Lebanon's Finance Minister Ali Hassan Khalil takes photos of re-elected Parliament speaker Nabih Berri with Prime Minister-designate Saad Hariri at the parliament in Beirut on May 23, 2018. Reuters
Lebanon's Finance Minister Ali Hassan Khalil takes photos of re-elected Parliament speaker Nabih Berri with Prime Minister-designate Saad Hariri at the parliament in Beirut on May 23, 2018. Reuters
Lebanon's Finance Minister Ali Hassan Khalil takes photos of re-elected Parliament speaker Nabih Berri with Prime Minister-designate Saad Hariri at the parliament in Beirut on May 23, 2018. Reuters
Lebanon's Finance Minister Ali Hassan Khalil takes photos of re-elected Parliament speaker Nabih Berri with Prime Minister-designate Saad Hariri at the parliament in Beirut on May 23, 2018. Reuters

Lebanon's leaders and the marathon task of cabinet formation


  • English
  • Arabic

Government formation in Lebanon is often a herculean task - one that prime minister-designate Saad Hariri implicitly acknowledged last week when he changed his initial prediction that a government would be formed before the end of Ramadan to a more prosaic "after Eid."

The major stumbling block – other than the usual horse-trading of Lebanese politics – was expected to centre on reconciling the strong signals from the US that it wouldn’t abide Hezbollah increasing its influence in cabinet with the party’s call for more seats.

Hezbollah has also floated the idea of it resurrecting the defunct 1970s era ministry of planning instead of taking one of the so-called key sovereign ministries.

Possibly to avoid tension with international supporters of Lebanon’s government, Hezbollah has traditionally avoided taking one of the cabinet’s sovereign ministerial portfolios – defence, interior, foreign affairs and finance — that allow a minister significant executive powers.

Each of those positions is normally reserved for a member of one of Lebanon’s four main sects – Maronite, Shiite, Sunni, and Greek Orthodox. Traditionally Hezbollah has ceded the Shiite position to a member of Amal, one of its Shiite political allies.  The ministry of finance is currently run by Ali Hasan Khalil, and MP and one of Amal head and speaker Nabih Berri’s close advisers.

"We did not ask for a sovereign ministry and we will not ask the Prime Minister-designate for a political ministry because the sovereign ministry will be the share of Amal Movement," Mr Nasrallah said during a televised speech last month. “Hezbollah will work on establishing a Ministry of Planning and will seek to fight corruption as promised.”

Although lapsed for decades, the idea of reappointing a minister of planning has endured.

___________

Read more:

Lebanese politician meet for first parliamentary session

Lebanon's Berri elected for sixth term as speaker

Michael Young: Hezbollah's rise is price Lebanon paid for handing control Syria after civil war

___________

“It has long been a request of Lebanese civil society that the ministry of planning is reintroduced so as to have the minimum level of reflection about the future and Hezbollah might have a candidate for this ministry, but I do not think it is necessarily one of their priorities,” said Karim Bitar, a senior fellow at the Institute for International and Strategic Relations in Paris.

In the previous 30-member cabinet, Hezbollah held two ministerial portfolios.

“This time they’re asking for three,” Mr Bitar said. “What’s important to them is not the number of portfolios per se, but the fact that along with their allies they have what is called a blocking third, which gives them veto rights within the cabinet,” Mr Bitar said.

Hezbollah has previously used that power by walking out of cabinet along with its allies in order to collapse a government formed by Mr Hariri in 2011.

Hilal Khashan, a professor of political science at the American University of Beirut, also said he did not think Hezbollah’s overture represented any red line for negotiations, and that it was a rhetorical point “intended to scare the ruling elite”.

“They know there is no chance it can be formed in Hariri’s forthcoming cabinet,” said Mr Khashan. “They said they would like to have such a ministry if possible. They will not insist on it.”

But now, in tandem with this, prime minister Hariri is seeking to form a cabinet where members of parliament are not serving as ministers – other than himself.

The proposal follows calls for the change by several main parties, including Hezbollah.

Though the two have denied any rift, some have suggested it is also a convenient way for Mr Hariri to side-line Nohad Machnouk, a member of his Future party who is presently serving as the powerful minister of interior.

“The best way to get rid of Nohad Machnouk is to separate parliament from the cabinet,” said Hilal Khashan, a professor of political science at the American University of Beirut.

But Mr Khashan said he doubted everyone would agree to expand Lebanon’s unwritten political rules to include separating MPs from the cabinet, on which there has traditionally been no prohibition.

“The Lebanese system is not used to radical transition,” Mr Khashan said.

But another of those unwritten agreements might give Mr Hariri a different avenue to side-line Mr Machnouk. Though the idea has also been raised of formalizing the assigning of sovereign portfolios to a particular sect – reserving the ministry of finance for a Shiite for example – currently, the appointments are not formally linked.

“If the PM really wants to exclude Machnouk, he will give the interior ministry to the FPM,” said Mr Khashan, referring to the Free Patriotic Movement, the country’s largest Christian political party.

Other groups that support the separation of parliament and cabinet, including Hezbollah, might have their own reasons.

“For Hezbollah, it may mean that if you separate between the cabinet and the position in the cabinet, you can expand recruitment,” Mr Khashan said.

Mr Bitar said such separation could also be a check on corruption — a scourge against which all Lebanese parties rail but for which they rarely offer specific solutions.

Having MPs simultaneously serve as ministers “makes it very difficult for parliament to control what government is doing and be a voice of protest,” he said. “It means there are very few checks and balances left in the Lebanese system.”

