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Lebanon: New Crisis, Old Wounds

A Lebanese commentator tweeted recently that “our lives have been reduced to: Electricity. Benzene. Mazout. Medicine. Bottled Water. Don’t get food poisoning”. News about the countries collapse is manifest in warnings from intensive care units about running out of power, or from the UN about the end of clean drinking water for millions in the country. Last week, the price of fuel in Lebanon rose for the second time in less than two months. The government lifted subsidies for gasoline and diesel in an effort to ease shortages, which led to a nearly 66 percent spike in prices since the last hike in late June.
The latest episode of the country’s gridlocked politics means that it is hard for the protestors who’ve emerged at points during the crisis, to know where to focus their energy. Reports of increasing numbers of Syrian refugees returning home due to the desperate nature of the situation are emerging. Meanwhile some Lebanese are forced to move into Palestinian refugee camps to keep rooves over their heads.
One aspect that has not been looked at in much detail is whether the economic strains of the country’s dysfunctional politics will pressurise the sectarian and associated fault lines that defined the country’s civil war of 1975-1990. The all-encompassing challenge to the state was seemingly an issue beyond the country’s traditional politics but there are some signs that the new crisis has the potential to expose all wounds. A dispute over scarce fuel supplies, for instance, ignited sectarian tensions between neighbouring Shi'ite Muslim and Christian villages in southern Lebanon over the weekend, forcing the army to intervene, a security source told Reuters.
Hezbollah has been celebrating the assistance of Iran in sending multiple deliveries of fuel to support the allying Lebanese energy sector, whilst simultaneously bemoaning the US sanctions on the country has contributing to the crisis. It is unclear if the fuel that Iran is providing is making much of a dent in the context of the crisis or if it is being delivered to its allies as opposed to ‘all’ Lebanese, an issue that could widen old cleavages. Indeed, earlier in August in the southern Lebanon district of Hasbaya, Druze villagers stopped a truck carrying a multiple rocket launcher used by Hezbollah in Friday attacks against Israel, in a move reflecting increased opposition within Lebanon to Hezbollah’s military activities against the Jewish state.
An OpEd in an Indian paper argued this month that Lebanon has to ‘set aside’ its sectarian politics in order to break this political-economic logjam that is seeing the country haemorrhage across all facets of state and society. Others have compared the political leadership and the maintenance of the ‘national pact’ allocation of patronage and political power, as playing ‘chicken’ with the international community and its institutions. The logic is that it is not in their interests to see Lebanon collapse in its entirety and so they will blink first and restore financial pipelines to the country. That a country’s leadership can even make such a bet is a testament to their priorities, but they may be fundamentally misreading the mood of the world’s powers who are beleaguered from the Covid response and as the Afghanistan story has shown, more likely to withdraw involvement from parts of the world than increase it.
If the Lebanese political leadership cannot demonstrate any discernible plan ahead then cracks between different elements of it and violence and events at a local level may of course take a momentum of its own. It is often said that collapse can happen very slowly and then all at once, it is not unimaginable to see Lebanon dominate the media headlines of coming months in ways that Afghanistan dominated August unless a change of direction can quickly be found. levant
by: James Denselow levant

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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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