Saudi Arabia has banned the import of fruit and vegetables from Lebanon after authorities seized more than 600 million pills and hundreds of kilograms of hashish in the past six years, Riyadh's ambassador to Beirut said on Sunday.
Walid Al Bukhari revealed the full extent of drug seizures days after more than five million captagon pills were found in a shipment of pomegranates that arrived in Jeddah from Lebanon.
“The quantities that were thwarted are enough to drown the entire Arab world, not just Saudi Arabia, in narcotics and psychotropic substances,” Mr Al Bukhari wrote on Twitter.
Last week's discovery, the latest in a long line of drug busts in shipments from Lebanon, prompted Saudi authorities to introduce the ban on produce.
Kuwait, Oman, Bahrain and the UAE have supported the ban, which came into force at 9am on Sunday.
The move has left Lebanese farmers, who rely on exports to the Gulf, reeling and the government in Beirut urgently seeking a response.
Saudi Arabia said fruit and vegetables coming from or transiting through Lebanon are banned until authorities are convinced that Beirut has clamped down on smuggling networks.
The UAE Ministry of Foreign Affairs and International Co-operation said the Emirates supported Saudi measures to protect society from drugs and combat organised crime.
Kuwait's Foreign Ministry said the ban was based on Riyadh’s determination to prevent the smuggling of drugs across its borders.
It also called on Lebanese authorities to ensure exports were free of “prohibited materials”.
Lebanese President Michel Aoun called a meeting of Cabinet and industry leaders for noon on Monday to discuss the ban, which has shaken Lebanon’s agricultural industry and added to fears that the country's economic crisis could worsen.
The Gulf is the most important market for Lebanon’s fruit and vegetable exports – one of the few well-performing sectors in an ailing economy.
Antoine Howayek, who leads the Lebanese Farmers Association, told The National he feared that if other Gulf states follow suit it would cripple the sector's exports.
“All the Gulf countries will go with the same decision – Saudi, Kuwait the UAE, Oman, Bahrain, Qatar,” he said.
“They are 55 per cent of the fruit and vegetable export market for Lebanon.”
He said that while it would take time to see the full impact of the ban, the move would have long-lasting consequences for the country's agricultural sector.
“We need some days to see the results of this but it will be a disaster," Mr Howayek said. “If this product is not exported, all the prices will go down.
"Several sectors will not be able to plant again. We will feel the effects of this for a long time."
He was sceptical of the government’s ability to respond to the crisis.
“I don’t think they will be able to control the drug trade," Mr Howayek said. "They will make statements but effectively the government can’t do much.”
Caretaker Agriculture Minister Abbas Mortada said fruit and vegetable exports to Saudi Arabia were worth up to $24 million a year.
Captagon is an amphetamine commonly used by warring Syrian factions and revellers at parties across the region.
Lebanese authorities claimed the shipment merely transited through the country and had originated in Syria.
It was the latest drugs bust originating from Lebanon in recent months.
On Friday, four tonnes of cannabis bound for Slovakia from Lebanon were seized by Greek authorities at the port of Piraeus.
The production of captagon and other amphetamines has boomed in neighbouring Syria since its civil war erupted 10 years ago.
Its production is widely associated with the Syrian regime and its Lebanese ally, the militant group Hezbollah.
Lebanon’s ports are a major thoroughfare for the banned substances.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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