Lebanon's parliamentary elections closed on Sunday, May 15, 2022. AP
Lebanon's parliamentary elections closed on Sunday, May 15, 2022. AP
Lebanon's parliamentary elections closed on Sunday, May 15, 2022. AP
Lebanon's parliamentary elections closed on Sunday, May 15, 2022. AP


Lebanon's election replaces one stalemate with another


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May 17, 2022

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".

Supporters of Lebanese Forces leader Samir Geagea protest against his summoning in Maarab last October. Reuters
Supporters of Lebanese Forces leader Samir Geagea protest against his summoning in Maarab last October. Reuters

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.

  • An electoral worker sits next to ballot boxes, at the Justice Palace, in Jdeideh. Reuters
    An electoral worker sits next to ballot boxes, at the Justice Palace, in Jdeideh. Reuters
  • A soldier stands guard as ballots are counted at the Justice Palace. Reuters
    A soldier stands guard as ballots are counted at the Justice Palace. Reuters
  • Jad Ghosn, an opposition candidate, gestures as people wait for the announcement of official election results, in Jdeideh. Reuters
    Jad Ghosn, an opposition candidate, gestures as people wait for the announcement of official election results, in Jdeideh. Reuters
  • Lebanese Interior Minister Bassam Mawlawi announces the final results for some districts. EPA
    Lebanese Interior Minister Bassam Mawlawi announces the final results for some districts. EPA
  • Opposition candidate Yassin Yassin gestures as he is greeted by supporters in Jeb Jennin, West Bekaa. Reuters
    Opposition candidate Yassin Yassin gestures as he is greeted by supporters in Jeb Jennin, West Bekaa. Reuters
  • Supporters of the Lebanese Forces take to the streets during parliamentary elections in the Ashrafieh district of Beirut. Bloomberg
    Supporters of the Lebanese Forces take to the streets during parliamentary elections in the Ashrafieh district of Beirut. Bloomberg
  • Lebanon headed to the polls with its economy in the grip of hyperinflation. Bloomberg
    Lebanon headed to the polls with its economy in the grip of hyperinflation. Bloomberg
  • Lebanese youths supporting Hezbollah and Amal movement wave their party flags after parliamentary elections in a suburb of Beirut. EPA
    Lebanese youths supporting Hezbollah and Amal movement wave their party flags after parliamentary elections in a suburb of Beirut. EPA
  • Supporters of Lebanon's Shiite groups Hezbollah and Amal lift their flags during a motorbike rally after voting. AFP
    Supporters of Lebanon's Shiite groups Hezbollah and Amal lift their flags during a motorbike rally after voting. AFP
  • Children swim in an inflatable pool that supporters of former prime minister Saad Hariri installed to illustrate their intention to boycott parliamentary elections in Beirut, Lebanon. AP Photo
    Children swim in an inflatable pool that supporters of former prime minister Saad Hariri installed to illustrate their intention to boycott parliamentary elections in Beirut, Lebanon. AP Photo
  • Voters queue to place their vote in parliamentary elections in Beirut, Lebanon. EPA
    Voters queue to place their vote in parliamentary elections in Beirut, Lebanon. EPA
  • Nabih Berri, Speaker of the Lebanese Parliament, stands in a polling booth to vote in Tebnin. Reuters
    Nabih Berri, Speaker of the Lebanese Parliament, stands in a polling booth to vote in Tebnin. Reuters
  • Voters register at a polling station in Beirut. Bloomberg
    Voters register at a polling station in Beirut. Bloomberg
  • Lebanese President Michel Aoun follows the parliamentary elections on screens from the Presidential Palace in Beirut. AP
    Lebanese President Michel Aoun follows the parliamentary elections on screens from the Presidential Palace in Beirut. AP
  • A Lebanese woman shows her inked finger after she cast her vote at a polling station in Beirut. AP
    A Lebanese woman shows her inked finger after she cast her vote at a polling station in Beirut. AP
  • Voters look at a list of candidates at a polling station in Beirut. Bloomberg
    Voters look at a list of candidates at a polling station in Beirut. Bloomberg
  • Lebanese policemen help a voter into a polling station in Beirut. AP
    Lebanese policemen help a voter into a polling station in Beirut. AP
  • A Lebanese voter casts her ballot paper in Beirut. EPA
    A Lebanese voter casts her ballot paper in Beirut. EPA
  • Gyorgy Holvenyi (R), chief observer of the European Union election observation mission, visits a polling station in Beirut. EPA
    Gyorgy Holvenyi (R), chief observer of the European Union election observation mission, visits a polling station in Beirut. EPA
  • Lebanese people wait to vote during parliamentary elections in the capital city. EPA
    Lebanese people wait to vote during parliamentary elections in the capital city. EPA
  • Sheikh Abdul Latif Derian, Grand Mufti of Lebanon, casts his ballot paper during parliamentary elections in Beirut. EPA
    Sheikh Abdul Latif Derian, Grand Mufti of Lebanon, casts his ballot paper during parliamentary elections in Beirut. EPA
  • People queue to cast their votes in the Lebanese capital. AP
    People queue to cast their votes in the Lebanese capital. AP
  • Posters in Al Tariq Al Jadida, Beirut, depict Lebanon’s former prime minister Saad Hariri. Reuters
    Posters in Al Tariq Al Jadida, Beirut, depict Lebanon’s former prime minister Saad Hariri. Reuters
  • A woman prepares her ballot at a polling station in a southern suburb of Beirut. AFP
    A woman prepares her ballot at a polling station in a southern suburb of Beirut. AFP
  • Former prime minister Hassan Diab, who succeeded Saad Hariri, casts his ballot in Beirut. AFP
    Former prime minister Hassan Diab, who succeeded Saad Hariri, casts his ballot in Beirut. AFP
  • A voter checks lists for the parliamentary election at a polling station in the Lebanese capital Beirut. AFP
    A voter checks lists for the parliamentary election at a polling station in the Lebanese capital Beirut. AFP
  • A woman waits to vote in Beirut. EPA
    A woman waits to vote in Beirut. EPA
  • Security forces stand guard at Nur Square on the southern entrance of the northern Lebanese port city Tripoli. AFP
    Security forces stand guard at Nur Square on the southern entrance of the northern Lebanese port city Tripoli. AFP
  • Former Lebanese prime minister Fouad Siniora casts his vote at a polling station during the parliamentary election, in Sidon, southern Lebanon. Reuters
    Former Lebanese prime minister Fouad Siniora casts his vote at a polling station during the parliamentary election, in Sidon, southern Lebanon. Reuters
  • A man check voters' lists in the capital Beirut. AP
    A man check voters' lists in the capital Beirut. AP
  • A woman votes in Lebanon's parliamentary elections in Beirut. AP
    A woman votes in Lebanon's parliamentary elections in Beirut. AP
  • Police check the ID of voters outside a polling station near the Lebanese coastal city of Byblos (Jbeil), north of Beirut. AFP
    Police check the ID of voters outside a polling station near the Lebanese coastal city of Byblos (Jbeil), north of Beirut. AFP
  • A voter dips her finger in ink after casting her ballot in the parliamentary election at a polling station near Byblos. AFP
    A voter dips her finger in ink after casting her ballot in the parliamentary election at a polling station near Byblos. AFP
  • A Lebanese woman shows her ink-marked thumb after voting in Shmustar, Bekaa valley. EPA
    A Lebanese woman shows her ink-marked thumb after voting in Shmustar, Bekaa valley. EPA
  • People queueing to vote at Ras El Nabeh Public School for Girls. Fatima Al Mahmoud/ The National
    People queueing to vote at Ras El Nabeh Public School for Girls. Fatima Al Mahmoud/ The National

