Lebanon: Retailers to Shut Down amid Debilitating Crisis

Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA
Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA
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Lebanon: Retailers to Shut Down amid Debilitating Crisis

Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA
Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA

Major retailers in Lebanon announced on Thursday they will temporarily shut down in the face of an increasingly volatile currency market and their inability to set prices while the Lebanese pound plunges against the dollar.

Later in the day, owners of the businesses rallied in central Beirut to denounce the government’s inability to handle a deepening economic and financial crisis, and urging others to join them.

“The company is losing and ... (the customers) think we are robbing them," Samir Saliba, owner of sportswear retailer Mike Sport, told The Associated Press. “We want a clear economic policy to know how to move forward and not buy our dollars from the black market and be humiliated with the brokers and money changers."

The protesters called on the government to resign and urged other stores to join their protest shutdown.

The Lebanese pound recorded a new low Thursday, selling at nearly 10,000 for a dollar and maintaining the downward slide that saw the national currency lose about 85% of its value over the past months.

Despite government and central bank efforts to regulate the foreign currency rate, a parallel market has thrived and inflation is soaring as the dollar becomes increasingly scarce.

Amid the tumbling pound, prices and inflation have soared. Power cuts have also increased, as the government struggles to secure fuel and diesel, while grocery stores began imposing a limit on how many items customers can buy amid a rush to hoard basic goods.

The country is experiencing an unparalleled economic meltdown, rooted in years of mismanagement and excessive public spending.

On Thursday, embattled Prime Minister Hassan Diab accused “local and external parties” of seeking to besiege Lebanon and make his government fail. He also accused internal forces he did not name of causing the currency crisis.

“The dollar game has become exposed and visible,” he told a Cabinet meeting. Diab also claimed foreign countries were “blatantly interfering in Lebanon's affairs,” aided by internal powers to “drag Lebanon into the region's conflicts.” He did not elaborate.



EU Says it Agreed with UAE to Launch Free Trade Talks

EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
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EU Says it Agreed with UAE to Launch Free Trade Talks

EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS

The European Union said on Thursday it agreed with the United Arab Emirates to launch free trade talks, amid the upheaval and uncertainties created by US President Donald Trump’s decision to impose tariffs. He has since walked back some of the tariffs.

“Today, (the European Commission) President von der Leyen held a cordial phone call with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. During their discussion, they agreed to launch negotiations on a free trade agreement,” the EU said in a statement, according to Reuters.

The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors including renewable energy, green hydrogen and critical raw materials, the EU said.

The UAE's president said the decision to initiate negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with the EU reflects a shared determination to unlock the full potential of cooperation and advance their economic, trade, and investment ties in support of development aims.

“The CEPA would create new avenues for cooperation between the UAE and EU, increase trade and investment flows, and strengthen partnerships between the business communities of both sides,” Sheikh Mohamed wrote on his X account.

He emphasized that UAE-EU relations are founded on a common vision of stability, growth, and prosperity.

By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the pact is expected to foster opportunities in key sectors including advanced manufacturing, healthcare, logistics, and artificial intelligence, UAE's state news agency (WAM) said.

The EU is the UAE's second-largest trading partner, accounting for 8.3% of the Emirati total non-oil trade. The wealthy Gulf state is also the EU’s largest export destination and investment partner in the Middle East and North Africa, WAM added on Thursday.