Lebanon's caretaker Finance Minister, Youssef Khalil, has cautioned that the impact of the recently announced financial package of €1 billion ($1.07 billion) to the cash-strapped country could be undermined by corruption unless accompanied by reforms.
“This is a risk,” Mr Khalil said. “The modalities to prevent this will be discussed in the coming weeks.”
Five years into an economic crisis labelled by the World Bank as one of the worst since 1850, vested interests in Lebanon's ruling elite have been accused of obstructing the much-needed financial reforms necessary to secure the country's access to a $3 billion aid package from the International Monetary Fund (IMF).
Despite pressure to make aid conditional on reforms, the European Union nonetheless this week pledged a financial package of €1 billion euros to prop up Lebanon's faltering economy.
In an interview with The National, Mr Khalil said that only substantial reforms could lift the country out of its deep crisis, despite a slowing economic contraction since 2022.
“We've succeeded in boosting state revenues this year, but this will only provide a respite of two or three years unless structural reforms are implemented,” he said.
These much-needed reforms have been prevented by “the economic and political structure of the country”, he said.
After a severe financial crisis shook the country in 2019, Lebanon reached what the World Bank described as a “temporary bottom” in 2022, allowing the volatile exchange rate to temporarily stabilise, due to tourism and significant remittances from the Lebanese diaspora.
However, the spillover of the Gaza war into Lebanon has curbed initial predictions of growth for the country's economy, which had been projected to expand in 2023 for the first time since 2018, by 0.2 per cent.
Finding a way out
Mr Khalil said one of the main reforms that helped bolster state revenues was the increase in the exchange rate used to calculate customs duties on imports. This, he said, enabled the government to increase public service workers' salaries.
The 2024 budget proposal put forward significant tax and VAT increases, but was criticised by some observers for its lack of long-term vision.
“We cannot live like this on customs revenues eternally,” Mr Khalil admitted.
International donors have demanded structural reforms of Lebanon's public sector, with a focus on revamping the dilapidated electricity sector and its public utility, Electricite du Liban (EDL).
These reforms have yet to be initiated.
Nonetheless, Mr Khalil said he remains optimistic about Lebanon's ability to emerge from the crisis.
He see hope in tourism revenues and the potential for investments through public-private partnerships, which allow large-scale government projects to be completed with private funding, thereby alleviating pressure on public finances.
“Confidence is key and can be restored,” he said.
Many experts believe that restoring confidence hinges on the adoption of an economic recovery plan, one of the prerequisites outlined by the IMF, which Lebanon's elite has displayed minimal interest in implementing.
Three different plans have already been jeopardised because of the lack of consensus on how to allocate Lebanon's massive financial losses.
The IMF, with whom Lebanon signed a staff-level agreement yet to be implemented, has consistently criticised, in unusually strong terms, the country's elite for its inaction.
“The IMF plan is there to be proposed but not imposed,” Mr Khalil said, claiming the plan's failure came from a lack of flexibility on how to adopt the required reforms within the Lebanese context.
He added that the broader political context is key to Lebanon' economic recovery.
South Lebanon, which is being pounded on a daily basis by the Israeli army amid the continuing border conflict, has endured “significant destruction”. No estimates have yet been made of how much it could cost Lebanon to rebuild.
“Who will foot the bill, what the cost will be, poses a significant challenge,” Mr Khalil said.
Crisis responsibility
Lebanon's 2019 economic crisis, which came after decades of public funds being squandered, plunged more than 80 per cent of the population into poverty, destroyed the value of the local currency and pushed the banking sector to insolvency.
The government estimates that about $70 billion was lost, with many ordinary Lebanese citizens losing their entire savings which were stuck in banks.
Lebanon's former central bank governor, Riad Salameh, long lauded as the “financial wizard” who kept the banking sector flourishing, is now wanted by the European judiciary on accusations of corruption and is widely viewed as the culprit for the economic collapse.
Mr Khalil, who joined the central bank in 1982 as an economist, has consistently denied any knowledge of wrongdoing during his tenure.
As the director of the financial operations department at BDL (Banque du Liban), from 1994 until he became a government minister in 2021, he oversaw the financial engineering strategy implemented from 2016, in which the dollar-starved BDL offered lavish interest rates to banks in exchange for their dollars.
This policy resulted in massive losses at the central bank, which were not publicly disclosed at the time. It has since been blamed as one of the causes of the economic crisis.
Its critics have labelled it a “Ponzi scheme”, where fresh borrowing is used to pay back debt.
In hindsight, Mr Khalil acknowledged the excesses of this policy.
“It was originally designed to buy time until we could establish more robust monetary and economic strategies, but everyone got carried away and overdid it.”
