BEIRUT // The Lebanese government collapsed last night after the 11 members of a Hizbollah-led opposition bloc resigned from the cabinet.
The walkout follows a protracted political stalemate over the United Nations-backed tribunal investigating the assassination of the former prime minister Rafiq Hariri.
Mr Hariri's son, the current prime minister Saad Hariri, was meeting the US president Barack Obama at the White House when his government fell. He left Washington last night to fly to Paris for talks with the French president, Nicolas Sarkozy.
In a joint statement after the Hizbollah walkout, Mr Obama and Mr Hariri pledged to pursue stability in Lebanon. Hizbollah's actions "only demonstrate their own fear and determination to block the government's ability to conduct its business and advance the aspirations of all of the Lebanese people", the two leaders said.
Since rumours surfaced months ago that the UN tribunal would indict members of Hizbollah, the strength of Lebanon's government has slowly eroded. The cabinet has been paralysed, managing just a single three-hour meeting in the past two months.
"This cabinet has become a burden on the Lebanese, unable to do its work," the energy minister Gebran Bassil said as he announced the resignations, flanked by the other ministers who are stepping down. "We are giving a chance for another government to take over."
Hizbollah and its opposition allies are keen to discredit the tribunal, which they say is a US-Israeli instrument aimed at damaging them.
The tribunal is expected to hand indictments to its pre-trial judge, Daniel Fransen, as early as Monday. When Mr Fransen has reviewed the indictments, they will be made public. The Hizbollah leader Hassan Nasrallah has warned that the group will "cut the hands off" anyone who tries to arrest Hizbollah members named by the tribunal.
Saudi Arabia and Syria, the main patrons of Lebanon's rival political camps, have been working together since July on a peaceful compromise between the two. Few details have been made public on the substance of the initiative, but both sides had come to depend on it for an 11th-hour rescue.
Mr Bassil said the ministers decided to resign after Mr Hariri "succumbed to foreign and American pressures" and turned his back on the Syrian-Saudi efforts.
Lebanon's rival political camps have been made aware of the compromises suggested by the Saudis and Syrians, but doubt was cast over the initiative on Tuesday when Michel Aoun, the Christian leader of the Free Patriotic Movement party and a key Hizbollah ally, said "the initiative has ended without a result" and "Saad Hariri's team has not responded and we have reached a dead end".
US Secretary of State Hillary Clinton, who was in Qatar yesterday, said Hizbollah's attempt to undermine stability in Lebanon was bound to fail. "We view what happened today as a transparent effort by those forces inside Lebanon, as well as interests outside Lebanon, to subvert justice and undermine Lebanon's stability and progress," Mrs Clinton told a news conference.
Saudi Arabia insisted yesterday that a solution to the impasse had to be found within Lebanon. "Saudi Arabia didn't suggest any initiative but it exerted efforts to bring the viewpoints of Lebanese leaders closer," said the Saudi ambassador to Lebanon, Ali Awad Assiri. "These efforts aim at encouraging Lebanese-Lebanese solutions. Only Lebanese solutions can survive," he said.
If a compromise is not reached between Lebanon's political camps by the time indictments are made public, and if the tribunal does indict Hizbollah members, the situation in the country is almost certain to worsen.
"This current crisis will peak. It has not climaxed yet," said Hilal Khashan, a professor of political science at the American University of Beirut. "The situation will not explode violently. I do not see a military takeover ... instead there will most likely be demonstrations and sit-ins."
The effects were immediately felt in Lebanon. Shortly after the Beirut Stock Exchange opened yesterday shares in the largest company on the exchange, the Hariri-owned developers Solidere, dropped about seven per cent. The escalating rhetoric prompted many companies to close shop early, sending their employees home. Televisions blared from houses and radios from passing cars as many Lebanese followed the events.
Rafiq Hariri's assassination in a suicide bombing that killed 22 other people both stunned and polarised Lebanese. He was a Sunni who was a hero to his own community and backed by many Christians who sympathised with his efforts in the last few months of his life to reduce Syrian influence in the country.
foreign.desk@thenational.ae
With additional reporting from the Associated Press and Reuters
What is type-1 diabetes
Type 1 diabetes is a genetic and unavoidable condition, rather than the lifestyle-related type 2 diabetes.
It occurs mostly in people under 40 and a result of the pancreas failing to produce enough insulin to regulate blood sugars.
Too much or too little blood sugar can result in an attack where sufferers lose consciousness in serious cases.
Being overweight or obese increases the chances of developing the more common type 2 diabetes.
Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
The Lowdown
Kesari
Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
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FIXTURES
New Zealand v France, second Test
Saturday, 12.35pm (UAE)
Auckland, New Zealand
South Africa v Wales
Sunday, 12.40am (UAE), San Juan, Argentina
JUDAS AND THE BLACK MESSIAH
Directed by: Shaka King
Starring: Daniel Kaluuya, Lakeith Stanfield, Jesse Plemons
Four stars
MORE ON TURKEY'S SYRIA OFFENCE
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
SPECS
Mini John Cooper Works Clubman and Mini John Cooper Works Countryman
Engine: two-litre 4-cylinder turbo
Transmission: nine-speed automatic
Power: 306hp
Torque: 450Nm
Price: JCW Clubman, Dh220,500; JCW Countryman, Dh225,500
Results
5pm: Wathba Stallions Cup Maiden (PA) Dh 70,000 (Dirt) 1,000m, Winner: Hazeem Al Raed, Antonio Fresu (jockey), Ahmed Al Shemaili (trainer)
5.30pm: Handicap (PA) Dh 85,000 (D) 1,000m, Winner: Ghazwan Al Khalediah, Hugo Lebouc, Helal Al Alawi
6pm: Maiden (PA) Dh 70,000 (D) 1,400m, Winner: Dinar Al Khalediah, Patrick Cosgrave, Helal Al Alawi.
6.30pm: Handicap (TB) Dh 70,000 (D) 1,600m, Winner: Faith And Fortune, Sandro Paiva, Ali Rashid Al Raihe.
7pm: Maiden (PA) Dh 70,000 (D) 1,600m, Winner: Only Smoke, Bernardo Pinheiro, Abdallah Al Hammadi.
7.30pm: Handicap (PA) Dh 70,000 (D) 1,600m, Winner: AF Ramz, Saif Al Balushi, Khalifa Al Neyadi.
8pm: Maiden (PA) Dh 70,000 (D) 2,000m, Winner: AF Mass, Tadhg O’Shea, Ernst Oertel.
Killing of Qassem Suleimani
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
Match info:
Wolves 1
Boly (57')
Manchester City 1
Laporte (69')
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
UAE currency: the story behind the money in your pockets
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Mobile phone packages comparison
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs