Job Losses and Pay Cuts as Lebanon's Economy Crumbles

After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)
After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)
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Job Losses and Pay Cuts as Lebanon's Economy Crumbles

After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)
After years of political turmoil, the Lebanese economy is in a sharp downturn. (AFP)

Weeks into a protest movement partly driven by a collapsing economy, Lebanese interior architect Laeticia Nicolas was called in by her boss and told she was fired.

"There had been fewer and fewer projects for a year," said the 28-year-old, who since October 17 has taken part in unprecedented anti-government protests sweeping the country.

"Before the revolution began, they warned us they'd be paying just half our salaries in exchange for reducing working hours," she said, according to AFP.

But as the protests gained momentum, he downsized his team. Nicolas was informed of the bad news at the end of the month when she received her salary.

"It's not because of the revolution, but it may well have accelerated things," she said.

After years of political turmoil, the Lebanese economy is in a sharp downturn, banks have restricted access to dollars while prices have risen.

Amid the crisis, thousands of Lebanese say their jobs are under threat.

Activists have denounced what they call illegal lay-offs and urged the labor ministry to intervene.

Some people, like Nicolas, have lost their jobs altogether; others have been told to work part-time for a fraction of their original salary.

A woman who asked to be identified as "Mary" was among those forced to take a pay cut. For 16 years she has been a saleswoman at an upper-end women's clothing shop, and now she fears her job may be on the line.

"Since the start of November we've been taking two extra days off a week," said the 46-year-old, who asked that her real name not be used in order to protect her job.

"They said they would have to pay us half our salaries."

'We fear the worst'

She said that she and around 20 colleagues did not object "because we fear the worst, and no one is going to risk losing their job in such circumstances".

"It's been bad for months. In recent days, the shop takings haven't even been 50,000 Lebanese pounds", or around 30 euros, Mary said.

Economic growth in Lebanon has been battered by repeated political deadlock in recent years, compounded by the eight-year war in neighboring Syria.

Successive cabinets have failed to implement desperately needed reforms to redress a floundering economy heavily reliant on tourism and services.

The World Bank projected negative growth of 0.2 percent in Lebanon for 2019, but now warns the recession could be even worse.

It has urged that a new cabinet be swiftly formed, after the government stepped down less than two weeks into the protests, to avoid more Lebanese becoming poor.

Around a third of Lebanese live in poverty, and that figure could soon rise to half, according to the World Bank.

Unemployment, already above 30 percent for young people, would also go up, it said.

A group of Lebanese banks and private businesses also warned of bleak times ahead.

"Thousands of companies are threatened with closure, and tens of thousands of employees and workers risk losing their jobs," they said.

The union of restaurant and bar owners has said 265 establishments have closed already, and that figure could reach 465 by the end of the year.

Begging for payment

In the month before the protests, banks began restricting access to dollars, sparking a greenback liquidity crisis.

Bilal Dandashli, who heads a small road safety equipment company he founded in the 1990s, said he was struggling.

"We can no longer import supplies from abroad," he said.

The Lebanese pound is pegged at around 1,500 pounds to the dollar, and both are used interchangeably in everyday transactions.

But caps on dollar withdrawals have forced people to resort to moneychangers, sending the unofficial exchange rate soaring to more than 2,200.

To make matters worse, Dandashli said customers were also not paying their debts.

"It's like begging for our own money," he said.

"One person owes me $20,000, and today he turns up with a cheque for $1,000. How are we supposed to continue like this?"

Dandashli says he fears for the future of his 10 employees, whom he has continued to pay in full despite no work for two months.

"I could hang on for another few months or close. But it would break my heart to see everything I've built up over the years collapse."

In the latest sign of things getting worse, petrol station owners began an open-ended strike on Thursday because of losses caused by the plunging pound against the dollar.

Nicolas, the newly unemployed interior architect, is now applying for jobs and considering a proposal to work in Kuwait.

"If travelling is the only option, I'll have to take it," she said through tears.

"I'll start over. Just not here, as here there is no hope."



Madinah Sees Tourism Surge Ahead of Ramadan, Spending Tops $13.9 Billion

A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 
A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 
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Madinah Sees Tourism Surge Ahead of Ramadan, Spending Tops $13.9 Billion

A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 
A cluster of buildings and hotels surrounding the Prophet’s Mosque (SPA). 

Saudi Arabia’s Minister of Tourism, Ahmed Al-Khateeb, has toured hospitality facilities and visitor services in Madinah as part of the “Spirit of Ramadan” inspection tour, which also included Jeddah and Makkah.

New data show visitor numbers exceeded 21 million over the past year, a 12 percent increase from 2024, while total tourism spending reached SAR 52 billion (about $13.9 billion), up 22 percent.

The visit focused on assessing the sector’s readiness for the Ramadan season, evaluating service quality, and supporting ongoing and upcoming tourism projects.

Madinah posted strong tourism performance in 2025, driven by higher visitor inflows and expanded hospitality capacity, reinforcing its position as a leading religious destination within Saudi Arabia’s tourism landscape.

Demand growth has been matched by a sharp rise in supply. Licensed hospitality facilities increased to 610, up 35 percent, while the number of licensed rooms surpassed 76,000, a 24 percent gain, strengthening the city’s ability to accommodate during peak seasons such as Ramadan and Hajj.

Travel and tourism offices also grew to more than 240, reflecting a 29 percent expansion in supporting services.

Al-Khateeb said the entry of international hospitality brands and new projects over the past five years underscores both sectoral growth and rising investor confidence in the Kingdom’s tourism ecosystem.

“The landscape today is different. The sector is growing steadily, supported by a system that empowers investors and facilitates their journey, with a promising future ahead,” he said.

To expand hotel capacity, the minister inaugurated the Radisson Hotel Madinah, a project worth more than SAR 39 million (around $10 million) and financed by the Tourism Development Fund.

The 2025 performance signals a shift from traditional seasonal growth toward more sustainable expansion built on diversified offerings, improved service quality, and a stronger contribution to the local economy.

 

 

 

 

 

 


Airbus Planning Record Commercial Aircraft Deliveries in 2026

An Airbus A350-1000 at the Singapore Airshow on February 4. The company said Thursday it aims to deliver a record number of aircraft this year. Roslan RAHMAN / AFP/File
An Airbus A350-1000 at the Singapore Airshow on February 4. The company said Thursday it aims to deliver a record number of aircraft this year. Roslan RAHMAN / AFP/File
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Airbus Planning Record Commercial Aircraft Deliveries in 2026

An Airbus A350-1000 at the Singapore Airshow on February 4. The company said Thursday it aims to deliver a record number of aircraft this year. Roslan RAHMAN / AFP/File
An Airbus A350-1000 at the Singapore Airshow on February 4. The company said Thursday it aims to deliver a record number of aircraft this year. Roslan RAHMAN / AFP/File

Plane maker Airbus aims to deliver a record number of commercial aircraft this year, the company said Thursday, capitalizing on "strong demand" and a jump in profit in 2025.

"2025 was a landmark year, characterized by very strong demand for our products and services across all businesses," CEO Guillaume Faury said in a press release announcing annual results.

The European manufacturer said it received 1,000 orders for commercial planes in 2025, with net orders of 889 after taking cancellations into account, and 793 delivered.

Last year, its overall profit jumped 23 percent to 5.2 billion euros ($6.1 billion).

The company said it is targeting "around 870 commercial aircraft deliveries" this year.

"As the basis for its 2026 guidance, the Company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations, and its ability to deliver products and services," it said in its outlook.

Both Airbus and its rival Boeing have struggled to return to pre-pandemic production levels after their entire network of suppliers was disrupted, even as airlines are eager to modernize their fleets with more fuel-efficient aircraft and expand to meet an expected increase in passenger numbers over the coming decades.


Saudi Arabia's Humain Invests $3 Bn in Musk's xAI

The logo of the Saudi company Humain. Asharq Al-Awsat
The logo of the Saudi company Humain. Asharq Al-Awsat
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Saudi Arabia's Humain Invests $3 Bn in Musk's xAI

The logo of the Saudi company Humain. Asharq Al-Awsat
The logo of the Saudi company Humain. Asharq Al-Awsat

Saudi Arabia's artificial intelligence firm Humain said Wednesday it had invested $3 billion in US billionaire Elon Musk's xAI.

The investment made Humain a "significant minority shareholder,” the company said in a statement.

It added that its xAI holdings would be "converted into SpaceX shares" after the rocket company announced it was taking over the AI start-up earlier this month as Musk pushes to unify his many business interests.

CEO Tareq Amin said the latest investment “reflects Humain’s conviction in transformational AI and our ability to deploy meaningful capital behind exceptional opportunities where long-term vision, technical excellence, and execution converge, xAI’s trajectory, further strengthened by its acquisition by SpaceX, one of the largest technology mergers on record, represents the kind of high-impact platform we seek to support with significant capital.”

Musk's xAI had previously announced in November it was teaming up with Humain to build a 500-megawatt data center in Saudi Arabia.

The Saudi firm also inked a new deal with Nvidia.