Damascus Opens New Track in Ties with Beirut on Economy, Security

Syrian Foreign Minister Asaad al-Shaibani and his accompanying delegation arrive to meet Lebanese Prime Minister Nawaf Salam in Beirut (AFP)
Syrian Foreign Minister Asaad al-Shaibani and his accompanying delegation arrive to meet Lebanese Prime Minister Nawaf Salam in Beirut (AFP)
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Damascus Opens New Track in Ties with Beirut on Economy, Security

Syrian Foreign Minister Asaad al-Shaibani and his accompanying delegation arrive to meet Lebanese Prime Minister Nawaf Salam in Beirut (AFP)
Syrian Foreign Minister Asaad al-Shaibani and his accompanying delegation arrive to meet Lebanese Prime Minister Nawaf Salam in Beirut (AFP)

Syrian Foreign Minister Asaad al-Shaibani’s visit to Lebanon marked a new phase in bilateral relations, during which he reaffirmed Syria’s stance that “a new page is being opened with Lebanon” following the fall of Bashar al-Assad’s regime.

Al-Shaibani discussed security, judicial, economic, and diplomatic issues and, at the request of Lebanese President Joseph Aoun, called for the appointment of a new Syrian ambassador to Lebanon to coordinate matters between the Lebanese and Syrian embassies in Beirut and Damascus, after the suspension of the Lebanese-Syrian Higher Council.

The visit is the first by a senior Syrian official to neighboring Lebanon since Assad’s ouster in December 2024. Lebanese Foreign Ministry officials said the current Syrian authorities “respect Lebanon’s sovereignty” and the principle of “non-interference in its internal affairs.” Al-Shaibani told reporters, “We want to move past the obstacles of the past with Lebanon.”

High-Level Meetings, Notably Without Speaker Berri

On Thursday's visit, al-Shaibani was accompanied by Syrian Justice Minister Mazhar al-Louais, the head of Syrian intelligence, Hussein al-Salama, and the assistant interior minister, Maj. Gen. Abdel Qader Tahan.

He met with President Aoun, Prime Minister Nawaf Salam, and Lebanese Foreign Minister Joseph Raji. Notably, he did not meet with Parliament Speaker Nabih Berri, marking a break from the protocol followed by most foreign visitors.

Sources told Asharq Al-Awsat that the Syrian delegation did not request a meeting with Berri, with the Syrians viewing the visit as “technical and administrative, not requiring a parliamentary meeting.”

Though the visit appeared primarily “security-judicial” in nature, following three judicial delegations to Lebanon over the past two months, economic issues featured prominently.

Ministry sources said al-Shaibani emphasized the importance of economic and trade cooperation, as well as investment opportunities in Syria after the lifting of international sanctions. He also stressed the continuation of joint committees and meetings addressing pending security and judicial matters.

Aoun Calls for Enhanced Cooperation

The Lebanese presidency said President Aoun told al-Shaibani that “Lebanon seeks to strengthen ties with its brotherly neighbor on the basis of mutual respect and non-interference, and to activate cooperation in political, economic, and security fields to achieve stability in both Lebanon and Syria.”

Aoun stressed that “deepening and developing bilateral relations requires the formation of joint committees to review all pending files, particularly agreements between the two countries that need reassessment and evaluation.”

Regarding the suspension of the Lebanese-Syrian Higher Council, Aoun said it “necessitates the activation of diplomatic relations,” adding, “We await the appointment of a new Syrian ambassador to Lebanon to follow up on all matters through the Lebanese and Syrian embassies in Beirut and Damascus.”

He also noted that “the situation along the Lebanese-Syrian border is better than before, and the key issues requiring attention, as agreed with Syrian President Ahmed Al-Sharaa, include land and maritime borders, the gas line, and the issue of detainees. We will work on these matters based on our shared interests.” Aoun added: “The region has endured enough wars and wasted resources that should instead be invested to allow our peoples to live with dignity, after enduring so much suffering and instability.” He renewed an invitation for Al-Sharaa to visit Lebanon.

Economic and Trade Cooperation on the Agenda

At the start of the meetings, al-Shaibani highlighted “the historical ties between Lebanon and Syria, which should be deepened and past grievances corrected, particularly those that harmed Syria’s image.” He called for “enhanced cooperation in all fields, especially economic and trade, given the new openness to Syria following the lifting of sanctions, from which Lebanon can benefit.”

Al-Shaibani reaffirmed Syria’s respect for Lebanese sovereignty and commitment to strong, cooperative relations. “We look forward to closing the page on the past because we want to build the future,” he said. “We are ready to discuss any pending files, whether economic or security-related. Our peoples have suffered wars and tragedies—let us try peace.” He also renewed the invitation for President Aoun to visit Syria.

Executive-Level Talks at Government Palace

At the Government Palace, al-Shaibani and his delegation met with Prime Minister Nawaf Salam in meetings focused on practical coordination. The Lebanese government said the discussions were “positive and constructive,” covering all aspects of bilateral relations, affirming the mutual desire to open a new chapter based on respect, good neighborliness, and protection of each country’s sovereignty and national decision-making.

The talks addressed shared issues including border and checkpoint management, smuggling prevention, and facilitating the safe and dignified return of Syrian refugees in coordination with the United Nations and friendly countries. They also covered Syrian detainees in Lebanon and missing Lebanese in Syria, as well as reviewing bilateral agreements to better align with changing circumstances. Opportunities to enhance economic cooperation and contribute to reconstruction in Syria, leveraging Lebanese expertise, were also discussed.

Salam emphasized Lebanon’s commitment to “building balanced and sound relations with Syria, based on cooperation between two independent states bound by geography and history,” stressing that openness and sincere dialogue are the only path to stability in both countries and the region.

Deputy Prime Minister Tarek Metri said after the meetings that “we discussed Lebanese-Syrian relations and agreed to address all matters swiftly and in good faith. The political will of both our Syrian brothers and Lebanon is to resolve all issues without taboos or bargaining.”

Al-Shaibani Highlights Opportunities and Progress

Al-Shaibani highlighted several significant opportunities in the region, in both Syria and Lebanon, "across all economic and investment areas.” He noted that the issues discussed “require in-depth discussion and technical committees to advance calm and stable relations and open the door to strategic partnerships,” noting progress on speeding up the release of Syrian detainees in Roumieh prison and plans for the dignified return of refugees to their homes. He also stressed the need to secure borders to enhance security and stability.

He added that joint security and intelligence coordination will be strengthened, and technical and economic committees will be established to boost cooperation in both private and public sectors.

“This is a historic and highly important visit for both parties,” al-Shaibani said.

“The relationship between Syria and Lebanon today is moving from the previous era under the former regime to a relationship based on respect between brothers and neighbors.”



Lebanon Starts Technical Response Process to US Treasury Demands

Lebanese President Joseph Aoun meets US Treasury delegation at Baabda Palace, Beirut (AFP)
Lebanese President Joseph Aoun meets US Treasury delegation at Baabda Palace, Beirut (AFP)
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Lebanon Starts Technical Response Process to US Treasury Demands

Lebanese President Joseph Aoun meets US Treasury delegation at Baabda Palace, Beirut (AFP)
Lebanese President Joseph Aoun meets US Treasury delegation at Baabda Palace, Beirut (AFP)

Lebanon has swiftly initiated a legal and procedural compliance process in response to what officials described as “very serious” US demands to curb terrorism financing, after a visiting US Treasury delegation delivered the requests to political and monetary authorities earlier this week along with warnings of possible sanctions.

The measures, which come with defined deadlines, explicitly target the drying up of Hezbollah’s funding channels and those of its affiliated organizations.

On Friday, the Central Bank of Lebanon (Banque du Liban) took what it described as “the first step in a series of precautionary measures aimed at strengthening the compliance environment within the financial sector,” amid speculation over the direction of government and ministerial steps in the same area.

Observers note that these moves extend beyond technical considerations and touch on the politically sensitive issue of controlling weapons exclusively.

The central bank’s initiative includes “applying precautionary measures to all nonbank financial institutions licensed by Banque du Liban, including money transfer companies, exchange houses, and other entities handling cash transactions in foreign currencies to and from Lebanon.”

Closing Hezbollah’s Financial Loopholes

This initiative aligns with information obtained by Asharq Al-Awsat from meetings held by the US Treasury delegation with Lebanon’s presidential, ministerial, parliamentary, and central bank authorities.

The meetings emphasized the need for strict measures to close loopholes used to channel funding to Hezbollah and its institutions, and to curb unregulated methods exploited by the group.

These include money transfer and exchange companies, illicit trade operations, many conducted in cash, gold, and some using cryptocurrencies, according to the delegation.

John Hurley, the Undersecretary of the Treasury for Terrorism and Financial Intelligence (TFI), spoke to journalists during a limited meeting at the US Embassy in Beirut.

Sources indicate that the next steps by the central bank will focus on promoting electronic payments in retail sectors, whether through cards, smartphones, or online internal and international transfers connected to secure banking networks.

These systems are subject to standard “know your customer” (KYC) requirements, helping control cash flow by regulating dollar liquidity, including part of the cash distributed monthly by the central bank for public sector salaries and banks’ contributions to depositor allocations, as per circulars.

Domestic Political Dimension

Financial sources familiar with the move said the measures were designed to avoid domestic political fallout and to prevent provoking the concerned political party. The steps are framed strictly as part of Lebanon’s effort to be removed from the Financial Action Task Force (FATF) “grey list.”

The central bank noted that “inclusion on this list indicates gaps in combating illicit financial transactions, triggering tighter international scrutiny and lowering confidence among global financial institutions.”

In a clarification responding indirectly to the Treasury delegation’s request for tighter controls over cash moving outside traditional banking channels, the central bank said the protective measures aim to “prevent the transfer of illicit or illegally obtained funds through these institutions, by imposing stricter compliance requirements and enhanced due diligence on all legal and natural persons involved in cash transactions, including ultimate beneficiaries.”

Additional Precautionary Measures

The central bank indicated that further steps will impose additional precautionary measures on commercial banks, aiming to “establish multiple layers of controls and checkpoints to detect, contain, and prevent illicit funds from circulating through the banking system and the broader financial sector.”

Lebanese Justice Minister Adel Nassar met with the US Treasury delegation in Beirut.

The Banking Control Commission will oversee the implementation of these measures and ensure all banks and nonbank financial institutions comply, taking corrective action as needed.

Under the central bank’s basic decision attached to Circular No. 3, nonbank financial institutions are now required to collect detailed client and transaction information for all operations of $1,000 and above, and to update KYC records according to attached templates for natural and legal persons as well as ultimate economic beneficiaries.

The circular mandates that institutions submit the required data to the central bank in encrypted form within two business days of the transaction.

Deadlines for implementing new procedures include adopting templates for cash transactions and new clients by the beginning of next month, with full compliance for existing clients within six months of the circular’s issuance.

The central bank warned that violations would expose institutions to sanctions under Article 208 of the Lebanese Code of Money and Credit, ranging from warnings to license revocation, in addition to fines and criminal penalties.


Saudi Signals on Lifting Export Ban Revive Hopes for Lebanese Farmers

Saudi Signals on Lifting Export Ban Revive Hopes for Lebanese Farmers
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Saudi Signals on Lifting Export Ban Revive Hopes for Lebanese Farmers

Saudi Signals on Lifting Export Ban Revive Hopes for Lebanese Farmers

Indications that Saudi Arabia is moving to lift its ban on agricultural imports from Lebanon and bolster trade with Beirut have rekindled hopes for new opportunities, particularly in the farming sector that has suffocated in recent years after drug smuggling networks exploited it to traffic narcotics.

Tony Tohme, head of the Economic Committee at the Chamber of Commerce, Industry, and Agriculture in Zahle and the Bekaa, said the expected Saudi move to end the ban on Lebanese agricultural exports “marks a highly significant development and a major boost for the Lebanese economy.”

He told Asharq Al-Awsat that the step is “a positive measure that has long been awaited and one we have worked for through long and continuous meetings, because it reopens the largest and most important market for Lebanese agricultural production.”

Tohme stressed that “Lebanon paid a heavy economic price because of the ban,” noting that the Bekaa, which makes up 43 percent of the country’s territory, “was directly affected because thousands of families rely on agriculture as their main source of income.” He added, “The entire economic cycle is disrupted when the agricultural sector declines.”

Losses Worth millions

Before 2021, agricultural exports to the kingdom ranged between 40 million and 50 million dollars a year. These exports were part of wider economic activities that were also hit by the ban, including land transport linked to shipments to Gulf countries. Lebanon’s trade deficit reached nearly 885 million dollars in 2024, according to estimates by the ministries of industry and agriculture and the chambers of commerce.

Land and sea shipping

Tohme said the ban not only blocked the entry of goods into Saudi Arabia, “but also barred Lebanese trucks from transiting Saudi territory toward other Gulf markets.”

Exporters were therefore forced to rely on costly sea freight, which he said was unsuitable for fresh produce that loses quality during long transport times and arrives in bulk, causing sharp price drops.

He said lifting the ban “will not only revive Lebanese vegetables and fruits but will also restore balance to the land transport sector, especially refrigerated trucks, which collapsed entirely after the ban and the halt of overland passage through Saudi Arabia.”

“We hope the decision will be issued soon as indicated by recent signals,” he said, adding that the step “will have positive repercussions on the entire Lebanese economy and will restore vitality to a whole sector that thousands of Lebanese depend on.”

He added, “We are fully prepared to cooperate to ensure the quality of exports and protect the reputation of Lebanese agriculture.”

Market reopening brings farmers back to life

In a related context, Ibrahim Tarshishi, head of the National Farmers’ Union, said Saudi Arabia’s announcement of its readiness to reopen its markets “brought hope back to the agricultural sector after three and a half years of losses.”

He told Asharq Al-Awsat that farmers received the news “with immense joy and great longing for the return of normal relations with the kingdom.”

Tarshishi said Lebanon previously exported “between 500,000 and 550,000 tons a year” before the figure dropped to “between 200,000 and 300,000 tons” after the ban, a loss of more than 50 percent of export volume.

He said the kingdom “has historically been the primary market for Lebanese agricultural products,” noting that “entire crops stopped being planted because they were destined for Arab markets, such as lettuce which cannot withstand sea transport.”

Tarshishi said lifting the ban “is not merely an economic measure but a key to a comprehensive solution,” adding that it “signals a restoration of confidence in the Lebanese state and in the security agencies that uprooted the dealers and smugglers who harmed Lebanon and its relations with its Arab brothers.”

He said, “When the kingdom opens its doors, other Arab doors open with it. This Saudi initiative is a step of a thousand miles, one that we hope will restore relations to their highest levels for the benefit of Lebanon, the agricultural sector and all Lebanese.”


Gaza War Becomes Cash Surge for US Weapons Makers

An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)
An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)
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Gaza War Becomes Cash Surge for US Weapons Makers

An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)
An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)

Israel’s war in Gaza, which erupted in October 2023, has become one of the most profitable conflicts for major US defense contractors.

As Gaza was being devastated and hundreds of thousands of civilians faced death and starvation, weapons factories across several US states were running at full capacity to meet Israel’s expanding military demands, generating more than 32 billion dollars in sales in just two years, according to a Wall Street Journal analysis based on US State Department data.

After the Hamas attack on southern Israel on October 7, 2023, and the large-scale Israeli military campaign that followed, Washington moved quickly to open an unprecedented weapons pipeline that included precision-guided munitions, long-range missiles, fighter jets and field equipment.

