Businesses in Beirut's Southern Suburbs Struggle to Stay Afloat Under Israeli Raids

Destruction in Haret Hreik in the Beirut Southern Suburbs (AFP)
Destruction in Haret Hreik in the Beirut Southern Suburbs (AFP)
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Businesses in Beirut's Southern Suburbs Struggle to Stay Afloat Under Israeli Raids

Destruction in Haret Hreik in the Beirut Southern Suburbs (AFP)
Destruction in Haret Hreik in the Beirut Southern Suburbs (AFP)

Lina al-Khalil has fled her south Beirut home to escape escalating Israeli attacks on Hezbollah, but she still returns daily to the bombarded area to keep the family business running, according to AFP.
“It's more important than my house,” said the pharmacist, in her 50s, of the business she inherited from her father in Haret Hreik, a southern suburb of the Lebanese capital.
Whenever the Israeli military issues a warning to evacuate before a strike -- a near-daily occurrence for nearly two months -- she closes down the shop and rushes out.
Khalil said she has moved most of the pharmacy's stock to her second home in the mountains for safekeeping.
To serve the few customers she still has, she drives up to collect the medicine they need, and even delivers it to their homes when they can't reach the pharmacy.
Despite the ever-present fear and the steep decline in business activity, Khalil does what she can to keep her business afloat, like many other shopkeepers in Beirut's southern suburbs.
“With the drop in customers, the financial impact has been severe,” Khalil told AFP, adding that she has had to halve the salaries of her employees due to the pinch.
As the war continues, the size of damage to business in the southern suburb remains unclear.
The vast majority of the area's estimated 600,000-800,000 residents have fled, seeking refuge elsewhere.
When the war began in late September, Ali Mahdi and his brother shuttered their clothing stores and warehouse in Beirut's southern suburbs as well as in Tyre and Nabatiyeh, taking some of their merchandise with them.
They set up shops in several locations including Beirut's Hamra district, at a distance from the majority of the strikes.
But they still face many challenges there.
Mahdi added that he had to make some of his 70 employees redundant and dock pay from the rest.
With their future shrouded in uncertainty, “we're trying to clear our stocks,” he said.
The business sector in Lebanon has been severely affected by the ongoing war between Hezbollah and Israel since September 23, after nearly a year of limited cross-border clashes over the Gaza war.
In a recent report, the World Bank estimated that the Lebanese commercial sector incurred losses of $1.7 billion over 12 months of conflict, on top of billions more in losses to the economy and material damage.
An estimated 83% of losses are expected to accrue in conflict-affected areas, with 17 percent occurring in the rest of Lebanon.
There's nothing left but stones
Mahdi is anticipating the next phase of his life when he runs out of supplies. “We don't know whether to import new products or save our cash,” Mahdi said.
According to the World Bank report, losses are mainly driven by the displacement of both employees and business owners from conflict-affected areas, causing a close-to-complete cessation of business activity; the disruptions to supply chains to and from conflict districts; and changes in consumption behavior in non-conflict zones with a concentration on necessary rather than discretionary spending.
In the southern suburbs, an Israeli strike turned the cafe Abdel Rahman Zahr El-Din had opened five years ago into a pile of rubble.
He said he must salvage what he can, now that he has lost his only way to make ends meet.
“There's nothing left but stones,” he said as he inspected the upper floor, emerging with a small table in his hand, unharmed but covered in grey dust.

 



UN Humanitarian Chief Slams Aid Plan for Gaza Proposed by Israel, Backed by US 

A Palestinian boy has a bite from a ration of hot food from a charity kitchen set up at the Islamic University campus in Gaza City on May 12, 2025.(AFP)
A Palestinian boy has a bite from a ration of hot food from a charity kitchen set up at the Islamic University campus in Gaza City on May 12, 2025.(AFP)
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UN Humanitarian Chief Slams Aid Plan for Gaza Proposed by Israel, Backed by US 

A Palestinian boy has a bite from a ration of hot food from a charity kitchen set up at the Islamic University campus in Gaza City on May 12, 2025.(AFP)
A Palestinian boy has a bite from a ration of hot food from a charity kitchen set up at the Islamic University campus in Gaza City on May 12, 2025.(AFP)

United Nations aid chief Tom Fletcher on Tuesday criticized an Israel-initiated and US-backed humanitarian aid distribution plan for Gaza as a "fig leaf for further violence and displacement" of Palestinians in the war-torn enclave.

