meed-logo

line1 line2 line3
SIGN IN / REGISTER

No end in sight for Lebanon’s economic woes

12 June 2023

This package on Lebanon also includes:

> Political deadlock in Lebanon blocks reforms
> Lebanon moves to secure $150m solar financing
> Dar al-Handasah acquires Turkish consultant
> Eni and Total complete Lebanon gas deal

 

Experts remain pessimistic about the outlook for Lebanon’s economy as the crisis continues to worsen more than three years after it began in 2019.

The country only has a caretaker government and no president – and it is hard to see how it will implement the reforms the IMF says are needed.

On 8 June, IMF spokesperson Julie Kozack said: “Lebanon needs urgent action to implement a comprehensive economic reform programme to arrest the severe and deepening crisis and to allow Lebanon’s economy to recover.”

She added that the IMF was concerned that delays in implementing key reforms were keeping the economy severely depressed.

“We are concerned about irreversible consequences for the economy, especially for the poor citizens of Lebanon and the middle class,” she said.

Lebanon’s currency has weakened dramatically since the start of the country’s economic crisis, plunging much of the population into poverty.

In March, the Lebanese pound, officially pegged at 15,000 to the dollar, was trading at 100,000 against the dollar on the country’s parallel market, down from 1,507 before the economic crisis hit in 2019.

In May, a World Bank report stated: “The systemic failure of Lebanon’s banking system and the collapse of the currency have resulted in a large, dollarised cash-based economy.

“It not only threatens to compromise the effectiveness of fiscal and monetary policy, but also heightens the risk of money laundering, increases informality and prompts further tax evasion.”

In April 2020, the Lebanese government agreed with IMF staff to implement a series of reforms to end the crisis, but very few have been executed.

This is mainly due to the country’s ongoing political deadlock.

Lebanon has had no head of state since President Michel Aoun’s term ended at the end of October 2022, worsening the country’s political paralysis at a time when important policy decisions are needed to get the economy back on track.

According to the IMF, the economic outlook for Lebanon is highly uncertain and depends on policy actions taken by the authorities to carry out the agreed reforms.

Kozack said: “Timely implementation of these reforms is critical to end the current crisis and prevent a further deterioration in living standards of the people of Lebanon.”

She added: “Lebanon will need strong financial support from the broader international community and the financial needs of Lebanon over the next several years are very large given the magnitude of the economic crisis.”

Bailout prospects

While the IMF has said that Lebanon will need significant financial support from other countries to help it get through its economic crisis, it is unclear where that support will come from.

Nicholas Blanford, a non-resident senior fellow with the Atlantic Council’s Middle East programmes, says it is unlikely that Saudi Arabia will be willing to bail the country out financially as it has done in the past.

He said: “Saudi Arabia has pumped billions of dollars into Lebanon over the years, including helping with the reconstruction programme in the 1990s after the civil war. Saudi has also helped Lebanon financially through various economic slumps.”

The change of leadership in Saudi Arabia when King Salman came to the throne in 2015 led to a change in policy regarding financial bailouts for Lebanon, according to Blanford.

“It seems like Saudi feels that it got very little in return for its past investment in Lebanon due to the fact that Hezbollah remains a dominant force in the country politically and militarily.

“The Americans and the French have, for several years, been pressing the Saudis to show more interest in Lebanon as a pushback against Iranian influence, but, so far, they haven’t shown much interest.”

The Lebanese are keeping their fingers crossed that economically viable quantities of oil and gas are found, but there is also a huge amount of scepticism given the state of the political system here and the nature of the politicians
Nicholas Blanford, Atlantic Council’s Middle East programmes

In October last year, Lebanon and Israel agreed a deal to end a long-running maritime border dispute in the Mediterranean Sea, clearing the way for increased oil and gas exploration activity in Lebanese waters.

Following the deal, in May this year, it was announced that a consortium led by France’s TotalEnergies would start drilling for oil and gas off the country's coast at the beginning of September.

While it is possible that new hydrocarbon discoveries in Lebanese waters could help ease the country’s economic problems over the long term, it is doubtful that this would provide any benefit in the short term, according to Blanford.

“The Lebanese are keeping their fingers crossed that economically viable quantities of oil and gas are found, but there is also a huge amount of scepticism given the state of the political system here and the nature of the politicians themselves.”

Blanford believes that many Lebanese citizens are worried that if commercially viable quantities of hydrocarbons are found, they are ultimately only likely to benefit the country’s oligarchs rather than the general public.

Due to the wide range of severe political and economic problems that Lebanon faces, there is unlikely to be any improvement over the coming months unless common ground is found between the country’s rival political blocs.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10932005/main.gif
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Chinese firm wins $265m Saudi hospital contract

    24 June 2026

    Zhejiang Construction International, the local subsidiary of Chinese contractor Zhejiang Construction Investment Group, has won a $265m contract to build the Prince Mohammed Bin Fahd University Speciality Hospital in Al-Khobar.

