Men walk near site of the blast in Beirut's port area, Lebanon on August 8, 2020. REUTERS
Men walk near site of the blast in Beirut's port area, Lebanon on August 8, 2020. REUTERS
Men walk near site of the blast in Beirut's port area, Lebanon on August 8, 2020. REUTERS
Men walk near site of the blast in Beirut's port area, Lebanon on August 8, 2020. REUTERS

US Congress calls for more aid to Lebanon to cope with Beirut blast


Bryant Harris
  • English
  • Arabic

The US Congress is requiring the State Department and the US Agency for International Development (USAID) to increase humanitarian aid to Lebanon next year while funding programmes to facilitate negotiations over Lebanese-Israeli border disputes.

Congress included the Lebanon aid provisions in its gargantuan $2.3 trillion spending bill, which includes a $900 billion Covid-19 stimulus package, which passed the Republican-held Senate 92-6 and the Democratic-controlled House 359-53 on Monday.

President Donald Trump is expected to sign the spending agreement into law. But it will fall to President-Elect Joe Biden’s incoming administration to implement the lion’s share of the massive bill, including the Lebanese aid provisions.

The Trump administration had requested $62.2 million in economic aid to Lebanon for fiscal year 2021. But as in previous years, Congress ignored the proposed aid cut and instead appropriated $112.5 million in Lebanese economic assistance.

The report accompanying the comprise legislation says that the State Department and USAID “shall increase humanitarian assistance, primarily through local NGOs, to help communities impacted” by the Beirut port explosion in August.

The August 4 explosion of ammonium nitrate that had been sitting in Beirut’s port for six years killed at least 204 people, injured another 65,000 and left approximately 300,000 others homeless by destroying large swathes of the city, causing $15 billion in property damage.

The report also clarified that the Beirut port explosion qualifies as a “catastrophic manmade disaster,” thereby enabling Lebanese universities to draw from the $50 million in aid that Congress sets aside for higher education institutions in the Middle East and Asia.

The compromise spending bill also provides $12 billion in scholarships for Lebanese students and another $8 billion in scholarships for refugees residing in Lebanon.

Additionally, the report notes that the spending agreement “includes funds to support programmes to facilitate the resolution of border disputes between Lebanon and Israel.”

The Trump administration is brokering talks between Lebanon and Israel to resolve a maritime border dispute. However, the talks have hit a series of snags in recent weeks.

“Regrettably, despite goodwill on both sides, the parties remain far apart,” Secretary of State Mike Pompeo said in a statement regarding the talks on Tuesday. “The United States remains ready to mediate constructive discussion and urges both sides to negotiate based on the respective maritime claims both have previously deposited at the United Nations.”

The congressional report accompanying the spending compromise also requires the secretary of state to submit a report on Lebanese-Israeli border talks within three months after the president signs the bill into law.

Mr Biden has nominated his national security adviser, Tony Blinken, to serve as secretary of state – but his appointment is subject to the Senate’s approval.

Profile of Udrive

Date started: March 2016

Founder: Hasib Khan

Based: Dubai

Employees: 40

Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.

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Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

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.”

The winners

Fiction

  • ‘Amreekiya’  by Lena Mahmoud
  •  ‘As Good As True’ by Cheryl Reid

The Evelyn Shakir Non-Fiction Award

  • ‘Syrian and Lebanese Patricios in Sao Paulo’ by Oswaldo Truzzi;  translated by Ramon J Stern
  • ‘The Sound of Listening’ by Philip Metres

The George Ellenbogen Poetry Award

  • ‘Footnotes in the Order  of Disappearance’ by Fady Joudah

Children/Young Adult

  •  ‘I’ve Loved You Since Forever’ by Hoda Kotb 
Essentials

The flights

Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours. 

The package

Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.