Workers hang a poster of outgoing Prime Minister Saad Hariri in Beirut, Lebanon on November 9,2017. The words in Arabic say, "We are all Saad." Hussein Malla / AP
Workers hang a poster of outgoing Prime Minister Saad Hariri in Beirut, Lebanon on November 9,2017. The words in Arabic say, "We are all Saad." Hussein Malla / AP
Workers hang a poster of outgoing Prime Minister Saad Hariri in Beirut, Lebanon on November 9,2017. The words in Arabic say, "We are all Saad." Hussein Malla / AP
Workers hang a poster of outgoing Prime Minister Saad Hariri in Beirut, Lebanon on November 9,2017. The words in Arabic say, "We are all Saad." Hussein Malla / AP

With Hariri gone, Lebanon is on a dangerous path


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The prime minister of Lebanon, Saad Hariri, resigns suddenly. A senior Saudi Arabian official asserts that Hizbollah controls the Lebanese government. And so the speculation begins on how far Riyadh will go to counter Iranian influence in Lebanon, and whether it could plunge Lebanon into internal chaos.

In the past week, the Saudi government has clearly staked out Lebanon as a theatre of conflict in its ongoing fight against Iran’s growing regional influence. That influence is long-standing in Lebanon, where Iran has backed Hizbollah militarily and financially since the group was founded in the early 1980s.

In the intervening 30 years, Hizbollah has grown from a militia fighting Israeli occupation into a part of Lebanon’s government and security structure. In the Lebanese parliament and cabinet, nothing happens without Hizbollah's approval.

Mr Hariri himself was only able to form a government last year with Hizbollah’s support, and he was well aware that Hizbollah could end his term at any time. The first Lebanese parliamentary elections in a decade, planned for May, could further strengthen Hizbollah’s position.

Thamer Al Sabhan, Saudi's minister of state for Arab Gulf affairs, has led the rhetorical charge against Hizbollah. "We will treat the government of Lebanon as a government declaring war on Saudi Arabia," he said last week.

In the US, President Donald Trump’s administration has also stepped up the rhetoric on Iran, which may have emboldened the Saudis.

The most pressing problem for Lebanon’s government is the economy, which depends on remittances from its citizens working abroad and foreign donations. Despite that, the country’s debt far exceeds its GDP.

After Mr Hariri announced he was resigning, Lebanese politicians were quick to claim the economy would weather the political instability. At the same time, the credit rating agency Moody’s said any prolonged period of political instability could result in Lebanon being downgraded.

The US and the Saudis have both threatened to tighten existing sanctions against Hizbollah and any individuals and institutions connected to it.

“Lebanon is already on the verge of a collapse,” said Hanin Ghaddar, a fellow at the Washington Institute for Near East Policy. “The security situation is very fragile, but the economy is even more fragile.”

“Riyadh has the ability to tighten the noose economically around a state that is already at the breaking point,” said Julien Barnes-Dacey, a senior policy fellow for the European Committee on Foreign Relations Middle East and North Africa programme. “There’s huge structural and economic challenges immediately facing the country that should give Riyadh considerable leverage. A combination of restrictive Saudi measures with wider US sanctions to contain Hizbollah could be really debilitating.”

Lebanon’s economy has also suffered from the six-year civil war next door in Syria, with trade routes cut off and more than  a million refugees taking up residence in Lebanon.

“The question is whether the resilience Lebanon has been touted for in the last four or five years will be sustained, especially on the economic front,” said Randa Slim, a fellow at the Middle East Institute in Washington.

Some analysts have gone so far as to suggest that the Saudis are encouraging an Israeli action against Hizbollah.

"It is plausible that the Saudis are trying to create the context for a different means of contesting Iran in Lebanon: an Israeli-Hizbollah war," wrote Daniel B. Shapiro, a former US ambassador to Israel, in the Israeli newspaper Haaretz this week.

