A picture taken on June 30, 2020, shows an empty classroom at Our Lady of Lourdes school in the Lebanese city of Zahle, in the central Bekaa region. AFP
A picture taken on June 30, 2020, shows an empty classroom at Our Lady of Lourdes school in the Lebanese city of Zahle, in the central Bekaa region. AFP
A picture taken on June 30, 2020, shows an empty classroom at Our Lady of Lourdes school in the Lebanese city of Zahle, in the central Bekaa region. AFP
A picture taken on June 30, 2020, shows an empty classroom at Our Lady of Lourdes school in the Lebanese city of Zahle, in the central Bekaa region. AFP

Lebanese schools threatened with closure hold out hope for French support


Sunniva Rose
  • English
  • Arabic

One of the handful of historic buildings in downtown Beirut to have survived the 1975-1990 civil war, the school of Saint Anne of Besançon, may not open again in September. A quarter of its usual 800 students have not enrolled yet.

“We keep changing scenarios to adapt to the situation. We are living day by day” said its director, Sister Myrna Farah.

Compounded by confinement measures to curb the spread of the coronavirus, Lebanon’s worst-ever economic crisis threatens the survival of the country’s private schools, where 70 per cent of Lebanese children study.

With the government increasingly struggling to provide basic services such as electricity, Lebanese schools, and particularly French-speaking ones, are placing their hopes in former colonialist power France.

French Foreign Affairs Minister Jean-Yves Le Drian, who arrived in Beirut on Wednesday evening for a 36-hour visit, is expected to add detail to previous announcements made by the French government about Lebanon’s education sector.

“I hope that [his visit] will alleviate the financial blockade that we are under,” said Sister Farah, referring to the cash crisis that forced local banks to limit access to the dollar since November.

Earlier this year, French president Emmanuel Macron said that France would support Christian francophone schools in Lebanon, which represent 11 per cent of the country’s 2,854 schools, as part of a regional support programme.

Additionally, 53 schools accredited by the French Ministry of Education will receive interest-free loans and emergency scholarships for non-French families, depending on their needs.

Lots of families, even those comparably well-off compared to most in Lebanon, are hoping to receive help.

Nayla, who declined to give her family name, has not paid the fees for her two children’s last quarter at school yet.

“It’s not that I don’t have the money, but I’m just so worried about the situation” she said, breaking down as she spoke on the phone.

“We don’t know what will happen. I spend my time trying to buy cheap meat and beans to freeze. I’d rather keep the money for the basics,” she added.

In June, inflation hit 90 per cent, and analysts expect it to worsen.

“The economic collapse is happening in an exponential way,” said Maha Yahya, director of the Carnegie Middle East Centre. “What comes out of it cannot be predicted, but what we can predict is greater inflation and that the lira will continue to deteriorate,” she added. The local currency has lost over 80 per cent of its value on the black market since September.

The rapid deterioration of living conditions shocked Sister Farah.

Saint Anne of Besançon, which is located in an upmarket area of Beirut, has schooled sons and daughters of managers of big hotel or restaurant chains.

“It’s very hard for some families to change their lifestyle,” observed Sister Farah. “One child told me that his father could not afford to pay for a birthday celebration…We feel powerless.”

The Lebanese Education Ministry did not respond to questions about the number of Lebanese schools that might close, but Vincent Gelot, head of French Catholic NGO Oeuvres d’Orient, said that 60 out of over 330 Catholic schools could shut down.

Many Lebanese schools have been struggling for years. A law passed in 2017 increased teacher’s salaries, pushing many schools to also increase their fees. “In total, salaries went up by 38 per cent but we only increased fees by 17 per cent” said Sister Louis Michel Kodssieh, who ran the Notre-Dame de l’Assomption school in the northern Lebanese town of Miziara. After three years of deteriorating finances, the school, which is 86 years old, is closing this summer.

“Lebanon’s trilingual education system [French, Arabic, English] is part of its heritage. It’s not a luxury,” said Jean-Christophe Deberre, director of a France’s Secular Mission, or Mission Laïque Française, which runs 5 schools in Lebanon with 8000 students in total.

“We anticipate that there will be 1,500 students less next year, even if it’s very hard to know what will happen,” he said. The Mission is running a deficit of 10 million Euros, which Mr Deberre ascribed to the 2017 law.

Following fierce resistance from parents, the school did not increase registration fees, and did not fire teachers. But this year, 180 teachers will lose their jobs. The French support programme is “unique”, said Mr Deberre. However, he was not optimistic for the future. “Once it’s over, we’ll be facing a reality that will not have changed,” he said, referring to Lebanon’s economic crisis. “We must get ready for that.”

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

Griselda
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Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada
Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez

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PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Kamindu Mendis bio

Full name: Pasqual Handi Kamindu Dilanka Mendis

Born: September 30, 1998

Age: 20 years and 26 days

Nationality: Sri Lankan

Major teams Sri Lanka's Under 19 team

Batting style: Left-hander

Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)

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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