Anti Hezbollah protesters shout slogans and hold placards with the UN Resolution 1559, which was adopted in Sept 2004, that called for disarmament of all Lebanese and non-Lebanese militias, during a sit-in against Hezbollah and Iran in front the UN headquarters, in Beirut, Lebanon, July 24. Hussein Malla/ AP
Anti Hezbollah protesters shout slogans and hold placards with the UN Resolution 1559, which was adopted in Sept 2004, that called for disarmament of all Lebanese and non-Lebanese militias, during a sit-in against Hezbollah and Iran in front the UN headquarters, in Beirut, Lebanon, July 24. Hussein Malla/ AP
Anti Hezbollah protesters shout slogans and hold placards with the UN Resolution 1559, which was adopted in Sept 2004, that called for disarmament of all Lebanese and non-Lebanese militias, during a sit-in against Hezbollah and Iran in front the UN headquarters, in Beirut, Lebanon, July 24. Hussein Malla/ AP
Anti Hezbollah protesters shout slogans and hold placards with the UN Resolution 1559, which was adopted in Sept 2004, that called for disarmament of all Lebanese and non-Lebanese militias, during a s

Lebanon's sectarian divides are deep, but most in the country want neutrality


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Earlier this month Lebanon’s Maronite Christian patriarch Bishara Al Rai made the first of a series of sermons in which he issued an appeal for Lebanon to be a neutral country and for this neutrality to be recognised internationally. The appeal has opened up fault lines within the country’s sectarian order, placing Hezbollah and many officials in the Shia community in a quandary.

At the heart of the patriarch’s thinking is the fact that today Lebanon is widely perceived in the region and outside it as having fallen under the control of Iran and Hezbollah. Because of this, no Arab country, including historically, supporters from the Gulf, has intervened to assist Lebanon as it faces a major financial crisis and the prospective collapse of its economy.

Yet to reduce Patriarch Rai’s thinking to a matter of money would be a mistake. It goes beyond that to include a conviction about Lebanon’s nature. “Today, Lebanon has become isolated from the whole world,” he stated on July 14. “This is not our identity. Our identity is positive and constructive neutrality, not a warrior Lebanon,” he added, in a clear reference to Hezbollah’s militancy.

The patriarch was harking back to a founding principle of post-Independence Lebanon, one integrated into the defining National Pact agreed in August 1943 between the leading Maronite and Sunni politicians in the country at the time, Bishara Al Khoury and Riad Al Solh.

Among the things they decided was that Lebanon would have an “Arab face” but would also be independent. By this they meant the country would remain at an equal distance from France, then still the mandatory power, and the Arab world. Christians would not seek French or Western involvement in Lebanese affairs, and Sunni Muslims would avoid unification schemes with other Arab states.

Lebanon's Christian Maronite patriarch Beshara Rai (R) meets with France's Foreign Minister Jean-Yves Le Drian in Bekerke north of Beirut on July 23 AFP
Lebanon's Christian Maronite patriarch Beshara Rai (R) meets with France's Foreign Minister Jean-Yves Le Drian in Bekerke north of Beirut on July 23 AFP

This idea of Lebanon as “tilting neither East nor West” took on a more positive role in the years following independence, when Lebanon’s wealth was built on its being a link between East and West. The country was a regional entrepot that benefited financially and politically from its economic accessibility and being on good terms with most of the broader regional and global alignments.

Short of engaging in a civil war, the best that Hezbollah's Lebanese opponents can do is reassert preferences for the country that are well anchored in a national consensus

Therefore, in tying Lebanon’s disastrous economic situation today to the fact that it has abandoned its openness to all sides, Patriarch Rai was implicitly pointing a finger at Hezbollah, which has driven the country into the pro-Iran camp, with its myriad enmities. Following his appeal, local and foreign politicians opposed to Iran’s hold over Lebanon met with the patriarch and many backed his views.

The political and sectarian dividing lines were very clear. Hezbollah and members of the clergy supportive of the party criticised the patriarch’s appeal. Christian politicians allied with Hezbollah, such as President Michel Aoun and his son-in-law Gebran Bassil, were in a bind. While they could not openly oppose their community’s religious leader, they added caveats underlining their lack of enthusiasm for what he had said, against the views of many other Christians.