While Lebanon is not alone in being a parliamentary system that often takes months to form a government, it does tend to take longer than most as its political class navigates unwritten agreements and engages in horse-trading over appointments.

“Typically a formation of government in Lebanon takes three months,” said Politics professor Imad Salamey from the Lebanese American University. This is longer than the not quite four weeks between Mr Hariri being asked to head the next government and their deadline.

Mr Salamey pointed out that other countries in the region and in Europe have similar systems, using Italy’s current difficulties forming a government as an example.

But in Lebanon, with a plethora of parties requiring their ‘fair’ representation and the need to ensure a confessional balance in a country of 18 official sects, the coalition governments can take months – and in some cases years – to agree.

However, he said a major difference was that in “Lebanon is that the PM doesn’t have a time limit for forming the government.” This can be a blessing and a curse, there’s no way out of a stalemate that can last weeks, months or potentially years.

The last government was formed on December 18, 2016, just a month after Mr Hariri was tasked with leading negotiations and heading the government. By contrast, the previous cabinet headed by Tammam Salam took 10 months to be agreed.

Elie Al Hindy, the head of foreign affairs for the Lebanese Forces, the party that gained the greatest number of seats relative to its previous share in May’s election, said he was also optimistic for the Ramadan deadline.

“The timing doesn’t need to be very long - our assumption is it will take a few weeks, and as usual in Lebanon, everyone will have to back down a little on their demands,” Mr Al Hindy said.

For some, that’s not necessarily great news.

“The most probable scenario is that we are going to have more of the same – the same establishment political parties sharing the pie and there is going to be some more bargaining in the next few weeks, and they will probably find a formula that will as always be unsatisfactory as far as democratic citizenship, but will make the sectarian political party establishment happy,” Mr Bitar said.

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

ASHES FIXTURES

1st Test: Brisbane, Nov 23-27 
2nd Test: Adelaide, Dec 2-6
3rd Test: Perth, Dec 14-18
4th Test: Melbourne, Dec 26-30
5th Test: Sydney, Jan 4-8

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

Sustainable Development Goals

1. End poverty in all its forms everywhere

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

3. Ensure healthy lives and promote well-being for all at all ages

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

5. Achieve gender equality and empower all women and girls

6. Ensure availability and sustainable management of water and sanitation for all

7. Ensure access to affordable, reliable, sustainable and modern energy for all

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

10. Reduce inequality  within and among countries

11. Make cities and human settlements inclusive, safe, resilient and sustainable

12. Ensure sustainable consumption and production patterns

13. Take urgent action to combat climate change and its effects

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

17. Strengthen the means of implementation and revitalise the global partnership for sustainable development

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.”

Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).

UAE currency: the story behind the money in your pockets
Seven tips from Emirates NBD

1. Never respond to e-mails, calls or messages asking for account, card or internet banking details

2. Never store a card PIN (personal identification number) in your mobile or in your wallet

3. Ensure online shopping websites are secure and verified before providing card details

4. Change passwords periodically as a precautionary measure

5. Never share authentication data such as passwords, card PINs and OTPs  (one-time passwords) with third parties

6. Track bank notifications regarding transaction discrepancies

7. Report lost or stolen debit and credit cards immediately

if you go

The flights

Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.

The hotel

Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850

 Events and tours

There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com

For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art. 

More information

For ideas on planning a trip to Scotland, visit www.visitscotland.com

The specs

Engine: 2x201bhp AC Permanent-magnetic electric

Transmission: n/a

Power: 402bhp

Torque: 659Nm

Price estimate: Dh200,000

On sale: Q3 2022 

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

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

The most expensive investment mistake you will ever make

When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.

“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.

This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).

Age

$250 a month

$500 a month

$1,000 a month

25

$640,829

$1,281,657

$2,563,315

35

$303,219

$606,439

$1,212,877

45

$131,596

$263,191

$526,382

55

$44,351

$88,702

$177,403

 

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

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

MATCH INFO

Borussia Dortmund 0

Bayern Munich 1 (Kimmich 43')

Man of the match: Joshua Kimmich (Bayern Munich)

PSA DUBAI WORLD SERIES FINALS LINE-UP

Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)

Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)

RESULTS

2.30pm Jaguar I-Pace – Conditions (PA) Dh80,000 (Dirt)
1,600m 

Winner Namrood, Antonio Fresu (jockey), Musabah Al Muhairi
(trainer) 

3.05pm Land Rover Defender – Maiden (TB) Dh82,500 (D)
1,400m 

Winner Shadzadi, Tadhg O’Shea, Bhupat Seemar 

3.40pm Jaguar F-Type – Maiden (TB) Dh82,500 (Turf) 1,600m 

Winner Tahdeed, Fernando Jara, Nicholas Bachalard 

4.15pm New Range Rover – Handicap (TB) Dh87,500 (D) 1,400m 

Winner Shanty Star, Richard Mullen, Rashed Bouresly 

4.50pm Land Rover – Handicap (TB) Dh95,000 (T) 2,400m 

Winner Autumn Pride, Bernardo Pinheiro, Helal Al Alawi 

5.25pm Al Tayer Motor – Handicap (TB) Dh95,000  T) 1,000m 

Winner Dahawi, Antonio Fresu, Musabah Al Muhairi 

6pm Jaguar F-Pace SVR – Handicap (TB) Dh87,500 (D) 1,600m 

Winner Scabbard, Sam Hitchcock, Doug Watson  

Details

Through Her Lens: The stories behind the photography of Eva Sereny

Forewords by Jacqueline Bisset and Charlotte Rampling, ACC Art Books