Lebanon's political elite meet amid calls for unity



BEIRUT // Facing a country as well as a political scene deeply divided by regional politics, Lebanon's new president yesterday convened a national reconciliation dialogue aimed at preventing the sectarian tensions that have frequently spilt over into violence in the past two years. Michel Suleiman, the president, led the meeting of 14 representatives from Lebanon's fractious political and ethnic spheres to encourage the pro-western government to negotiate with the Hizbollah-led opposition over the right of the militant Shiite group to remain autonomous and armed. The talks are also designed to help keep a political and military ceasefire between the rival camps in place after widespread political violence broke out in May between the primarily Shiite opposition and Sunni government supporters.

"Agreeing to dialogue in and of itself means that all subjects are open to discussion," Mr Suleiman said as he opened the talks. "The only thing banned here is failure or a reaching a dead end." Many Lebanese believe that keeping the peace between the Future Movement - a Sunni group led by Saad Hariri, son of Rafiq Hariri, the late prime minister - and the Hizbollah-dominated opposition continues to be the biggest challenge faced by Mr Suleiman in his first few months in office.

A former army commander, Mr Suleiman continues to be seen as a trusted broker between both sides, although his influence could be badly damaged by a failure in the dialogue attempts, according to most Lebanese political observers. With the government alliance of Sunnis, Druze and Christians closely aligned with the United States, and Hizbollah considered a close ally of Iran, the spat often takes on regional political elements.

"A faulty or incomplete approach to such a dialogue could backfire and pose a threat to Lebanon's stability. It might also mortally weaken the Lebanese presidency, which is a necessary unifying institution in today's polarized environment," wrote Paul Salem, a political analyst with the Carnegie Institute, in a local commentary piece. Officials described yesterday's talks as a first organisational step towards discussing Lebanon's most difficult issue: whether Hizbollah should remain armed and able to conduct military operations autonomously from the Lebanese government.Walid Jumblatt, who heads the Druze-dominated Progressive Socialist Party and is a Hizbollah critic and opposed to any Syrian influence, met Hizbollah officials before the talks yesterday and offered an olive branch to his rivals after years of bombastic rhetoric.

"[Any] national defence strategy should employ Hizbollah's military capabilities. The defence strategy must make use of Hizbollah's military power, while stressing that the state is the sole authority when it comes to war and peace decisions," he said just before the meeting, which took place in the Presidential Palace complex outside Beirut. Mr Jumblatt typically calls the group illegal and says it is in need of disarming.

Sayyed Hashim Safieddine, a senior Hizbollah official, said the Lebanese should see the group's weapons as "an asset and not a liability. It would be a fatal mistake to go into dialogue with the concept that weapons are a burden on the Lebanese state." As is often the case, the Lebanese seem unable to agree on what they should be discussing. The pro-western government of Fouad Siniora, the prime minister - who is aligned with Mr Hariri - has repeatedly denounced Hizbollah for running a "state within a state" and argues the group should disarm or be integrated into the Lebanese army. Even organising a series of public discussions between the factions required weeks of definitions and arguments over the agenda, as the Future Movement and its Christian and Druze allies have pushed for a package of discussions that would define Lebanon's borders and relationship with Syria.

Although Hizbollah refuses to actually discuss disarming - knowing that the Lebanese government is not powerful enough to make them give up weapons - one key opposition ally said the talks should determine the need for an armed resistance in the south to protect against Israel. Michel Aoun, a former army commander and leader of the Free Patriotic Movement, said: "The dialogue will determine if the resistance is necessary to protect Lebanon. It will also determine who would pull the trigger."

Even as the political elites of Lebanon met amid calls for unity, the country continues to be rattled by small outbursts of sectarian - mostly Sunni versus Shiite - violence. As the dialogue successfully ended with a call to reconvene on Nov 5 (after Mr Suleiman visits both the United Nations and the United States), a sniper opened fire on the funeral in the outlying Beqaa Valley of a man killed overnight in sectarian clashes.

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

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December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'

JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.

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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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Bayer Leverkusen v Augsburg (11.30pm)

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