"It is cynical sideshow. A deliberate distraction," Fletcher told the UN Security Council.

No humanitarian aid has been delivered to Gaza since March 2, and a global hunger monitor has warned that half a million people face starvation, a quarter of the enclave's population.

Israel proposed last week that private companies would take over handing out aid in Gaza's south once an expanded Israeli offensive starts in its war there, which began in October 2023 after Hamas attacked Israel. Aid deliveries have been handled by international aid groups and UN organizations.

"We can save hundreds of thousands of survivors. We have rigorous mechanisms to ensure our aid gets to civilians and not to Hamas, but Israel denies us access, placing the objective of depopulating Gaza before the lives of civilians," said Fletcher.

Israel has accused Hamas of stealing aid, which the group denies, and is blocking deliveries until Hamas releases all remaining hostages.

Israeli foreign minister Gideon Saar, currently on an official visit to Japan, said on Wednesday that Israel endorsed what he called "the American humanitarian plan" under which aid would be provided by a private fund.

"It will go directly to the people. Hamas must not be allowed to get their hands on it," Saar said.

UN Secretary-General Antonio Guterres has rejected Israel's proposal, saying in April it risked "further controlling and callously limiting aid down to the last calorie and grain of flour."

The UN says any aid distribution must be independent, impartial and neutral, in line with humanitarian principles.

Fletcher said the UN has met more than a dozen times with Israeli authorities about their proposed aid distribution model to find a solution but without success. Minimum conditions include the ability to deliver aid to all those in need wherever they are in Gaza, he said.

Amid the stalemate, the United States last week backed a mechanism for Gaza aid deliveries to be handled by private companies, an approach that appeared to resemble Israel's proposal, but gave few initial details about the plan.

"We will not allow the old, broken system to remain in place," Israel's UN Ambassador Danny Danon told the council. "We appreciate the efforts to build a new mechanism, one grounded in accountability."

US WORKING WITH ISRAEL

Senior US officials were working with Israel to enable a newly established Gaza Humanitarian Foundation to "provide a secure mechanism capable of delivering aid directly to those in need, without Hamas stealing, looting or leveraging this assistance for its own ends", acting US Ambassador to the UN Dorothy Shea told the Security Council on Tuesday.

She urged the UN and aid groups to cooperate, saying the foundation would deliver aid consistent with humanitarian principles and would "ensure its own security so that commodities reach civilians in need".

"While some humanitarian organizations may ultimately choose not to engage in these conversations, others have chosen a more constructive path, and they will be able to deliver aid in an appropriate way, hopefully very soon," Shea said.

Fletcher said the Israeli-designed distribution model was not the answer. This was in part because Israel said it would limit aid distribution to south Gaza during its planned offensive and people would have to relocate to access aid there.

"It forces further displacement. It exposes thousands of people to harm," Fletcher told the council. "It restricts aid to only one part of Gaza while leaving other dire needs unmet. It makes aid conditional on political and military aims. It makes starvation a bargaining chip."

Most of the 15-member Security Council expressed concern about the proposed aid distribution plans.

"We cannot support any model that places political or military objectives above the needs of civilians. Or that undermines the UN and other partners' ability to operate independently," Britain, France, Slovenia, Greece and Denmark said in a joint statement before the council meeting.

The war in Gaza was triggered on October 7, 2023, when Hamas killed 1,200 people in southern Israel, and took some 250 hostages, according to Israeli tallies. Since then, more than 52,700 Palestinians have been killed, according to Gaza health authorities.