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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 and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.