With the parliamentary election over in Lebanon, the country will have to focus on three broad objectives. First, forming a government. Second, preparing for the presidential election in September or October. And third, moving forward on essential economic reforms to alleviate the suffering of the population. However, the election results may well indefinitely hinder the achievement of these objectives.
The first priority will be to form a new government. Under normal circumstances, this should not pose a major challenge, since the government should be in power only until the presidential election. However, if there is no consensus around the next head of state and Lebanon enters a presidential vacuum, the government will take on presidential powers and may last far longer than expected. That is why negotiations over its formation are bound to be highly divisive.
The question of who will succeed President Michel Aoun is also contentious. Until the parliamentary election, the two front-runners were Gebran Bassil, Mr Aoun’s son-in-law, and Suleiman Franjieh, a politician from northern Lebanon, whose grandfather was president from 1970 until 1976. However, the largest Christian bloc post-elections will be controlled by the Lebanese Forces, whose leader Samir Geagea also has presidential ambitions and who will strongly contest Mr Bassil and Mr Franjieh.
A major factor that will help define the period ahead is regional calculations
Mr Bassil, who heads the Free Patriotic Movement, lost ground in the legislative election, while the list backed by Mr Franjieh did relatively poorly. Neither man, therefore, will be able to credibly make the case that he is the most legitimate Maronite Christian candidate for the presidency. The fact that Hezbollah strenuously opposes Mr Geagea suggests there will be no easy agreement on a successor to Mr Aoun, and the outcome may be a long political void, unless a compromise can be reached.
The election results suggest that two broad blocs will emerge in Parliament – one led by the Lebanese Forces, with its allies, particularly from the Sunni community; and a Hezbollah-led coalition, formed with the Aounists. This may make for a period of stalemate ahead, because of Lebanon’s widening polarisation.
All this will have a fundamental, and very negative, bearing on economic reforms, which have not progressed since the economy collapsed in 2019. Yet, with economic indicators continuing to deteriorate and the World Bank predicting zero growth in 2022, Lebanon cannot afford to waste more time.
A report this month by the UN special envoy on poverty, Olivier de Schutter, accused the government and the central bank of human rights violations in impoverishing the population. The report said that Lebanese officials had “a sense of impunity", and appeared to be living “in a fantasy land".
Recently, the Lebanese government and the International Monetary Fund agreed to what is known as a staff agreement, in which the IMF said it would provide $3-4 billion to Lebanon if the country implemented required economic reforms and an audit of the banking sector. Yet, continued factionalism has hindered progress.
If political divisions are exacerbated in the coming months, a final agreement over an IMF-led reform programme will be highly improbable this year. What this would mean is that in the best-case scenario, Lebanon could begin focusing on economic priorities only after a new president comes to office, whenever that occurs.
What is unfortunate in this regard is that the government has reportedly advanced in its economic plan to take Lebanon out of its crisis. Recently, Deputy Prime Minister Saadeh Al-Shami, who is playing a key role in negotiations with the IMF, stated that the technical aspects of banking sector reform were completed. While this is good news, several more months of continuing deadlock could have a disastrous impact on the well-being of the Lebanese, and on banks in particular.
Finally, a major factor that will help define the period ahead is regional calculations. A number of Arab states have shown a renewed momentum in trying to contain Hezbollah’s power in Lebanon, which has made the party uneasy. This mood will not have been helped by the gains made by the Lebanese Forces in the election. The mainly Christian party has close ties with Saudi Arabia, which Hezbollah sees as a threat.
As the Arab states, especially the Gulf states, reinforce their stakes in Lebanon, this could lead to one of two possible outcomes: a struggle for influence with Iran in the country that is unlikely to come out with a clear winner. This can potentially bring about an eventual agreement to share influence. Alternatively, Hezbollah and Iran might try in some way to reimpose their hegemony. But this would be risky, as the strength of the party’s cross-sectarian alliances have been eroded.
The most likely outcome is that Lebanon will remain at a standstill in the coming months, and perhaps even beyond that, as the two broad alignments neutralise each other in Parliament. Neither side will be able to overcome the other, and both sides will want to avoid a civil war. Meanwhile, the Lebanese will continue to suffer as their political parties pursue clashing agendas, with little concern for the population.
