Given that the world marked the International Day of Happiness recently, it’s worth reflecting on what role happiness plays in a rapidly changing Middle East. In some countries, it is a quality in short supply.
According to this year's World Happiness Report – a collaboration between pollsters Gallup, the Oxford Wellbeing Research Centre and the UN Sustainable Development Solutions Network – Lebanon was ranked as the third-unhappiest country in the world. This designation felt challenging for a nation that already faces armed conflict, economic difficulties, political gridlock and regional tensions.
But do such descriptions tell the full story? The World Happiness Report relies on average scores from the Gallup World Poll, in which respondents rate their happiness on a scale from one to 10. What some readers may not realise is that mathematicians, statisticians and economists have long cautioned against using averages for this type of data.
Looking at the median happiness level – a more robust measure of central tendency for this type of variable – reveals something surprising: using World Value Survey data, one can see that most Arab countries, including Lebanon, share the same median happiness category as the Netherlands, which ranks sixth globally in the same World Happiness Report.
Now, in early 2025, both Lebanon and its neighbour Syria stand at a critical crossroads. With new governments seeking to rebuild their countries, an essential question emerges: should these new administrations place their populations’ happiness at the centre of their development and reconstruction objectives?
While measurement specialists might find ways to address the statistical issues noted earlier, a more fundamental question remains: should any happiness metrics, however well-measured, guide policymakers in Lebanon and Syria as they rebuild? I believe not, and here’s why.
Consider what behavioural science tells us about happiness: it’s an evolutionary mechanism that helps us make survival decisions. We feel happy when reality exceeds expectations and unhappy when it falls short. Since expectations constantly adjust, happiness measurements fluctuate with context, making them unstable foundations for national policy.
Think of a Syrian family who lost their home during the civil war but found safe shelter in a refugee camp. If interviewed right after finally finding the shelter, their reported happiness might be surprisingly high simply because they are relieved to be alive. Should policymakers interpret this as success? Obviously not. The dramatic swings in self-reported happiness that often follow major life events demonstrate how these metrics can mislead when used to guide long-term development strategies.
The focus on happiness as a development goal stems from utilitarianism, a 19th-century political philosophy that modern thinkers have extensively challenged. Instead, development economists like Nobel laureate Amartya Sen advocate for a capabilities approach, measuring development by people’s actual freedoms and opportunities rather than their subjective feelings. This framework asks not “Are you happy?” but “Can you live the life you have reason to value?”
The dramatic swings in self-reported happiness that often follow major life events demonstrate how these metrics can mislead when used to guide long-term development strategies
Many Arab countries have already embraced a framework based on Prof Sen’s capabilities approach. Working with the UN’s Economic and Social Commission for Western Asia, they have developed an Arab Multidimensional Poverty Index (MPI) based on concrete indicators of education, health and living standards. The Palestinian Authority went further in 2020, adding measurements of safety, obstructed access to one’s own assets, freedom of movement and women’s empowerment to their national MPI.
These examples show how governments can use and eventually produce regular statistics to monitor development and create evidence-based policies. Yet even this system has limitations, particularly in addressing development beyond basic deprivation thresholds. Once citizens meet their basic needs, this measurement approach provides little guidance on further progress.
Both Lebanon and Syria face unique challenges that require nuanced approaches. Lebanon must rebuild trust in institutions after years of economic freefall and political deadlock that have devastated the country. The recent conflict with Israel has further compounded these challenges, leaving the country with economic damages estimated at $11 billion by the World Bank.
Many have left, but those who stayed behind endure daily hardships from power cuts to shortages of medicine while shouldering the full burden of the collapse. Syria needs to heal its sectarian divisions while reconstructing infrastructure destroyed by the war. Generic happiness metrics cannot capture these complexities or guide the difficult trade-offs leaders must make.
As these countries stand at historic crossroads, they need development indicators that capture the full spectrum of human development. Beyond measuring income, education and health (physical and mental), they should assess freedoms, personal safety, social cohesion and women’s empowerment. These elements determine whether citizens can lead meaningful lives in their homeland rather than seeking opportunities elsewhere.
Both Lebanon and Syria should embrace an approach that not only addresses multidimensional poverty but extends beyond basic needs in each dimension. This expanded vision recognises that true development continues well after basic deprivation has been addressed, pursuing university education beyond the secondary level threshold, comprehensive healthcare beyond just addressing child malnutrition, and full civic participation beyond minimal safety measures.
With support from international organisations, both countries’ existing statistical agencies could implement regular surveys to monitor these broader indicators. Making this data accessible to academic researchers would create a virtuous cycle: researchers could evaluate policy effectiveness, citizens could hold officials accountable and government leaders could make evidence-based decisions that genuinely improve lives.
This evidence-based approach recognises that happiness matters, certainly, but fleeting emotions make poor policy targets compared to the enduring capabilities that allow people to pursue their own vision of a good life.
The path forward is not about chasing happiness rankings, but building societies where citizens have genuine opportunities to create meaningful lives. Leaders who adopt Prof Sen’s capabilities framework would ensure citizens have the freedom, security and agency to pursue their own paths to happiness, rather than targeting happiness itself as the metric of success.
More from Rashmee Roshan Lall
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2-litre%204-cylinder%20petrol%20(V%20Class)%3B%20electric%20motor%20with%2060kW%20or%2090kW%20powerpack%20(EQV)%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20233hp%20(V%20Class%2C%20best%20option)%3B%20204hp%20(EQV%2C%20best%20option)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20350Nm%20(V%20Class%2C%20best%20option)%3B%20TBA%20(EQV)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EMid-2024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3ETBA%0D%3C%2Fp%3E%0A
OPINIONS ON PALESTINE & ISRAEL
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.”
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The six points:
1. Ministers should be in the field, instead of always at conferences
2. Foreign diplomacy must be left to the Ministry of Foreign Affairs and International Co-operation
3. Emiratisation is a top priority that will have a renewed push behind it
4. The UAE's economy must continue to thrive and grow
5. Complaints from the public must be addressed, not avoided
6. Have hope for the future, what is yet to come is bigger and better than before
Dubai Rugby Sevens
November 30-December 2, at The Sevens, Dubai
Gulf Under 19
Pool A – Abu Dhabi Harlequins, Jumeirah College Tigers, Dubai English Speaking School 1, Gems World Academy
Pool B – British School Al Khubairat, Bahrain Colts, Jumeirah College Lions, Dubai English Speaking School 2
Pool C - Dubai College A, Dubai Sharks, Jumeirah English Speaking School, Al Yasmina
Pool D – Dubai Exiles, Dubai Hurricanes, Al Ain Amblers, Deira International School
WORLD RECORD FEES FOR GOALKEEPERS
1) Kepa Arrizabalaga, Athletic Bilbao to Chelsea (£72m)
2) Alisson, Roma to Liverpool (£67m)
3) Ederson, Benfica to Manchester City (£35m)
4) Gianluigi Buffon, Parma to Juventus (£33m)
5) Angelo Peruzzi, Inter Milan to Lazio (£15.7m
