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International Finance Corporation Announces New Investments in Lebanon

School students carry a huge Lebanese flag on the occasion of Lebanon's 82nd Independence Day anniversary to be celebrated on 22 November, outside the Parliament building in downtown Beirut, Lebanon, 20 November 2025. EPA/WAEL HAMZEH
School students carry a huge Lebanese flag on the occasion of Lebanon's 82nd Independence Day anniversary to be celebrated on 22 November, outside the Parliament building in downtown Beirut, Lebanon, 20 November 2025. EPA/WAEL HAMZEH
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International Finance Corporation Announces New Investments in Lebanon

School students carry a huge Lebanese flag on the occasion of Lebanon's 82nd Independence Day anniversary to be celebrated on 22 November, outside the Parliament building in downtown Beirut, Lebanon, 20 November 2025. EPA/WAEL HAMZEH
School students carry a huge Lebanese flag on the occasion of Lebanon's 82nd Independence Day anniversary to be celebrated on 22 November, outside the Parliament building in downtown Beirut, Lebanon, 20 November 2025. EPA/WAEL HAMZEH

The International Finance Corporation (IFC), a member of the World Bank Group, announced on Thursday new investments and engagements to expand access to finance and energy, support the growth of the manufacturing sector, and create jobs across Lebanon.

The new initiatives are part of the World Bank Group’s (WBG) broader strategy to support the country’s reconstruction and recovery and are fully aligned with the new economic vision of Prime Minister Nawaf Salam’s government, IFC said in a statement.

“IFC’s new engagements aim to fuel private sector development and drive a sustainable, inclusive recovery, and create much-needed jobs,” said IFC’s Regional Director for the Middle East, Afghanistan, and Pakistan Aftab Ahmed.

The new initiatives seek to expand access to reliable energy. In close coordination with the WBG’s International Bank for Reconstruction and Development, IFC will serve as the lead transaction advisor to the Lebanese government, working closely with the High Council for Privatization and PPPs and the Ministry of Energy and Water to promote efficient power generation by structuring and implementing a gas-to-power project under a public-private partnership model, the statement said.

The agreement supports the development of a floating storage and regasification unit to import, store, and convert liquefied natural gas into fuel; and the modernization of the 465-megawatt Deir Ammar I power plant into a cleaner, more efficient, higher-capacity independent power producer.

It also includes the construction of a new 825-megawatt combined-cycle gas turbine plant, Deir Ammar II, to boost generation capacity.

Once completed, the projects will expand access to reliable electricity, support the country’s shift to more renewable energy, improve the efficiency of Lebanon’s electricity sector, reduce its reliance on diesel, and cut down the cost of electricity generation.

As part of supporting financial inclusion, the IFC said it will provide a $10 million financing package divided equally between two leading microfinance institutions in Lebanon to expand access to finance to micro and small and medium enterprises (MSMEs) and women entrepreneurs with a focus on forcibly displaced persons and host communities. The loans will help preserve and create jobs while supporting Lebanon’s long-term recovery and development plans.

The financing package includes a first-loss guarantee of up to $5 million provided through a blended finance facility under the Prospects Partnership (PROSPECTS), a program spearheaded by the Dutch government.

PROSPECTS aims to improve access to education, social protection, and decent employment for host communities and forcibly displaced populations across East Africa and the Middle East. These investments align with ongoing efforts by the Ministry of Social Affairs to promote economic inclusion among vulnerable populations through its national programs, including the AMAN Social Safety Net Program under the World Bank Group’s International Bank for Reconstruction and Development support to the social protection agenda in Lebanon.

In order to promote sustainable manufacturing, IFC is also partnering with BCI Holding S.A. (BCI) to provide a loan of up to $40 million to support the company’s expansion in Lebanon and across the Middle East.

The funds will enable BCI, a leading regional producer of polyester polyols, polyurethane systems, flexible packaging, and specialty adhesives, to drive job creation and small and medium enterprise (SME) development.

As part of this growth, BCI will establish a dedicated R&D and Innovation Center in Lebanon and develop a back-office operations hub to strengthen its regional capabilities. Through tailored chemical formulations, specialty adhesives, and technical support, BCI will help SMEs improve quality, reduce waste, and innovate to enhance competitiveness.

To boost industrial development, IFC will be partnering with Matelec, a leading regional manufacturer of power-machinery and electrical infrastructure solutions headquartered in Lebanon, with an investment of up to $30 million to support the company's upcoming infrastructure projects in Lebanon and the broader Middle East and North Africa region.

The partnership will reinforce Matelec’s contribution to industrial development and job creation, while enhancing the availability of high-quality electrical infrastructure solutions for municipal and industrial sectors across local and international markets.

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IMF: Saudi Transformation on Track Supported by Deeper Reforms

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)
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IMF: Saudi Transformation on Track Supported by Deeper Reforms

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)

Saudi Arabia enters a new phase described as one of the most sensitive and influential in the course of its economic transformation, according to the International Monetary Fund (IMF), which said next year will be pivotal for the Kingdom thanks to deeper reforms implemented throughout the past years.

In a “country focus” released last month, Amine Mati and Yuan “Monica” Gao Rollinson, both in the IMF’s Middle East and Central Asia Department, showed that growth in Saudi Arabia has been fueled not only by investment, but also by people as private sector job creation has surged, particularly among women while unemployment rates reached record-lows.

The two economists said the resilience shown in 2025 underscores the progress already achieved in reducing the economy’s exposure to oil fluctuations.

They said that despite oil prices falling nearly 30% below their 2022 peak, the non-oil economy maintained strong momentum.

“This strength reflects the impact of Saudi Vision 2030 reforms—diversification gaps with emerging markets have narrowed, and the business environment now rivals that of advanced economies,” the two IMF experts said.

At the same time, Saudi Arabia is strategically shifting some of its spending priorities, with some of its investment focus moving toward AI and advanced technologies as part of its broader effort to diversify the economy.

The IMF paper said deeper reforms—including the steadfast implementation of recently enacted laws that ease access for foreign investors— will help foster an investor-friendly business environment and attract more private investment.

At the banking sector, it noted that the Saudi Central Bank’s continued vigilance in monitoring emerging risks will be critical in preventing vulnerabilities from building up.

“As conditions evolve, the central bank should continue to proactively deploy prudential measures to keep the financial system resilient,” it said.

Over time, deepening capital markets—so that companies can raise more financing through bonds and equity—will help ease pressure on banks, facilitate credit for small and medium enterprises, and create a more balanced mix of funding for the economy.

Looking ahead, Saudi Arabia faces a new test: how to sustain reform momentum in an era of potentially lower oil revenues without slipping back into the stop-and-go cycles that followed past oil booms, the two IMF economists said.

They said fortunately, Saudi Arabia approaches this challenge from a position of relative strength thanks to public debt-to-GDP ratios that remain low while foreign assets are still ample.

At the same time, the IMF noted that the sustainability of such progress relies on Saudi Arabia’s ability to anchor spending decisions within a consistent, multi-year framework will be vital for maintaining long-term sustainability.

The Fund showed that sustaining Saudi Arabia’s growth momentum will increasingly depend on two engines: a skilled workforce and a vibrant private sector.

Deeper reforms—including the steadfast implementation of recently enacted laws that ease access for foreign investors— will help foster an investor-friendly business environment and attract more private investment.

“The sovereign wealth fund can act as a complementary catalyst here by spurring new projects and partnerships, while making sure it leaves ample room for both domestic and international private investors to thrive,” the IMF paper noted.

Last October, the IMF had raised Saudi Arabia's economic growth forecast to 4% for 2026, supported by the expansion of non-oil activities and higher oil prices.

Meanwhile, the Saudi Finance Ministry forecasted real GDP growth of 4.6% in 2026, driven by non-oil activities and private-sector leadership.

Business

Iraq’s Oil Minister Says Talks Ongoing with Chevron on West Qurna 2 Oilfield

A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
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Iraq’s Oil Minister Says Talks Ongoing with Chevron on West Qurna 2 Oilfield

A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)

Iraq's oil minister said on Saturday that talks were ‌ongoing ‌with ‌US ⁠major Chevron regarding ‌the Lukoil-operated West Qurna-2 field, the Russian company's ⁠largest foreign ‌asset.

Chevron ‍and ‍Exxon Mobil ‍are among potential bidders for Lukoil's overseas assets following US ⁠sanctions on the Russian oil producer.

Business

China’s Consumer Inflation Scales 3-Year High but Deflation Battle Far from Over

Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
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China’s Consumer Inflation Scales 3-Year High but Deflation Battle Far from Over

Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)

China's annual consumer price inflation accelerated to a 34-month high in December, but the full-year rate slumped to the lowest in 16 years while producer deflation persisted, backing market expectations for more stimulus to shore up soft demand.

Imbalances in the $19 trillion economy have worsened over the past year even as growth is on course to meet Beijing's target of "around 5%" for 2025, buoyed by policy support and resilient goods exports.

US President Donald Trump's global trade war has added to persistently soft consumer demand, which has remained a drag on confidence and growth for years amid a prolonged property crisis.

The December consumer price index (CPI) rose 0.8% from the same month in 2024, National Bureau of Statistics (NBS) data showed on Friday, matching expectations in a Reuters poll and perking up from the 0.7% increase in November.

The rise was mainly driven by food prices, especially those of fresh vegetables and beef, which expanded 18.2% ‌and 6.9% respectively, Dong ‌Lijuan, a statistician at NBS, said in a statement. Pre-New Year holiday shopping ‌and ⁠supportive policies also helped ‌boost consumer prices, Dong added.

Chinese policymakers have repeatedly pledged to support a rebound in prices with monetary policy and have cracked down on excessive competition. They have also vowed to boost people's income to unleash consumption potential and better align the country's supply and demand.

Yet, the underlying demand impulse in the economy remains weak.

"Despite expectations of a recovery, inflation remains relatively low and should not preclude further monetary easing this year," said Lynn Song, ING's chief economist for Greater China.

Zichun Huang, China economist at Capital Economics, said the elevated headline CPI was not due to the government campaign to curb so-called "involution", adding that overcapacity and deflationary pressures will persist in the coming ⁠years in the absence of stronger demand-side measures.

WHERE HAS INFLATION GONE?

Indeed, for the entire 2025, consumer price growth was flat, well below the "around 2%" goal policymakers were ‌aiming for, a sign that stimulus measures, such as a consumer goods trade-in scheme, ‍have yielded only modest results in lifting sentiment and containing ‍deflationary pressure.

Prices of gold jewellery surged 68.5%, NBS data showed.

Core inflation, ‍which excludes volatile prices of food and fuel, rose 1.2% year-on-year last month, unchanged from November.

Goldman Sachs economists estimate that core price gauge excluding gold prices edged down in December from the prior month.

Annual growth in China's consumer prices has for years failed to meet policymakers' targets as the economy struggled to recover from the pandemic.

A prolonged property market crisis and a weak job market have contributed to lackluster household demand as well as overcapacity and price competition among producers.

On a monthly basis, CPI climbed 0.2% in December, compared with a 0.1% dip the previous month and a forecast for a 0.1% rise.

The producer ⁠price index (PPI) fell 1.9% year-on-year in December, remaining in a deflationary funk for more than three years even as it eased from a 2.2% drop in November. The gauge was expected to have fallen 2% in the Reuters poll.

NBS's Dong attributed the moderation in factory-gate deflation to both global commodity prices, including rising prices of non-ferrous metals, and policies for controlling capacity in key industries.

Capital Economics' Huang, however, said there hasn't been "any fundamental improvement in overcapacity."

"Prices of consumer durables continued to fall at a faster pace than during the depths of the global financial crisis, highlighting that the issue of excess supply remains unresolved in much of the manufacturing sector," she said.

For the whole year, PPI fell 2.6%.

Given the slowdown in economic momentum in the second half of last year, the market is watching for signs of additional government support measures in 2026 as top leaders have committed to pursuing a more proactive macroeconomic policy framework.

The central government has allocated 62.5 billion yuan ($8.95 billion) from special treasury bond proceeds to local governments to ‌keep funding the consumer goods trade-in scheme in 2026.

The government has also pledged to flexibly use monetary policy tools, such as cuts to interest rates and banks' reserve requirement ratio, to keep liquidity ample and spur growth.