This week, on the occasion of its Independence Day, Lebanon’s people were reminded of the significance of independence in the integrity of a country’s politics.
Scandals continue to lay bare the country’s malaise, including recently at Lebanon’s central bank.
Alvarez & Marsal, the auditing firm tasked with looking into the bank's records, last week terminated their contract. Lebanon's outgoing finance minister told The National this happened because the firm was not being given the access it needed. Many view this as an attempt to protect a corrupt cadre in the Lebanese elite.
It is another blow to the country’s recovery after a devastating year. A third-party audit of the once-independent bank is a condition for Lebanon securing desperately needed international financial aid.
Beyond the immediate need for aid, a non-politicised central bank is important in any country’s stability. In modern economies like Lebanon, they should contain independent experts that set a country’s monetary policy. While politicians still continue to design the general direction of an economic plan, independent central banks determine and implement specific policies.
Modern economies have favoured independent central banks since the late 20th century. Extracting them from politics prevented leaders manipulating monetary policy, which was both destabilising and unethical, especially in the run up to elections.
It is not just in Lebanon that the independence of central banks has been tested. For Turkish President Recep Tayyip Erdogan, his country’s central bank has served as a scapegoat for government failure, particularly as it struggles through today’s difficult economic environment and the impacts of economic mismanagement. To bring it in-line, Mr Erdogan issued a decree in 2018 allowing him to appoint its leadership. Unsurprisingly, before elections in 2019, the bank approved a well-timed $2 billion package to keep the lira afloat.
In Britain, pro-Brexit politician Jacob Rees-Mogg called the former governor of the Bank of England, Mark Carney, who is from Canada, an “enemy of Brexit” and a “failed second-tier Canadian politician”, after Mr Carney warned Brexit might cause a technical recession.
In the US, the world has become used to President Donald Trump frequently firing off tweets criticising Federal Reserve forecasts, policies and staff.
In India, opposition politicians have levelled accusations that the government pressured the central bank in New Delhi for funds to encourage poor rural Indians to vote.
In South Africa, the central bank is under intense political pressure to increase rate cuts in response to the pandemic.
Even in New Zealand’s thriving liberal democracy, some politicians are asserting themselves on issues previously entirely reserved for the central bank, as pressure builds in the country’s post-pandemic response.
The record of central banks has not been perfect. Policy has sometimes been over cautious, hampering the pace of growth. Forecasts have been, on occasion, too pessimistic and, of course, not enough was done to prevent the 2008 financial crisis.
Anti-government protesters shout slogans during a protest to denounce the naming of former premier Saad Hariri as a potential candidate as the country's new prime minister, in downtown Beirut, Lebanon. AP Photo
Anti-government protesters shout slogans during a protest against former Prime Minister Saad Hariri in downtown Beirut. EPA
Anti-government protesters shout slogans during a protest against former Prime Minister Saad Hariri in downtown Beirut. EPA
Supporters of former Lebanese Prime Minister Saad Hariri shout slogans against anti-government protesters during a protest against former Prime Minister Saad Hariri in downtown Beirut. EPA
An anti-government protester holds an Arabic placard that reads: "Saad don't dream on it any more," during a protest to denounce the naming of former Prime minister Saad Hariri as a potential candidate as the country's new prime minister, in downtown Beirut. AP Photo
Anti-government protesters carry a national flag during a protest against former Prime Minister Saad Hariri in downtown Beirut. EPA
Members of the Lebanese security forces intervene after the ‘Revolution fist’, symbol of Lebanon’s October 2019 uprising, was set on fire during clashes between anti-government protesters and supporters of former prime minister Saad Hariri, in the capital Beirut's central Martyr's square. AFP
The symbol of the October revolution is set on fire allegedly by supporters of former Prime Minister Saad Hariri at Martyr's square. EPA
The ‘Revolution fist’, symbol of Lebanon’s October 2019 uprising, burns after it was set on fire during clashes between anti-government protesters and supporters of former prime minister Saad Hariri, in the capital Beirut's central Martyr's square. AFP
A Lebanese man raises a national flag as the ‘Revolution fist’, symbol of Lebanon’s October 2019 uprising, burns after being torched during clashes between anti-government protesters and supporters of former prime minister Saad Hariri, in the capital Beirut's central Martyr's square. AFP
Stable and confident central banks are an ingredient to stable and confident countries
But their gradual politicisation in the long term benefits very few. Even in Turkey, figures like the country’s new finance minister are now adopting a strikingly emollient line, ordering officials at the central bank to do “what the law says”.
Perhaps an abandonment of the independence of institutions is beginning to backfire. It does not help that the effects of irresponsible monetary policy can take years to manifest. By this stage, there is a risk it will be too late to undo damage.
Stable and confident central banks are an ingredient to stable and confident countries. It is an ingredient in short supply in Lebanon, and so it was unsurprising that the atmosphere there during this year’s Independence Day was less than celebratory. Policymakers in Beirut, and elsewhere around the world, must be careful that independence does not apply only to leaders liberating themselves from accountability.
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples. Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts. Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
UAE currency: the story behind the money in your pockets
Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
Research equivalent Airbnb homes in your location to ensure competitiveness.
Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
MATCH STATS
Wolves 0
Aston Villa 1 (El Ghazi 90 4' pen)
Red cards: Joao Moutinho (Wolves); Douglas Luiz (Aston Villa)
In 2018, the ICRC received 27,756 trace requests in the Middle East alone. The global total was 45,507.
There are 139,018 global trace requests that have not been resolved yet, 55,672 of these are in the Middle East region.
More than 540,000 individuals approached the ICRC in the Middle East asking to be reunited with missing loved ones in 2018.
The total figure for the entire world was 654,000 in 2018.
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
Cryopreservation: A timeline
Keyhole surgery under general anaesthetic
Ovarian tissue surgically removed
Tissue processed in a high-tech facility
Tissue re-implanted at a time of the patient’s choosing
Full hormone production regained within 4-6 months
UAE squad Rohan Mustafa (captain), Chirag Suri, Shaiman Anwar, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Saqlain Haider, Ahmed Raza, Mohammed Naveed, Imran Haider, Qadeer Ahmed, Mohammed Boota, Amir Hayat, Ashfaq Ahmed
Fixtures Nov 29-Dec 2
UAE v Afghanistan, Zayed Cricket Stadium, Abu Dhabi
Hong Kong v Papua New Guinea, Sharjah Cricket Stadium
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.”
More than 2.2 million Indian tourists arrived in UAE in 2023 More than 3.5 million Indians reside in UAE Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
