meed-logo

line1 line2 line3
SIGN IN / REGISTER

Political deadlock in Lebanon blocks reforms

5 June 2023

 

Lebanon’s political deadlock is likely to continue to weigh on the country’s economy and undermine security over the medium term, according to experts.

The country currently has an interim government and has been without a president since former President Michel Aoun’s term ended at the end of October last year.

Progress towards forming a new government is likely to be slow, with the legislature divided over who should replace Aoun as president.

In March, the Iran-backed Hezbollah group and House Speaker Nabih Berri’s Amal Movement party – which together constitute Lebanon’s Shia base – announced their support for the Christian politician Sleiman Frangieh.

Hezbollah and its allies have since tried to gather support for Frangieh as president, but strong opposition from the majority of the country’s Christian, Sunni and Druze political blocs has left him short of the 65 votes required to be elected in the 128-member legislature.

Over recent weeks, members of Lebanon’s parliament that oppose Frangieh have started to rally around the former finance minister Jihad Azour.

Azour currently serves as the director of the Middle East and Central Asia Department at the International Monetary Fund (IMF).

As the parliament is divided, whether either candidate can obtain a majority vote remains uncertain. According to experts, even if a president is named, it will be extremely difficult for them to form a government.

Nicholas Blanford, a non-resident senior fellow with the Atlantic Council’s Middle East programmes, says it will likely be some time before a government is formed.

“Getting a president elected is only the first step,” he said. “Once the new president is in place, there is the tricky task of forming a new government.

“As we’ve seen over the past 20 years, forming a new government can take months as people bicker and jostle for various lucrative and influential portfolios.”

Barbara Leaf, the US assistant secretary for Near Eastern affairs, said on 31 May, during a Senate committee hearing, that the Biden administration was considering sanctions if a new president is not elected soon

Outside pressure

Only when a government has been formed will Lebanon be able to start initiating the series of reforms that the international community has demanded to unlock aid, grants and loans to try to put the country on the path to economic recovery.

As Lebanon’s economic crisis has worsened and the security situation has declined, increasing pressure has been applied from other countries that want to try to restore stability in the region.

Barbara Leaf, the US assistant secretary for Near Eastern affairs, said on 31 May, during a Senate committee hearing, that the Biden administration was considering sanctions if a new president is not elected soon.

Separately, two members of the US House Foreign Affairs Committee called on the administration to impose sanctions on individuals involved in corruption to “make clear to Lebanon’s political class that the status quo is not acceptable”.

In a letter to Secretary of State Antony Blinken on 30 May, they said: “We also call on the administration to continue pressing for full accountability for the August 2020 Beirut port blast and support independent, international investigatory efforts into egregious fraud and malfeasance by the governor of Lebanon’s central bank.

They added: “We must not allow Lebanon to be held hostage by those looking to advance their own selfish interests.”

French crackdown

French officials have also taken action to try to crack down on perceived corruption by members of Lebanon’s political elite.

In May, French prosecutors issued an arrest warrant for Lebanon’s central bank governor, Riad Salameh.

The warrant followed Salameh’s failure to appear before French prosecutors to be questioned on corruption charges.

In response, Salameh issued a statement saying that the arrest warrant violated the law.

Salameh has been the target of a series of judicial investigations at home and abroad on allegations that include fraud, money laundering and illicit enrichment.

European investigators looking into the fortune he has amassed during three decades in the job had scheduled a hearing in Paris for 16 May.

A key problem is you still have the same cabal of oligarchs in power and it is likely they will still be represented in the next government
Nicholas Blanford, Atlantic Council’s Middle East programmes

Breaking the deadlock

Analysts believe cracking down on corruption among Lebanon’s political elite is key to breaking the country’s political deadlock.

“A key problem is that you still have the same cabal of oligarchs in power and it is likely that they will still be represented in the next government,” said Blanford. “These oligarchs do not want reform because if they implement a meaningful reform process, they run the risk of losing their positions of power.”

While the country’s opposing political blocs continue to vie for power and the formation of a new government seemingly remains only possible after at least several months of negotiations, the outlook for Lebanon in the short term looks bleak.

Meaningful government assistance for Lebanese citizens struggling with declining security and heightened economic pressures remains a distant prospect. High levels of emigration are also likely to continue as the country’s population seeks relief from the hardships at home.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10907713/main.gif
Wil Crisp

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

Click here to register
Exclusive from Meed
Related Articles
  • Lowest bidder emerges for Kuwait Airport Terminal 2 operations

    19 October 2026

     

    Ireland’s DAA International has emerged as the lowest bidder for the contract to operate, manage and maintain the new passenger Terminal 2 (T2) at Kuwait International airport, submitting an offer of KD419m ($1.35bn).