Speculating about when the next war between Hizbollah and Israel might occur is common in Lebanon. Both sides have rattled their sabres in the last year, promising the other they will inflict losses greater than any past conflict. Hizbollah's secretary-general Hassan Nasrallah has said his forces now have longer-range rockets than before and could also press a ground invasion of Israel from Lebanon.

Whether or not that is bluster, it is true that the Syrian civil war has greatly expanded Hizbollah’s ranks. The war has also given its soldiers conventional battlefield experience, creating the possibility that Hizbollah could for the first time operate as an attacking force as well as a guerrilla one focused on defence.

Israeli officials have warned that in a future war, it will not just be Hizbollah that suffers, but all of Lebanon. The last time the two sides fought, in 2006, Israeli aircraft and missiles destroyed bridges and other infrastructure across Lebanon, but the most severe destruction was reserved for Hizbollah-controlled parts of the country.

But most analysts downplay the risks of another such conflict, at least right now.

“Short-term, I do not see a reason for Israel to [strike]. It is achieving its objective by attacking Hizbollah in Syria. This is likely to continue,” said Randa Slim. “It might be in Israel's interest to let this political crisis in Lebanon play itself out,  betting on more fissures inside the Hizbollah-led camp [and] therefore isolating Hizbollah politically in Lebanon.”

In the last five years, Israel has launched strikes more than a dozen times against Hizbollah in Syria, targeting what it says were arms shipments to Lebanon from Iran and arms depots belonging to Hizbollah in Syria.

Mr Barnes-Dacey thinks a tacit tie-up between Riyadh and Tel Aviv for the latter to launch an attack is unlikely. However, “If current developments do lead down a path whereby political paralysis and deepening polarisation and a potentially entrenched or extended Hizbollah overreach into different areas of the state, that could be a moment Israel launches an attack that it has been planning for some time,” he said.

“Maybe the Saudis are pushing toward a war with Hizbollah and Iran, but the question is, who is going to fight this war?” asked Ms Ghaddar. “A war with Hizbollah this time means a war with Iran. I’m not sure Israel will go for a war against Iran in the region alone.”

It is also possible that Lebanon, which has often frequently functioned without a government in the last decade, could simply emerge from the current crisis much the same as before.

“One of the interesting things to watch is does this in fact blow over much more quickly than anticipated?” Mr Barnes-Dacey said. “Strangely enough, I think pressuring Hariri to resign is actually a sign of Saudi reengagement in Lebanon. Over the last year or so, Riyadh had taken a back seat, allowing for the creation of a consensus government. By re-entering the fray, it’s a sign the Saudis do want to contest Iranian hegemony in Lebanon. How far and what they will do remains to be seen.

“Despite Hizbollah’s clear ascendancy, you could hope to contain it and clip its wings, but I would argue that a confrontational military approach would have the opposite effect. Hizbollah is clearly the dominant actor by far in Lebanon, and there’s little to no possibility of shifting that balance of power today. The idea that you can shift that balance or even dream of uprooting Hizbollah seems to be rooted in a complete misreading of the group’s strength on the ground and what it represents.”

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UAE SQUAD

Ali Khaseif, Mohammed Al Shamsi, Fahad Al Dhanhani, Khalid Essa, Bandar Al Ahbabi, Salem Rashid, Shaheen Abdulrahman, Khalifa Al Hammadi, Mohammed Al Attas, Walid Abbas, Hassan Al Mahrami, Mahmoud Khamis, Alhassan Saleh, Ali Salmeen, Yahia Nader, Abdullah Ramadan, Majed Hassan, Abdullah Al Naqbi, Fabio De Lima, Khalil Al Hammadi, Khalfan Mubarak, Tahnoun Al Zaabi, Muhammed Jumah, Yahya Al Ghassani, Caio Canedo, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

UAE currency: the story behind the money in your pockets
Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
Leaderboard

63 - Mike Lorenzo-Vera (FRA)

64 - Rory McIlroy (NIR)

66 - Jon Rahm (ESP)