    Construction is expected to take three years from the start date.

    Prince Mohammed Bin Fahd University awarded the contract.

    Located in Al-Raja district, Al-Khobar, in Saudi Arabia’s Eastern Province, the hospital project will cover about 60,000 square metres.

    The contract covers the construction of a 10-storey hospital building, two five-storey auxiliary buildings connected by corridors and a basement.

    Work will include civil works, mechanical and electrical installation, curtain walling, landscaping, detailed design and the procurement of medical equipment.

    The award is the latest in a series of contracts secured by Chinese contractors from Saudi entities in recent months.

    Last week, MEED reported that Saudi Arabia’s Ministry of Municipalities & Housing awarded contracts worth more than SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    China Architectural Construction Corporation won the first contract, valued at SR875m ($233m), to build 2,010 housing units at the Al-Ruba residential project in Riyadh.

    China State Construction Engineering Corporation secured the other contract, valued at more than SR1bn ($266m), for the Al-Rasha Al-Faisaliah residential project in Dammam, comprising 2,426 housing units.

    GlobalData expects Saudi Arabia’s construction industry to record average annual growth of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure, as well as the $850bn-plus gigaprojects programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17412846/main.jpg
    Yasir Iqbal
  • Kuwait extends deadline for $718m drainage tender

    24 June 2026

     

    Kuwait’s Ministry of Public Works (MPW) has extended the deadline for a major drainage tender estimated to be worth about KD222m ($718m).

    The new bid submission deadline is 19 July.

    The tender scope covers the construction of rainwater drainage networks across the residential areas of Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra.

    The MPW floated the tender on 22 March. The most recent deadline was 21 June.

    According to regional projects tracker MEED Projects, the works include the construction of a major concrete sewer, three collection basins and extensive stormwater drainage basins.

    Rainwater collection tanks will be connected through an independent network, with outlets to the sea via the Nuwaiseeb exit to manage overflow.

    The infrastructure will also filter pollutants such as oils, minerals and sediments to protect water quality and support environmental sustainability.

    The project aims to reduce surface runoff, prevent street and urban flooding, and improve groundwater recharge.

    Kuwait’s MPW currently has several contracts out for tender for infrastructure works across various parts of the country.

    Also, in March, the client released two additional tenders covering the construction of a treated water system in Kuwait’s southern region and another in Kuwait’s northern region.

    Bids for both projects are due by 28 June.

    Meanwhile, the MPW is planning to begin construction of the $3.3bn North Kabd sewage treatment plant, which has a planned capacity of up to 1 million cubic metres a day.

    China State Construction Engineering Corporation (CSCEC) won the contract to build the plant earlier this year.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17411675/main.jpg
    Mark Dowdall
  • Contractor wins Emaar Dubai Harbour project deal

    24 June 2026

     

    Register for MEED’s 14-day trial access 

    Local construction firm Al-Sahel Contracting Company has won a contract to build The Bristol Luxury Hotels & Resorts project in Dubai.

    The contract was awarded by local real estate developer Emaar Properties.

    The Bristol Luxury Hotels & Resorts is located at Emaar Beachfront in Dubai Harbour.

    The project comprises a 54-storey mixed-use building with about 150 hotel keys and 227 one- to four-bedroom apartments.

    Enabling works have been completed by local firm Dutch Foundation.

    Dubai-based Mirage Leisure & Development is the project’s consultant.

    Construction is expected to be completed by 2028.

    The contract award follows Emaar’s appointment of Dubai-based Aroma International Building Contracting to build the Address Grand Downtown tower.

    The award also comes shortly after Emaar reported strong operating momentum in 2025, led by record property sales of AED80.4bn ($21.9bn), up 16% year on year.

    The company’s revenue backlog from property sales rose to AED155bn ($42bn), supporting visibility on future revenue recognition.

    Total revenue for 2025 reached AED49.6bn ($13.5bn), a 40% year-on-year increase. Earnings before interest, taxes, depreciation and amortisation grew 33% to AED25.6bn ($7bn), while net profit before tax rose 36% to AED25.7bn ($7bn).

    Emaar’s platform continued to support performance across property development, malls, hospitality, leisure and international operations.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17411104/main.jpg
    Yasir Iqbal
  • Saudi Arabia launches new mineral exploration licensing round

    24 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Ministry of Industry & Mineral Resources (MIMR) has launched its tenth round of a mineral exploration licensing competition, qualifying 24 local and international companies and consortiums to participate.

    The exploration opportunities offered under Round 10 cover about 13,000 square kilometres across the regions of Medina, Mecca, Riyadh, Qassim and Hail. They encompass several highly prospective mineralised belts that are said to contain significant deposits of gold, copper, silver, zinc and nickel.

    One of the key areas offered in the round is the Nabithah-Ad Duwayhi (Dahlat Shabeb) Belt, which hosts the Ad-Duwayhi Mine, one of Saudi Arabia’s largest gold-producing operations, with annual production of approximately 180,000 ounces of gold.

