A general view shows the Foreign Ministers of Arab countries during a meeting of the Arab Economic and Social Development Summit at Phoenicia hotel in Beirut, Lebanon.  EPA

Syria’s shadow hovers over Arab League summit in Lebanon



As the Arab League’s fourth Economic and Social Development Summit officially kicked off Saturday amidst a disappointing turn out, Syria’s absence from the summit was the main topic of conversation, eclipsing the 29 articles on the agenda such as poverty, the role of women, food security and trade.

Since Syrian President Bashar Al Assad regained control of most of the country after an eight-year-long civil war, several Lebanese politicians, including Foreign Minister Gebran Bassil, are calling for Syria’s reintegration into the Arab League. Syria’s membership was suspended in late 2011 after bloodshed sparked by anti-government protests.

“Syria is the biggest absentee in our conference ... Syria should be in our arms rather than throwing it in the arms of terrorism,” Mr Bassil said in his speech Friday. “We should not wait to get permission for its return so that we don’t commit a historic shame by suspending a member because of external orders.” Last week, Iraqi Foreign Minister Mohamed Alhakim also said he supported Syria’s return to the Arab League.

Lebanese newspaper Al Joumhouria reported on Friday that Mr Bassil invited the Syrian ambassador to Lebanon, Ali Abdul Karim, to attend the summit but he declined, saying that the Arab League's position regarding Syria was "not correct".

The Arab League has resisted Lebanon’s lobbying so far. In a joint press conference with Mr Bassil on Friday afternoon, Arab League Secretary General Ahmed Aboul Gheith explained that Arab states still disagree on whether Syria should be reinstated or not.

However, in an earlier, separate press conference, assistant secretary general of the Arab League, Hossam Zaki, seemed to be more open the idea. “The return is inevitable. Syria has not lost its seat," he said, pointing out that Syria had only been suspended, not expelled.

Several Lebanese commentators have already called the summit a “failure” because several heads of state, particularly from the Gulf, pulled out at the last minute.

At least eight heads of state were originally expected in Beirut, but only two presidents, from Mauritania and Somalia, had confirmed their presence by Friday.

In a surprise move, Qatari emir Sheikh Tamim Al Thani confirmed on Saturday that he would arrive in Lebanon the next day to head his country’s delegation.

The UAE delegation is headed by its Economy Minister, Sultan Al Mansouri.

What has become known as “the flag incident” discouraged many heads of state from attending.

Reviving a 40-year old dispute, Hezbollah’s ally Amal removed a Libyan flag to replace it with a party flag a few days before the summit, sparking outrage in Libya which decided to boycott the event.

Amal accuses Libya of being uncooperative about solving the mysterious disappearance of party founder and cleric Musa Sader in Libya back in 1978.

The Lebanese deputy speaker of Parliament, Elie Ferzli, defended Amal’s leader Nabih Berri – also speaker of parliament – on Saturday, arguing that the low turnout was because of the absence of government in Lebanon and not because of the dispute with Libya.

Lebanon has not been able to form a cabinet since the May 2018 parliamentary elections.

__________

Read More:

Assad’s allies in Lebanon are pushing for Syria's return to the Arab League

Analysis: Return of UAE mission to Damascus suggests Gulf states want a say in Syria's future

Musa Sadr and the 40-year disappearance that landed Gaddafi’s son in prison

_________

The fact that the summit was finally held is a small victory, said Jean Tawile, economic adviser to the Kataeb, a political party hostile to Hezbollah. “Even though the level of representation of Arab States does not live up to expectations, it’s positive that the summit was be held at all considering Hezbollah and its allies’ efforts to derail it."

Lebanon also hopes that the Arab League will support its efforts to encourage Syrian refugees to return to their home country. The small country’s weak infrastructure has been severely tested by the presence of nearly 1.5 million Syrians over several years. However, Arab states disagree on how these returns should take place. Mr Bassil said on Friday that it would be discussed further during the summit and called for “real Arab solidarity to share the burden”.

Europe and the US still refuse to support such a return, arguing that a political solution to the conflict must be found first. Russia has stepped in and offered to help, albeit with little tangible result. Refugee return is considered to represent the first step towards Syrian reconstruction.

This topic is not on the summit’s agenda, although the Lebanese caretaker economy minister, Raed Khoury, said that President Michel Aoun would announce the creation of a “structure to finance the reconstruction of destroyed Arab countries” on the summit’s final day on Sunday.

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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.”

Pearls on a Branch: Oral Tales
​​​​​​​Najlaa Khoury, Archipelago Books