67 - Tom Lewis (ENG), Tommy Fleetwood (ENG)

68 - Rafael Cabrera-Bello (ESP), Marcus Kinhult (SWE)

69 - Justin Rose (ENG), Thomas Detry (BEL), Francesco Molinari (ITA), Danny Willett (ENG), Li Haotong (CHN), Matthias Schwab (AUT)

BUNDESLIGA FIXTURES

Friday (UAE kick-off times)

Borussia Dortmund v Paderborn (11.30pm)

Saturday 

Bayer Leverkusen v SC Freiburg (6.30pm)

Werder Bremen v Schalke (6.30pm)

Union Berlin v Borussia Monchengladbach (6.30pm)

Eintracht Frankfurt v Wolfsburg (6.30pm)

Fortuna Dusseldof v  Bayern Munich (6.30pm)

RB Leipzig v Cologne (9.30pm)

Sunday

Augsburg v Hertha Berlin (6.30pm)

Hoffenheim v Mainz (9pm)

 

 

 

 

 

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.”

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

Biggest%20applause
%3Cp%3EAsked%20to%20rate%20Boris%20Johnson's%20leadership%20out%20of%2010%2C%20Mr%20Sunak%20awarded%20a%20full%2010%20for%20delivering%20Brexit%20%E2%80%94%20remarks%20that%20earned%20him%20his%20biggest%20round%20of%20applause%20of%20the%20night.%20%22My%20views%20are%20clear%2C%20when%20he%20was%20great%20he%20was%20great%20and%20it%20got%20to%20a%20point%20where%20we%20need%20to%20move%20forward.%20In%20delivering%20a%20solution%20to%20Brexit%20and%20winning%20an%20election%20that's%20a%2010%2F10%20-%20you've%20got%20to%20give%20the%20guy%20credit%20for%20that%2C%20no-one%20else%20could%20probably%20have%20done%20that.%22%3C%2Fp%3E%0A
MIDWAY

Produced: Lionsgate Films, Shanghai Ryui Entertainment, Street Light Entertainment
Directed: Roland Emmerich
Cast: Ed Skrein, Woody Harrelson, Dennis Quaid, Aaron Eckhart, Luke Evans, Nick Jonas, Mandy Moore, Darren Criss
Rating: 3.5/5 stars

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

The Bio

Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity

Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
Polarised public

31% in UK say BBC is biased to left-wing views

19% in UK say BBC is biased to right-wing views

19% in UK say BBC is not biased at all

Source: YouGov

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

The specs

Price: From Dh529,000

Engine: 5-litre V8

Transmission: Eight-speed auto

Power: 520hp

Torque: 625Nm

Fuel economy, combined: 12.8L/100km

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

if you go

The flights

Flydubai flies to Podgorica or nearby Tivat via Sarajevo from Dh2,155 return including taxes. Turkish Airlines flies from Abu Dhabi and Dubai to Podgorica via Istanbul; alternatively, fly with Flydubai from Dubai to Belgrade and take a short flight with Montenegro Air to Podgorica. Etihad flies from Abu Dhabi to Podgorica via Belgrade. Flights cost from about Dh3,000 return including taxes. There are buses from Podgorica to Plav. 

The tour

While you can apply for a permit for the route yourself, it’s best to travel with an agency that will arrange it for you. These include Zbulo in Albania (www.zbulo.org) or Zalaz in Montenegro (www.zalaz.me).

 

The specs: 2018 Ducati SuperSport S

Price, base / as tested: Dh74,900 / Dh85,900

Engine: 937cc

Transmission: Six-speed gearbox

Power: 110hp @ 9,000rpm

Torque: 93Nm @ 6,500rpm

Fuel economy, combined: 5.9L / 100km

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

The biog

Name: Abeer Al Shahi

Emirate: Sharjah – Khor Fakkan

Education: Master’s degree in special education, preparing for a PhD in philosophy.

Favourite activities: Bungee jumping

Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.