Banks have been the target of protests across Lebanon since 2019, with depositors angry that they have been unable to access their savings.
BDL and some other banks in Lebanon have tried to deflect responsibility for the losses from the period on to public policies, claiming that the financial sector had lent money to the government, which they accuse of misusing funds.
In early 2023, Lebanon's central bank said it had been owed $16.6 billion from the state since 2007.
But Mr Khalil insisted that there is a shared responsibility in the crisis. “BDL was part of all political and economic decision-making.”
“The state, the central bank and the banks – all have made mistakes.”
Frankenstein in Baghdad
Ahmed Saadawi
Penguin Press
Challenge Cup result:
1. UAE 3 faults
2. Ireland 9 faults
3. Brazil 11 faults
4. Spain 15 faults
5. Great Britain 17 faults
6. New Zealand 20 faults
7. Italy 26 faults
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
WIDE%20VIEW
%3Cp%3EThe%20benefits%20of%20HoloLens%202%2C%20according%20to%20Microsoft%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EManufacturing%3A%3C%2Fstrong%3E%20Reduces%20downtime%20and%20speeds%20up%20onboarding%20and%20upskilling%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEngineering%20and%20construction%3A%3C%2Fstrong%3E%20Accelerates%20the%20pace%20of%20construction%20and%20mitigates%20risks%20earlier%20in%20the%20construction%20cycle%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EHealth%20care%3A%3C%2Fstrong%3E%20Enhances%20the%20delivery%20of%20patient%20treatment%20at%20the%20point%20of%20care%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEducation%3A%3C%2Fstrong%3E%20Improves%20student%20outcomes%20and%20teaches%20from%20anywhere%20with%20experiential%20learning%3C%2Fp%3E%0A
Match info
Costa Rica 0
Serbia 1
Kolarov (56')
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
More from Mohammed Alardhi
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
British Grand Prix free practice times in the third and final session at Silverstone on Saturday (top five):
1. Lewis Hamilton (GBR/Mercedes) 1:28.063 (18 laps)
2. Sebastian Vettel (GER/Ferrari) 1:28.095 (14)
3. Valtteri Bottas (FIN/Mercedes) 1:28.137 (20)
4. Kimi Raikkonen (FIN/Ferrari) 1:28.732 (15)
5. Nico Hulkenberg (GER/Renault) 1:29.480 (14)
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The specs
Engine: 4-litre twin-turbo V8
Transmission: eight-speed PDK
Power: 630bhp
Torque: 820Nm
Price: Dh683,200
On sale: now
NEW%20UTILITY%20POLICY%3A%20WHAT%20DOES%20IT%20REGULATE%3F
%3Cp%3E%E2%80%A2%20Agreements%20on%20energy%20and%20water%20supply%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Applied%20service%20fees%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Customer%20data%20and%20information%20privacy%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Prohibition%20of%20service%20disconnections%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Customer%20complaint%20process%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Management%20of%20debts%20and%20customers%20in%20default%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Services%20provided%20to%20people%20of%20determination%20and%20home%20care%20customers%3C%2Fp%3E%0A
COMPANY PROFILE
Name: Akeed
Based: Muscat
Launch year: 2018
Number of employees: 40
Sector: Online food delivery
Funding: Raised $3.2m since inception
Match info
Uefa Champions League Group H
Juventus v Valencia, Tuesday, midnight (UAE)
Christopher Robin
Starring: Ewan McGregor, Haley Atwell, Jim Cummings, Peter Capaldi
Three stars
Race card
6.30pm: Emirates Holidays Maiden (TB), Dh82,500 (Dirt), 1,900m
7.05pm: Arabian Adventures Maiden (TB), Dh82,500 (D), 1,200m
7.40pm: Emirates Skywards Handicap (TB), Dh82,500 (D), 1,200m
8.15pm: Emirates Airline Conditions (TB), Dh120,000 (D), 1,400m
8.50pm: Emirates Sky Cargo (TB), Dh92,500 (D)1,400m
9.15pm: Emirates.com (TB), Dh95,000 (D), 2,000m
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A
The biog
Hobbies: Salsa dancing “It's in my blood” and listening to music in different languages
Favourite place to travel to: “Thailand, as it's gorgeous, food is delicious, their massages are to die for!”
Favourite food: “I'm a vegetarian, so I can't get enough of salad.”
Favourite film: “I love watching documentaries, and am fascinated by nature, animals, human anatomy. I love watching to learn!”
Best spot in the UAE: “I fell in love with Fujairah and anywhere outside the big cities, where I can get some peace and get a break from the busy lifestyle”
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.