The pressure has been on Lebanese Parliament Speaker Nabih Berri to convene a presidential election session and hold successive rounds of voting until a candidate wins. Reuters
The pressure has been on Lebanese Parliament Speaker Nabih Berri to convene a presidential election session and hold successive rounds of voting until a candidate wins. Reuters
The pressure has been on Lebanese Parliament Speaker Nabih Berri to convene a presidential election session and hold successive rounds of voting until a candidate wins. Reuters
The pressure has been on Lebanese Parliament Speaker Nabih Berri to convene a presidential election session and hold successive rounds of voting until a candidate wins. Reuters


Lebanon would not benefit if the US sanctioned Speaker Nabih Berri


  • English
  • Arabic

October 22, 2024

Israel’s assassination of Hezbollah secretary general Hassan Nasrallah and its apparent subsequent elimination of his likely successor, Hashem Safieddine, has left a vacuum in the group’s political leadership. This creates considerable space for the senior Shiite politician in Lebanon’s governing structure, Nabih Berri, the Speaker of Parliament.

For years, Mr Berri has represented a facade for Hezbollah in the Lebanese state. A highly influential politician, he has also benefited by being the main intermediary with the group, which dominated the political system. In a recent speech, Naim Qassem, Nasrallah’s deputy, described Mr Berri as Hezbollah’s “big brother”. But that praise hid a warning to the Speaker: don’t transgress Hezbollah’s red lines, or else.

There have been reports recently that the administration of US President Joe Biden is trying to push Lebanon’s political class to bring in a new president. Since Parliament elects presidents in the country, the pressure has been on Mr Berri to convene a session for a vote and hold successive rounds of voting until a candidate wins. According to media reports, Washington would like to see the army commander, Joseph Aoun, elected.

Some influential American voices on the Middle East, such as Robert Satloff of the Washington Institute, have mentioned that there is talk in the US capital of sanctioning Mr Berri if he refuses to hold such a parliamentary session. It is doubtful, however, that the Biden administration would do such a thing, as it would only further block the political system in Lebanon and achieve nothing.

According to media reports, Washington would like to see the army commander, Joseph Aoun, elected. AFP
According to media reports, Washington would like to see the army commander, Joseph Aoun, elected. AFP
For many Lebanese, Berri embodies everything that’s wrong about Lebanon’s political class. It’s also true that he is a pragmatist

Understandably, Mr Berri has resisted holding an election, arguing that for this to happen, a consensus must exist around a candidate. He knows that Hezbollah would view a forced election as an American, and Israeli, effort to exploit its vulnerabilities today to impose on it a candidate it does not want. Mr Berri will not isolate himself within his own community on behalf of the Biden administration.

For many Lebanese, Mr Berri embodies everything that’s wrong about Lebanon’s political class. He has been in office since 1992, is regarded by many people as lacking ethics, and was a main defender of the corrupt structure that led to the financial collapse of 2020, depriving millions of Lebanese of their savings. This is undeniable.

Yet it’s also true that Mr Berri is a pragmatist. As he watches the ruin of particularly the Shiite community, because of Israeli bombing, he must surely be thinking of what this means for him and his authority. Though he is 86, the Speaker still clings to power and probably realises that the weakening of his community will necessarily make him weaker. Therefore, he has a vested interest in reaching compromises that can avert such an outcome.

Mr Berri sits at the intersection of the two logics that have prevailed in Lebanon since Hezbollah opened a front with Israel on October 8 of last year, and which escalated dramatically last month. On the one side is a logic of resistance, represented by Hezbollah, which has sustained the conflict with Israel, purportedly in support of Gaza.

On the other is a logic of the state, whereby many Lebanese feel that their country should no longer be carried into war by an armed non-state actor loyal to Iran, which has never bothered to consult the country’s government. They believe that the state must re-assert itself, as must the one institution that retains national credibility, namely the army.

When it comes to the presidency, the logic of resistance points in the direction of Suleiman Frangieh, whom Hezbollah endorsed as its candidate, supposedly because he was the person best able to “defend the resistance”. The logic of the state, in contrast, leads to Gen Aoun, because the armed forces will not only play a central role in any post-war order, but also in maintaining internal security, as the country struggles with how to care for more than 1.2 million angry, dislocated and humiliated Lebanese.

Mr Berri, as head of the last functioning governing institution in the state (the presidency is vacant and the cabinet is ruling in a caretaker capacity), will be essential in shaping which candidate prevails – or more likely what kind of compromise will be reached around a candidate. He will also play a key role in persuading Hezbollah to rally to any accord, even if he will probably have to deal with a party doubly suspicious and intransigent.

One potential direction he may explore with other members of the political leadership is to propose a dialogue to discuss a national defence strategy for Lebanon. Such a strategy has been a code word in the past to integrate Hezbollah’s weapons into the state. Hezbollah has refused to engage in any such discussion, but with many Lebanese deeply hostile to the group’s military autonomy, which dangerously isolates Hezbollah, and the Shiite community devastated, it may be more willing to talk.

There is also another major problem. Mainly Shiite-majority towns, villages and neighbourhoods have been destroyed across Lebanon. To rebuild them and avoid a backlash from its own community, Hezbollah will need assistance from the state, which alone can bring in the funds necessary for reconstruction. That means the group and the state will have to negotiate, which may compel Hezbollah to water down its refusal to compromise.

Mr Berri will be at the heart of this maelstrom, and he will try to widen his margin of manoeuvre with respect to Hezbollah, while preserving his power in the Shiite community and the leverage this gives him. Such calculations suggest he will be a dominant actor in the months ahead, if his health holds out. The only unknown is whether Iran, which today is said to have filled the leadership vacuum in Hezbollah, will go along with the Speaker.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Monster Hunter: World

Capcom

PlayStation 4, Xbox One

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 Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.

 

Updated: October 23, 2024, 1:13 PM