Lebanon's Information Minister George Kordahi. AP
Lebanon's Information Minister George Kordahi. AP
Lebanon's Information Minister George Kordahi. AP
Lebanon's Information Minister George Kordahi. AP


How to fix Lebanon's crumbling relations with the Gulf


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  • Arabic

November 01, 2021

After years of political and economic turmoil, the scale of Lebanon’s growing institutional failures is losing the capacity to shock. And yet, politicians in Beirut continue to invent new ways to deepen their country’s quagmire.

Some are egregious gaffes. On Saturday, a video emerged of two senior government officials smirking and shrugging off responsibility for a programme of ration cards that had been promised to help ease people's suffering. Today, 80 per cent of Lebanese live in poverty.

Others are illustrative of the dysfunction at the heart of the system. Last week, an interview recorded in August was released in which the current Lebanese Information Minister George Kordahi expresses support for Iran-backed Houthi rebels in Yemen. His comments have triggered a diplomatic crisis with Gulf countries. Among other incendiary statements, Mr Kordahi asserted that the Houthis are “defending themselves".

There are two components to the massive irresponsibility of this claim. The first is that it is untrue. The statement is, instead, an offensive simplification for Yemenis who are threatened everyday by a hugely violent group that seized their capital, Sanaa, in 2014, forcing an internationally recognised government into exile. Regional and Western diplomats consistently draw attention to the group's sabotage of peace initiatives. Every month there are new signs that they remain committed to aggression. On Saturday, there were reports that the group shelled a residential neighbourhood, killing at least three children from the same family. Contrary to Mr Kordahi's belief, there are no grounds to claim self-defence with such a record.

Lebanese men hold Saudi Arabia, UAE and Egypt flags during a protest against the comments made by Lebanese Information Minister George Kordahi. AP
Lebanese men hold Saudi Arabia, UAE and Egypt flags during a protest against the comments made by Lebanese Information Minister George Kordahi. AP

The second component is that his assessment jeopardises a number of Lebanon's most important diplomatic alliances. Saudi Arabia, the UAE, Kuwait and Bahrain have now recalled their diplomats in Lebanon. These relationships do not just matter to its reputation on the international stage, but affect its very ability to serve and feed people. Trade with Saudi Arabia, for example, has been suspended.

Some of Lebanon's senior politicians have expressed their regret over the episode, re-affirming willingness to maintain strong relations with Gulf countries. In a recent tweet, President Michel Aoun suggested this could be done through more bilateral deals.

In Lebanon, what presidents and prime ministers want is not necessarily what the country gets. And while nothing should get in the way of ministerial accountability, a misstep now could easily lead to the dissolution of Prime Minister Najib Mikati's new government, one that took more than a year to form.

The ability to govern will require the re-establishment of trust both inside and outside the country. It has proved to be a complex and drawn out process. The behaviour of Mr Kordahi, who for years worked for Saudi-owned MBC group, will further undermine these fledgling foundations. He has so far not been held accountable for his actions, thanks to support from factions loyal to Iran.

Potential donors will only assume that their worst fears about the country have been proven right, and vital development funding will never be accessed, delaying reforms and making Lebanon's crises a permanent state of affairs.

But however difficult, this test is one Mr Mikati and Mr Aoun will have to face. If they cannot keep even the closest of allies on side, nor rein in ministers who endanger the country's vital relations, then Cabinet or no Cabinet, the wider government will fail the people it is meant to serve.

TCL INFO

Teams:
Punjabi Legends 
Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
When December 14-17

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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COMPANY PROFILE
Name: Akeed

Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

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'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press

Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

Past winners of the Abu Dhabi Grand Prix

2016 Lewis Hamilton (Mercedes-GP)

2015 Nico Rosberg (Mercedes-GP)

2014 Lewis Hamilton (Mercedes-GP)

2013 Sebastian Vettel (Red Bull Racing)

2012 Kimi Raikkonen (Lotus)

2011 Lewis Hamilton (McLaren)

2010 Sebastian Vettel (Red Bull Racing)

2009 Sebastian Vettel (Red Bull Racing)

 

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
Ahmed Raza

UAE cricket captain

Age: 31

Born: Sharjah

Role: Left-arm spinner

One-day internationals: 31 matches, 35 wickets, average 31.4, economy rate 3.95

T20 internationals: 41 matches, 29 wickets, average 30.3, economy rate 6.28

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

Recent winners

2002 Giselle Khoury (Colombia)

2004 Nathalie Nasralla (France)

2005 Catherine Abboud (Oceania)

2007 Grace Bijjani  (Mexico)

2008 Carina El-Keddissi (Brazil)

2009 Sara Mansour (Brazil)

2010 Daniella Rahme (Australia)

2011 Maria Farah (Canada)

2012 Cynthia Moukarzel (Kuwait)

2013 Layla Yarak (Australia)              

2014 Lia Saad  (UAE)

2015 Cynthia Farah (Australia)

2016 Yosmely Massaad (Venezuela)

2017 Dima Safi (Ivory Coast)

2018 Rachel Younan (Australia)

Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

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

Updated: November 01, 2021, 3:00 AM