As Lebanon's cabinet formation process drags on, President Michel Aoun and his son-in-law Gebran Bassil are attempting to ensure that any new government allows them to advance their political agenda. This involves two primary objectives: saving Mr Aoun's shipwreck of a presidency and guaranteeing that Mr Bassil will become the next president, in 2022.
Saad Hariri, who was designated in October to form a government, has been unable until now to come to an agreement with Mr Aoun and Mr Bassil over certain ministerial portfolios. Normally, under the Taif agreement of 1989, whose clauses were integrated into the constitution, the prime minister-designate “signs the decree forming the government with the president”. Mr Aoun has re-interpreted this vague clause to negotiate over Mr Hariri’s ministerial choices.
Before Mr Hariri was chosen by parliament to head the new government, the president had implicitly warned that he would defend his interests in the cabinet-formation process. This had come after Mr Aoun was compelled, principally by Hezbollah, to go ahead with parliamentary consultations leading to Mr Hariri's being tasked with forming a government. The President's preference was to agree over a cabinet prior to Mr Hariri's designation.
Since then Mr Aoun and Mr Bassil have fought hard for power in a new cabinet, mainly because both fear they may pay the highest price for widespread popular resentment against Lebanon’s political cartel. Their demands are a good indication of their strategy for the remaining two years of Mr Aoun’s term. Mr Aoun and Mr Bassil have demanded the Justice Ministry and the Interior Ministry, as well as what is known as a “blocking third” – meaning a certain number of ministers loyal to them whose resignation can bring the cabinet down.
The Justice Ministry is a sign that Mr Aoun intends to use the two years left of his term to open corruption files against his political enemies. In that way he can affirm that he is an honest man who is fighting shady political rivals who have not allowed his presidency to succeed. Such an effort is unlikely to work, all the more so as Mr Bassil’s integrity is a matter of considerable doubt, but it would allow Mr Aoun to create an alterative narrative for his disastrous time in office.
Control of the Interior Ministry, in turn, would mean that Mr Aoun and Mr Bassil would be in charge of organising municipal and parliamentary elections in 2022. It is vital for them to ensure that these elections do not confirm their loss of popularity, which would undermine Mr Bassil’s presidential ambitions.
Hezbollah wants a government soon, for a variety of reasons including growing discontent within the Shiite community
As for the so-called “blocking third”, it appears that Mr Aoun has agreed to give up on this, because Hezbollah asked him to. The thinking behind the demand was that Mr Bassil would collapse the government before the end of Mr Aoun’s term, and engage in blackmail by not allowing the formation of a new one until Lebanon’s leading politicians supported his election as president.
A second facet of Mr Aoun’s and Mr Bassil’s plan is to reinvigorate the presidency, in order to reverse some changes brought about by Taif, which curtailed the powers of the Maronite Christian president. In that way both men could argue that they returned power to the Maronites. Mr Bassil could therefore portray himself as a communal champion meriting the presidency.
A central aspect of this effort is Mr Aoun’s acquiring effective veto power over Mr Hariri’s proposed cabinet line-ups. Since his signature is needed for a government to be formed, the president already has implicit veto power. But at the same time nothing in the constitution states that a president can form a government with the prime minister-designate, which is what Mr Aoun is doing.
There are two problems here. First, the constitution is vague, and there is no credible, independent judicial body in Lebanon to resolve constitutional ambiguities. And second, Mr Hariri agreed with the two main Shiite parties, Hezbollah and Amal, to allow the Shiites to retain the Finance Ministry and sign off on the naming of Shiite ministers. In that way he boxed himself in, opening the door for Mr Aoun to argue that he too should participate in shaping the government.
How long can these political games go on when Lebanon is disintegrating economically? The signs are that Hezbollah wants a government soon, for a variety of reasons including growing discontent within the Shiite community. At the same time, the party does not want to take sides in the Hariri-Aoun dispute to avoid harming its relations with either man. Hezbollah has pressed for a government to be finalised, and may well push harder after the new year.
