Saad Hariri, a former Lebanese prime minister, could be tasked with forming a government this Thursday, filling a vacuum that has lasted since early August. The dynamics leading to this moment were released in a notable interview with Mr Hariri almost two weeks ago.
In that interview, Mr Hariri sent a number of messages – some blunt, others more subliminal. Many people expected him to say that he would not be a candidate for prime minister, as he had noted on several occasions previously since resigning in the wake of popular protests in October 2019.
This time, however, he insisted that he was the natural candidate for the post.
He did not even bother to confirm formally that he would stand, so obvious did it seem.
Mr Hariri’s announcement appeared to reflect a shift in the attitude of his regional supporters.
For a long time, Saudi Arabia had not been happy that he seemed to be the front man for a system, they believe, is in large measure controlled by Hezbollah.
That said, Saudi Arabian officials in Beirut had noted that there was no objection to Mr Hariri’s candidacy, as long as he returned to office with a clear programme to implement.
Similarly, Mr Hariri’s attitude also signalled a possible shift in Washington. For the same reasons as Riyadh, the Trump administration had not been enthusiastic about Mr Hariri’s return.
Yet in the aftermath of his announcement, US officials declared their support for the quick formation of a Lebanese government, acknowledging that they had not objection to the former prime minister coming back.
What happened? Mr Hariri had strong French backing and He declared that he had a programme to implement: to move forward with the economic reform plan floated by French President Emmanuel Macron last September in Beirut. At the time, Mr Macron had hoped for the quick formation of a technocratic government to implement it, but this was derailed because of a disagreement between Hezbollah and the Amal Movement (the two main Lebanese Shia parties) and Mr Hariri.
In the aftermath of this setback, however, all sides reaffirmed that they wanted the French plan to succeed, which left a door open for Mr Hariri to throw his hat into the ring, with French encouragement.
Hezbollah and Amal welcomed this move, as it could calm sectarian tensions and side-line the possibility of their having to form another failed government opposed by a majority of Lebanese, similar to that of caretaker prime minister Hassan Diab.
There were two implicit messages in Mr Hariri’s interview. The first he directed at the political class, telling all parties that they should accept his return at the head of a government of technocrats in order to avoid the complete disintegration of the Lebanese economy. In other words, Mr Hariri was proposing a solution that would save the politicians from the consequences of such a collapse.
The second, Mr Hariri directed at his sometime allies Walid Jumblatt, the political leader of Lebanon’s Druze community, and the Lebanese Forces, a Christian party. Both had refused to support his comeback in the past, and he was harsh in implying that with or without their support he would form a government with Hezbollah and Amal.
The strong implication was that both of them, representatives of minority groups, had no interest in opposing an agreement between the major Sunni and Shia parties.
Only time will tell whether Mr Hariri's gamble succeeds and Lebanon can take steps toward a deal with the IMF
On October 16, President Michel Aoun was scheduled to hold parliamentary consultations to name a prime minister.
However, Mr Aoun, realising that Mr Hariri would be anointed and that his son-in-law Gebran Bassil would have no say in the matter, delayed consultations until October 22. In that way he sought to buy time for Mr Bassil to secure his stake in a new Hariri government.
Mr Bassil and Mr Hariri are on bad terms, and one of the conditions the former prime minister had for taking office was that Mr Bassil not control the energy ministry. Mr Bassil’s ambition is to become president, and he could use such control as leverage to secure Mr Hariri’s support for his candidacy. Yet reform of the ministry is also a central aspect of the Macron plan, so Mr Hariri’s priority was always to block a return of Mr Bassil or one of his appointees.
What may have changed is that Hezbollah, which had often supported Mr Bassil against Mr Hariri, appears unwilling to do so this time around. Partly, that’s because the party wants to avoid a complete economic breakdown, which could threaten Lebanon’s stability and therefore its own dominant role in it. Partly, it is because Hezbollah’s priority today is to retain political Shia unity, and therefore to side with Mr Bassil’s bitterest rival, the Parliament Speaker Nabih Berri.
And partly it is because Hezbollah wants to preserve Sunni-Shia relations in Lebanon at a time of regional volatility and on the eve of US elections. Only time will tell whether Mr Hariri’s gamble succeeds and Lebanon can take steps toward a deal with the International Monetary Fund. For now, the political victim of this consensus appears to be Mr Bassil. If reform is the ruling class’s sole path to self-preservation, Lebanon may see more change than had seemed possible.
Michael Young is a senior editor at the Carnegie Middle East Centre in Beirut and a columnist for The National
HIV on the rise in the region
A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.
New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.
Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.
Access to HIV testing, treatment and care in the region is well below the global average.
Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.
About Seez
Company name/date started: Seez, set up in September 2015 and the app was released in August 2017
Founder/CEO name(s): Tarek Kabrit, co-founder and chief executive, and Andrew Kabrit, co-founder and chief operating officer
Based in: Dubai, with operations also in Kuwait, Saudi Arabia and Lebanon
Sector: Search engine for car buying, selling and leasing
Size: (employees/revenue): 11; undisclosed
Stage of funding: $1.8 million in seed funding; followed by another $1.5m bridge round - in the process of closing Series A
Investors: Wamda Capital, B&Y and Phoenician Funds
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Squads
Sri Lanka Tharanga (c), Mathews, Dickwella (wk), Gunathilaka, Mendis, Kapugedera, Siriwardana, Pushpakumara, Dananjaya, Sandakan, Perera, Hasaranga, Malinga, Chameera, Fernando.
India Kohli (c), Dhawan, Rohit, Rahul, Pandey, Rahane, Jadhav, Dhoni (wk), Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Thakur.
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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MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”