Lebanese protesters perform a symbolic funeral for their country. EPA
Lebanese protesters perform a symbolic funeral for their country. EPA
Lebanese protesters perform a symbolic funeral for their country. EPA
Lebanese protesters perform a symbolic funeral for their country. EPA

New bill introduced to Congress could take a toll on Lebanese army


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Earlier this month, the US introduced the largest set of sanctions and proposals against Iran and its allies in the Middle East.

The 111-page proposal by Republican Congressmen recommended a plethora of measures to curb Iran's influence in the Islamic Republic and beyond. Some of these measures include designating Yemen's Houthi rebels as terrorists, aid cuts to Iraq's Ministry of Interior, the Lebanese Army and sanctions on Iran-aligned militias in Iraq, Hezbollah members and, for the first time, on some of their political allies – including former Lebanese foreign minister Gebran Bassil and Speaker of Parliament Nabih Berri.

If passed into law in its current form, the proposal would send shockwaves throughout the region. Yet the bill largely went unnoticed. Renewed protests across Lebanon and Suweida, in regime-held Syria, two countries where an economic crisis is brewing, dominated headlines, in addition to the rolling out of the Caesar Act.

Anti-government protesters continue their demonstrations against the ruling elite, the collapsing of Lebanese currency and increasing prices. EPA
Anti-government protesters continue their demonstrations against the ruling elite, the collapsing of Lebanese currency and increasing prices. EPA

Some of the document’s recommendations were long expected. For instance, the proposition to designate Iran-aligned militias in Iraq, such as the Badr Corps, as terrorist groups, comes as no surprise. It was unlikely that the attacks these groups had launched earlier this year on the US embassy in Baghdad and on American troops would go unpunished. The intention to clamp down on Hezbollah was also foreseeable. The US had already sanctioned two of their sitting members of Parliament last July.

More surprising, however, is that the bill suggests imposing sanctions on state institutions in Iraq and Lebanon, a move that was preceded last April by designating Iran’s Islamic Revolutionary Guards Corps a terror group.

The bill recommends that US funding be blocked for the Iraqi Ministry of Interior and Federal Police, which the authors of the bill believe are under the influence of the Badr Organisation.

Under the new Cabinet of Iraqi Prime Minister Mustafa Al Kadhimi, the Ministry of the Interior is run by Othman Ali Farhood Musheer Al Ghanimi, who is close to Tehran. Additionally, former prime minister Adel Abdul Mahdi oversaw a bloody crackdown on peaceful demonstrations, allowing pro-Tehran militias to kill hundreds of protesters since last October, another reason for the US to slash funds (although an investigation into the matter, ordered by Mr Al Kadhimi, is now underway). The bill also recommends that special waivers, usually granted for Iraq to buy Iranian electricity and gas, are not renewed. Such a move may prompt Iraq to seek alternative solutions with its Arab neighbours, potentially pushing Baghdad further away from Iran’s orbit.

Iraqi Prime Minister Mustafa Al Kadhimi appointed a new national security adviser and head of the National Security Agency. Prime Minister Media Office
Iraqi Prime Minister Mustafa Al Kadhimi appointed a new national security adviser and head of the National Security Agency. Prime Minister Media Office

The same cannot be said, however, about some of the bill’s recommendations on Lebanon. Cutting US aid to Lebanon's military will undermine the only secular institution that can stand up to internal and external threats in a country on the brink. The committee that drafted the bill believes the Lebanese army is under the sway of Hezbollah, an assumption supported by Israeli intelligence. It is problematic, to say the least, that the Congressmen are basing their recommendations on information obtained by Israel, a country still technically at war with Lebanon.

It is also important to note that the Lebanese army has wiped out terrorist groups with the potential to compromise US interests in the region. Since the early 2000’s, the Lebanese Armed Forces fought back extremist incursions in the country from the likes of Islamist leader Ahmad Al Assir and his followers in the Southern city of Sidon, and the terrorist group Fatah Al Islam in Nahr Al Bared Palestinian refugee camp to the north. For the past decade, it has also thwarted several attempts by ISIS, Al Nusra Front and others to take root in Lebanon, in a spillover from Syria’s civil war.

Part of the military’s success in repelling these groups is the aid it receives. The US alone has given the Lebanese army more than $2 billion in funding since 2005, armament and training. This support has allowed the army to remain Lebanon’s last secular institution and endow it with popular support. And while the army has to accommodate Hezbollah, which controls the government and a large chunk of parliament, the two are far from being allies. They are in fact competitors. For instance, Hezbollah supporters allege that the group single-handed defeated ISIS, when it had set up a tiny enclave in the north in 2017. In reality, it was the army that fought the battle. The group also promotes the idea that the army pleaded for its help to beat ISIS but it was never asked to participate in the first place.