UAE FIXTURES
October 18 – 7.30pm, UAE v Oman, Zayed Cricket Stadium, Abu Dhabi
October 19 – 7.30pm, UAE v Ireland, Zayed Cricket Stadium, Abu Dhabi
October 21 – 2.10pm, UAE v Hong Kong, Zayed Cricket Stadium, Abu Dhabi
October 22 – 2.10pm, UAE v Jersey, Zayed Cricket Stadium, Abu Dhabi
October 24 – 10am, UAE v Nigeria, Abu Dhabi Cricket Oval 1
October 27 – 7.30pm, UAE v Canada, Zayed Cricket Stadium, Abu Dhabi
October 29 – 2.10pm, Playoff 1 – A2 v B3; 7.30pm, Playoff 2 – A3 v B2, at Dubai International Stadium.
October 30 – 2.10pm, Playoff 3 – A4 v Loser of Play-off 1; 7.30pm, Playoff 4 – B4 v Loser of Play-off 2 at Dubai International Stadium
November 1 – 2.10pm, Semifinal 1 – B1 v Winner of Play-off 1; 7.30pm, Semifinal 2 – A1 v Winner of Play-off 2 at Dubai International Stadium
November 2 – 2.10pm, Third place Playoff – B1 v Winner of Play-off 1; 7.30pm, Final, at Dubai International Stadium
How they line up for Sunday's Australian Grand Prix
1 Lewis Hamilton, Mercedes
2 Kimi Raikkonen, Ferrari
3 Sebastian Vettel, Ferrari
4 Max Verstappen, Red Bull
5 Kevin Magnussen, Haas
6 Romain Grosjean, Haas
7 Nico Hulkenberg, Renault
*8 Daniel Ricciardo, Red Bull
9 Carlos Sainz, Renault
10 Valtteri Bottas, Mercedes
11 Fernando Alonso, McLaren
12 Stoffel Vandoorne, McLaren
13 Sergio Perez, Force India
14 Lance Stroll, Williams
15 Esteban Ocon, Force India
16 Brendon Hartley, Toro Rosso
17 Marcus Ericsson, Sauber
18 Charles Leclerc, Sauber
19 Sergey Sirotkin, Williams
20 Pierre Gasly, Toro Rosso
* Daniel Ricciardo qualified fifth but had a three-place grid penalty for speeding in red flag conditions during practice
The Programme
Saturday, October 26: ‘The Time That Remains’ (2009) by Elia Suleiman
Saturday, November 2: ‘Beginners’ (2010) by Mike Mills
Saturday, November 16: ‘Finding Vivian Maier’ (2013) by John Maloof and Charlie Siskel
Tuesday, November 26: ‘All the President’s Men’ (1976) by Alan J Pakula
Saturday, December 7: ‘Timbuktu’ (2014) by Abderrahmane Sissako
Saturday, December 21: ‘Rams’ (2015) by Grimur Hakonarson
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The Lowdown
Kesari
Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra
Company%20Profile
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MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
Mountain%20Boy
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Profile of Tarabut Gateway
Founder: Abdulla Almoayed
Based: UAE
Founded: 2017
Number of employees: 35
Sector: FinTech
Raised: $13 million
Backers: Berlin-based venture capital company Target Global, Kingsway, CE Ventures, Entrée Capital, Zamil Investment Group, Global Ventures, Almoayed Technologies and Mad’a Investment.
Straightforward ways to reduce sugar in your family's diet
- Ban fruit juice and sodas
- Eat a hearty breakfast that contains fats and wholegrains, such as peanut butter on multigrain toast or full-fat plain yoghurt with whole fruit and nuts, to avoid the need for a 10am snack
- Give young children plain yoghurt with whole fruits mashed into it
- Reduce the number of cakes, biscuits and sweets. Reserve them for a treat
- Don’t eat dessert every day
- Make your own smoothies. Always use the whole fruit to maintain the benefit of its fibre content and don’t add any sweeteners
- Always go for natural whole foods over processed, packaged foods. Ask yourself would your grandmother have eaten it?
- Read food labels if you really do feel the need to buy processed food
- Eat everything in moderation
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
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.”
25%20Days%20to%20Aden
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The%C2%A0specs%20
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Mina Cup winners
Under 12 – Minerva Academy
Under 14 – Unam Pumas
Under 16 – Fursan Hispania
Under 18 – Madenat
HER%20FIRST%20PALESTINIAN
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THE TWIN BIO
Their favourite city: Dubai
Their favourite food: Khaleeji
Their favourite past-time : walking on the beach
Their favorite quote: ‘we rise by lifting others’ by Robert Ingersoll