Student Of The Year 2

Director: Punit Malhotra

Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal 

1.5 stars

Five expert hiking tips
    Always check the weather forecast before setting off Make sure you have plenty of water Set off early to avoid sudden weather changes in the afternoon Wear appropriate clothing and footwear Take your litter home with you
Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
The National in Davos

We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.

Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

US tops drug cost charts

The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.

Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.

In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.

Some of the costliest drugs worldwide include Lipitor for high cholesterol. 

The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.

High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.

Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

Other IPL batting records

Most sixes: 292 – Chris Gayle

Most fours: 491 – Gautam Gambhir

Highest individual score: 175 not out – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Highest strike-rate: 177.29 – Andre Russell

Highest strike-rate in an innings: 422.22 – Chris Morris (for Delhi Daredevils against Rising Pune Supergiant in 2017)

Highest average: 52.16 – Vijay Shankar

Most centuries: 6 – Chris Gayle

Most fifties: 36 – Gautam Gambhir

Fastest hundred (balls faced): 30 – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Fastest fifty (balls faced): 14 – Lokesh Rahul (for Kings XI Punjab against Delhi Daredevils in 2018)

 

Specs – Taycan 4S
Engine: Electric

Transmission: 2-speed auto

Power: 571bhp

Torque: 650Nm

Price: Dh431,800

Specs – Panamera
Engine: 3-litre V6 with 100kW electric motor

Transmission: 2-speed auto

Power: 455bhp

Torque: 700Nm

Price: from Dh431,800

UAE currency: the story behind the money in your pockets
WITHIN%20SAND
%3Cp%3EDirector%3A%20Moe%20Alatawi%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Ra%E2%80%99ed%20Alshammari%2C%20Adwa%20Fahd%2C%20Muhand%20Alsaleh%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A

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 years Ramadan fell in May

1987

1954

1921

1888

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

UAE finals day

Friday, April 13
Rugby Park, Dubai Sports City

3pm, UAE Conference: Dubai Tigers v Sharjah Wanderers
6.30pm, UAE Premiership: Dubai Exiles v Abu Dhabi Harlequins

Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

About Housecall

Date started: July 2020

Founders: Omar and Humaid Alzaabi

Based: Abu Dhabi

Sector: HealthTech

# of staff: 10

Funding to date: Self-funded

Updated: May 17, 2022, 2:12 PM