What next: Hassan Diab’s resignation pushes Lebanon into the unknown


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The aftershocks of last week’s Beirut blast have hit the country’s fragile political balance. Prime Minister Hassan Diab, faced with a drip-feed of resignation letters from his cabinet, announced his departure on Monday night.

The move collapses government and raises the very real question of what comes next for a country beset by economic, financial and refugee crises and reeling from an explosion that has left untold damage.

President Michel Aoun has asked Mr Diab to remain as caretaker prime minister. His ministers – even those who resigned before him – will also be caretakers.

Cabinet will rarely meet now, and they will do so only to pass urgent bills to keep the state functioning but will not look to pass new policy.

  • Lebanese anti-government protesters clash with security forces in the area close to the parliament in Beirut. EPA
    Lebanese anti-government protesters clash with security forces in the area close to the parliament in Beirut. EPA
  • Demonstrators march past a damaged building holding candles and flashlights honouring the victims. AP
    Demonstrators march past a damaged building holding candles and flashlights honouring the victims. AP
  • Lebanese anti-government protesters clash with security forces in the area close to the parliament in Beirut. EPA
    Lebanese anti-government protesters clash with security forces in the area close to the parliament in Beirut. EPA
  • Demonstrators throw stones during a protest following Tuesday's blast in Beirut's port area, in Beirut. Reuters
    Demonstrators throw stones during a protest following Tuesday's blast in Beirut's port area, in Beirut. Reuters
  • Demonstrators try to break a fence during a protest following Tuesday's blast in Beirut's port area. Reuters
    Demonstrators try to break a fence during a protest following Tuesday's blast in Beirut's port area. Reuters
  • Lebanese anti-riot police stand guard atop an armoured vehicle during anti-government protests in central Beirut. AFP
    Lebanese anti-riot police stand guard atop an armoured vehicle during anti-government protests in central Beirut. AFP
  • Demonstrators try to break a glass with a metal bar during a protest following Tuesday's blast in Beirut's port area. Reuters
    Demonstrators try to break a glass with a metal bar during a protest following Tuesday's blast in Beirut's port area. Reuters
  • A protester throws stones against the Lebanese riot police. AP
    A protester throws stones against the Lebanese riot police. AP
  • Demonstrators try to break a fence during a protest following Tuesday's blast in Beirut's port area. Reuters
    Demonstrators try to break a fence during a protest following Tuesday's blast in Beirut's port area. Reuters
  • A Lebanese protester beats a drum amid clashes with security forces near an access street to the parliament in central Beirut. AFP
    A Lebanese protester beats a drum amid clashes with security forces near an access street to the parliament in central Beirut. AFP
  • Lebanese protesters, enraged by a deadly explosion blamed on government negligence, clash with police. AFP
    Lebanese protesters, enraged by a deadly explosion blamed on government negligence, clash with police. AFP
  • Lebanese anti-government protesters clash with security forces in the area close to the parliament in Beirut. EPA
    Lebanese anti-government protesters clash with security forces in the area close to the parliament in Beirut. EPA
  • Policemen withdraw as demonstrators throw stones during a protest following Tuesday's blast in Beirut's port area, in Beirut. Reuters
    Policemen withdraw as demonstrators throw stones during a protest following Tuesday's blast in Beirut's port area, in Beirut. Reuters
  • A demonstrator gestures during a protest following Tuesday's blast in Beirut's port area, in Beirut. Reuters
    A demonstrator gestures during a protest following Tuesday's blast in Beirut's port area, in Beirut. Reuters

They will be unlikely to try to pass more reforms needed to tap into international aid.

In the background, President Aoun will begin consultations with parties, former presidents and prime ministers and others on who should replace Mr Diab as prime minister.

One political source told The National that the three most likely names at this stage are former Prime Minister Saad Hariri; diplomat Nawaf Salam, who is considered close to the United States and former central bank vice-governor Mohammad Baasiri, also a close US ally.

Whoever has the most votes from the consultations is then tasked with forming a government. They will meet political factions and start trying to form a line-up and policy statement that can get a vote of confidence from parliament.

However, as the source pointed out that will take a minimum of 3 months and can often take over a year.

There are calls for early elections but these are – at least constitutionally – not needed for now. But, depending on political will, that could be the aim of a neutral technocratic government brought in to handle the current crisis and pave the way for an election.

This will then raise the perennial question in Lebanon of what electoral law to use. Although politicians expressed dissatisfaction with the hugely complex 2018 law as soon as the votes were cast, that bill took years of difficult negotiations to agree and it will be hard to replace in a hurry.

In the meantime, anger on the streets will probably grow, especially if politicians who are already accused of being detached and ineffectual, spend much of the rest of 2020 arguing over who is in charge.

It is unclear what will happen to the reconstruction of Beirut, the international aid pledged on Sunday or the investigation into those responsible.

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Unresolved crisis

Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.

Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.

The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.

The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

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While you're here ...

Damien McElroy: What happens to Brexit?

Con Coughlin: Could the virus break the EU?

Andrea Matteo Fontana: Europe to emerge stronger

UAE SQUAD

 

Goalkeepers: Ali Khaseif, Fahad Al Dhanhani, Mohammed Al Shamsi, Adel Al Hosani

Defenders: Bandar Al Ahbabi, Shaheen Abdulrahman, Walid Abbas, Mahmoud Khamis, Mohammed Barghash, Khalifa Al Hammadi, Hassan Al Mahrami, Yousef Jaber, Mohammed Al Attas

Midfielders: Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Majed Hassan, Abdullah Hamad, Khalfan Mubarak, Khalil Al Hammadi, Tahnoun Al Zaabi, Harib Abdallah, Mohammed Jumah

Forwards: Fabio De Lima, Caio Canedo, Ali Saleh, Ali Mabkhout, Sebastian Tagliabue

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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

match info

Chelsea 2
Willian (13'), Ross Barkley (64')

Liverpool 0

'Peninsula'

Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra

Director: ​Yeon Sang-ho

Rating: 2/5

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

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MATCH INFO

Champions League quarter-final, first leg

Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports

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UFC%20FIGHT%20NIGHT%3A%20SAUDI%20ARABIA%20RESULTS
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Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

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Know your Camel lingo

The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home

Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless

Asayel camels - sleek, short-haired hound-like racers

Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s

Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival

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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.”

Match info:

Real Betis v Sevilla, 10.45pm (UAE)

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Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

'Saand Ki Aankh'

Produced by: Reliance Entertainment with Chalk and Cheese Films
Director: Tushar Hiranandani
Cast: Taapsee Pannu, Bhumi Pednekar, Prakash Jha, Vineet Singh
Rating: 3.5/5 stars

Match statistics

Abu Dhabi Harlequins 36 Bahrain 32

 

Harlequins

Tries: Penalty 2, Stevenson, Teasdale, Semple

Cons: Stevenson 2

Pens: Stevenson

 

Bahrain

Tries: Wallace 2, Heath, Evans, Behan

Cons: Radley 2

Pen: Radley

 

Man of the match: Craig Nutt (Harlequins)

If you go

The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.

The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.

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Company Profile

Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

Initial investment: Dh75,000

Investor: Dtec Startupbootcamp

Future plan: Looking to raise $400,000

Total sales: Over 1,000 deliveries in three months

Sleep Well Beast
The National
4AD

AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

MATCH INFO

Champions League quarter-final, first leg

Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports