عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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
TT
TT

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.

Most Viewed

 
 
Business

IEA, IMF and World Bank to Coordinate Response to Middle East War's Impact

A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
TT
TT

IEA, IMF and World Bank to Coordinate Response to Middle East War's Impact

A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked

The heads of the International Energy Agency, International Monetary Fund, and World Bank on Wednesday said they will form a coordination group to maximize their response to the significant economic and energy impacts of the war in the Middle East.

In a joint statement, the three global bodies noted that the war had caused major disruptions in the region and triggered one of the largest supply shortages in global energy market history.

"At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, ⁠align analysis, and coordinate ⁠support to policymakers to navigate this crisis," the heads of the IMF, IEA and World Bank said.

The new coordination group will assess the severity of impacts across countries, coordinate a response mechanism, and mobilize stakeholders to deliver support to countries in need, the international bodies said.

The response mechanism could include targeted policy advice, assessment of potential financing needs ⁠and related provision of financial support, including through low or zero-percent financing, as well as unspecified risk mitigation tools, they said.

Thousands of people have been killed across the Middle East in the war, which began when the US and Israel struck Iran on February 28, triggering Iranian attacks on Israel, US bases and the Gulf states, while opening a new front in Lebanon.

Now in its second month, the conflict has spread across the region, disrupting energy supplies and threatening to send the global economy into a tailspin.

"The impact is substantial, global, and highly asymmetric, disproportionately ⁠affecting energy ⁠importers, in particular low-income countries," Reuters quoted the IMF, IEA and World Bank as saying.

They noted that the war was already resulting in higher oil, gas and fertilizer prices, while triggering concerns about food prices and affecting global supply chains of helium, phosphate, aluminum, and other commodities. Tourism had also been hit.

"The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth," the organizations said.

"We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms," they said.

Business

Saudi Arabia: Mawani Announces Commencement of Container Terminal Operations at Jubail Port

Jubail Commercial Port. SPA
Jubail Commercial Port. SPA
TT
TT

Saudi Arabia: Mawani Announces Commencement of Container Terminal Operations at Jubail Port

Jubail Commercial Port. SPA
Jubail Commercial Port. SPA

The Saudi Ports Authority “Mawani” has announced the commencement of container terminal operations at Jubail Commercial Port under a privatization contract with Saudi Global Ports (SGP), backed by private sector investments exceeding SAR2 billion ($533 million).

The new move is in line with the objectives of the National Transport and Logistics Strategy under Saudi Vision 2030, Mawani said in a statement on Wednesday.

“The commencement of operations comes as part of the implementation of the privatization contract signed between the two parties, which includes the development of infrastructure and the modernization of operational equipment,” it said.

“This includes increasing berth length from 1,000 m to 1,400 m, deepening berths from 14 m to 18 m, increasing the number of STS cranes from 6 to 10, and raising the number of RTG cranes from 13 to 29 automated, environmentally friendly cranes,” the statement added.

According to Mawani, the launch will increase the container terminal’s handling capacity from 1.5 million TEUs to 2.4 million TEUs annually, across an area of 460,000 square meters.

This will enable the terminal to accommodate large next-generation vessels, enhance operational efficiency, and reinforce Jubail Commercial Port’s position as a key logistics gateway supporting the Kingdom’s sustainable growth.

It will also strengthen operational integration with the Group’s terminals across the Eastern Coast ports.

Business

Germany Growth Forecasts Slashed as Mideast War Hits Economy

Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
TT
TT

Germany Growth Forecasts Slashed as Mideast War Hits Economy

Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File

Leading economic institutes more than halved their growth forecast for Germany on Wednesday, warning that the energy shock caused by the Middle East war would hit Europe's top economy hard.

A group of leading institutes slashed their joint GDP growth forecast for 2026 to 0.6 percent, down from a September prediction of 1.3 percent.

Inflation is now forecast to rise to 2.8 percent, up from 2.0 percent, "weighing on household purchasing power".

"The energy price shock triggered by the Iran war is hitting the recovery hard," said economist Timo Wollmershaeuser of the Ifo institute, adding that increased government spending was nevertheless "preventing a stronger slide", AFP reported.

Oil and natural gas prices have surged since the end of February, when the United States and Israel attacked Iran, killed its supreme leader and plunged the Middle East into war.

Iran has since closed the Strait of Hormuz to ships of countries it considers allied with the US and Israel, effectively blocking a sea lane that normally transports about a fifth of the world's oil and liquefied natural gas.

Higher inflation in Germany would hit consumer spending, the institutes said, weighing on an already weak economy that has barely grown since a burst of pent-up demand after the Covid pandemic in 2022.

The government on Wednesday introduced rules allowing petrol stations to only raise prices once a day, at noon.

But motorist Sebastian, a 49-year-old estate agent who did not want to give his surname, told AFP at a Frankfurt petrol station that this was not enough to protect his spending power.

"Whether the price of petrol changes once a day or 10 times a day doesn't really matter," he said, adding it was "certainly not enough" to lower his costs.

Germany's economy, struggling with fierce Chinese competition in sectors from cars to chemicals, was in the doldrums even before US President Donald Trump last year imposed sweeping new tariffs before starting the Mideast war in late February.

Chancellor Friedrich Merz, who took office last May, vowed to borrow and spend hundreds of billions through a special infrastructure fund over coming years in what was dubbed a spending "bazooka" aimed at getting the economy back on its feet.

But the economists said that much of the money was simply paying for day-to-day spending.

"Government expenditure on consumption is rising much more sharply than investment," economist Oliver Holtemoeller of the Halle Institute for Economic Research said. "That was not the idea behind changing the financing rules."

The outlook for the longer term was also dire.

Citing low productivity, industrial decline and an ageing population, the institutes warned that Germany's economy would soon be unable to grow sustainably.

"We have also reassessed the structural changes in the German economy and, in particular, revised our forecast for industrial growth downwards," Wollmershaeuser said.

In an era when "demographic change is hitting with full force", he said, "potential growth will come to a standstill by the end of the decade, and we will have to get used to average GDP growth rates of zero percent".

Speaking to broadcaster Welt TV, Economy Minister Katherina Reiche said the government was working on reducing labour taxes and energy costs but that Germans would have to get used to working more over the course of their lives.

"We need to make this country vigorous again," she said. "Germany needs to get its will to win back."