A two-day conference organised by the Lebanese government to attract foreign investment began on Tuesday despite increasing Israeli threats of a renewed confrontation with Hezbollah.
The Beirut One forum courted foreign investors and officials from Arab governments in an effort to boost Lebanon’s reconstruction and economic recovery.
“Lebanon needs to restore confidence, and Lebanon is capable, especially because of the human power that is in the country, to be back on its feet,” Deputy Prime Minister Tarek Mitri told The National.
Lebanon is seeking to restore foreign investor confidence several years after it was plunged into one of the worst economic crises in modern history, blamed on decades of mismanagement and corruption among the ruling elite.
The value of the national currency crashed by more than 95 per cent, while many depositors' life savings disappeared as banks lost liquidity.
In 2023 Lebanon became embroiled in a war between Israel and Hezbollah, which ostensibly ended in a ceasefire last November, although Israel continues to attack Lebanese territory daily and its troops still occupy five areas in the country. In March, the World Bank said Lebanon has at least $14 billion in reconstruction needs.
"Beirut One is a conference that is the first of its kind, it has a lot of potential when it comes to looking into what needs to be done," said Noura Al Kaabi, UAE Minister of State, who added that it was her first visit to Lebanon in 20 years.
"We really were inspired by the Minister of Economy's presentation this morning. It was a very transparent one, it showed us the challenges and yet the opportunities at the same time," she added.
The conference comes on the heels of Monday's visit by a Saudi delegation, led by envoy Prince Yazid bin Farhan, to strengthen economic ties and renew trade with Lebanon.
The Saudi economic delegation headed by Assistant Minister of Investment Ibrahim Al Mubarak attended the conference, signalling faith from Riyadh. However, Saudi Arabia has made broader economic aid and investment conditional on greater reforms and the disarming of Iran-backed Hezbollah.
"We welcome everybody, especially our Saudi brothers," Lebanese President Joseph Aoun said in a speech to open the conference. "Beirut has missed them."
Mr Mitri added: “We hope that the presence of so many people, no matter how it translates into investment and when, is an indication that there is trust in Lebanon."
But the conference took place on the same day it was announced Lebanese Army commander Gen Rudolph Haykal was forced to cancel a scheduled visit to Washington. The US has expressed displeasure at the rate the Lebanese Armed Forces are acting to disarm Hezbollah.
Organisers say despite the unstable situation Lebanon finds itself in, now is as good a time as any to court investment. “You have to choose a time, don’t you? Now is as good as any other day,” said Finance Minister Yassine Jaber.
Asked if the cancellation of Gen Haykal’s visit indicated a lack of international confidence that might hinder attempts to attract investment, Mr Jaber told The National: “The army needs support. I think whatever has happened could be resolved diplomatically.”
Last month the Finance Minister led a delegation to the US to meet officials from the World Bank and the International Monetary Fund to update them on Lebanon’s reform process.
While Beirut has begun implementing some of the reforms demanded by international donors, others remain unaddressed. But Mr Jaber said: “Lebanon is trying to say ‘I’m back, I’m back,’ in so many ways. We should be working hard to arrive at a condition of stability, which would really empower us more.”
As the government-sponsored forum was taking place, one person – a municipal employee – was killed in an Israeli drone strike on the southern Lebanese town of Bint Jbeil, Lebanon's Health Ministry announced.