    Official price-opening records released by Kuwait’s Central Agency for Public Tenders on behalf of the Directorate General of Civil Aviation show three international airport operators submitted commercial bids for the tender.

    DAA International’s proposal undercut its nearest rival by about 45%. Turkiye’s TAV Airports Holding submitted the second-lowest offer at KD764.15m ($2.46bn), while South Korea’s Incheon International Airport Corporation bid KD959.48m ($3.1bn).

    All three proposals were marked as approved in the tender committee’s price disclosure.

    The contract entails the operation, management and improvement of training, maintenance and development services across Terminal 2 and its associated aircraft parking aprons.

    The remit also includes corporate management of centralised operation and maintenance across the broader Kuwait International airport model, centralising operational procedures, systems integration and service delivery across the aviation hub.

    Technical documents indicate the winning operator will oversee facility management, terminal operational readiness, passenger processing systems, apron operations and staff development programmes before and after the complex’s commercial launch.

    MEED reported in June 2023 that six airport operators had initially been invited to bid for the Terminal 2 operating concession.

    Terminal 2 is the centrepiece of Kuwait International airport’s multibillion-dollar expansion, aimed at boosting total handling capacity to 25 million passengers a year.

    Turkish contractor Limak Insaat is executing the main terminal building under an estimated $4.34bn contract awarded in 2016.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20747061/main.png
    Yasir Iqbal
  • Dubai tenders Al-Maktoum-Dubai South drainage scheme

    19 October 2026

    Dubai Municipality has invited contractors to submit bids by 5 November for the construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South

    The project, designated TF-06-C2, involves approximately 20 kilometres of pipelines with diameters ranging from 400mm to 3,000mm. The works will use deep trenchless construction and conventional open-cut methods. 

    The scheme is one of four projects, for which a project management consultancy (PMC) tender was issued earlier this month.

    The tender for TF-06-S1 Supervision of Stormwater Drainage System Projects – Package 4 was issued on 6 October.

    The consultancy covers the following projects:

    • TF-06-C1: Construction of a stormwater pond connecting Al-Maktoum Airport and Dubai South
    • TF-06-C2: Construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South
    • TF-07-C1: Construction of a stormwater drainage system on Sheikh Zayed Bin Hamdan Road connecting developers
    • TF-24-C1: Connecting developers’ areas to the stormwater networks in Dubailand 

    The projects are part of Dubai Municipality’s wider Tasreef programme, intended to increase Dubai’s rainwater drainage capacity by 700% by 2033 and provide capacity for the emirate’s needs for the next 100 years.

    Investment in the UAE water sector has been dominated by stormwater drainage and network resilience schemes this year, as Dubai Municipality advances procurement under its AED30bn ($8.1bn) Tasreef programme.

    TF-07-C1

    As previously reported, contractors are preparing to submit bids on 22 October for the main construction contract for TF-07-C1.

    The project covers more than 100 million square metres between Sheikh Mohammed Bin Zayed Road and Emirates Road, and from Expo Road to Dubailand.

    It will provide stormwater infrastructure and service connections for more than 20 private developers and Al-Yalayis 5, as well as supporting major roads in the Jebel Ali area. The construction scope includes a major gravity drainage system with pipeline diameters of up to 3,000mm.

    TF-24-C1

    Bids for TF-24-C1 were submitted on 1 October, with Nael Construction & Contracting, Al-Nasr Contracting Company and Al-Kharafi & Sons understood to be among the bidders. 

    The project will connect developers’ areas in Dubailand to the stormwater network. It includes 18km of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.

    As MEED understands, the main contract tender for TF-06-C1 has yet to be released.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20746611/main.jpg
    Mark Dowdall
  • Contractor wins $44m Morocco rail stations deal

    19 October 2026

    Morocco’s national railway operator, Office National des Chemins de Fer (ONCF), has awarded a MD437.6m ($44.5m) contract to local firm Jet Contractors to build five railway stations along the Benguerir-Marrakech corridor.

    The project forms part of the wider Kenitra-Marrakech high-speed rail development programme.

    Jet Contractors will build one high-speed rail station and four regional express rail stations.

    These include two stations in Benguerir, and one each at Sidi Bou Othmane, Sidi Ghanem and Marrakech Stadium.