This will not change the fact that until Mr Aoun leaves office, Mr Bassil will continue to use all the weapons at his disposal to impose himself as the successor to his father-in-law. It is far from certain that Hezbollah will allow him to do so, as this could trap the party into supporting him when it might have other preferences. What is shocking is that the steadily poorer Lebanese population, which is suffering the most, seems entirely marginal to the politicians’ calculations.
Michael Young is a Lebanon columnist for The National
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
RESULTS
6.30pm: Maiden (TB) Dh 82,500 (Dirt) 1.600m
Winner: Miller’s House, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Maiden (TB) Dh 82,500 (D) 2,000m
Winner: Kanood, Adrie de Vries, Fawzi Nass.
7.50pm: Handicap (TB) Dh 82,500 (D) 1,600m
Winner: Gervais, Sandro Paiva, Ali Rashid Al Raihe.
8.15pm: The Garhoud Sprint Listed (TB) Dh 132,500 (D) 1,200m
Winner: Important Mission, Royston Ffrench, Salem bin Ghadayer.
8.50pm: The Entisar Listed (TB) Dh 132,500 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
9.25pm: Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
The specs
Price, base / as tested Dh135,000
Engine 1.6L turbo
Gearbox Six speed automatic with manual and sports mode
Power 165hp @ 6,000rpm
Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
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.”
MATCH INFO
Newcastle 2-2 Manchester City
Burnley 0-2 Crystal Palace
Chelsea 0-1 West Ham
Liverpool 2-1 Brighton
Tottenham 3-2 Bournemouth
Southampton v Watford (late)
RESULTS
Manchester United 2
Anthony Martial 30'
Scott McTominay 90 6'
Manchester City 0
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
MATCH INFO
Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)
Russia 0
If you go
The flights
Emirates (www.emirates.com) and Etihad (www.etihad.com) both fly direct to Bengaluru, with return fares from Dh 1240. From Bengaluru airport, Coorg is a five-hour drive by car.
The hotels
The Tamara (www.thetamara.com) is located inside a working coffee plantation and offers individual villas with sprawling views of the hills (tariff from Dh1,300, including taxes and breakfast).
When to go
Coorg is an all-year destination, with the peak season for travel extending from the cooler months between October and March.
MATCH INFO
Maratha Arabians 107-8 (10 ovs)
Lyth 21, Lynn 20, McClenaghan 20 no
Qalandars 60-4 (10 ovs)
Malan 32 no, McClenaghan 2-9
Maratha Arabians win by 47 runs
I Care A Lot
Directed by: J Blakeson
Starring: Rosamund Pike, Peter Dinklage
3/5 stars
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%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EImelda%20Staunton%2C%20Jonathan%20Pryce%2C%20Lesley%20Manville%2C%20Jonny%20Lee%20Miller%2C%20Dominic%20West%2C%20Elizabeth%20Debicki%2C%20Salim%20Daw%20and%20Khalid%20Abdalla%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWritten%20by%3A%20%3C%2Fstrong%3EPeter%20Morgan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%20stars%3C%2Fp%3E%0A
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
3%20Body%20Problem
%3Cp%3E%3Cstrong%3ECreators%3A%3C%2Fstrong%3E%20David%20Benioff%2C%20D%20B%20Weiss%2C%20Alexander%20Woo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EBenedict%20Wong%2C%20Jess%20Hong%2C%20Jovan%20Adepo%2C%20Eiza%20Gonzalez%2C%20John%20Bradley%2C%20Alex%20Sharp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
More on Yemen's civil war
The specs
Engine: 1.6-litre 4-cyl turbo and dual electric motors
Power: 300hp at 6,000rpm
Torque: 520Nm at 1,500-3,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.0L/100km
Price: from Dh199,900
On sale: now
Russia's Muslim Heartlands
Dominic Rubin, Oxford
FA CUP FINAL
Manchester City 6
(D Silva 26', Sterling 38', 81', 87', De Bruyne 61', Jesus 68')
Watford 0
Man of the match: Bernardo Silva (Manchester City)
Results:
Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.