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.”
______________________
Read more:
Saudi Arabia asks citizens to leave Lebanon
US and EU say relationship with Lebanon 'will not change' after Hariri's resignation
Saad Hariri’s resignation was a shock, but what will happen next?
_______________________
Killing of Qassem Suleimani
The drill
Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.
Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”
Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”
Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.”
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Small%20Things%20Like%20These
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The specs
Engine: 2.4-litre 4-cylinder
Transmission: CVT auto
Power: 181bhp
Torque: 244Nm
Price: Dh122,900
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
SPECS
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FIGHT CARD
1. Featherweight 66kg
Ben Lucas (AUS) v Ibrahim Kendil (EGY)
2. Lightweight 70kg
Mohammed Kareem Aljnan (SYR) v Alphonse Besala (CMR)
3. Welterweight 77kg
Marcos Costa (BRA) v Abdelhakim Wahid (MAR)
4. Lightweight 70kg
Omar Ramadan (EGY) v Abdimitalipov Atabek (KGZ)
5. Featherweight 66kg
Ahmed Al Darmaki (UAE) v Kagimu Kigga (UGA)
6. Catchweight 85kg
Ibrahim El Sawi (EGY) v Iuri Fraga (BRA)
7. Featherweight 66kg
Yousef Al Husani (UAE) v Mohamed Allam (EGY)
8. Catchweight 73kg
Mostafa Radi (PAL) v Abdipatta Abdizhali (KGZ)
9. Featherweight 66kg
Jaures Dea (CMR) v Andre Pinheiro (BRA)
10. Catchweight 90kg
Tarek Suleiman (SYR) v Juscelino Ferreira (BRA)
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
The UN General Assembly President in quotes:
YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”
PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”
OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”
REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Sav%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Purvi%20Munot%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24750%2C000%20as%20of%20March%202023%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Angel%20investors%3C%2Fp%3E%0A
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)
Date started: August 2021
Founder: Nour Sabri
Based: Dubai, UAE
Sector: E-commerce / Marketplace
Size: Two employees
Funding stage: Seed investment
Initial investment: $200,000
Investors: Amr Manaa (director, PwC Middle East)
More from Rashmee Roshan Lall
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Killing of Qassem Suleimani
RESULTS
Bantamweight:
Zia Mashwani (PAK) bt Chris Corton (PHI)
Super lightweight:
Flavio Serafin (BRA) bt Mohammad Al Khatib (JOR)
Super lightweight:
Dwight Brooks (USA) bt Alex Nacfur (BRA)
Bantamweight:
Tariq Ismail (CAN) bt Jalal Al Daaja (JOR)
Featherweight:
Abdullatip Magomedov (RUS) bt Sulaiman Al Modhyan (KUW)
Middleweight:
Mohammad Fakhreddine (LEB) bt Christofer Silva (BRA)
Middleweight:
Rustam Chsiev (RUS) bt Tarek Suleiman (SYR)
Welterweight:
Khamzat Chimaev (SWE) bt Mzwandile Hlongwa (RSA)
Lightweight:
Alex Martinez (CAN) bt Anas Siraj Mounir (MAR)
Welterweight:
Jarrah Al Selawi (JOR) bt Abdoul Abdouraguimov (FRA)
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
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.”
Company profile
Company: Verity
Date started: May 2021
Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif
Based: Dubai
Sector: FinTech
Size: four team members
Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors