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Presidential Election: A Crucial First Step toward Saving Lebanon from Economic Crisis

The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
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Presidential Election: A Crucial First Step toward Saving Lebanon from Economic Crisis

The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)

Since 2019, Lebanon has faced one of its worst economic crises in modern history, affecting all aspects of life. The local currency has lost over 95% of its value, driving inflation to record levels and making goods and services unaffordable. Poverty and unemployment have surged.
Amid this, political divisions have paralyzed government action, preventing any effective response to the crisis.
The recent war with Israel added to the burden, causing huge human and material losses estimated by the World Bank at $8.5 billion. This has made Lebanon’s economic and social struggles even harder to resolve, with no president in place to lead the country.
The presidential post in Lebanon has been vacant since President Michel Aoun's term ended in October 2022, leaving the country without a leader to address growing economic and financial issues.
This vacancy has stalled government formation, making it difficult for Lebanon to negotiate with international donors like the International Monetary Fund (IMF), which demands major reforms in exchange for aid.
Choosing a new president is now a critical priority, not only to regain local and international confidence but also to begin the long-needed reforms.
One major challenge the new president will face is the reconstruction effort, which is estimated to cost over $6 billion. This is a huge financial burden that will require significant resources and effort to secure funding.
Reconstruction in Lebanon is not just about fixing infrastructure or repairing damage; it is a key test of the country’s ability to restore its role on the regional and international arena.
To achieve this, Lebanon needs a president with a clear vision and strong international connections, able to engage effectively with donor countries and major financial institutions.
Without credible and unified political leadership, Lebanon’s chances of gaining external support will remain limited, especially as international trust has been shaken by years of mismanagement and lack of reforms.
Keeping Lebanon’s deepening crises in mind, the people are hoping that electing a new president will offer a chance for economic and political recovery.
The new president, along with a strong government, is expected to rebuild trust both locally and internationally and restore political stability—key factors for stopping the economic decline and encouraging growth.
For instance, reviving Lebanon’s vital tourism sector will require better security and restoring confidence in the country as a safe place for investment.
This can only happen with political leadership that has a clear plan for reconstruction and necessary reforms.
Given Lebanon’s ongoing financial struggles, the new president’s ability to address these challenges will be critical to rescuing the country and guiding the economy toward recovery and sustainable growth.

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Business

Lebanon’s Central Bank Governor: 90% of Depositors Are a Priority, IMF Deal is ‘Last Credible Pathway’

Lebanese Central Bank Governor Kareem Said (AP)
Lebanese Central Bank Governor Kareem Said (AP)
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Lebanon’s Central Bank Governor: 90% of Depositors Are a Priority, IMF Deal is ‘Last Credible Pathway’

Lebanese Central Bank Governor Kareem Said (AP)
Lebanese Central Bank Governor Kareem Said (AP)

Lebanon’s central bank Governor Karim Souaid said on Sunday a prioritization of smaller depositors that make up mostly 90 percent of accounts is both economically rational and socially necessary, adding that an agreement with the International Monetary Fund is “the last credible pathway to anchor reforms.”

In an opinion piece for Britain’s Financial Times headlined “Lebanon needs help to secure its economic recovery,” Souaid wrote that the country’s “economic crisis is often described as complex. It is not. It is the predictable result of fiscal indiscipline by dilettante governments, monetary mismanagement by the central bank and the concentrated misallocation of private savings by the banking sector.”

Yet, he praised the government’s “policy adjustments,” which he said “are moving the country in the right direction.”

“Fiscal balances have improved, largely through higher tax collection and constrained spending. This is key, but not enough to resolve all impediments towards recovery,” he wrote.

Restructuring of banks

According to Souaid, the central bank’s proposed banking restructuring framework considers that “losses must be allocated between principal stakeholders — the state, the central bank and the commercial banks — before a turnaround can take shape.”

He stressed that “the prioritization of smaller depositors — the overwhelming majority of accounts at almost 90 percent — is both economically rational and socially necessary.”

Souaid added that “a banking system cannot be rebuilt on impaired assets and inadequate capital. It must be recapitalized with fresh equity or seriously downsized, to reflect economic reality. Anything in between merely prolongs stagnation.”

The cash economy and fighting corruption

Souaid warned against a cash-based economy, saying it weakens tax collection, damages growth and facilitates illegal financial activities. He called for restoring trust in the formal banking system by reversing this trend.

He added that the central bank is supporting criminal and civil actions, in Lebanon and abroad, against former officials and banking principals implicated in fraud. "The objective is clear — reclaim this misappropriated money and uphold the rights of depositors whose funds have long borne the cost of such abuses."

Armed conflict and the negotiations with the IMF

“There is still one factor that no economic model can easily absorb: armed conflict,” said Souaid. “War brings uncertainty that deters investment, accelerates capital flight and erodes gains from policy reforms. Under such conditions, even sound economic measures yield diminished returns.”

The governor wrote that “the IMF is deeply engaged with the government in negotiations that aim towards a constructive resolution plan — arguably the last credible pathway to anchor reforms and a sustainable recovery. Lebanon has little room to impose any counter-conditions so the chance of an accord is rather positive.”

Message to the international community

Souaid lamented that “international actors have provided sound advice in abundance. Friends and neighbors have offered support, in principle. However, financial support has been more limited.”

“This reflects a familiar hesitation: a preference for policy correction before capital commitment. Yet stabilization often requires both to proceed. Without a bridge, even well-designed reforms risk exhaustion before they take hold.”

Souaid said he was sending a “clear” message to the international community, by saying “support a reform-driven government now or defer assistance and risk a far more destabilized reality, after conflict has taken its toll and without the assurance of the institutional capacity needed to implement it.”

Business

Kuwait: Oil Production Expected to Reach 2.628 Million bpd in June

People sit on a bench on the Sheikh Jaber al-Ahmad al-Sabah Causeway as a Zhonggu Shipping container ship sails past on its way towards the port of Shuwaikh in Kuwait City on February 28, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
People sit on a bench on the Sheikh Jaber al-Ahmad al-Sabah Causeway as a Zhonggu Shipping container ship sails past on its way towards the port of Shuwaikh in Kuwait City on February 28, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
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Kuwait: Oil Production Expected to Reach 2.628 Million bpd in June

People sit on a bench on the Sheikh Jaber al-Ahmad al-Sabah Causeway as a Zhonggu Shipping container ship sails past on its way towards the port of Shuwaikh in Kuwait City on February 28, 2026. (Photo by YASSER AL-ZAYYAT / AFP)
People sit on a bench on the Sheikh Jaber al-Ahmad al-Sabah Causeway as a Zhonggu Shipping container ship sails past on its way towards the port of Shuwaikh in Kuwait City on February 28, 2026. (Photo by YASSER AL-ZAYYAT / AFP)

Kuwait's oil production is expected to reach 2.628 million barrels per day in June, the state news agency (KUNA) quoted the country's oil minister as ⁠saying on Sunday.

Seven ⁠OPEC+ countries will raise oil output targets by 188,000 barrels per ⁠day in June, the third consecutive monthly increase, OPEC+ said in a statement after an online meeting.

The output targets are largely symbolic ⁠for ⁠now, as Gulf countries have had to curtail production while the Strait of Hormuz is shut during the Iran war.

Business

Maritime Alliances Propel Saudi Arabia Toward Building Global Logistics Influence

Containers assembled at a Saudi port (SPA)
Containers assembled at a Saudi port (SPA)
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Maritime Alliances Propel Saudi Arabia Toward Building Global Logistics Influence

Containers assembled at a Saudi port (SPA)
Containers assembled at a Saudi port (SPA)

In a short period, Saudi Arabia has moved into a phase of building global logistics influence through maritime alliances with major international companies. The latest step is the launch of a new shipping route linking the Kingdom with Europe, alongside 18 other maritime services currently in operation, supporting national exports, improving access to markets, and reinforcing the country’s position as a key logistics hub.

The Saudi Ports Authority (Mawani) announced on Saturday the addition of a new shipping service by MSC, the world’s largest container shipping company, named “Europe–Red Sea–Middle East,” to Jeddah Islamic Port and King Abdullah Port in Rabigh, as part of ongoing efforts to strengthen maritime connectivity between the Kingdom and global ports and to support import and export flows in cooperation with leading global shipping lines.

MSC said in a statement on its X platform that the new fast shipping service is designed to meet growing demand and provide reliable and efficient connections in a complex operating environment.

The new service links Jeddah Islamic Port with several major global ports, including Gdansk, Klaipeda, Bremerhaven, Antwerp, Valencia, Barcelona, Gioia Tauro, and Abu Qir, extending to King Abdullah Port, Jeddah, and Aqaba, with a capacity of up to 16,000 TEUs.

The authority also revealed on Sunday the launch of 18 maritime shipping services at present, supporting the growth of national exports, improving their efficient access to international markets, and strengthening the Kingdom’s position as a central logistics hub.

Strategic Shift

Specialists told Asharq Al-Awsat that the Kingdom is undergoing a strategic transformation that strengthens its position as a logistics hub linking three continents and supports the goals of Vision 2030 to position Saudi Arabia as a global logistics platform. They said this reflects cumulative investments in port infrastructure, digital transformation, technical integration, and partnerships with leading global shipping lines.

They added that linking the Kingdom with Europe reduces time and cost and enhances the global reach of Saudi products.

Sovereign Tool

Zaid Al-Jarba, an expert in digital transformation and logistics services, told Asharq Al-Awsat that amid rapid shifts in global supply chains, efficient logistics connectivity is no longer merely an operational advantage but a sovereign tool reshaping economic power balances between countries. He said the launch of the new maritime route to Europe, alongside the addition of 18 services in a short period, signals the Kingdom’s transition to an advanced stage in building its logistics influence.

He added that what distinguishes this step is not only the expansion in the number of routes, but the quality of operational integration across Saudi ports, describing an interconnected system that begins at Jeddah Islamic Port and King Abdullah Port and extends through King Abdulaziz Port in Dammam via feeder vessels, reflecting a unified logistics network rather than separate gateways.

He said the move supports Vision 2030 and the National Transport and Logistics Strategy, which aims to establish the Kingdom as a global logistics platform by improving logistics hub performance, upgrading infrastructure, and adopting modern transport systems.

Operational Capacity

Al-Jarba said recent figures, including the launch of 18 new maritime services within a short timeframe with a total capacity of 123,552 TEUs, reflect high operational capacity and flexibility in responding to global changes.

He noted that the presence of global companies such as MSC, Maersk, and CMA CGM within the operating ecosystem reflects international confidence in Saudi Arabia’s logistics environment, indicating that the sector has moved beyond efficiency improvements toward maximizing economic and competitive impact.

He added that improved maritime connectivity not only supports imports but also serves as a key enabler for national exports by reducing delivery times to European markets, improving reliability, and lowering logistics costs, thereby enhancing the competitiveness of Saudi goods, particularly in industrial, food, and petrochemical sectors.

He said developments in Saudi ports go beyond expanding shipping routes to reflect a broader strategic shift toward building an integrated, globally competitive logistics system, adding that the Kingdom is steadily advancing toward cementing its position as a global logistics hub and a key link in international supply chains.

Logistics Integration

Khaled AlGhamdi, a supply chain and logistics expert, told Asharq Al-Awsat that adding these services expands alternative options that integrate with other logistics modes, including land, rail, and air, as part of broader efforts to enhance integration across the transport and logistics sector through multiple initiatives and international partnerships aimed at reducing time, lowering costs, and boosting productivity.

He said the new Europe link in particular will significantly accelerate cargo movement in both directions, from King Abdulaziz Port in Dammam to Jeddah Islamic Port and King Abdullah Port, reflecting efforts to enhance sector integration through expanded services, improved efficiency, and greater reliability, further cementing the Kingdom’s position as a global hub linking three continents.

He added that since the launch of Vision 2030, Saudi Arabia has seen broad progress in transport and logistics, including the rollout of a national strategy and projects exceeding 280 billion riyals, contributing to the Kingdom’s rise to 17th place in the Logistics Performance Index, underscoring the scale of progress achieved.