk of errors, which could have catastrophic consequences”, an aviation expert told The National.
So, it seems Lebanon is averting a crisis by mere chance, not due diligence. And while that is inherently disappointing, it is not surprising.
The newly shed light on Beirut airport’s questionable safety is a gruelling reminder of the 2020 Beirut port explosion, a disaster that could have been avoided had authorities taken action.
For years, thousands of tonnes of highly inflammable ammonium nitrate were improperly stored at the heart of the capital, where many of us lived and worked. Piling evidence shows that authorities had prior knowledge of the material stored at the port, but never made the effort to move it – despite multiple warnings.
For many years, we lived near a ticking bomb that eventually went off – killing more than 215 people and injuring thousands more. The mental and emotional scars from the explosion are still visible today. Many of those who survived say they did so by mere luck – working from home due to Covid-19, taking their daily route at an earlier time than they usually would, or avoiding an area altogether because of last-minute plans.
But we cannot keep counting on luck, and we cannot keep surviving by chance.
The global watchdog report on the Beirut airport’s safety has called on Lebanese authorities to address inadequacies with the “utmost urgency”. I couldn't agree more.
There is no shortage of skilled labour or talent in Lebanon to justify the deficit in air-traffic controllers. In fact, the airport has at least 20 qualified candidates who passed the exam a few years ago ready to jump on the job and ease the burden on their colleagues.
They were reportedly never considered for the job “due to concerns about creating a sectarian imbalance in the country, as most were Muslim”.
Much like corruption and negligence, sectarianism plagues Lebanon and is the root of many of its political crises.
An ancient system that was introduced with Lebanon’s independence in 1943 divides power-sharing in the country along sectarian lines until this day. And just as authorities failed to learn from the port explosion, they also failed to learn from the country’s 15-year-long bloody civil war that was triggered by sectarian tensions.
So not only is the country’s president, prime minister and parliament speaker all selected according to their sects – not credentials – so are its air-traffic controllers.
Ironically enough, even the airport's naming is a sectarian battle, with some referring to it as Rafic Hariri International Airport and others choosing not to.
As someone who flies to Lebanon and back frequently, I believe I speak on behalf of many expatriates when I say I do not care about the religious beliefs of the controllers guiding my flight; all I care about is that they efficiently do their job.
Lebanese authorities need to act fast. The priority at the moment is not to open more restaurants and cafes at the arrival and departure halls for travellers, but to hire more staff to spare travellers’ lives.
It has been three years since the Beirut port blast, and although the stalled probe has delayed justice, the lesson is loud and clear.
Act now, before it is too late.
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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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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
UAE v Zimbabwe A, 50 over series
Fixtures
Thursday, Nov 9 - 9.30am, ICC Academy, Dubai
Saturday, Nov 11 – 9.30am, ICC Academy, Dubai
Monday, Nov 13 – 2pm, Dubai International Stadium
Thursday, Nov 16 – 2pm, ICC Academy, Dubai
Saturday, Nov 18 – 9.30am, ICC Academy, Dubai
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley