Within hours of the massive explosion that devastated neighbourhoods and killed more than 100 people across Beirut on Tuesday, people opened their doors to the hundreds of thousands made homeless by the blast.
Jad Haddad wasn’t in his Ashrafieh apartment when the shock waves ripped through Beirut’s streets. He was asleep 40 minutes away at his mother’s house in Jounieh.
“I got woken up by the blast; we thought it was an earthquake,” the 23-year-old medical student said.
Shaken, he and his brothers turned on the news and saw the scenes of devastation. Then they called neighbours and family in Beirut, who confirmed the carnage. Houses had been torn apart, shop fronts blown out and the streets were paved in shattered glass.
"So we opened our home because we genuinely believe we have a duty to our sisters and brothers in these sad sad times," he told The National.
His family was among the first to offer shelter to Beirutis whose houses were rendered unliveable within seconds of a massive chemical explosion at the city’s port. Officials have said it was caused by more than 2,700 tons of ammonium nitrate detonated by accident in a warehouse, after being confiscated from a cargo ship in 2014.
The scale of the damage was immediately apparent as people emerged, dazed and bloodied into the streets, heading for hospitals where overwhelmed emergency rooms struggled to treat more than 4,000 wounded overnight. Others packed what they could from their decimated homes and pulled suitcases over the debris.
Temporary shelters set up by the Lebanese Red Cross have the capacity to deal with about 1,000 of those affected, but according to Beirut City Governor, up to 300,000 have been displaced.
Across Lebanon, people have rallied to help. Thawramap, which usually pinpoints the locations of peaceful protests, set up an online map showing the spaces opening up in private homes, hotels and schools around the country.
By midnight, six hours after the explosion, more than 42 locations were offering rooms or beds to “thousands of people” unable to return home, the platform said.
“Please DM me if you or anyone you know needs shelter. My family home was not affected and is open. We can arrange for transport as well,” Joelle Eid wrote on Twitter.
Simon Khoury, a 35-year-old lecturer in digital analytics, was quick to offer up two bedrooms at his house near the city, posting messages via Facebook and Twitter as offers piled up under the hashtag #ourhomesareopen.
“Lebanese people may be severely politically polarised but luckily, when it comes down to supporting other people in need, they are unique in their motivation to help,” he said.
Mr Khoury had joined a work call on his balcony in the Dbayeh suburbs when everyone felt a strong shake. “Less than a minute later we felt the mega-explosion and froze for a second. I have a clear view of the Beirut port from my living room and in a minute I could see all of Beirut’s seafront engulfed in white smoke. It was a terrifying sight.”
Videos of a huge billow of pink smoke exploding into the sky give a sense of the enormous force of the blast, which was felt more than 150 miles away in Cyprus.
Rawad Taha watched the updates come in with mounting horror from his house in the US. Desperate to help, he started facilitating connections between people offering homes and those searching for a place to stay, finding accommodation for some 30 families displaced by the blast.
The sense of solidarity was immense, Mr Taha said, but this morning he woke up heavy with despair. Like many Lebanese, he wonders how his crisis-ridden country, already collapsing under a failed economy, corrupt political system, widespread protests and increasing cases of Covid-19, will survive this latest catastrophe.
“To be honest, I feel weak, I feel like we lost Beirut forever … for this reason I have booked the first flight to Beirut today to be on the ground with the people of my country.”
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Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
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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.”
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