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Lebanon’s Collapse Speeds Up

Khalil Gibran's poem "Pity the Nation" is timelier than ever as his home country accelerates into a phase of “omni-crisis” characterised by more and more chaos and desperate responses from the Lebanese trying to ride out the storm. Speeds Up
Drivers in Lebanon are now paying three to four times the official price for petrol on the black market as shortages of fuel intensify throughout the country. In May the country got darker as two giant barges that had boosted its electricity grid were switched off. More than half of Lebanon’s population is living in poverty, and its financial crisis is likely to rank in the top 10, and possibly even the top three, most severe crises in the world since the mid-1800s, according to the World Bank.
“The increasingly dire socioeconomic conditions risk systemic national failings with regional and potentially global effects,” the World Bank said in a report last month. An association representing Lebanese firms that import medicines has warned of potentially disastrous shortages, as the country's economic crisis deepens. It says "imports have almost completely ground to a halt" in the past month.
For what ‘systemic’ national failings looks like there is no better place to start than the state of the Lebanese armed forces. During the country’s civil war period from the mid-1970s the army disintegration into confessional groups. Since the end of the war the independence of the army has seen it emerge as the most popular institution in the country. The army’s motto is “honor, Sacrifice, Loyalty” and on the 1st of August it celebrates its annual “Army Day” with established pomp and ceremony.
If the famous phrase that an “army marches on its stomach” is true, then things slowed considerably for the Lebanese army in June when they scrapped meat from all meals it offers to soldiers due to the accelerating cost. The Lebanese military roughly employs more than 80,000 soldiers, most of whom earned the equivalent of $800 a month but now take home between $70-$90. That is far from what they need to buy food, pay for commute, educate their children, and for healthcare. More than 3,000 soldiers have reportedly left military service because they can’t support their families. Army chief General Joseph Aoun warned in a speech to officers in March that soldiers were “suffering and hungry like the rest of the people.” Speeds Up
The desperate state of the country’s army was highlighted recently by the new offer for tourists to ride in their helicopters for $150 a trip in US currency. This attempt to bolster their foreign currency and keep soldiers from leaving is in dynamic contrast to the more dangerous missions the army is now being asked to fulfil. At the end of June gunmen took to the streets in the northern Lebanese city of Tripoli, firing in the air and at times throwing stones at soldiers amid rising anger at power cuts, fuel shortages and soaring prices.
Back in March the Speaker of the Lebanese Parliament Nabih Berri said that “the whole country is in danger, the whole country is the Titanic." If the Titanic metaphor holds true then the ability of the army of keep its soldiers and its operational ability is a key test of whether Lebanon can survive the omni crisis that has engulfed the country. The U.S. has given the Lebanese army more than $2 billion since 2007 but at this crossroads in the country’s history would-be donors are demanding political reform before opening their wallets. Such potential reform is largely characterised by its absence with power brokers in the country seemingly comfortable with the status quo. As a recent Chatham House briefing explained “for Hezbollah, having hybrid rather than ‘full’ state status is ideal for maintaining its objective of possessing and exercising power without responsibility to the Lebanese people”. Speeds Up
A country whose political leadership refuse to take responsibility and almost appear in denial as to the current crisis is in a desperate place indeed. What happens if the army is unable or unwilling to respond to the next demonstrations in Tripoli or elsewhere? As one commentator put it; what to do with a “state that refuses to reform even to save itself”. Amongst more and more apocalyptic language it is critically important to keep a laser focus on the state of Lebanon’s army to assess the whether the country’s decline is temporal or terminal. Speeds Up
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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