    Other notable exploration zones include the Sukhaybarat-Al-Safra Belt, recognised for its gold and base metals potential and home to the Sukhaybarat and Bulghah mining operations, as well as the Al-Nuqrah Belt, known for substantial gold resources and volcanogenic massive sulphide mineralisation rich in copper and zinc.

    According to MIMR, 17 companies that previously qualified under Round 9 have retained their eligibility, while seven additional companies and consortiums successfully completed the Round 10 prequalification process.

    The newly qualified bidders in Round 10 are:

    • Anaam Al-Qarat for Trading / Sahara Mining Company consortium
    • Danakali / Masadar Al-Zamarda for Mining consortium
    • Power Metallic Mines 
    • PT ANTAM Tbk
    • Saudi Arabian Mining Company (Maaden)
    • Thurb Al-Hayya for Trading Company
    • Wildsky Resources

    The previously qualified participants from Round 9 are:

    • Al-Ghazal Al-Arabi Mining Company
    • Almasar Minerals Holding
    • Al-Tasnim Enterprises
    • Aurum Global Group
    • Batin Al-Ard for Gold Company
    • China National Geological and Mining Corporation
    • DesertEx 
    • Eqleed-Indotan Mining Company
    • Helderberg 
    • Jacaranda Minerals
    • Midana Exploration
    • Royal Road Arabia
    • Saudi Gold Refinery 
    • Sierra Nevada Gold
    • Sun Peak Metals
    • The Distinguished Consortium Mining Company
    • Vedanta 

    In a statement carried by the official Saudi Press Agency, MIMR said exploration licence competitions are conducted through a structured three-stage process designed to ensure transparency, competitiveness and equal opportunity for all participants.

    The process begins with prequalification assessments covering technical expertise and financial capability, followed by a site-selection phase through the ministry’s digital mining platform, Taadeen. Where multiple bidders compete for the same exploration site, the process advances to a public, multi-round bidding stage, with licences awarded based on exploration expenditure commitments and predefined evaluation criteria.

    The next phase of Round 10 will allow qualified bidders to select available exploration sites via the Taadeen platform, in accordance with established procedures that promote fair competition and enable companies to pursue opportunities aligned with their technical capabilities and investment strategies.

    ALSO READ: Aramco and Maaden seek to form joint venture

    “The continued participation of major international and regional mining companies reflects growing confidence in Saudi Arabia’s mining sector and the effectiveness of its transparent licensing framework,” MIMR said in its statement.

    Jarrah Aljarrah, a ministry spokesperson, said increasing participation in successive exploration licensing rounds demonstrates growing investor confidence in the kingdom’s mining ecosystem, supported by regulatory reforms, improved availability of geological data, transparent licensing mechanisms and a steadily expanding pipeline of exploration opportunities.

    Saudi Arabia’s metals and mining sector is pivotal to the country’s non-oil growth trajectory. Commercial exploitation of the kingdom’s mineral resource base – most of which remains untapped – is a key component of the Saudi Vision 2030 socio-economic transformation strategy.

    The kingdom took a first step towards realising the commercial potential of its mineral resources when it enacted the Mining Investment Law in 2021. Since the law came into effect, MIMR has awarded about 3,248 mining permits to local and foreign firms under its accelerated exploration initiative, including alone.

    Addressing the Future Minerals Forum in Riyadh in January 2024, Bandar Alkhorayef, the kingdom’s minister of industry and mineral resources, said Saudi Arabia’s natural resources are worth $2.5tn – an increase of more than 90% compared to the 2016 estimate.

    This near-doubling of natural resource estimates – which exclude fossil fuels and include phosphate, gold and rare earths – is expected to provide a stimulus to the kingdom’s nascent mining industry.

    ALSO READ: Maaden mineral resources grow by 7.8 million ounces
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17398549/main.jpg
    Indrajit Sen
  • Kuwait tenders oil manifold project

    24 June 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to construct remote header manifolds and associated works in the southern and eastern regions of Kuwait.

    A meeting with prospective contractors has been scheduled for 21 July 2026, and bids are due to be submitted ahead of a deadline on 20 September 2026.

    Manifolds are devices used in the oil sector to divide the flow of liquids from a single source to several outlets, or to collect liquids, or vice versa.

    Previously, a project with a similar scope in the same region was awarded to the Kuwaiti contractor Al-Ghanim International General Trading & Contracting.

    In 2016, it signed a contract worth $435m to construct remote header manifolds and associated works in the south and east Kuwait areas.

    The scope of that contract included design, procurement, construction and commissioning of 25 remote manifold stations and associated pipelines in south and east Kuwait using multi-phase pumps to deliver liquids to gathering centres.

    Kuwait’s oil fields are connected to more than 25 gathering centres, which serve as collection points for crude oil produced by several wells connected by flowlines, providing initial treatment by separating associated gas and removing salt.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17409564/main.jpg
    Wil Crisp