While Israel typically receives around 3.3 billion dollars in annual military assistance, that figure doubled in 2024 to 6.8 billion dollars in direct funding, not including non-cash support such as logistics, training and intelligence coordination.

A US State Department spokesperson said the Trump administration remains committed to Israel’s right to defend itself, adding that Washington is currently leading a regional effort to end the war through lasting security arrangements.

But despite talk of a “possible end” to the conflict, Pentagon data show that weapons production lines in US factories have not slowed and that supply contracts run through 2029, meaning arms deliveries to Israel will continue even after the fighting stops.

Who is benefiting most?

Boeing sits at the top of the list of beneficiaries after securing a 18.8 billion dollar deal to sell upgraded F-15 fighter jets to Israel, with delivery expected in four years.

The company also won an additional 7.9 billion dollars in contracts to supply Tel Aviv with guided bombs and associated weapons systems. These deals alone represent a major leap compared with Israel’s previous commitments to Boeing, which totaled less than 10 billion dollars over an entire decade.

Northrop Grumman, Lockheed Martin and General Dynamics secured specialized contracts for fighter jet spare parts, precision missiles and 120-millimeter tank rounds used in Merkava tanks.

Caterpillar benefited from soaring demand for its armored D9 bulldozers, widely deployed by the Israeli military to destroy homes and infrastructure in the enclave.

According to the US Defense Security Cooperation Agency, most of the deals are concentrated in aerial munitions and attack aircraft, while ground systems such as tanks and armored vehicles represent a far smaller share of total sales.

War as an economic opportunity

The conflict has not only been a military campaign, it also served as an economic boost for the US defense sector, which in recent years struggled with supply chain disruptions and labor strikes.

Boeing said in its 2024 annual report that its defense division saw strong demand from governments prioritizing security and defense technology amid rising threats.

Lockheed Martin reported a 13 percent increase in missile division revenues, reaching 12.7 billion dollars in a single year.

Oshkosh, which produces tactical military vehicles, said Israel’s orders saved a production line that was close to shutting down last year. Italy’s Leonardo Group, whose US unit sells military trailers to Israel, said in its latest financial report that the continuation of the conflicts in Ukraine and Israel ensures stable international sales for 2025.

The cost of war and who pays the price

Although the billions flowing through arms deals reflect a boom for the US defense industry, the humanitarian and political dimensions of the conflict have fueled debate in the United States and abroad.

The war has killed more than 68,000 people, including about 18,000 children, according to the Gaza Health Ministry. Israel has not released any official figures on the number of Hamas fighters killed.

As Washington funds a significant share of these sales with US taxpayer money, some Western financial institutions have started taking protest measures.

Three Norwegian funds withdrew investments from companies such as Caterpillar, Oshkosh and Palantir over the use of their products in Gaza. The Dutch pension fund sold its 448 million dollar stake in Caterpillar for the same reasons.

In Europe, Germany announced in August 2025 a halt to all arms export licenses to Israel for use in Gaza. US technology companies also faced internal pressure, prompting Microsoft to restrict the Israeli Defense Ministry’s access to some of its cloud services.

Artificial intelligence on the battlefield

Alongside conventional weapons, the war created a wider arena for cooperation on artificial intelligence and digital surveillance. Palantir, owned by conservative billionaire Peter Thiel, entered a partnership with the Israeli Defense Ministry in early 2024. After criticism that its tools were being used in airstrikes, CEO Alex Karp responded by saying that most of those killed “were terrorists,” in his words.

Israel also signed pre-war agreements with Google, Amazon and Microsoft for advanced cloud computing services, and all three companies have faced growing employee protests calling for an end to military cooperation.

In an unusual twist, some of the same US firms supplying Israel with weapons also participate in humanitarian relief programs for Gaza.

The US State Department allocated 30 million dollars to the Gaza Humanitarian Foundation, overseen by former Trump adviser Johnnie Moore, to coordinate aid distribution in the enclave.

The foundation hired American security contractors to protect its operations amid chaos and allegations of poor organization.