SENSITIVE MATERIAL. THIS IMAGE MAY OFFEND OR DISTURB Lebanese army try to block supporters of the Lebanese Shi'ite groups Hezbollah and Amal as they gesture and chant slogans against anti-government demonstrators, in Beirut, Lebanon June 6, 2020. REUTERS/Ali Hashisho
SENSITIVE MATERIAL. THIS IMAGE MAY OFFEND OR DISTURB Lebanese army try to block supporters of the Lebanese Shi'ite groups Hezbollah and Amal as they gesture and chant slogans against anti-government demonstrators, in Beirut, Lebanon June 6, 2020. REUTERS/Ali Hashisho

While the Republican committee backs its proposal by stating that aid cuts aim to support Lebanese protesters demanding the end of sectarian rule, it fails to truly listen to what those same protesters have to say. Throughout Lebanon’s mass demonstrations that began last October, people on the streets have expressed support for the army, with some protesting in cameo uniforms and holding pro-army banners. This support was particularly apparent in the early days of the uprising and is owed to the army’s special role in Lebanese society.

It is the only state institution still relatively unscathed by sectarianism and political manoeuvring. The army is largely still seen as a neutral, stabilising force and a symbol of Lebanese unity. Denying the Lebanese army any US aid is a highly symbolic gesture that simply sends out the wrong message. It signals to the Lebanese people that the US is seeking to undermine the only unifying institution in their country.

Anti-government protesters have taken to Lebanon's streets since October. EPA
Anti-government protesters have taken to Lebanon's streets since October. EPA

Cutting aid to the army is also dangerous because it feeds into Hezbollah’s propaganda machine. A common trope used by the group to justify its existence is that the army is too weak to protect the country, making Hezbollah and its vast weapons arsenal Lebanon’s sole line of defence. This argument resonates with many in Lebanon’s south, a region occupied by Israel for more than 15 years, where many still have painful memories of having been failed by a collapsed Lebanese state and its fractured army during the war.

The bill also suggests that US taxpayer money must not go to a potential International Monetary Fund bailout of Lebanon at a time of economic crisis. The government of Lebanese Prime Minister Hassan Diab, which claims to be an expert-led Cabinet, is aligned with Hezbollah, opening the door for IMF funds to fall into the wrong hands. Protesters want to see the back of Mr Diab's government and the fall of a ruling sectarian elite that has mismanaged the country's finances, precipitating economic collapse and normalising large-scale corruption.

Cutting aid to the army is also dangerous because it feeds into Hezbollah's propaganda machine

Many experts, however, hold hope that an IMF deal conditioned on substantial reforms would force the country to enact much-needed reforms and curb Hezbollah’s influence.

Yet, for the past three decades, successive sectarian-based governments have been unable to affect change. Even today, at the height of a financial and banking crisis, Beirut is unable to unlock $11 billion in funds pledged at the 2018 Cedar Conference because the money is conditioned on structural reforms.

There is no guarantee the new sanctions and aid cuts will pass in law. US Secretary of State Mike Pompeo has supported renewing waivers for Iraq in the past, as well as providing military aid to Lebanon. But the bill in its current form contains recommendations that, if passed, will take a toll on Lebanon’s security and may push Beirut further away from Washington than ever before.

Aya Iskandarani is a staff Comment writer at The National

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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Engine: Dual synchronous electric motors
Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
Touring range: 591km
Price: From Dh412,500
On sale: Deliveries start in October

TOUCH RULES

Touch is derived from rugby league. Teams consist of up to 14 players with a maximum of six on the field at any time.

Teams can make as many substitutions as they want during the 40 minute matches.

Similar to rugby league, the attacking team has six attempts - or touches - before possession changes over.

A touch is any contact between the player with the ball and a defender, and must be with minimum force.

After a touch the player performs a “roll-ball” - similar to the play-the-ball in league - stepping over or rolling the ball between the feet.

At the roll-ball, the defenders have to retreat a minimum of five metres.

A touchdown is scored when an attacking player places the ball on or over the score-line.

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The specs
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Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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.”

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

THE BIO

Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.

Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.

Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.

Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.

 

 

World Sevens Series standing after Dubai

1. South Africa
2. New Zealand
3. England
4. Fiji
5. Australia
6. Samoa
7. Kenya
8. Scotland
9. France
10. Spain
11. Argentina
12. Canada
13. Wales
14. Uganda
15. United States
16. Russia

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