    The scope of work includes construction and fit-out of the stations and associated infrastructure, including concrete structures, platforms, ancillary facilities, passageways, circulation areas and connection zones within the stations.

    It also covers architectural finishing works; testing and commissioning of electrical networks; and all mechanical, electrical and plumbing services.

    The contractor will also provide all safety, security and protection systems, including alarms, fire detection and firefighting systems, and surveillance systems.

    Morocco awarded multiple civil works contracts in 2024 to international and local firms to build its Kenitra-Marrakech high-speed railway line.

    The rail project is part of a $37bn strategy to connect more of Morocco’s cities, ports and airports by rail. It will stretch 375 kilometres from Kenitra on the northwest coast to Marrakech in the south.

    The project is divided into seven lots, each measuring 36km to 64km. The rail link will pass through cities including Rabat, Sale and Casablanca.

    The link will extend the Al-Boraq high-speed rail line between Tangier, Rabat and Casablanca. The line began operating in 2018 and was Africa’s first high-speed railway system.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20745963/main.jpg
    Yasir Iqbal
  • Firms submit Dubai multibillion-dollar road scheme interest

    19 October 2026

     

    Register for MEED’s 14-day trial access 

    Contractors submitted expressions of interest on 10 October for a design-and-build contract for a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

    Dubai’s Roads & Transport Authority (RTA) held an online meeting after the submissions to prepare for the prequalification phase of tendering, expected to start in a few weeks.

    The scope covers about 30 kilometres (km) of works.

    These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

    The RTA floated the expression of interest notice to contractors in early September.

    The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

    Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

    The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through traffic while existing at-grade lanes served local access.

    The plans ultimately became standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

    The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

    Planning for growth

    Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

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

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20745908/main.jpg
    Yasir Iqbal
  • Libya seeks offshore contractors for $8bn gas project

    19 October 2026

    Libya’s Mellitah Oil & Gas Company (MOG) has invited companies to prequalify for a major offshore package as part of its Mellitah Complex Expansion & CO2 Management Integrated Development Project, which is estimated to be worth about $8bn.

    The package is estimated at around $3bn and focuses on developing offshore pipelines and subsea systems for the “E” Offshore Installation Project and CO2 project.

    The deadline to submit prequalification documents is 5 November. The contract will use the engineering, procurement, installation and commissioning (EPIC) model.

    MOG is a joint venture of Libya’s National Oil Corporation and Italian oil and gas company Eni.

    This is not the first time MOG has invited submissions for the offshore pipelines and subsea systems package. The company originally launched a prequalification process for the EPIC contract in 2021, but the project experienced delays and the process was eventually cancelled. The prequalification process was restarted nearly three years later, but it was also ultimately abandoned.

    Complex expansion

    As part of the Mellitah Complex Expansion & CO2 Management Integrated Development Project, two offshore structures – Structure A and Structure E – will be developed in Libya’s offshore block NC 41.

    Structure A is in the central-western part of the area, about 80 kilometres (km) from the Libyan coast, with a water depth of 95-105 metres.

    Structure E is located in the central-eastern part of the area, about 130km from the Libyan coast, in a water depth of 205-235 metres.

    The scope of the wider project includes:

    • A new wellhead platform installed in 96 metres of water as part of the development of Structure A
    • A new production platform installed in about 220 metres of water depth as part of the development of Structure E
    • Modification of the existing Sabratha platform
    • Sealines and subsea systems for structures A and E
    • Upgrading the existing onshore Mellitah complex
    Project contract awards

    In June 2024, MOG awarded an offshore engineering, procurement and construction (EPC) contract worth €1.2bn ($1.28bn), which was part of the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

    The contract was awarded to a consortium of three Italian companies: Rosetti Marino, Kerry Project Logistics and Gruppo Antonini.

    In a statement, Rosetti Marino said its share of the project contract was worth €400m ($428m), comprising 33% of the total contract value.

    Rosetti Marino said its scope of work includes EPC and load-out activities to deliver the topside of the approximately 6,000-tonne gas production wellhead platform, named WHP-A, to be installed off the coast of Libya.

    Project setbacks

    During 2023 and 2024, several setbacks affected the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

    In November 2023, MOG restarted the prequalification process for an upstream offshore package worth an estimated $700m.

    The project scope involves modifications to the offshore Sabratha platform at the Bahr Essalam field.

    Less than two months later, MOG restarted prequalification for a second package as part of the integrated development project.

    The scope of the second package covers key sealine and subsea systems.

    No reason was given for restarting the prequalification process for two of the project’s packages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20738707/main.jpg
    Wil Crisp