In recent weeks, the Maronite patriarch, Bechara Al Rai, has taken centre stage in Lebanon's political life. This comes as those in power remain unable to come to an agreement over a new government, even though Lebanon is in the throes of a financial and economic meltdown that has led to widespread poverty.
Patriarch Al Rai has been pursuing a campaign in recent months to begin a process of securing Lebanon's neutrality. More recently, he expanded his demands, asking that a UN conference be held to help break the country's deadlock. At this conference, participants would announce Lebanese neutrality "so that [the country] does not return to being a victim of conflicts and wars and divisions", as the patriarch recently stated at a rally in favour of his proposal.
Not surprisingly, Hezbollah has seen the patriarch’s initiative as being primarily directed against the party and its alliance with Iran. In a speech in February, its secretary general, Hassan Nasrallah, rejected internationalisation of the Lebanese situation, while the party’s ally President Michel Aoun has also taken his distance from Patriarch Al Rai. However, the patriarch’s ideas appeal to many Lebanese, who believe that the international community would be far better in helping Lebanon than the corrupt and failed cartel in power.
A car drives past a poster depicting Lebanon's Hezbollah leader Sayyed Hassan Nasrallah in Bint Jbeil, southern Lebanon, February 16, 2021. Reuters
Several things appear to be motivating the patriarch in taking so bold a public position. The first is that the crisis in Lebanon is leading to a mass exodus of Lebanese, many of them Christians. The system seems so incapable of reforming itself that those leaving are unlikely to return. For a Maronite Church that saw a sharp decline in Christian numbers during the 1975-1990 civil war, averting such a trend is of existential importance.
This is what has led many observers to suggest that Patriarch Al Rai would not have begun his campaign without encouragement from the Vatican. Whether that is true or not, Pope Francis's trip to Iraq last week certainly showed how important the continued presence of Christians in the Middle East is for the Catholic Church.
There is one overriding reason, beyond the Vatican’s possible involvement, that explains Patriarch Al Rai’s efforts. The Maronite Church was vital in pushing for the establishment of Greater Lebanon after the First World War. Its clergy has long considered that it not only has an ecclesiastical role to play, but is an essential guardian of the Lebanese nation and its existence as a sovereign entity.
During the years of the Syrian military presence, Patriarch Al Rai's predecessor, Nasrallah Boutros Sfeir, was a stalwart, if measured, critic of Syrian hegemony over the country. While Patriarch Al Rai came to office sympathetic to Mr Aoun, more recently he has taken a more antagonistic position towards the country's direction, mainly because of Hezbollah's choices. In that way, he has hinted at his implicit misgivings about the President's alliance with the party.
A Lebanese protester carries the potrait of late Maronite Patriarch Cardinal Nasrallah Sfeir ahead of a speech by his successor Cardinal Mar Bechara Boutros al-Rai on February 27, 2021 at the Maronite Patriarchate in the mountain village of Bkerki, northeast of Beirut. AFP
Patriarch Al Rai's initiative underlined that there is still room in Lebanon for politics outside Hezbollah's stranglehold. The party has struggled to retain control over the system since October 2019, when large numbers of Lebanese rose up against the country's political and economic order, denouncing the political class. Hezbollah tried to forestall those protests, as they threatened a political order that had protected the party. However, today it finds itself fighting a losing battle.
Hezbollah is trapped between fulfilling its contract with Iran in remaining ready to fight Israel, ties with Mr Aoun, who is trying to impose his conditions on a new government, effectively blocking it, and the anger of a Lebanese population on the verge of a social explosion as the national currency tumbles. Within Hezbollah areas, the party has failed to guarantee security, as crime is on the rise and rival, heavily armed, tribes frequently fight against one another.
While Hezbollah certainly remains Lebanon’s dominant party, its ability to control a sectarian system laden with rising contradictions is limited. The party was able to use state institutions, such as the army, to maintain order, but the state is in such disarray that those levers are no longer readily available. That is why the patriarch saw an opening to present his alternative narrative.
Lebanese President Michel Aoun has taken his distance from Patriarch Rahi. AFP
Hezbollah appears to take the patriarch's proposal seriously enough that it has sought to nip it in the bud
Can his proposal succeed? Its value at this stage is not that it will be implemented, but that it does two other important things.
First, it shows that a central institution in Lebanese society, the Maronite Church, recognises that the present leadership can neither reform nor present a viable state project that does not involve submission to the interests of an outside regional power. Second, it underlines that Maronite parties that fail to put Lebanon's sovereignty and welfare ahead of all other issues will represent fewer and fewer Christians as the situation deteriorates. This is a shot across the bow of Mr Aoun and his son-in-law Gebran Bassil, who have sided with Hezbollah to advance their own interests, regardless of the damage this has done to Lebanon.
Hezbollah has sought a dialogue with Patriarch Al Rai, while he has avoided making his initiative look as if it were directed against the party. Still, Hezbollah appears to take the patriarch’s proposal seriously enough that it has sought to nip it in the bud. The cleric is unlikely to backtrack, as Lebanon’s situation is too critical.
Michael Young is a senior editor at the Carnegie Middle East Centre in Beirut and a Lebanon columnist for The National
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
Araminta Robertson, of the Financially Mint blog, shares her financial advice for university leavers:
1. Build digital or technical skills: After graduation, people can find it extremely hard to find jobs. From programming to digital marketing, your early twenties are for building skills. Future employers will want people with tech skills.
2. Side hustle: At 16, I lived in a village and started teaching online, as well as doing work as a virtual assistant and marketer. There are six skills you can use online: translation; teaching; programming; digital marketing; design and writing. If you master two, you’ll always be able to make money.
3. Networking: Knowing how to make connections is extremely useful. Use LinkedIn to find people who have the job you want, connect and ask to meet for coffee. Ask how they did it and if they know anyone who can help you. I secured quite a few clients this way.
4. Pay yourself first: The minute you receive any income, put about 15 per cent aside into a savings account you won’t touch, to go towards your emergency fund or to start investing. I do 20 per cent. It helped me start saving immediately.
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
MATCH INFO
Confederations Cup Group B
Germany v Chile
Kick-off: Thursday, 10pm (UAE)
Where: Kazan Arena, Kazan
Watch live: Abu Dhabi Sports HD
What is an ETF?
An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.
There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.
The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.
There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.
While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
How to apply for a drone permit
Individuals must register on UAE Drone app or website using their UAE Pass
Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
Upload the training certificate from a centre accredited by the GCAA
Submit their request
What are the regulations?
Fly it within visual line of sight
Never over populated areas
Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
Users must avoid flying over restricted areas listed on the UAE Drone app
Only fly the drone during the day, and never at night
Should have a live feed of the drone flight
Drones must weigh 5 kg or less
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
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.”
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
