A beloved bookshop rebuilt from Beirut blast - but Israel's war was a crisis too many


Jamie Prentis
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Aaliya's Books was a beloved bookshop, cafe and community hub that hugged one side of Gourard Street in Gemmayze, a fashionable, bohemian neighbourhood in Beirut near the city's port.

On August 4, 2020, the Beirut blast came crashing through the front of Aaliya's, shattering the glass and nearly caving the roof in.

As a result of the Covid-19 pandemic, Aaliya's was closed at the time. The only people inside were co-owner Niamh and a friend. When the explosion tore through Beirut, Niamh was knocked unconscious when a 20kg sign hit her on one side and a door hit her on the other.

“On a normal Tuesday evening in the summer in August, we could have had 30 or 40 people sat outside there. And, if we did, we could have 20 people dead,” says William Dobson, the co-owner of Aaliya’s.

In the days before the fifth anniversary of the Beirut explosion, the piercing summer sun bounces off the rebuilt exterior windows of Aaliya's. The inside has been rebuilt, refurbished and upgraded, the bottles that shattered in the 2020 explosion replaced.

But there are no customers inside and the doors are locked.

The former Aaliya's Books as it looks today. Mohamad Zanaty for The National
The former Aaliya's Books as it looks today. Mohamad Zanaty for The National

The 2020 explosion was just one of a succession of crises that befell Aaliya's that ultimately became too much to bear and saw it permanently close after one final week of fanfare in December 2024.

The blast was just one of many, almost constant, negative events that made surviving in the chaos no longer an option.

It was indicative of the succession of disasters that have befallen small, locally-run businesses in Lebanon as they try to fight against an almost unending current of problems that means that any form of certainty is impossible.

Perhaps a business could recover from a single devastating event, such as the blast. But that explosion came during an economic crisis – that saw costs soar and people's purchasing power evaporate – and during the pandemic.

Mr Dobson, the co-owner of Aaliya’s, which opened in 2016, could tell you roughly the financial cost of the 2020 explosion. “It’s obviously a significant amount of money lost, but what was lost was the confidence in building a bigger longer term business.”

William Dobson, the co-owner of Aaliya's Books, wanted to make it a place 'not driven by profit but value'. Credit: Jamie Prentis / The National
William Dobson, the co-owner of Aaliya's Books, wanted to make it a place 'not driven by profit but value'. Credit: Jamie Prentis / The National

But the greater cost was much deeper: “People lost hope,” he said.

“Even post-explosion and post-recovery, what you end up losing is ambition, an ambition that was lost not just in terms of the people who were working for us and saw less of a future for themselves,” he said from Beirut, days ahead of the fifth anniversary of the port explosion that killed more than 220 people and shattered the city.

“But also I think for us we felt less ambitious in what we were able to achieve and we felt less confident in the thing that we were doing.”

Fresh space

Aaliya’s was set up in 2016 to be something new, a fresh space that allowed people to talk and expresses themselves, “not driven by profit but driven by value”.

Its nightly events were legendary, from the musical performances, speakers, book readings, dancing and much more. When anti-government protests broke out in the autumn of 2019 – which at the time were full of hope that a new Lebanon could be ushering its way in – they were often centred in the nearby Martyr's Square that sits adjacent to Gemmayze.

As a result, Aaliya's was often the place where many of those reports were filed to news desks around the world. Mr Dobson talks of as many as 300 customers a day at one point.

But then any optimism over the nationwide protest and potential change quickly subsided as the extent of the economic crisis, one of the worst in modern history, became so starkly apparent.

And from a financial perspective, the biggest hit was not from the blast but the economic crisis.

Beirut's port explosion killed scores of people and was widely blamed on mismanagement by Lebanon's ruling class. Getty Images
Beirut's port explosion killed scores of people and was widely blamed on mismanagement by Lebanon's ruling class. Getty Images

Economic woes

Mr Dobson recalls having to deal with a succession of dizzying, ever-changing exchange rates. Even at the times when things did look up, the constant power cuts, challenges of importing books and the soaring price of fuel were just some of the almost constant headaches.

Even as the pandemic persisted and businesses had to close, the footfall fell but overheads did not. Aaliya's was insistent that it would keep paying its staff, in keeping with the business it sought to be.

Mr Dobson said he wanted the bookshop to be somewhere where people could thrive; they could “start off a busboy and become a manager”.

“When you’re trying to do something and you think you’re making a difference and you see the differences that you are making. You’re seeing people read, you’re seeing people coming to story telling nights,” he said, giving the example of the some 300 people who came when Aaliya’s first opened to a story telling night by a collective called Cliffhangers.

“It was kind of indicative of something more compelling that there was a yearning for spaces like this in the city and a specific moment in time.”

“And that became harder to justify after the explosion because it almost felt like what’s the [point] in making micro-improvements when you can see every single one of those improvements disintegrate both literally and figuratively in the space of 30 seconds.”

“It becomes very hard to wake up every day, continue to go to work, to invest where you might need to invest, to renovate, to spend money – because you have to spend money sometimes in a business. But suddenly the idea of spending money became anathema to us because what are we going to do, spend money and see it disappear in another explosion?”

“When you’re trying to building something sustainable and long term, after the explosion the idea of doing sort of because almost impossible to comprehend because what are you doing to do, build something long term and see it destroyed?”.

Aaliya's Books rebuilt from the Beirut blast but later had to close under severe economic pressure. Photo: Mr Dobson
Aaliya's Books rebuilt from the Beirut blast but later had to close under severe economic pressure. Photo: Mr Dobson

Headaches continue

Aaliya's did reopen after months of rebuilding in the wake of the Beirut blast. But the headaches did not stop coming. The economic crisis was still rearing its head, power cuts were regular and energy inflation was running at 3,000 per cent at one point.

“So in some ways the explosion, it was one event. And it was a horrific event and traumatic. It traumatised the population and I don't think anyone here has recovered from it, I'm not sure they’ll ever recover from it. But also I think on some level it allows one to forgot about what was also going on at the time, which economically was far harder to deal with," Mr Dobson said.

Things picked up again throughout 2022 and moving into 2023.

“And then October 7 happened... in some ways a hammer blow,” Mr Dobson says of the day in 2023 when the war in Gaza broke out, which ultimately would engulf Lebanon and see Israel invade and declare all out war last year.

There was talk with an investor, not just one with capital, but the experience to help a functioning business to drive it forward and could help with things like the back office, social media and accounting. But they turned their attention elsewhere as another crisis was inflicted on Lebanon.

“Something like the explosion, what it does from a sentimental persecutive makes Lebanon not seem like the place that you want to invest in,” Mr Dobson said.

“And then you get to that point when maybe some of that sentiment is starting to shift and people may be looking slightly different because you know it’s been three years since then … you’re seeing those grassshoots of some form of recovery.

“And then October 7 happens and you're sitting on the verge of not just a countrywide war but even potentially a regionally war. You don’t invest, you don’t invest in Lebanon.”

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

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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Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

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Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

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The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

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Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Updated: August 02, 2025, 5:00 AM