President Aoun calls on investors to return to Lebanon in economic shake-up

Lebanon is seeking to attract foreign investors with the launch of the 'Beirut One' economic conference on Tuesday, as the new government seeks to stabilise the economy and increase transparency. 

Key to this is rebuilding relations with Saudi Arabia, historically one of Lebanon's main financial backers and economic partners, with Riyadh announcing last week "imminent" plans to boost commercial ties with Beirut.

This follows Lebanese success in curbing drug smuggling to the Gulf state, which flourished during the Syrian conflict and damaged relations between Beirut and Riyadh, with Hezbollah accused of a role in the illicit cross-border trade.

Saudi envoy Prince Yazid bin Farhan was in Beirut again on Tuesday, in a sign that relations between the two countries are improving.

Some local media reports said at least nine agreements that had been on hold for years were ready to be signed soon between Beirut and Riyadh, while others were being revised.

Hundreds of potential investors from regional and global countries participated in the two-day 'Beirut One' conference, with delegations from Saudi Arabia and the UAE present.

At the opening of the conference, Lebanese President Joseph Aoun announced that the government had begun sweeping reforms, highlighting new laws to boost transparency and accountability for investors and rebuild state institutions on merit-based, law-driven foundations.

Aoun emphasised efforts to activate oversight and accountability bodies, noting that "a state that holds its officials accountable and safeguards its resources is a state capable of protecting both investors and citizens".

"Lebanon must reclaim its natural role as an economic and cultural player in the region, serving as a bridge between East and West and as a platform for engagement and cooperation among companies, investors, and development institutions," the president said.

"Our openness is not just a slogan; it represents a concrete drive toward new partnerships, neighbouring markets, and strengthening Lebanon’s position on the regional and international business map."

Outlining Lebanon's current vision, Aoun said that the state's role is "to enable, set the framework, ensure integrity and competition for the private sector to lead implementation, create jobs, drive innovation, and restore economic dynamism" with the private sector playing a key role in rebuilding the country's economy.

Decades of systemic corruption and gross mismanagement of public funds were blamed for the 2019 financial meltdown, which saw the collapse of the banking sector, crashing the economy and investor confidence.

Over the past six years, Lebanon has been battered by the Covid-19 pandemic, the 2020 Beirut Port explosion, the failure of the energy sector, and last year’s Israeli offensive. Despite a November 2024 ceasefire Israel has continued with daily attacks on the south.

The banking crisis has seen depositors locked out of their life savings with strict limits on withdrawals, as the government says it is studying proposals to end the malaise.

Gulf and Western states have expressed their willingness to help Lebanon climb out of its economic crisis, but stressed that deep fiscal and administrative reforms are essential to rooting out endemic corruption.

Lebanon’s political and banking elites are widely believed to have resisted reforms for years. However, the parliament has recently passed a series of laws that could revive the ruined banking sector and steer the country toward stability, with more important legislation expected.

The World Bank said in a recent report that Lebanon's economy has seen "significant recovery" with a projected growth of 4.7% this year, driven by a combination of "expected structural reforms, a recovery in tourism and improved domestic consumption".

Economy Minister Amer Bisat also said last month that the government expected growth to reach 5% this year, the highest since 2011.

"The Lebanon we aspire to – and are working toward – is an open and ambitious investment platform, combining a strategic geographic location, exceptional human capital, and broad opportunities across multiple sectors," said President Aoun.

"This is the new national vision launched by Economy Minister Amer Bisat, in cooperation with the Economic, Social, and Environmental Council and its president, Charles Arbid, and in full coordination with the government: a realistic, implementable vision based on clear data, plans, and timelines."

Addressing "every friend of Lebanon, every investor, every potential partner", Aoun said his country "does not seek sympathy, but trust".

"It does not await charity, but offers opportunity. Your presence here today is an investment in stability, in young talent, and in a future that will be brighter if we move forward together."