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Lebanon: A Constitutional Settlement?

Whilst many observers felt that Lebanon’s economic and politic crisis was heading to a boiling point, few would have surely predicted that it would have been so massively exposed by a blast one tenth the size of the Hiroshima bomb, that has damaged half the city, killed almost two hundred people and wounded thousands.
Suddenly Lebanon is back on the front pages but this time it was an assassination or a regional act of war but seemingly bureaucratic incompetence and corruption that has led to such seismic loss. Unsurprisingly within a week the Government had resigned after protests again took to Beirut’s streets, but this time were able to even take over Ministries.
Yet a Lebanese Government resigning is not a rare incident and as the departing Prime Minister Diab bemoaned; corruption in Lebanon was "bigger than the state" itself, and "a very thick and thorny wall separates us from change; a wall fortified by a class that is resorting to all dirty methods in order to resist and preserve its gains."
If Lebanon is not a failed state it is certainly a hybrid state where sub-national and supra-national powers have a greater sovereignty in the real sense than the government itself. The end of the country’s long and devastating civil war was recognised as a balance of forces and compromises both inside and outside the country. The National Pact gave an official constitution and unofficial and unwritten set of instructions that saw the State as a pie to be divided up by the patronage of the country’s different sects.
The dysfunction of this way of governing a country was disguised somewhat by the importance of Lebanon as a playground for regional interests. Large sums of money from Iran and the Gulf poured into various political parties and organisations. The Lebanese diaspora, meanwhile, with a population larger than that of the country itself was another critical economic lifeline to sustain the unsustainable.
Whilst COVID has slowed remittances and the Syrian war and sanctions has squeezed Lebanon’s economy, the realignment of regional power has seen a rise of Iranian influence and declining Gulf influence. Back in 2016 Saudi Arabia urged all its citizens to leave Lebanon and halted aid to the country due to "hostile Lebanese positions resulting from the stranglehold of Hezbollah on the state".
A state of perhaps constructive tension has been replaced by endemic instability all exposed by the blast at the Port of Beirut that left the world asking what next? Over in Syria despite the conflict about to mark a decade of carnage, a new round of United Nation’s constitutional committee talks are scheduled for August 24 in Geneva. Senior UN officials believe that it is in updating the DNA of the country, through its constitution, that a path for a peaceful future may be forged.
It begs the question if one Lebanese Government falls to be replaced by another that has the same underpinning issues, what will have changed? Very little I’d imagine but then the question is do the vested powers and traditional elites in Lebanon accept the need for radical over cosmetic change? Will they, for example, seriously engage in discussions to review and renew the country’s constitution, is there appetite and resilience in the country for a serious look at de-confessionalising the country’s politics to turn the Ministries of the Government from prize assets to be win to drivers of essential change that the country needs to be a better place for its citizens. Or, as some argue, is sectarianism is the only system for Lebanon but can it be done in a better way?
Fundamentally what any discussion around these incredibly contentious and potentially dangerous topics needs, are that the actors who currently hold power be willing to cede some or all of what they have for a larger vision of what the country can become. Some external observers may be amazed that the alternative is possible, that vested interests can oversee half of the nation’s capital city getting blown up and still remain in power.
Yet to the east of Lebanon President Assad remains the figurehead of a country that has seen half its population displaced. Put simply, brutal incompetency is not enough to guarantee a change in the political DNA of a country. Vision and visionaries are what Lebanon needs now, both those without power and perhaps more importantly amongst those currently with it.
by : jamse danselow
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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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