Lebanon in Crisis: Saudi Arabia Steps in with Financial Support
Saudi Arabia Extends Financial Support to Lebanon Amid Crisis
Saudi Arabia has stepped in to support Lebanon by funding urgent development projects as the country navigates complex economic and political challenges, as well as the repercussions of conflict with Israel in the southern region. According to Al Arab, a joint memorandum of cooperation was signed, through which Saudi Arabia will provide $10 million via the King Salman Humanitarian Aid and Relief Centre and the Higher Relief Commission to support various development projects in Lebanon.
Saudi Ambassador to Beirut, Walid Bukhari, announced that approximately 28 projects would be implemented across different Lebanese regions. While the specific projects were not detailed, Bukhari, alongside Lebanese interim Prime Minister Najib Mikati, emphasized that this aid reflects the commitment of King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman to humanitarian efforts and the pursuit of stability and development in Lebanon.
World Bank data indicates that Lebanon has been enduring an economic collapse for five years, plunging the majority of its population below the poverty line. This crisis, aggravated by external factors like the COVID-19 pandemic and the war in Ukraine, has driven inflation beyond 170 percent and severely impacted critical sectors such as construction and infrastructure.
Prime Minister Mikati expressed optimism that Saudi aid would facilitate Lebanon’s recovery, commending Saudi Arabia’s dedication to Lebanon’s stability and development. Over the years, Saudi Arabia has contributed millions in grants, donations, and loans, significantly aiding the region’s economic development.
Lebanese authorities, however, face substantial challenges in implementing necessary reforms while awaiting support from the International Monetary Fund (IMF). Although an agreement was reached with the IMF in April 2022 to implement economic policies that could unlock $3 billion, progress has been stalled due to delays in reforms.
In addition to Saudi support, the European Union has announced a €1 billion financial package for Lebanon, available until 2027, aimed at enhancing the country’s social and economic stability.