Some will focus on whether the patriarch’s initiative has any chance of being implemented. The simple answer is no, not in a country where Hezbollah plays a leading political role and intends to keep Lebanon within the Iran-led “axis of resistance.” However, the patriarch did throw a stone into the hitherto serene pond of Hezbollah’s highhandedness in Lebanon. Nor was this new.

The first challenge to Hezbollah’s and Syria’s vision for Lebanon came during the years of the late prime minister Rafik Hariri. At the time, Hariri’s ideal echoed the post-Independence republic—that of a country that would become the region’s business centre, attract outside investment, and appeal to the Arab world and the West. Standing against this was the preference of Hezbollah and Syria for a garrison state that would focus on opposing Israel and the US.

These two visions clashed and in 2005 when Hariri was about to lead a political alliance in legislative elections that could have challenged Syria’s hold on Lebanon he was assassinated. In the aftermath of his killing, Hezbollah sought to reverse the uprising of 2005 that had forced Syria to withdraw from the country, and it began asserting its hegemony over Lebanese institutions.

This push was accompanied by the imposition of Iranian priorities. The party intervened in the Syrian conflict on behalf of the Assad regime in 2013, though it had previously agreed with its Lebanese partners to a policy of “distanciation” that would preclude such an action.

Hezbollah’s main agenda is to keep Lebanon in the Iranian orbit, whatever the price. However, what Patriarch Rai has done is to rip away the facade the party had imposed on all, making it clear that Hezbollah’s model is one that many Lebanese oppose. While the party claims to be a “national resistance,” neutrality towards regional conflicts appears to be much more enticing for many Lebanese.

Does this matter? Short of engaging in a civil war, the best that Hezbollah’s Lebanese opponents can do is reassert preferences for the country that are well anchored in a national consensus. Hezbollah can intimidate those with whom it disagrees but it cannot change minds. It is to Patriarch Rai’s credit that he has shown that the party’s sway over Lebanon is more fragile than it appears, even as his appeal offers a stinging riposte to those in Israel and the US who insist that Lebanon and Hezbollah are one and the same.

Michael Young is editor of Diwan, the blog of the Carnegie Middle East programme, in Beirut

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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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The specs

Engine: 2.0-litre 4-cylturbo

Transmission: seven-speed DSG automatic

Power: 242bhp

Torque: 370Nm

Price: Dh136,814

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.”

Wallabies

Updated team: 15-Israel Folau, 14-Dane Haylett-Petty, 13-Reece Hodge, 12-Matt Toomua, 11-Marika Koroibete, 10-Kurtley Beale, 9-Will Genia, 8-Pete Samu, 7-Michael Hooper (captain), 6-Lukhan Tui, 5-Adam Coleman, 4-Rory Arnold, 3-Allan Alaalatoa, 2-Tatafu Polota-Nau, 1-Scott Sio.

Replacements: 16-Folau Faingaa, 17-Tom Robertson, 18-Taniela Tupou, 19-Izack Rodda, 20-Ned Hanigan, 21-Joe Powell, 22-Bernard Foley, 23-Jack Maddocks.

RESULTS
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Key products and UAE prices

iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229

iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649

iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179

Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.

Gender pay parity on track in the UAE

The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.

"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."

Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.

"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.

As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general. 

SUZUME
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While you're here
Who has lived at The Bishops Avenue?
  • George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
  • Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
  • Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
  • Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills. 
Hunting park to luxury living
  • Land was originally the Bishop of London's hunting park, hence the name
  • The road was laid out in the mid 19th Century, meandering through woodland and farmland
  • Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds

 

Dunki
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The Indoor Cricket World Cup

When: September 16-23

Where: Insportz, Dubai

Indoor cricket World Cup:
Insportz, Dubai, September 16-23

UAE fixtures:
Men

Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final

Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final

Profile Box

Company/date started: 2015

Founder/CEO: Mohammed Toraif

Based: Manama, Bahrain

Sector: Sales, Technology, Conservation

Size: (employees/revenue) 4/ 5,000 downloads

Stage: 1 ($100,000)

Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)